Apeel Sciences, Santa Barbara, Calif., is making its shelf-life enhancing technology available to small growers in emerging markets through $30 million in investments.
The company’s plan is to address the high levels of food insecurity and waste, while allowing the companies to export to America and other markets, according to a news release.
James Rogers, Apeel founder and CEO, said people don’t go hungry because there’s not enough food produced.
“The issue is the intermittency of supply and an inability to convert perishable assets into economic value,” Rogers said in the release. “The harsh reality is that it is nearly impossible today for most smallholder farmers to get their produce to a marketplace that will pay for it before it spoils.”
The $30 million comes from the International Finance Corp. (IFC), Temasek and Astanor Ventures. Rogers said the money will give smallholder farmers more time to market fresh produce, as well as access to higher-value exports markets.
“Apeel was founded on the belief that we can improve food security around the world by using technology to create opportunities for those who have limited or no access to the global food system,” he said in the release.
Supply chains using Apeel technology in sub-Saharan Africa, Mexico, Central and South America, and Southeast Asia will be established in conjunction with the IFC. Supply chains will be improved without the need for refrigeration or rapid transport of fresh produce according to the release.
“Innovative technologies can change the course of development in emerging markets and save livelihoods, economies, and in this case, food,” Stephanie von Friedeburg, interim managing director and executive vice president and chief operating officer of IFC,” said in the release. “We are excited to partner with Apeel to invest in a game-changing technology that can limit food waste by half, enhance sustainability, and mitigate climate change”
Smallholder farmers manage up to five hectares (about 12 acres),and produce more than half of the global fruit supply, according to the release. The ability of those farmers to reach more lucrative markets, however, is limited without access to a refrigerated supply chain, so much of what they grow is sold at small local markets, were supply exceeds demand.
“At Astanor, we look to back ambitious businesses who are creating systemic change in the food production and agriculture supply chains and we are excited to be part of Apeel’s mission to create a more secure and sustainable food future,” Kathleen Merrigan, a partner at Astanor Ventures said in the release.
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