Wide Open Agriculture Limited (ASX:WOA) - Wide Open Agriculture Partners with Univar to Tap into China’s Booming Plant-Based Market.
- Noel Ong
- May 3
- 6 min read
A great outcome for Wide Open Agriculture Ltd (ASX: WOA). To be honest, I was thinking that this was going to happen, but I thought that this would be some way away. However, now that it has happened, I do feel now that Yaxi Zhan was brought in to settle the cash burn and stabilise the business to go forward.
In my previous conversation with Yaxi, I was trying to figure out the connection that put her into the Executive Chair position, and I think this agreement is a good clue. There was no indication of the speed at which a distributor was being discussed, but in hindsight, I think this must already be in play.
This is a great start for WOA as this is a crucial phase in its global growth strategy. In entering into an exclusive distribution and offtake agreement with Univar Solutions China, a branch of the world's second-largest distributor of chemicals and ingredients, this gives WOA a direct route into a massive market. I don't think this needs any elaboration.
Announcement:
As we discussed with Yaxi Zhan in the Coffee with Samso on the 6th April 2025 (A Superfood Story- Lupin Protein Isolate | Wide Open Agriculture Limited (ASX: WOA) | CWS Ep. 204), this was a logical step. We touched on the potential of the Chinese market and the fact that there is a natural barrier to entry for the lupin market; China is not having a lot of luck growing lupin.
According to a paper in the ARCC Journal (Exploring Lupins in China: Insights into Cultivation and Challenges for Sustainable Agricultural Development: A Review by Se-Jung LIM, March 2025), growing lupins in China has been challenging due to factors such as the suitability of the local climate and soil and the management of diseases. This makes the move by WOA into China more controlled.
Hence, this strategic partnership positions WOA very well to accelerate its entry into China’s high-potential market for sustainable, premium plant-based proteins (Figure 1).
Figure 1: Yaxi Zhan, Chair, with WOA and Univar representatives at a signing ceremony.
The strategic significance of this entry into China cannot be underestimated, as we have to remember that the growth of China is not complete, with a vast majority of the population still searching for "First World" standard of nourishment. I think that there is still a lot to learn about the potential of WOA and what a continued interest from China will mean to revenue.
A Strategic Alliance for Growth
The agreement grants Univar Solutions China exclusive rights to market and distribute WOA’s lupin protein products (LP90 and BP80F) throughout mainland China. Following an initial six-month market preparation period, Univar has committed to purchasing a minimum of 50 tonnes of product within the first 12 months, subject to mutually agreed pricing.
“Partnering with Univar gives us strategic reach in China’s premium food ingredient sector and the local know-how to unlock serious growth opportunities,”– Yaxi Zhan, Executive Chair, Wide Open Agriculture.
A crucial element of food security is recognizing that a country like China, despite its substantial GDP growth, needs to feed almost 20 per cent of the world's population while possessing less than 10 per cent of the planet's arable land. The obstacles to maintaining a stable food supply are numerous. They encompass inefficient farming methods, supply chain disruptions, shifting consumption patterns, global trade issues, domestic environmental harm, corruption and data inaccuracies, and a history of food safety scandals (CSIS - Centre for Strategic & International Studies).
Hence, when we are talking about WOA and its ability to contribute to that part of the business, this is a great revenue earner for a small capitalisation company. I have to say that the clarification that was announced on the 1st of May may be seen as a negative tone, as it clearly is emphasising that there is no immediate revenue impact, but if you read into the message, it is the restating the fact that you have now someone in China that has a vested interest in distributing the products.
The Unique Value of Lupin Protein
WOA’s lupin protein isolates offer a combination of sustainability, nutritional benefits, and technical performance that appeals to health-conscious consumers and food innovators alike. These clean-label ingredients are suitable for a range of applications, including:
Dairy alternatives
Meat substitutes
Bakery and functional foods
Health and wellness products
Neutral in taste and colour and highly functional, lupin protein is emerging as a next-generation solution in the global plant-based protein market. The fact that there is a neutral taste and colour will be an important fact for food industry participants. The taste of food and the lack of culturally diversifying issues for lupin make it an ideal inclusion in all food products. The nutritional value, as discussed, is the real hidden value for lupin, especially when you have to provide for a large volume of cross-cultural appetite requirements.
“This is a high-potential, premium product that fills a gap in the Chinese market for functional, plant-based proteins,”– Will Wang, Univar Solutions China
Key Agreement Highlights
Term: 18 months with extension options
Exclusivity: Conditional on performance during the initial six-month period
Volume Commitment: Minimum of 50 tonnes in the first 12 months after market prep
Strategic Collaboration: Includes sales training, co-marketing, and customer sampling
Regulatory Compliance: Managed by Univar, with WOA providing food-grade supply
Unlocking the Chinese Market
With Univar’s extensive distribution network, valued at over $11.5 billion in global sales (2023), and deep sector expertise across food, nutrition, and advanced materials, WOA gains:
A local presence and on-ground support
Scalable access to food manufacturers and innovators
Increased exposure to one of the world’s fastest-growing food ingredient markets
This milestone reinforces WOA’s mission to lead the development of environmentally sustainable ingredients that support both human health and planetary well-being.
About Wide Open Agriculture
Wide Open Agriculture Ltd (ASX: WOA) is a publicly listed company focused on developing high-performance, sustainable plant-based ingredients. The company’s core innovations include proprietary lupin protein isolates, recognised for their versatility, clean profile, and nutritional strength.
To learn more, visit: www.wideopenagriculture.com.au
Concluding Comments from Samso
I have liked the Wide Agriculture story from the moment I was aware of its existence, and I have expressed this view in my previous content, as described below:
For me, the lupin story is all about the ability to feed the world population with a plant-based material. I have read some commentary that the next World War will be about food security. Whether this is true or it is some clickbait, I am in no doubt of the importance of having a plant-based protein base that can keep a mass population in a nutritional state that will sustain prolonged life.
The downside of this story is that the uptake of lupin in China is slow and protracted. Although I am not convinced of potential downsides at this stage, I am acutely aware that the "grey swan" events have a history of giving investors severe headaches. As investors, we understand that there are two sides to a story, and there is never a sure thing, so this is the risk that all investors need to factor into any decisions.
As the quote from Benjamin Franklin acutely lays it out....
For me, introducing an "off-taker" into the WOA journey is a very good start. I have convinced myself that I should be in this stock. Currently, they are softening in the share price, which will help reduce the feeling of missing the boat, but I think I will be stepping up my DYOR efforts in the near future.
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