Supply Chain, Farming, & Why You Need to Care

 

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What’s shakin’!. Hey, we’re back. You’re back with me. I’m back with you because that’s where we are right now. You are listening to this because you wanna learn some things. And today we’re going all in. I’ve got some pretty amazing conversation to have today with a, with a fantastic guest who’s into empowering consumers with their health choices. And a lot of it has to do with, with different type of consumables. I’m talking like beverages, foods, that kind of stuff. And we’re gonna talk about this because I’m with the senior vice president of business development and organ genetics and organic ex lab. Saumil Maheshvari. What’s shakin’!.

Saumil Maheshvari:

Hey Rick, thank you so much for having me on the, the podcast in the show.

Rick Jordan:

SAUMIL I’m so glad you came on today, man, because you know, last week I was filming this TV show and it was awesome because they had so many fantastic sponsors. Right. And, and just I mean, there, there were energy drinks there, there were organic cold brewed coffee drinks that were in, you know, prepackaged containers. These amazing use. I fell in love with these midday bars that is like, and the reason I fell in love with them because of like, it’s all, it’s all good ingredients. There’s nothing that makes you bloat. You know, everything that’s in there is organic. It’s all, plant-based, it’s like a chocolate based thing too, but it was good protein, good fiber, obviously. I mean, when you look at me, it’s like, I care about my nutrition, you know, and how it affects my body. Dude. You’ve gotta be so pumped to be in this industry.

Saumil Maheshvari:

Oh, absolutely. Absolutely. I’ve been in the industry for more than 10 years now and with the, the pandemic with COVID and all the, the real answer was that you need to you need to be healthy. And the best way to be healthy is make sure you have proper nutrition, make sure you’re staying healthy, exercising, all those things. And so the last two years, I just proven that.

Rick Jordan:

Yeah, man. So how do you choose good products to get involved with? Because it, these are not products you’re creating yourself, right? You’re developing supply chain and, and distribution platforms for a lot of these products.

Saumil Maheshvari:

That’s right. That’s right. So when we take a look at different products, different agriculture, different fruits crops we take a look at the, the signs behind it. And I mean, we dive in we look at what’s in the very what’s in the crop what different compounds are in there, how it affects their health, what’s beneficial. And sometimes what are the toxins? What’s not good about the product? So what do we bring that down and how do we do that? And then of course, it’s, it’s a huge deal for us to make sure that it’s a sustainable supply chain that we’re bringing value down to the, to the farm level. And so how do we make sure that we can build from there and scale it for the, the mainstream or the mass consumers. And so all of that plays a role when we’re establishing the supply chain and at times we will invest into the supply chain itself to make sure that we’re doing it right. So it’s a, it’s a, a process. We have our drawing board much like the one behind me and we, we dive into it,

Rick Jordan:

Man. That’s awesome. There’s something that you mentioned all the way down to the farm level, and I wanna make sure we hone in on that for a second, because I it’s easy to just breeze right past that, but I think that’s really the power of what you’re doing because you know, there’s so many new products, beverages, consumables that, that come to market every single year. Right. But they’re, they’re not farm level involvement. <Laugh>

Saumil Maheshvari:

Oh yeah, absolutely. You have to go down to the farm level whether it’s our indoor farm that we do with organic, functional mushroom ingredients or the outdoor farms that we use all the way across the world in New Zealand and Tanzania you, we have to go down to that farm level. That’s where you can build your, your first all of trust. That’s where you can build your first level of value to the supply chain and make sure that you can scale from there. So with withone working with with Blake Johnson that’s been phenomenal with his farms in in North Dakota. I do not think I’ll visit that in December. <Laugh> I did that <laugh>

Rick Jordan:

I would hope not, man, especially being from California, dude, that’s a bad place to go <laugh>

Saumil Maheshvari:

Oh yeah, I did that in Wisconsin. Me my wife and I, so my wife works with me. We went in in Minneapolis, in December, landed in two feet of snow. And then went across Wisconsin midway where we had a sunny 60 degree day after the snow people thought we California’s brought in the sunshine and then the next day was a tornado watch with less than 20 feet of visibility. So I <laugh> I’ll spare myself next time, although in the summer.

Rick Jordan:

Yeah, no kidding, man. It’s interesting be, I mean, being from Chicago too, we get that diverse and wide swings of weather in just those 24 hour periods too, but it does not get as cold here as, I mean, it get cold, but not as cold as like Minneapolis or North Dakota, man, that brings on an interesting thought. And I’m curious about this because I’ve never had this conversation with anybody that’s involved in like farm level supply chain and distribution before, how do you project, how much product you can make, because obviously there’s seasons for these, you know, if it’s aronia or any other kind of product that is farmed, there’s obviously seasons for these be. So how do you make sure that that supply chain is sufficient enough to carry a product through the entire year? Cause you just don’t pull ’em outta stores once December hits.

