National Native Seed Conference Notes
We've been busy this month. The deal market seems to be heating up, and it has been wonderful connecting with people at conferences. Additionally, McKinsey hired Jacob away from me. I will not forget this!
This month, I would like to share a few conference notes.
Many of you know I have a strong interest in seed businesses. I attended the National Native Seed Conference this week, and here are my thoughts:
Native seeds are primarily used in land restoration projects, including efforts related to wildfires, mineral and energy development, and conservation programs. Producing native seed is inherently challenging:
Sourcing and multiplying pure genetics requires rare foundation seed and thoughtful multiplication.
Germination rates are abysmal, and seed vigor and vitality are inconsistent. The native seed industry readily refers to germ rates below 10%.
Planting native seeds is tough. They are not dealing with class-A soils.
As one industry veteran likes to say, if you have the option to get into this business, then don't.
So, what do I see in this seed subsector?
I see the hallmarks of great seed businesses.
Reoccurring customers. There is also a budding demand and interest from homeowners, land managers, and the general public.
Premiums on seed businesses that can assure a safe harvest and readily available inventory.
Large investment in new technologies to improve genetic quality, enhance germination rates (such as through seed coating techniques), and modify planters and other equipment to improve the effectiveness of growing native seeds.
The segment greatly depends on government projects, including large-acreage initiatives for wildfire remediation and conservation programs and smaller-acreage native habitat projects. That is undeniable.
However, I see the native seed community as a bellwether for environmental stewardship of natural resources and believe it is important to pay attention to it.
Talk soon,
Bryan Murray
Founder, Lead Food Capital
