RE: RE: RE: April Fools Week This paragraph:".....Rapeseed meal, with only 37 % protein content can hardly substitute soymeal in animal feeding. They represent 7 % of the vegetable meals consumed in Europe and can enter feed ratios in the proportion of maximum 15 % for chickens and 20 % for porks and milk cows.............."
is derived from the European lobby (Fediol) webpage
https://www.fediol.be/web/rapeseed/1011306087/list1187970106/f1.html
which is a sublink of the weblink you have provided
https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32459625&l=0&r=0&s=bxi&t=LIST
It is very good thing for us shareholders of BXI that soybean meal is significantly superior to rapeseed meal (usually from press cake after oil extraction) for feed purposes! That means that the row material for rapeseed protein is much cheaper than the raw material for producing soy protein!
Consequently the potential margin of profit will be significantly better for rapeseed protein than for soy protein. Because for the later there is more "competition" (more other purposes), while press cake from rapeseed has only limited purposes in feeding (due to its undesirable antinutritional compounds).
The rapeseed protein as such has the same quality than soy protein in terms of their amino acid profile. As such the have the same biological value. What I do not know are the levels of undesirable compounds in BXI's rapeseed protein. Also soy protein isolates have undesirable compounds, some like isoflavones act like phytooestrogens (bodybuilders don't like ;). I am sure that the European Food Safety Agency will look into this issue.
But in principle THIS IS THE STORY of rapeseed protein: there is limited use for its abundantly available row material (press cake from the oil industry) > therefor the raw material is cheap, but the product (rapeseed protein isolates) has the same biological value like soy protein. High margin for profits.
But BXI is facing huge challenges in order to succeed this story:
Short term challenges:
- JV & details
- 6.4 Mio CAD due in June https://ca.finance.yahoo.com/news/bioexx-closes-debt-refinancing-124319297.html
- European marketing authorisation (undesirable coumpounds, allergenicity, maybe other issues?),
Mid term challenges: making the JV work (!!)
Long term challenges: competition (!). There is no free lunch, certainly not for long. If the JV will be successful, then other companies will follow, 100 %. Sure, such a JV and BXI have the first mover advantage. Anyway, I consider this may be a "luxury problem", only relevant if BXI survives the short and mid term challenges.