What is Biochar?
Also referred to as carbon or char, biochar is an agricultural product made primarily from wood (pine beetle kill, etc. from sawmills). Biochar is produced in an oxygen-deprived environment through a process called slow pyrolysis where the carbon goes through a cation exchange process. Consequently, biochar has the very useful quality of absorbing heavy metals, akin to a magnet. Studies have shown effectiveness in removing the following Ag Nutrients: phosphorus, phosphate, ammonia & nitrate, and derivatives, all tied to a general phosphorus imbalance. Further, studies have shown biochar to be effective at attracting & retaining a long list of heavy metals, from aluminum, arsenic, chromium, lead to zinc from soil. Primary markets are Ag centric: Animal Feed Additive, Farming/Cultivation & Water Remediation for Algae Blooms from Ag Runoff. These qualities of biochar appear, based on the information I’ve reviewed, to carry over from the soil to a cow’s stomach & digestive tract.
Investment Thesis
Antibiotics have helped the beef industry scale and provide affordable protein to the mainstream consumer. Now that industry is under attack by Covid-related bad press on meat safety. Category market share is being eroded by plant-based (typically processed) alternatives Beyond Meat, Impossible Burger and other ventures that have raised substantial venture capital in both the private and public markets.
Multi-hundred million dollar venture funds have been capitalized to develop plant-based protein alternatives, leading to overemphasis in processed, caloric and in some cases artificial (rather than whole) foods.
In 2020, major corporations like Cargill are exploring natural methods to maintain animal health as an alternative to antibiotics. The specific objective here is to explore healthier or more natural approaches to commercial-scale beef production to market, with the use of less or no antibiotics. Cargill can help accomplish this by improving the inputs, image and consumer experience of beef as a natural whole food source of protein. The US consumer needs to hear this story alongside the plant-based protein revolution story to maintain or bring back market share.
In summary, Cargill should consider investing in biochar due to the following beneficial impacts
A known and studied alternative to antibiotics for raising cattle
Reduce greenhouse gas emissions (e.g. The Methane Problem)
Reduces animal suffering in agriculture
Produces a more valuable fertilizer from the manure
Consistent with more sustainable approaches to animal feed (e.g. phytogenic feed additives, micronutrients, adaptogens, probiotics, etc)
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