In late August, Walmart Inc. (WMT:NYSE) reported it had agreed to acquire a minority stake in Sustainable Beef LLC, a rancher-owned company based in North Platte, Nebraska.
Tyler Lehr, senior vice president of merchandising for deli services, meat, and seafood at Walmart U.S., commented on the investment, saying, "We know Sustainable Beef LLC has a responsible approach to beef processing, one that includes creating long-term growth for cattle ranchers and family farmers. This investment provides greater visibility into the beef supply chain and complements Walmart’s regeneration commitment to improve grazing management."
Olson Farms Inc./TD Angus, a farming and custom cattle feeding business in Nebraska, is a founding member of Sustainable Beef LLC, and this company just announced a new partnership with Bion Environmental Technologies Inc. (BNET:OTCQB) to develop a 45,000-head sustainable beef cattle feeding operation in the Nebraska Sandhills.
CDC Points Out Rising Need for Bion's Treatment
The beef industry creates more than 1.5 billion tons of manure annually, contributing to the contamination of surface water and rivers. Bion’s Gen3Tech platform transforms the waste into renewable and revenue-producing natural gas, organic fertilizer, and clean water. And consumers get truly sustainable grain-fed beef with a pedigree they can trace back to the source.
Bion is inspired by Olson Farms/TD Angus’ “vision to produce cattle that are better for the consumer, better for the planet, and better for the producer,” Bion Chief Executive Officer Bill O’Neill said. “That’s a perfect complement to our own vision and Bion’s mission.”
Company officials said meat produced through its system creates a sustainable product that also does its part to improve the environment instead of hurting it.
Untreated manure from animal feeding operations can contaminate surface water with pathogens such as E. coli, hormones, antibiotics, and chemicals like nitrates, phosphorous, and ammonia, the Centers for Disease Control stated.
According to the U.S. Environmental Protection Agency, livestock manure nutrients “have real value as a fertilizer” for farmers, gardeners, and landscapers. However, untreated manure from animal feeding operations can contaminate surface water with pathogens such as E. coli, hormones, antibiotics, and chemicals like nitrates, phosphorous, and ammonia, the Centers for Disease Control stated.
Untreated waste can contribute to greenhouse gases such as methane, cause algae blooms and dead zones in bodies of water, contaminate groundwater, and contribute to antibiotic resistance.
Bion’s system uses a specially designed barn and separately housed treatment system to apply biological, thermal, and mechanical processes to the animal waste, creating pipeline-quality natural gas, organic fertilizers, clean water, and clean air and water credits.
But the main product is blockchain-verified, sustainable, organic meat for the US$66 billion-a-year beef industry.
Catalyst: Bion Plans 675K Head Capacity by 2028
The facility between Bion and Oslon Farms/TD Angus will have three of Bion’s 15,000-head modules, including barns with solar panels, manure collection and conditioning, biogas recovery, ammonia capture and production of organic fertilizer products, and clean water recovery.
It will be a “perfect fit” for Olson Farms/TD Angus’ “conception to consumer” model, which will see TD Angus bulls sired across the country and fed at their yard, and processed at the new plant, said Trey Wasserburger, partner at Olson Farms/TD Angus.
The processes and performance of the plant will be third-party verified, USDA-certified, and recorded on the blockchain to support transparency, Bion stated.
"The company is involved in the green technology space, which is a good area to be in with the climate change movement driving a lot of changes and developments," Clive Maund.
“Until now, beef sustainability has always been a proclamation,” Wasserburger said. “We look forward to supplying beef that is truly sustainable, for producers and the environment alike, and that have the pedigree and production history to verify it.”
Bion said the companies would work together early this year to create a joint venture, with construction expected to start in H2 of 2023. Initial beef and coproduct revenues are expected by the end of 2024, ramping up to the production of 138,000 head of cattle annually starting in 2025. Terra also plans to have a 450,000 to 675,000 head capacity by 2028.
Alliance Global Partners analyst Jeffrey Campbell initiated coverage on Bion on August 3, 2022, with a Buy rating and a target of US$3.00 per share.
Newsletter writer Clive Maund of Clivemaund.com follows the company.
“The company is involved in the green technology space, which is a good area to be in with the climate change movement driving a lot of changes and developments,” Maund wrote Aug 4. “It certainly cannot be claimed that the company has not been preparing for the times that we now find ourselves in and the times ahead.”
He predicted a major uptrend for Bion, and it went from US$1.17 on Aug. 4 to US$1.68 on Aug. 29. The stock closed at US$1.39 on Friday.
Ownership and Share Structure
According to Reuters, 28.25% of Bion's stock is owned by management and strategic entities. The company President Mark A. Smith owns 7.38% of Bion, Senior Vice President Craig Scott owns 5.91%, Executive Vice Chairman Edward T. Schafer owns 4.28%, Anthony G. Orphanos owns 3.76%, and Chief Operating Officer Dominic T. Bassani owns 2.88%.
0.10% is with institutions, and the rest is in retail.
The stock is covered by several newsletter writers, including Maund, Matt Badiali, and Chris Temple, editor of The National Investor. Click "See more live data" in the data box above to read more of what they are saying.
Bion has a market cap of US$60.64 million and 43.6 million shares outstanding, 31.3 million of them free-floating. It trades in a 52-week range of US$1.75 and US$0.505.
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Disclosures:
1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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