Biofilm Firm OneCrop Secures Investment From Twynam Group

September 20, 2018

Australia’s agtech biofilm company OneCrop has secured a multimillion dollar investment from the Kahlbetzer family’s Twynam Group.

OneCrop is a research-based developer of biodegradable, pre-emergence agricultural film for use with horticultural, row crop, and broadacre operations. With the goal of making products that will change standard farming methods, OneCrop makes cost-effective degradable films made from hyper low-density polymers, non-GMO starch, and non-degradable compounds that  store soil moisture and increase soil temperature resulting in higher yields, saving water, and increased sustainability. Once used, the films break down in approximately four months.

Working closely with CSIRO in Australia, after two years of trials for OneCrop’s agricultural film in cotton production, results indicated yield increases of between 25 and 50 percent, and an increase in water efficiency of 15 percent. OneCrop CEO Andrew Logan told the Financial Review that the company is now currently working toward securing approval to be used in China as an alternative to agricultural plastics. Once achieved, the company would have access to a market valued at US$4.1 billion per year in a country where plastics have been blamed for growing challenges with pollution and health problems.

Toward this end, OneCrop is partnering with a major Chinese cotton grower controlling 600,000 hectares of cotton being grown under non-degradable plastic, with plans to soon begin commercial usage.

Together with OneCrop’s other target markets of Australia and the U.S., OneCrop is looking at a market value of $4.5 billion, with China alone representing a potential geography of 11.68 million hectares and a value of $2.9 billion.

“Twynam was an early adopter of this technology across our agricultural holdings, we have seen great improvements in manufacturing and adoption since then,” said John Kahlbetzer – CEO of Twynam Agricultural Group. “We have visited China and have been encouraged by the field testing and the increase in yield for crops under the OneCrop technology. We believe there is a market for broad adoption of the OneCrop film, and it provides a sustainable solution, and a move away from the plastics currently used.”

Twynham Agricultural Group was founded in the 1970s by John Kahlbetzer Sr. and is controlled by the Kahlbetzer family, which has accrued an ag portfolio including citrus, cattle, sheep, grain, and cotton operations, according to The Land.

Over the past 10 years the company has been actively divesting its holdings, as it turns its attention toward agtech.

Twynam’s most recent divestment occurred earlier this year, in April, when the group sold three properties in Lachlan Valley, New South Wales, to two overseas investors –  MERS Global Investments and Optifarm for a total A$115 million (US$89 million).

“Twynam was one of the first to trial plastic film with cotton in Australia around a decade ago and have been an innovator in this space,” said Logan. “As a strategic partner, they have travelled to China with us and have seen the scale of the opportunity in China, Australia and the U.S.”

The funds raised in this round will be used by OneCrop to fund its international expansion, and over the coming 12 months the company is planning to have planted cotton under its biofilm in both Australia and the U.S. to demonstrate its effectiveness and ability to be used at scale in broadacre cropping scenarios.

-Lynda Kiernan

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.

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