France's Limagrain to launch plant-based protein food next year

Vilmorin & Cie SA

14/01/2020 17:09

PARIS, Jan 14 (Reuters) - French agricultural cooperative
Limagrain on Tuesday said it is launching a new legumes business
that aims to deliver plant-based food products from next year,
betting on the fast-growing plant protein sector and a trend
towards eating less red meat.
    Many large agricultural companies, including Archer Daniels
Midland  ADM.N , Cargill and France's Roquette have invested in
plant proteins in search of higher profit margins that have
helped them cushion the impact of sluggish commodity prices and
trade war woes.  urn:newsml:reuters.com:*:nL3N27G3UR  urn:newsml:reuters.com:*:nL4N29C2TZ
    The global meat substitutes market generated revenue of $4.8
billion in 2018, and is expected to be worth $6.6 billion by
2024, as more consumers convert to veganism or cut down on red
meat consumption, a report by Research and Markets has said.
    Limagrain, a cooperative of more than 1,500 farmers in
central France and majority shareholder of seed maker Vilmorin
 VILM.PA , said it could develop its legumes business through
partnerships with start-ups or mid-range actors in the sector. 
    "If we want to go up to the end-product will need at some
point to take over a business, create a new one or launch a
transformation unit," Limagrain Chief Executive Damien Bourgarel
told a news conference. 
    "But it is far too early to tell, we are just beginning," he
added, stressing that it was a long-term project.
    The group based in central France will start with nearly
1,000 hectares of land and a wide range of plants including
peas, beans and chickpeas, it said.
    "Depending on the outlet we will then see the best species
and those that need to be developed," Limagrain Chairman Pascal
Viguier said.
    Two people are working with top chefs to invent new
plant-based food products for Limagrain.
    "A lot of people are looking at this sector. We have to find
our singularity," Bourgarel said.
    Limagrain had sales of 1.9 billion euros ($2.1 billion) in
the year to June 30, up 4% on year, with a net profit of 80
million euros, versus 75 million the previous year, it said.
($1 = 0.8994 euros)

 (Reporting by Sybille de La Hamaide. Editing by Jane Merriman)
 ((Sybille.deLaHamaide@thomsonreuters.com; +331 4949 5145;))