Saumil Maheshvari:

No great question. It is tricky and that supply demand balance is really tricky. And again, one of the lessons from the, the pandemic is supply chains can be a nightmare. You can have shortage of left and right. You really had to plan for it. And even when you plan for it, things will happen. So that’s the, the name of the game, but we try to match the demand forecast. We know with our position as a both a raw material supplier, as well as this platform for building these supply chains, we get to have a bird’s eye view of what the demand side looks like over the next month, next 12 months next, maybe 18 months. And we get to look at how our supply and how the, the next season will look like.

And so sitting in between, we get to get a, a good view, a good idea. Now things can go really good. It can become well we can say viral, I guess, but I don’t wanna say it with a whole pandemic thing. So maybe you can say things go really well. It explodes in the market and then we’re left with a shortage, but we’re gonna be honest about it and say that we’re not cutting any corners. And if there is a shortage we’ll try to meet with it as best as we can without cutting any corners. And other times we may overestimate because maybe the market just isn’t there yet and it’s gonna be there, but maybe not yet. And so sometimes we have a little surplus and so we had to deal with that at times, but it is tricky. Rick

Rick Jordan:

That’s tricky, Rick that’s <laugh>, I don’t know if I was ever called that in my life, but it was just an interesting phrase that you said right there, you think of all the other supply chain issues, you brought it up right over the past two years. And I’m curious, obviously food is something that we’re seeing these days. There’s a lot of farmlands that are starting to really go. And it, it’s kind of sad because I mean, we’re, we’re starting to produce more synthetic foods and while I’m actually excited about some of those, especially if it comes to, to good foods, you know, and, and good, good products that could come to market too. I mean, it, who knows maybe cloning at some point we could actually clone in aronia Berry, you know, and have it produce the same things. There’s a lot of cool tech that’s out there to provide good sustainable foods in, in that type of thing. But farming is like one of the backbones of this country, you know? And how do you see that affecting a lot of the products that you have right now with, with farmers just really like hanging up and saying, you know what I’m done farming.

Saumil Maheshvari:

Oh yeah. There’s there’s so many things that happen with farming and you really gotta feel for for some of those things. I mean, you drive through California through Bakersfield and the central valley. There’s a lot of bels out there. Yeah. And it, it’s just like the movies you have these little, bels just coming across at five freeway. And it’s just because of water shortages, droughts and so on. So you, you really do feel for that. You have to, in some ways try to get predictive climate insight on the way things are moving or things are changing and you got to move move with that that the climate and the land. And so where Rome bees are grown specifically, that is well acclimated for that climate. And so that’s allowed us a little breather, a little breathing space.

other ways, Rick, what you just said about the, the cool tech and and food and agriculture. We are definitely on that forefront. I mean our mushroom ingredients that we’re using and our mushroom partner Centara also in California here they’re doing indoor farming for mushroom, so completely isolating from the climate and the ecosystem. Making sure we take use of good use of that space, even a vertical space. And some of the, the proteins that are coming out with mushroom proteins that can mimic meats. It can I wouldn’t say substitute meats, cuz that’s your thing. If you’re vegan or vegan, if you’re not, it’s up to you, but that the protein that tastes that you can get with these mushroom proteins and the ER, we can add is phenomenal. And all of that is no water wastage, no emissions. It’s it’s incredible,

Rick Jordan:

Dude. I love a good port of be burger. No joke.

Saumil Maheshvari:

<Laugh>

Rick Jordan:

Now the impossible burger. I’m sorry, but that thing is just messed up. You know, you put Beatles in that thing. Just there’s so much junk in that thing. It’s a, yeah, it’s touted as this healthy alternative just for, you know, for, for vegans or plant-based diets. And I tried one, one time and I’m looking at this thing cause, and I know this isn’t you, but which is I’m, I’m actually complimenting you because you’re going all the way down to the farm level rather than trying to put something in this package to make it mimic something else, you know, anytime you have to make something look like something else. That is not a good thing. <Laugh> you know, <laugh> that’s

Saumil Maheshvari:

What I

Rick Jordan:

Didn’t think. So. Yep. The thing bleeds. Have you ever had one, have you had an impossible burger?

Saumil Maheshvari:

Yeah. Yeah.

Rick Jordan:

What do you think about it? I mean, I bite into it. I taste beef, but I’m like this isn’t beef. Why is there red stuff coming out of it? Well, there’s beat juice. Why should there be beat juice to make him mimic this thing anyways, I’m going on a rant now?

