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Stevia First Corporation Message Board

  • ajthedrifter ajthedrifter May 13, 2013 5:49 PM Flag

    Licensing deal with Cargil

    Has anyone heard about the licensing deal in the works with Cargil? I have seen a mention of it on other boards

    Sentiment: Buy

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    • I could see that happening. Here's sample from a recent article on Market Playground:

      And that is where Cargill’s investing in a new and less expensive method to produce quality stevia via a microbial fermentation system comes in. Stevia is expensive, far more expensive than the artificial sweeteners. To grow the stevia plant it requires a large capital investment, not just the plants or seeds, but in land and equipment for growing and harvesting. Then there is the added cost of extracting the sweet steviol glycosides from the leaves. Artificial sweeteners, on the other hand, are comparatively cheap, as the sweetener consists of a blend of inexpensive chemicals. Therefore, one of the challenges that is holding back stevia is the economics of cost. However, by developing a microbial fermentation method, both Cargill and STVF are attempting to make stevia an economically feasible natural zero calorie sugar substitute by lowering the cost to produce stevia by upwards of 70% while securing a constant supply line.

      One option is that Cargill could work with STVF--not sure in what capacity a licensing deal could happen--interesting prospect.

      Sentiment: Strong Buy

0.055+0.002(+3.77%)Jul 19 3:49 PMEDT