March 6, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Wide Open Agriculture (WOA), Australia’s leading ASX-listed regenerative food and agriculture company, announced it has secured up to A$12 million (US$8 million) in debt facilities with National Australia Bank (NAB) to support the company’s growth in manufacturing plant-based beverages. 

The components of this financing package include $A8 million (US$5.4 million) for project-based debt related to carbon neutral and domestic production of the company’s Dirty Clean Food Oat Milk and its upcoming line of plant-based beverages combining oat milk with Buntine Protein®, and another A$4 million (US$2.7 million) in working capital including inventory and invoice financing. 

“This uplift in available working capital will support the financing capability of the Company in this time of market volatility and uncertainty. This will preserve shareholder value as we progress the commercialisation strategy of Buntine Protein® whilst also enabling us to achieve the strategic growth of Dirty Clean Food through domestic manufacturing of our carbon neutral oat milk.”

WOA has been a pioneer in the use of Buntine Protein – a proprietary high-value, plant-based protein concentrate made from regeneratively grown Australian Sweet Lupin (Lupinus angustifolius) in the Wheatbelt of Western Australia that was developed to have no carbon footprint, cause no water pollution, and to support the adoption of regenerative farming practices.

Historically, the vast majority of all lupin production has been used for livestock feed, with only 4 percent of global production allocated for human food. But the potential for this protein in the human food space is huge. Lupine is considered a super high protein legume with protein content between 32-40 percent. It has a low glycemic index rating, high digestibility rating and high fiber content, and can be produced on marginal, low-nutrient soil due to its ability to fix atmospheric nitrogen and its use in crop rotation. 

WOA has continued to advance the development of Buntine Protein®- enhanced oat milk beverages and stated that it expects to provide an update to the market on the timing and costs of the project by the end of the fiscal year on June 30, 2023. 

“We are grateful to our friends and supporters at NAB as we pursue a stacked finance model for production of plant-based food and beverages,” said Jay Albany, CEO, WOA. “NAB is a supporter of our domestic production initiative for Dirty Clean Food’s carbon neutral oat milk. The access to debt funding will allow us to continue to grow our presence in plant-based food and beverages and follow through on our commitment to domestic production concurrent with our launch of Buntine Protein® enhanced oat milks.”

Given the plant-based beverages market, higher volumes will likely be needed. Increases in health-conscious consumption, concerns for the environment and animal welfare, combined with greater levels of lactose intolerance continue to boost the plant-based sector.

The global plant-based beverages market, which stood at a value of US$24.42 billion in 2021, is expected to grow at a CAGR of 12.7 percent between 2022-2030, according to Grandview Research. On a bit more granular level, the global oat milk market, which was valued at US$2.23 billion in 2020, is expected to grow at a CAGR of 14.2 percent through 2028. 

With this financial support from NAB, an Australian production facility will allow for the company to employ “grown and made in Australia” provenance in its labeling, which will give its products a status in Asian markets that will be further supported by WOA’s regenerative farming practices and carbon neutrality. 

Upon commencement of domestic production, WOA stated that it expects the total cost of production per liter of oat milk to see a significant reduction due to lower shipping costs, operational synergies, and reduced tariffs to select international customers in Asia. 

WOA’s brand of Dirty Clean Food’s oat milk is currently being distributed across Australia, Singapore, Hong Kong, and Taiwan, and currently has distribution agreements in place in Malaysia and Indonesia that are expected to begin this year. 

“NAB is committed to advancing the sustainability agenda within the Agribusiness sector and supporting value-added manufacturing in Australia,” said Jeff Pontifex, State business banking executive – regional & agribusiness, NAB.

“We are excited to work with WOA and hope that this is the beginning of a longstanding, mutually beneficial relationship as WOA pursues innovative plant-based manufacturing projects in Australia.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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