Saumil Maheshvari:

<Laugh> no, you’re right. There’s a lot of junk in there and high sodium it’s it’s Ely. Not hoping.

Rick Jordan:

No, it’s not. And most of the protein in that is legumes too, you know, <laugh> oh man, which I, yeah, they, they cause havoc on your digestive system anyways, back to, you know, we had our little segue and our little rant about impossible burgers and all that, but dude, I’m excited for what you’re doing, you know, cuz it, it, I’m hoping that we can continue to accelerate in this country by things like you’re talking about your mushroom supplier, like what they’re doing, you know, your mushroom partner and, and start to bring some of these things back to almost like a new modern age of agriculture, you know, and you’re seeing this a lot being applied to like, like hemp production and, and those things. But what about regular crops, you know, where do you see the farming industry going with regular crops? I’m not talking aronia and all those special things, but you’re in the thick of it, man. What about corn? You know, what about <laugh> what about soybeans? What about all the traditional type products?

Saumil Maheshvari:

Yeah, no great question. I mean AEC is on the forefront. The way that we’re gonna feed 7 billion people more counting more and more or the next years and decades, it’s, it’s a huge deal. On top of that you got folks like, you know, Elon Musk talking about international or what do you call inter planetary expansion. So you’re going up on the space stations on moon and Mars and so on. And how are you gonna bring that food supply chain with you? So that tech is definitely important. At the same time you can’t forget about the, the everyday crops that you use who love, I mean, who doesn’t love a good corn special on like July 4th or at any point, but you gotta, you gotta keep in mind that there’s a, a huge agricultural belt in the Midwest and across America that’s feeding not just us Americans, but also exporting out of America right on.

And so that’s, that’s a part of the economy part, part of the GDP. So we had to make sure that we we stay in tune with that. Unfortunately with with the way sometimes climate moves, you gotta adapt to it. Sometimes that means adjusting your land, going out there going maybe moving northward might be moving south closer to crater, things like that. You have phenomenal satellite technology. You have phenomenal predictive insights now into what will happen. Then you got crop diseases. So you had to be on the lookout for that. There’s a, there’s a lot more science that we know about agriculture compared to what we did just decades ago. And we also know now that you shouldn’t be using synthetic pesticides left and right. I mean, that will seek into the soil. Oh my God. Also see into the crops.

Rick Jordan:

Did you see what they were just letting out about Roundup, right? The, the, yeah, the weed killer on how they’re fighting so many cancers that are based off of that stuff that gets into the soil. Of course. And then people are eating this stuff. It’s horrible.

Saumil Maheshvari:

Yeah. Yeah. It it’s, it is completely messed up. And on top of that, sometimes that damage, you might not see it happen right there in a year, maybe five years, sometimes that damage from that pesticide or fertilizer synthetic fertilizers might be years later. And sometimes even the generation later, I mean, you’ll have at times, and there’s been cases and instances of this kids born with defects because of exposure to this. And so you just, for us, it’s about organic. So we stay with USC organic impossible, try to minimize the use of any sorts of pesticides or fertilizers where possible. So that’s been our motto really just to make sure it’s clean, it’s ethical something that we can there’s also this talk about regenerative agriculture. So you’re giving more back to the environment of the agriculture land than you took away from it. Rather than just sustaining it. So these things are, these things are happening today and it’s just

Rick Jordan:

Exciting. That’s, that’s awesome, man. And I, what I don’t like, and then I’ll get into what I do like cuz I, well, I like what you’re saying, <laugh>, you know, I like, I like the, your mission that you’re on the, the vision of the entire company that you, you know, which is a family business, as you said, which is freaking phenomenal too, you know, but just everybody who just touts, you know, oh, just eat organic, you know, you know, save, save the plants and, and all this other, I’m just gonna call bullshit because it they’re just saying it to say it that’s literally it and they’re not doing anything about it, you know, whereas what you’re talking about, you’re getting down into it, man. It’s phenomenal and I can get behind something like that, you know, just because you’re, you’re the, the sustainability of what you’re doing is gonna set the tone for ag tech and agriculture as a whole, for this country for generations.

Saumil Maheshvari:

Oh, absolutely. Thank you. Thank you so much. It’s, it’s exciting. You know, being a family business family company sometimes you have contentious dinners, not gonna lie <laugh> you’re

Rick Jordan:

On a dinner. No, that never happens with family.

