August 29, 2019

By Lynda Kiernan

In January 2018, Cargill made what is now known to be a $25 million investment in PURIS, the largest pea protein producer in North America, forming a joint venture with the company to accelerate the production of plant-based food. 

This month, Cargill announced it is investing another $75 million in the company, which will be used to more than double production at its existing 200,000 square-foot facility in Dawson, Minnesota – a move necessary to keep pace with growing demand for pea proteins, starches, and fibers all grown and produced through PURIS’ transparent and integrated supply chain. 

“This is more than a pea protein facility. This is the future of food,”  said Tyler Lorenzen, president, PURIS. “The Dawson facility will not only support PURIS farmers in the U.S. with a crop that regenerates their land and that is sustainable because it provides soil health advantages but will also support the growing demand for great tasting plant-based products in the marketplace. This investment will grant PURIS the ability to support more food companies, more farmers and more consumers faster.”

“I am excited that Cargill and PURIS are investing in the potential of Greater Minnesota communities like Dawson,” said Governor Tim Walz. “Repurposing an existing facility for a new pea protein plant is an excellent example of the smart, sustainable innovation that has kept Minnesota on the forefront of the food production industry.”

The Mighty Pea

Global protein consumption is expected to climb at a compounded annual growth rate (CAGR) of 1.7 percent, reaching 943 million tons by 2054, according to Lux Research. Over this same time period, alternative protein sources are forecast to command up to a third of the protein market as they fill the void created by slowing growth in meat and seafood production, and demand shifts within the consumer market.

In the overall alternative protein category, pea protein has rapidly gained popularity. Extracted from ground yellow split peas, unlike soy or whey, pea protein is not an allergen, is non-GMO, gluten-free, vegan, kosher, and is comparatively more environmentally friendly than other protein sources. Pea protein is also cholesterol-free, helps control blood pressure, provides a feeling of satiety, and is an effective source of protein for muscle building.

“As consumer demand increases for plant-based proteins, we want to make sure that Cargill, with our partner PURIS, can deliver on that demand with great tasting, sustainable and label-friendly pea protein for customers in North America and across the world,” said Laurie Koenig, head of texturizers and specialty for Cargill. “This investment also provides significant support to the local economy with approximately 90 new jobs and a new revenue stream for Midwest farmers.”

Between January 2016 and December 2018, the launch of new pea protein-based food and beverages grew 19 percent on a global scale, according to Innova Market Insights, driving an ever increasing need for greater volumes of ingredients.

To meet this need, PURIS has built a network of more than 400 farmers across the U.S. to grow their peas, which benefits not only the farmers’ bottom line by creating a new market channel, but their soil as well, due to peas’ ability to regenerative properties.

Cargill’s Move

This follow-on investment in PURIS is a continuation of an ongoing strategy for Cargill.  Throughout 2016 and 2017, Cargill sold off its U.S. feed yards – selling its sites in Bovina and Dalhart, Texas to Friona Industries in July 2016, and then selling its feed yards in Leoti, Kansas and Yuma, Colorado to Green Plains Inc. in May 2017.

At the time, John Keating, president of Cargill’s Wichita-based protein business operations and supply chain, said, “We are committed to being the leading protein provider that nourishes people, animals and the planet in a safe, responsible and sustainable way while exceeding the expectations of our customers.”

This pivot toward greater sustainability and plant-based food systems continued in July 2017 when Cargill announced it had  entered into a strategic partnership with Austria-based Delacon – the pioneering global leader in phytogenic (plant-based) feed additives.

One month later, in August 2017, Cargill announced its participation in a $17 million Series A for Memphis Meats, and went on to participate in a Series A for Israel-based cellular meat startup Aleph Farms led by VisVires New Protein in May of this year.

Now, with Cargill’s additional backing, PURIS will own and operate three dedicated pea protein facilities in North America – in Turtle Lake, Wisconsin, Oskaloosa, Iowa, and Dawson, Minnesota. The retrofitting necessary at the Dawson facility is to begin immediately, and is expected to be completed in late 2020.

“While this is an important step in our growth for many reasons, one that resonates personally for me is to move ever closer to the vision my father had in 1985,” said Lorenzen. “A vision that plant-based nutrition would propel us to a better future for both people and our planet.  With this investment, those possibilities are becoming realities which in turn inspires us to create what’s next for plants, people, planet and PURIS.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.