Close ties and a contractual framework with University of Sydney allows Abundant to leverage scientific research expertise and resources built up over many decades. In particular, the University of Sydney’s world renowned $50 million Plant Breeding Institute (PBI) includes plant physiology labs recently developed at a cost of $25 million.
Utilising these resources and Australian Government R&D tax incentives, Abundant and the PBI breed new vegetable species for food growers across the globe. Plants are bred for better yield, disease resistance, temperature, tolerance, taste, texture, colour and shape.
The global market for fruit and vegetable seeds, worth US$8.8 billion in 2016, is projected to exceed $14.0 billion by 2022. ABT plants produce high yields of A-grade vegetables in the sub-optimal growing conditions of over 75% of global production – whereas most commercial seeds suffer in less favourable conditions. This allows growers to reduce costs within existing operations and expand production by exploiting land that may not be commercially viable using traditional horticultural varieties, particularly in arid parts of Asia, the Middle East and Australia.
Abundant retains ownership of the jointly developed plant IP and earns royalties from the sale of hybrid seeds. Worldwide distribution is generally contracted to major international distributors allowing Abundant to focus on its pipeline of research and development projects, but the company maintains close ties with Australian and New Zealand growers and the specific challenges they face.
As such the company offers investors upside exposure to international food markets without the weather related risks associated with agricultural production.