July 12, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Based in the UK, pioneering ag-biotech company Tropic Biosciences (Tropic) leverages advanced plant breeding techniques with gene editing technologies to develop high-performing, commercial crops suited for cultivation in tropical regions. 

Under its mission of harnessing cutting-edge technologies (such as its proprietary GEiGS platform) where it is needed most, Tropic is currently focused on a crop portfolio of three foods facing their own unique set of challenges – bananas, coffee, and rice.

In support of Tropic’s work to develop high-performance varieties of fragile tropical crops, Blue Horizon has led a $35 million funding round that was joined by DisruptAD, the venture arm of ADQ, Skyview Life Science, Bloom8 (FKA Rage Capital), Tekfen Ventures, and Sucden Ventures. 

Factors related to climate change from drought, to excessive rainfall, outbreaks of agricultural diseases and pests, to rising temperatures are having huge impacts on food crops we once took for granted. In some cases, declines in yields may result in foods that were readily and cheaply available becoming scarce and prohibitively expensive. But it is also possible that some foods may disappear from our markets altogether.

For decades, climbing temperatures and advances in farming methods aided in the production of bananas. However, a study conducted at the University of Exeter found that by 2050 the progression of climate change could result in banana production entirely failing in ten countries – in not only South America, but also India and the Philippines. 

Likewise, as climate change intensifies, 60 percent of the world’s coffee species are threatened by extinction, according to findings from the Royal Botanical Gardens in Britain. Changing climate has forced coffee plantations into higher elevations, clearing new land suitable for the production of Arabica coffee beans. These higher-quality, in-demand beans account for two-thirds of global coffee production, but are only grown in specific subtropical highland regions, as they thrive at temperatures between 64 and 70 degrees Fahrenheit.

If these challenging conditions continue, the International Center for Tropical Agriculture (CIAT) warns that half of the world’s coffee producing land will no longer be suitable for production by 2050.

Rice – a crop that accounts for approximately 25 percent of global calorie consumption – is also being threatened. More than 3.5 billion people get more than 20 percent of their calories from rice, and demand continues to rise. However, over the next century, the suitability of rice production land in Asia could fall by half due to the effects of climate change on natural resources and land, according to the UN Food & Agriculture Organization (FAO).

The economic effects and resulting higher food prices will lead to greater food insecurity in regions such as Southeast Asia, Latin America, and Africa, where a greater portion of household income, compared to the U.S. or Europe, is allocated to food. Tropic stated that it is working closely with growers in these critical regions, and through this work is promoting consumer wellbeing, positive grower economics, crop stability, and meeting unmet nutritional needs.

“At Blue Horizon we are all about creating impact at scale,” said Björn Witte, CEO, Blue Horizon. “Tropic Biosciences and the solutions it provides to millions of people around the globe is a perfect example of the kind of companies we want to be involved in. Tropic will have a massively positive impact in an area that may not make the front pages of our newspapers every day, but that doesn’t mean it’s any less important, quite the contrary.”

 Gilad Gershon, CEO of Tropic Biosciences, noted that even though the company remains flush from its $28.5 million Series B closed on in June 2020 (led by Temasek and included Sumitomo Corporation Europe, Genoa Ventures, Agronomics, and Skyviews Life Science), this latest funding will help the company achieve its commercialization and expansion goals. 

“While we remain well funded from our 2020 Series B,” said Gershon, “the new investment will allow us to accelerate and expand our efforts to bring our novel products to market and address critical challenges faced by growers. We are delighted to have Blue Horizon as a leading impact investor, as well as other outstanding new investors, join our journey and support us in evolving agriculture to sustain people and planet.”

~ Lynda Kiernan-Stone is editor 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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