More Crops, Less Land - AgriFORCE Aims For Sustainable Crop Cultivation And IP

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Rubber, palm and banana, plus a whole lot more.

Those are some of the specific crops Vancouver, Canada-based AgriFORCE Growing Systems Ltd. AGRI is looking at through a recent announcement of a binding LOI to acquire Deroose Plants NV, one of the largest tissue culture propagation companies globally, and certain crop IP.

Through specific Intellectual Property (IP) techniques, Deroose is able to increase yields per hectare for these plants thereby improving their sustainability  profile. AgriFORCE is looking to acquire other crop IP, adding to Deroose’s crop IP portfolio and potentially increasing yields of other new and high value crops including horticulture and fruits and vegetables.

“Our two companies are strongly aligned with transforming the agriculture industry through IP, innovative technologies and expertise that enable cleaner, better yielding crops with reduced environmental impact,” explained Ingo Mueller, CEO of AgriFORCE, regarding the rationale behind the proposed acquisition.

One particular focus of the planned purchase will be the ability to produce greater yields on ever-decreasing amounts of available land in tropical climates. With arable land increasingly scarce and governments not making additional new land available for crops like rubber and banana, harvesting as much as you can within these limitations becomes ever more important, something both companies are aligned on.

“We have invested over a decade in development of this IP and believe we can significantly improve the impact that these crops have on the environment, while providing much needed supply sources to the rubber and food industries,” said Maurice van Winden, CEO of Deroose.

Builds on Other Acquisitions

The proposed purchase of Deroose comes after AgriFORCE announced a definitive agreement to purchase Netherlands-based agriculture technology consultancy firm, Delphy Groep BV. One of the plans with the Delphy acquisition is the establishment of a research and development center in North America.

AgriFORCE reports that it is exploring the potential to build on Deroose’s existing Florida campus to replicate Delphy’s planned R & D center for North America. 

The Deroose company and IP acquisition, which looks likely to cost about $69 million, is attractive to AgriFORCE because of the patent portfolio Deroose enjoys.

“In addition, we believe Deroose’s IP provides significant barriers to entry to potential competitors, given the robust patent estate, and typically over 10 years to research and develop such processes,” Mueller of AgriFORCE said.

Both the Deroose and Delphy acquisitions would fit well with AgriFORCE’s intention to build on its foundational IP both through further technology development and by acquiring or partnering with other IP innovators in the food industry. 

The need to produce more food with increasingly limited resources speaks to the global issue of food security amid a growing global population and increasing urbanization. Traditional food retailers such as The Kroger Company KR and Albertsons Companies Inc. ACI may find themselves under growing pressure to modify their supply business model as a result.

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