Anuvia aims to have its biofertilizer on 20 million agricultural acres by 2025
US biofertilizer company Anuvia Plant Nutrients has achieved many milestones in a short time, the latest being a $65.5 million Series D fundraiser co-led by Riverstone Holdings and Piva Capital.
Morgan Stanley Investment Management and LK Advisers, the family office of steel magnate Mittal dynasty, participated alongside existing investor Pontifax AgTech.
The turn follows Anuvia’s $103 million Series C increase over last year.
“We’ve become a sustainable tool that can really help drive large-scale farming, and we can do that very quickly and efficiently in terms of adoption curves,” said Anuvia CEO Amy Yoder. . APN.
Florida-based Anuvia manufactures biofertilizers for the agriculture, turf and lawn care industries. The company says its agriculture-specific product SymTRX can improve crop yields for large-scale farms while replenishing the soil and reducing greenhouse gas (GHG) emissions.
- Anuvia’s technology breaks down organic waste into amino acids and peptides combined with nutrients to feed plants and soil. The process is similar to what happens naturally in soil – just accelerated to increase efficiency and nutrient uptake in agricultural settings.
- SymTRX, which currently targets corn, soybeans, wheat, canola and sugar beets, is already commercially available in the United States. Anuvia aims to have it on 20 million acres by 2025.
- The company struck a deal with phosphate mining company Mosaic in 2019 to use the Plant City, Florida plant for manufacturing. He has the ability to produce up to 1.2 million tonnes per year, which would service more than those 20 million acres targeted by Anuvia.
- He also partnered with a biologics company Novozymes to be developed »a pipeline [of] different products » aimed at reducing the agricultural sector’s need for synthetic fertilizers, Yoder said.
- A Audit conducted by consultants Environmental Resources Management found that for every million acres of crops that use Anuvia’s products, the reduction in GHGs is equivalent to taking up to 30,000 cars off the road.
How it will spend the funding:
Anuvia plans to increase the capacity of its manufacturing plant in the United States and to accelerate the commercialization of SymTRX.
- Through the aforementioned agreement with Mosaic, Anuvia will increase manufacturing in Plant City to produce more of its products in North America.
- Anuvia will also research potential new products, such as biopesticides and biofungicides.
- While North America is the target market for now, Yoder said Anuvia also has “some global initiatives.” The details of these partnerships are still secret.
The bigger picture:
Yoder suggested that farmers are “much more receptive than they would have been five years ago” to biofertilizers and other bio-based inputs, for several different reasons:
- Ongoing supply chain disruptions and congestion have caused input shortages around the world and sent global fertilizer prices skyrocketing to record highs. Farmers were estimated to be paying 165% more for fertilizer at the end of 2021 than in 2020.
- The Russian invasion of Ukraine has worsened fertilizer shortages and driven prices up, with some more than doubling.
- Downstream, consumers want more visibility on the sustainability of the food they buy. “Food companies are under pressure from their consumers, and at the end of the day, those consumers are also farmers, so they kind of think about it holistically,” Yoder said.
- Anuvia says these factors have accelerated the acceptance and desire for biofertilizers among farmers. In the case of its own products, farmers can integrate them into existing operations without having to add further steps to the process. “Being able to have something that’s produced locally, where they’re less reliant on a fragile supply chain, is great for [farmers]so they’ve been incredibly responsive,” Yoder said.
- Underscoring this, startups developing organic crop inputs raised just over $892 million in funding globally in 2021, well over double their total from the previous year.