Organic Yemen signs deal with Chess AG for dye plants feasibility study
Organic Yemen (OY) has recently established a partnership with Chess Ag Full Harvest Partners for 12-month feasibility research study on developing farms and processing facilities for natural dye plants. This collaboration with an agriculture investment-based asset management firm is just another evidence of Organic Yemen’s expertise in the niche of farming and cultivation.
OY was Chess Ag’s first choice for assessing the practicality of dye plant farms because of the company's dexterity in data-support investment proposals and passion for sustainable investment. As a partner, OY aims to assist Chess Ag in conducting feasibility studies at multiple sites in Yemen.
The move precedes Chess’s strategic investment plan to tap the growing global market for natural dyes. The market is already booming across the textile and cosmetic industries. But more than that, market projections indicate unprecedented growth rates of revenues for natural dye plants.
From unsustainable synthetic dyes towards renewable plant-based dyes - Video by: Stony Creek Colors
Yemen dye plants investment
The global natural dyes market could reach $5 billion US. Dollars by mid this decade. Indeed, a report by Research and Markets anticipates a growth rate of 11% between 2018 and 2024. The end-user segment for natural dyes includes:
Cosmetics
Textile & leather
Pharmaceutical
Food & beverages, and others.
The cosmetic segment is the fastest-growing, with a matching growth rate of about 11%. This is due to renewed consumer demand for “all-natural” cosmetic and beauty products. Consequently, several top companies have ventured into it the natural dye industry, including cosmetic giant L’Oreal and clothing manufacturer H&M.
Indigo, a dye plant used for dying blue jeans - Image: Stony Creek Colors
The global trend of dye plants
Interest in natural dyes for clothing and cosmetics has soared for three main reasons.
Firstly, consumers increasingly prefer natural ingredients and materials in their products for health reasons.
Secondly, awareness is increasing regarding the environmentally damaging effects of artificial dyes.
Lastly, consumers enjoy making a personal connection with and positive impact on the lives of the farmers who create their products.
Consequently, the natural dye market is thriving and attracting high-profile institutional investors.
Organic Yemen - Chess Ag partnership: the perfect match
Chess is a leading private equity investor in farming, processing and other agriculture opportunities. Its collaboration with OY is a strategic investment opportunity to launch the Yemen dye industry and take advantage of Chess Ag’s established network of buyers.
Moreover, Chess’s team of investment professionals has a combined experience of over six decades in agriculture and financial markets. Shonda Warner, Chess’s Managing Partner is a major player and investor in tech start-ups.
Warner founded Chess Ag in 2006 as a pioneer fund for agricultural investment worldwide.
She has since built a reputable investment record in the natural dye industry and agtech (sustainable agricultural technology).
She was notably an early investor in Stony Creek Colors, a major natural dye company.
Under her stewardship, Chess Ag today manages assets of roughly $150 million.
Chess Ag has grown into a major institutional investor worldwide.
Impact investment: the future of agriculture
What is impact investing?
According to Warner, her investors care more and more about impact investments. “We emphasize investments with both massive financial returns and great impact on economic development and environment”.
Generally, there is growing interest in impact investment worldwide that has attracted institutional impact investors. Fortunately, there are several notable facts favoring Yemen agriculture as a beneficiary of impact investment, including:
The Middle East and North Africa (MENA) region is among the leading regions where Impact Investors are currently investing, according to the IFC Report on the practice of impact investing.
Agriculture and Agri-processing are among the investment themes most preferred by investors by over 60%.
OY and Chess Ag cooperation explained
As part of its MENA Impact investment strategy, Chess has entered a contract with OY. The one-year feasibility study will:
Experiment with different dye plants in several areas of Yemen.
Validate the best growing locations, spreading production geographically to diversify investment risk .
Determine the most optimal growing conditions to maximize yield.
Establish a broad grower base of natural dye plants and greatly boost Yemen agriculture.
Prepare an ambitious plan for necessary manufacturing infrastructure.
Conduct a profit analysis based on projected costs and revenues.
Map potential buyers and markets.
Chess AG Full Harvest Partners:
A major institutional investor worldwide
For data-informed results, the partnership will leverage OY’s partnerships with local research institutes and background in academia, research and data-driven business strategy. These will support the study with high-quality data and analysis. Subsequently, investor confidence will increase and client trust will flourish.
Eventually, the feasibility study could lead to full commercial-scale production of natural dye plants before the end of 2022. Indeed, Yemen is on track to becoming the center of natural dye production in MENA. Its geographic location is central to Europe and Asia, which are the largest markets for natural dye crops.
Organic Yemen:
your perfect partner to study impact agriculture investment
Impact investing is trending! - Video by: Forbes
For investors seeking to conduct studies in impact agricultural investment in MENA, OY is the ideal partner.
OY is a data-focused company, specializing in agriculture investment for local and foreign investors.
It emphasizes Yemen's value chain development and renewable energy for eco-friendly investments.
OY also has expertise in environmental monitoring and provides project consultation and setup for huge investment returns.
So, whether you are a public or private partner, contact us for studies in impact agriculture investment.