Investors are watching with great interest as biotech firm Arcadia Biosciences (Nasdaq: RKDA) spikes almost 70% pre-market on news of USDA approval for a new soy development.
The collaboration between Arcadia and Bioceres Crop Solutions Corp. is called Verdeca, and it involves the development of “HB4” drought tolerant soybeans. The FDA signed off on the project two years ago.
In response, Raj Ketkar, president and CEO of Arcadia Biosciences, called the recent news “important steps in our continued drive to commercialize this trait in key markets.”
“This approval in the U.S. is an important step for Verdeca,” added Bioceres CEO Federico Trucco. “The HB4 trait was recently approved by Brazil as well, and we now expect approval in China in 2020 to launch our commercial efforts in Argentina.”
A press release detailing the announcement notes that with the USDA approval the HB4 soy technology is now approved in over 80% of the global soybean market, including Argentina and Brazil.
The new USDA approval could have a major impact on world agriculture due to a number of factors.
The United States farms millions of acres of soy, and is one of the world’s leading exporters.
With global warming leading scientists to recommend the limited consumption of meat, soy is becoming more a part of the American’s daily diet. Consumer demand is one pinnacle of the potential for the HB4 soy to expand, and one facet of what is driving RKDA’s progress.
The extent of Arcadia’s pre-market activity shows how investors feel about the potential for the project.
Keep following this type of dynamic growth in the ag market.