The investment accelerates in the vegetable protein

L’investissement s’accélère dans les protéines végétales

Photo: Paul Chiasson, The canadian Press
The pandemic would be coming to speed up the attraction to the plant proteins.

Looking for the next Beyond Meat, whose share increased by 400 % since its stock Exchange listing in may 2019, the investments have increased in the segment of plant-based protein. The pandemic would be coming to speed things up.

“The environment of post-COVID has made 2020 a pivotal year for the market of sustainable proteins. In only six months, the sector has drawn double the investments of the last year “, one reads in a study published on Monday by FAIRR (Farm Animal Investment Risk and Return). The venture capital investors have injected US $1.1 billion after six months of this year in the startups, or young shoots, turning in the replacement of animal protein, compared to 457 million US $for the whole of 2019.

The success of fellows of Beyond Meat are no stranger to this expression of interest, the action of the producer of dishes based on vegetable proteins are trading today at nearly $127 US, against an issue price of US $25 in may 2019. The stock closed below $67 USD at the end of the first day of its ipo, reaching a peak around 235 US $on July 26.

The pandemic there would also be for something. “Large retailers as well as manufacturers are facing an increase in demand for products of plant origin, in particular due to fears of the public in relation to the links between meat production and the COVID -19 as well as other diseases such as african swine fever,” adds FAIRR.

The coalition aims to encourage producers and food retailers in the world to diversify their protein sources to stimulate growth and reduce the risk and carbon footprint in a world where resources are limited. The study of the global network of investors, giving priority to investments according to ESG criteria (environment, social and governance) highlights as well as two companies of the agri-food industry on the five — totaling $ 459 billion US $of turnover — now have teams dedicated to the development and marketing of plant proteins as alternative to dairy products and meat. “Tesco and Unilever dominate and position themselves favourably in the growing market for protein alternatives. Costco and Kraft and Heinz have taken the delay as Amazon, whose presence in the agri-food market continues to grow, remains silent on its strategy of transition to the protein-friendly “, taking care to specify.

BNN Bloomberg, citing figures from the agency the nielsen company, writes that the purchases of meat substitute herbal have increased by 264 % this year. It is expected that the market for protein called the sustainable reach 18 billion US $by 2025. In addition to the changes the food choices of consumers, the environmental impact remains the key to the gradual change of orientation. It is recalled that the supply chain of animal protein is very vulnerable to the impacts material to the global warming. “Although agriculture, including forestry, accounts for nearly 30 % of the total emissions of greenhouse gases, the objectives of the companies have historically failed to consider the carbon footprint of livestock farming and its supply chains,” says-t-on.

“Goldman Sachs indicates that the production agricultural animal, to the sides of the oil sector, is considered to be one of the two sectors in the most precarious in which to invest in the next year […] And losses of $ 13 billion are planned for the livestock industry in the United States in 2020 “, resulting in numerous closures of processing plant in the United States, continues FAIRR in his study.

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