Stabilizing Grain Supply
A more cost-effective and environmentally sound solution than chemical fumigation
In the lab and small-scale prototypical form, our technology has been proven to have 99.9% efficacy in treating stored rice, protecting it from rice weevil damage. According to the FAO, rice is ranked the second most-consumed food staple on the planet. It is THE daily staple for the some of the most populous regions of the world in Asia, Africa and South America with annual consumption of 450 million tons. Yield losses on rice from insects and pests are as much 16% of the total of the 106 million tons of rice currently produced annually. Given the very similar entomology of the wheat weevil to the rice weevil, we expect the technology to be fully compatible or easily adaptable to deal with the same issues in Wheat grain storage. Unfortunately, the current pest eradication method of chemical fumigation results in both high costs and has a limited success rate that costs additional billions of dollars in grain losses.
- We’re creating a market for the 2 grains that is worth over $1.5B as it rolls out vs. a market that costs its users $1.5B annually.
- The technology is new in application but will not be difficult to manufacture. It can and will be IP protected.
- We will likely produce the technology in a single facility to better protect the IP and then have them supply to the finished product manufacturers for assembly and shipping.
- Alphacom intends identify and contract with 2-3 Manufacturing partners in China to develop the actual models needed that can be fitted into existing production / storage lines in most rice mills. We expect these factory partners to absorb the post-prototype development costs.
- Alphacom will collect licensing royalties on the production/sale of each unit coming out of the factories.
- We see the path into the rice mills is through the existing large network of milling equipment manufacturers. Not for Alphacom to go sell directly to the mills.
- We will identify several leaders in the Rice milling equipment business across the globe and contract exclusive rights for them as “Distributors” of the product to their mill customers exclusively buying from the nominated Chinese factories.
- The Machine producers with scale and best fit as partners will be nominated distributors.
- Alphacom can collect royalties on the sales from the Distributors to the mills on their sales, this will create a dual royalty stream from both sources.
- While we will begin in the Rice markets, we fully expect the process will be effective with Wheat pests as well. The global Wheat market is 750M Tons – 66% larger than the end use market for Rice.
- The Alphacom screening device, using low voltage, allows large volumes of rice to pass through it, quickly killing rice weevils, as well as their larvae, which current methods of fumigation do not accomplish effectively.
- We see a market to be created for this system that is cheaper, safer and better for the environment through technological adaptation and most importantly improves yields.
- In the lab and small-scale prototypical form, our methods have been proven to have 99.9% efficacy in treating stored rice protecting it from Rice Weevil damage.
- The benefits are many:
- Scalability to usage needs ; 5 ton , 10 ton , 50 ton
- Less expensive per use
- One time capital cost
- Saves production time creating working capital efficiency
- Low power requirements
- Eliminates chemical impacts on the environment
- Improves product yields
- The only method used today broadly to address the pest problem in stored grains is chemical fumigation, which is more expensive, less efficient and has negative environmental impacts.
The Capital Investment Environment
Rice Mill capital expenses are currently planned around expected lower yields due to the current methods of managing pest related degradation and losses. We believe our solution is ripe for a reallocation of capital as a yield improvement investment replacing the need for milling machine expansion to process more rice and more lost yield.