Copy of INVEST IN EXTRACTA

Extracta: Australia's first zero-waste food upcycling processing plants. 

Extracta products foster positive change through Sustainable Nutrition, a value that has gained significance among both governments and consumers.

THE EXTRACTA GOAL

Building a global enterprise through the efficient management of food waste. Our goal is to promote sustainable nutrition, enhance the health of Australians, minimise food waste, and protect the environment by implementing sustainable manufacturing practices.

THE EXTRACTA PURPOSE

Extracta exists to address the growing issue of food waste by transforming Australia’s nutrient-rich edible by-products into sustainable, health-enhancing ingredients. Our purpose is to create a positive impact on both people and the planet by repurposing these resources, promoting wellness, and driving sustainability through innovation. We aim to make it easier for individuals and businesses to choose products that benefit their health while reducing environmental waste.

THE EXTRACTA VISION

  • In 5 years, Extracta aims to be Australia’s leading provider of sustainable, health-focused ingredients, expanding partnerships and integrating our products into a variety of health foods to benefit consumers and the environment.
  • In 10 years, we envision being a global leader in sustainable ingredients, scaling our operations, and driving innovation to reduce food waste and enhance wellness on a global scale.
  • In 25 years, Extracta plans to be at the forefront of the circular economy, transforming food waste into valuable resources and setting the standard for sustainability and health innovation worldwide.

BACKGROUND

Extracta is based on the vision, and the realities of the circular food economy. We convert surplus fruit skins and seeds that would otherwise go to waste in landfill, into nutrient rich food ingredients, giving food waste in the form of landfill,  second life and Australian manufacturers an additional revenue stream. 

clean label ingredient supplier australia 

INVESTING IN THE CIRCULAR ECONOMY

Extracta recovers unused food and agricultural surplus and upcycles it into ingredients used by the food, nutraceutical and cosmetic industries, markets that are growing rapidly globally. These raw materials are currently lost to the food chain and are low-cost, converted into high-value and high margin products. The demand and Path-To Market for Extarcta products is established in Australia and the USA.

The fact that we offer competitively priced Australian Made ingredients, against a baseline of imported ingredients, with the added benefit of ‘sustainably sourced’ means we improve our customers competitive edge for their markets.

THE PROBLEMS

  • The demand for Australian Made ingredients outstrips supply.
  • There are very few ingredient suppliers in Australia for the food and Functional food market – emerging consumer trend requiring evidence their foods have proven health benefits. 
  • Insufficient (close to nil) ingredient suppliers provide sustainable products – this is also a fast growing consumer need.
  • Extracta reduces waste, including reducing greenhouse gas emissions.
    THE SOLUTION
    • Extracta products are Made in Australia and from 100% sustainable sources.
    • All products have demand and established paths to market.
    • Extracta business model minimises production costs.

    ENVIRONMENTALLY AWARE PRODUCTION

    There is increasing demand from Australian manufacturers for these products, and a strong preference for local, reliable producers like Extracta.
       

    LOW VOLUME - HIGH MARGIN

    Extracta has few direct competitors because its business model delivers high margin, and superior quality products.

    Pectin has not been manufactured in Australia for many years due to price pressure from imported products. Extracta has the experience and technology to produce it cost-effectively manufactured in Australia.

    Extracta is re-instating a lost manufacturing industry – and for that reason has earned significant government grant funding.

    Australia has very few ingredient manufacturers for high-quality food and food as a medicine market. For example, Extracta’s first customer MediKane imports sugarcane from Japan as there is no quality competitive supplier in Australia, however, Extracta has proven it can deliver top-quality ingredients.

    OBJECTIVES

    The objectives of the project were to: 

    • Deliver shareholder returns by utilising waste streams that others have not been able to do.
    • Reduce the generation and disposal of food waste at the primary production and processing supply chain stages, and to extend this benefit to other agricultural businesses across Australia
    • Establish a new processing plant with the capacity to accept and transforms many thousands of tonnes of fruit pomace, surplus fruit and vegetables into new food products and ingredients each year.
    • Create a new circular economy business model and a new circular economy service for growers in Australia as an alternative to other waste disposal or recycling processes.
    • Create new sustainable products for sale to businesses and consumers based on the circular economy principles of eliminating waste and pollution and keeping products and materials in use for longer.
    • Support the development and adoption of zero-waste farming in Australia 
    • Create new long-term circular-economy-based jobs.
    • Deliver shareholder returns by utilising waste streams that others have not been able to do.

    The project has been split into stages to allow for proof of concept, scaling commercialisation, and then operation at full capacity.

    OUTCOMES AND IMPACT

    • The first facility was built in cooperation with Queensland University of Technology and funded by a Fight Food Waste CRC grant.
    • There are now 5 products on the market, with more in prototyping stage. Extracta also created several new product lines to be used in other customers products.
    • New product lines are currently undergoing testing and are in the research, and development (R&D) phase at Maquarie University.
    • The Extracta process has successfully extended the life of fruit skins and seeds from a few days to 365 days, with a goal of providing a shelf life of up to 2 years.
    • Businesses are excited about the Extracta process and have expressed interest in being involved and using the product.

    WHATS NEXT?

    • Extracta has created a circular solution to food waste and will continue to build awareness of its innovation and work with food companies and consumers on long and short-term options to increase exposure.
    • Extracta has a 3-year plan to expand its current feedstock lines, with a goal to be incorporated into a further 10 products
    • There is a dedicated salesperson to drive sales and manage customer engagement. Extracta will continue to promote and attend events to drive awareness of its products, services and solutions.
    • Extracta’s sales manager will be in the USA in October to commence the process of establishing US Offtake-agreements and Distributor contracts.

    Raising US$2.5M

    This is a Seed Round only open to Sophisticated Investors. For strategic investments, a board seat may be offered.

    Investor Returns
    Extracta has been built with the intention of exiting in 2 – 3 years. We are open to IPO and will prepare for that with advice from financial partners, but recently many IPO’s have not delivered for shareholders, so A Trade Sale is on the agenda.

    Rationale: Extracta delivers high margins (raw materials are ‘cheap’ for us and the operating model is low cost and proven) so we can compete with all competitors. Our USP’s are the envy of many ingredient suppliers and our technology base is still improving with the help of government funding.

    The target Exit Buyers are:

    • Ingredient suppliers – we have relationships with the majors
    • Contract packers – we have some relationships and will develop more
    • Global food companies – Everyone in the food industry has networks here 

    More information: Get in touch with Extracta today

    Contact: Rod Lewis - +61 401 719833  |  rlewis@extracta.com.au