Saumil Maheshvari:

I know, I wish. But we, we go through with it and just the change that we’re making or trying to make at least it’s it’s there. And yeah, you got a lot of like you said, some bullshit out there, so you have to narrow down to what’s going on. Sometimes you take a look at a little label or a little marketing spiel and you say, oh wow, like I can stand behind it, but hold on a second. What’s really going on. Are you are you diving into it with us on our websites, you will see the transparency all the way through, I mean, the impact we’ve made and we come out with a sustainability report, an annual report every year. Yeah. Making sure we’re we’re showcasing the, the impact we’ve made. So it’s, it’s phenomenal. I’ll give you another example rig. I mean, we’re working with with farms out in Tanzania we’re making a huge impact out there trying to work with female farmers out there, again, same thing, working down to the farm level with visitor, those farms during that agricultural training, making sure that we’re bringing value down down to that level. Obviously some of the crops that we that are growing in Tanzania can be grown here. And that’s how so we need this this global supply chain.

Rick Jordan:

That’s so awesome, man, man, this has been such a, such a unique episode because it’s not a topic that’s ever been on the show before, you know, but it it’s so cool to see you dive into this and it’s a, it’s an American business. It’s something that you guys believe in and it’s something that’s changing the, I mean really like historically one of the greatest parts of this country’s GDP, <laugh>, it’s incredible, man. What are you really excited about? Because I mean, I’ve got a lot, obviously there’s aronia, you know, I don’t even think we got into origin N or whatever that is that, that you guys do. Yeah. You know, I’m curious about that, but what are you really excited about now, man, that’s gonna happen for you guys in the next 12 to 24 months?

Saumil Maheshvari:

I think we we had some hard learned lessons during the pandemic, especially with supply chains and the way that we need to think about the future. And so with the way that we’re positioned ourselves and makings truly a platform for innovation to hub for innovation and making sure that we can do both supply our legacy customers and longtime customers to our investing into our supply chain partners to make sure that we can scale with them. Yeah. I think the next few years are gonna be phenomenal in terms of what we can innovate and bring up. I’ll give you a sneak pick. Yeah, we’re working with with Costa Rica actually. So that’s an equatorial climate out there. So some of the, like I said, the crops that we can grow in Costa Rica can, can grow it here in America, but we’re, we’re investing in the next generation of sustainability out there and bringing it back here into the America for any American who really have by the way, Costa Rica, that was the best lemon I’ve ever had.

and I can get over really

Rick Jordan:

The best lemon.

Saumil Maheshvari:

Yes. Yeah. It’s it’s this farm out there has 7,000 acre farm on the Caribbean side of Costa Rica and it’s near the city called <inaudible> lemon. And that’s one of the best lemons I’ve ever had. It can get over it that with the, the beer they have out there, you take it in the, the heat of the summer. Put some lemon in there. Oh man. It was heaven <laugh>

Rick Jordan:

Dude. I, I, I’ll never be sad about getting involved in business projects or anything like that, just for personal reasons or things that excite me, you know, and I, yeah, <laugh> now you know that you’re gonna be doing more business in Costa Rica just because of the lemons. It’s awesome. <Laugh>

That’s cool brother. So let let’s end with this because I mean, the, the show is you know, for entrepreneurs or those who are aspiring to be some, at some point, maybe they’re entrepreneurs right now, you know, they’re doing good things for, for people they work for they’re, they’re making a lot of money trying to make money for other people, you know, organic ex labs, you guys invest in products, correct. From what I understand, that’s fine. Yeah. To, to, that’s fine. To help bring ’em to, to market. What are some of the things you look for? Like, like, you know, maybe the top three things to say, okay, we might be interested in this.

Saumil Maheshvari:

Yeah. so with organic ice labs, I mean, our focus has been on the food and beverage sector. That’s where our expertise. So a lot of that is, and so we look at what sort of product they have. So there’s any with the supply chain looks like to make sure it’s something that’s clean clean label, something that’s sustainable. It doesn’t have to be organic or certified organic, but something maybe within that space. And we also take a look at what the, the progressions and what the, the trailing 12 months revenue looks like. So we can see is this something that will stick and something that can scale. And, and really Rick, we, we try to think of ourselves as a strategic investment and a strategic fund, because we are able to bring in some of that expertise especially supply chain or the university organic sector. And the other is that we can also try to connect them within our portfolio of companies or within the industry to make to make sure that they can scale. So these are some of the things that we, we love looking at. And of course some of the ideas that American entrepreneurs have, it’s, it’s phenomenal. I, I love I love this country, the entrepreneurial spirit that’s in this country, the way the ideas that some people have my it it’s I can go on and on, on

Rick Jordan:

Man. I appreciate that’s a perfect spot to end this episode today because American entrepreneurship is something that’s really gonna continue to drive this country, the innovation that we have in agriculture and beyond sawmill, thank you for being on and going all in today.

Saumil Maheshvari:

Thanks. So.