Casterra Signs Royalty Agreement with Titan for Castor Oil Sales in South-Eastern Africa
17 November 2022, Israel: Casterra Ag Ltd. (“Casterra”), the castor seeds technology developer whose mission is to provide the most advanced castor bean seed varieties and comprehensive ag-service solutions to castor cultivators and manufacturers, and a subsidiary of Evogene Ltd. (Nasdaq: EVGN, TASE: EVGN) (“Evogene”), announced today that it signed a long-term royalty agreement with Titan Castor Farms Limited (“Titan”), a Zambian cultivator, manufacturer and distributor of castor oil.
Castor oil is becoming an increasingly important commodity with a broad range of uses. The global market for Castor oil and its derivatives is valued at $1.2 billion and growing. Applications include oil for lubricants, industrial human health such as cosmetics, and environmentally-friendly plastic polymers, given their high durability and elasticity.
Furthermore, the global demand for biofuel is increasing. Replacing fossil fuels with biofuels, such as those derived from castor beans, has the potential to reduce some undesirable aspects of fossil fuel production and use, including conventional and greenhouse gas (GHG) pollutant emissions, exhaustible resource depletion, and dependence on unstable foreign suppliers. Castor beans are an effective source for this mission with high oil content and extensive environmentally friendly cultivation practices.
Titan is expected to establish a growing and manufacturing castor oil facility in Zambia in the coming months. Under the framework of the agreement, Casterra will provide Titan with its advanced castor seeds for cultivation, as well as processing equipment, know-how, and technical support as needed, at cost. This will enable Titan with full end-to-end capabilities from growth to manufacturing castor oil. Titan will provide Casterra royalties on sales of its castor oil products, which are expected throughout Zambia and the surrounding South-Eastern Africa region, starting in 2023.
This agreement represents a major advancement for Casterra in leveraging its technology into the emerging global castor oil market in the African continent. It also represents an important key step for Titan in cementing its position as the dominant castor oil producer in Zambia and the South Eastern Africa region.
Jeff Mzwimbi, Titan’s Managing Director, commented, “We are very excited to launch this new agreement with Casterra. It significantly advances our capabilities in the manufacture of castor oil and related products, and Casterra’s technology firmly positions us as the most advanced castor cultivator in the region. Zambia is becoming a leading agricultural exporter in the region, and the export of castor oil is an important economic priority for this emerging economy. We look forward to realizing significant growth potential over the years ahead.”
Eyal Ronen, Casterra’s General Manager, commented, “This is a very important development for Casterra. It leverages our significant know-how and IP in Castor and allows us to realize sales from our seeds, technology, and expertise into global markets, with an initial foothold in the growing African market. We see many strong synergies between Casterra and Titan in this new venture and look forward to working closely to expand sales in this growing market throughout the region.”
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