Biotechnology start-up Aanika Biosciences has entered into a parametric food insurance agreement with Satur Farms, a specialty crop producer with operations in New York and Arizona.
Aanika will bundle its technology for tracing fresh produce with a novel parametric food recall and contamination insurance policy, which should enable Satur to obtain lower rates of coverage.
In addition to traceability, Aanika is developing products to combat pathogen growth and reduce outbreaks, which could further support the ability to write risk coverage in crops that are historically plagued by food safety issues.
“We are forging a new path to bring the marvels of biotechnology into the mainstream, while providing a critical function for the market,” said Vishaal Bhuyan, CEO of Aanika Biosciences.
“Warmer temperatures are creating a significant increase in crop diseases, pathogen outbreaks and food recalls, and coupling our technology with insurance coverage helps mitigate these risks and it is how we ensure that the food system can function smoothly over the next decade.”
Paulette Satur, CEO of Satur Farms, also commented: “Tracing contamination through every handler is extremely important to locate the originating source as quickly and efficiently as possible. This is important not only to assign responsibility to conduct a recall but also to defend oneself against unsubstantiated claims.”
Reflecting on 2019 product recall, she added: “Had a Satur Farms ‘fingerprint’ on the product been created at the field or processing level that identified all our product, we could have been immediately exonerated in a lawsuit brought against us. Instead, the process took three years.”