Magdalena Diversifies Operations with New Precision Fermentation Facility
Latin America’s sugar giant, Magdalena, is embarking on an ambitious project by constructing a 650,000-liter precision fermentation facility adjacent to its sugar mill in Guatemala. This strategic move aims to develop a value-added protein business using spent yeast, helping the company mitigate its dependence on the volatile sugar market.
Andrés Rodas, the director of the biochem unit at Magdalena, stated in an interview with AgFunderNews, “Through our biochem unit, we are transforming the company from a producer of commodities into a builder of high-value biological manufacturing businesses.”
He emphasized, “This is not a startup pivot. It is an established agricultural company deliberately reallocating capital, talent, and governance toward industrial biology. Carbon is abundant; value is created through biology, so we are leveraging our sugarcane platform as a competitive feedstock advantage and building three core pillars.”
Core Business Pillars
Magdalena has identified three main pillars for its new focus on industrial biology:
- Biorbis (Portugal) – An R&D and innovation lab dedicated to developing high-value molecules and connecting scientific discoveries to market applications.
- Proteva (Guatemala and Mexico) – A yeast-based protein platform that transforms spent yeast into performance and functional nutrition ingredients for applications in animal feed, aquaculture, and pet food.
- Precision Fermentation CMO Platform (Guatemala) – The facility designed to convert sugar into high-value molecules on an industrial scale.
Company Background
Founded in 1983, family-owned Magdalena is a prominent producer and refiner of sugar. Like many companies in the sector, it has historically monetized byproducts through investments in alcohol production and energy generation.
In recent years, the company has sought to diversify its business model by investing heavily in synthetic biology, particularly through its biochem unit focused on synthetic biology and precision fermentation. To expand its initiatives, Magdalena has invested in various precision fermentation startups, including US-based Oobli (specializing in sweet proteins) and VinZymes (which develops enzymes for the wine industry).
Strategies for Stability
“The challenge with a commodity like sugar is its volatility,” said Rodas. “In 2017 and 2018, prices were significantly stressed due to bumper crops in major producing nations like Brazil and India. In light of this, we enhanced our productivity and improved cost efficiency.”
To further solidify its market position, Magdalena acquired a sugar mill in Peru in 2025 and is also expanding its facility in Guatemala, along with investing in a 200-megawatt solar park.
Moving Towards Precision Fermentation
Rodas explained that the transition into precision fermentation is a natural evolution for Magdalena given their existing feedstock and infrastructure. The company has plans for its new facility to include comprehensive downstream processing capabilities, such as centrifugation and spray drying.
“We aim to break ground in May and have clients already lined up for our initial phase,” Rodas said. “Our goal is to be at full capacity by 2029.”
Valorizing Spent Yeast
In conjunction with its fermentation initiatives, Magdalena has launched Proteva, which focuses on extracting functional proteins from spent yeast. This will cater to markets in animal feed, pet food, and potentially human food in the future.
The first facility is located at their Guatemalan sugar mill, with a second planned next to a brewing facility in Mexico. “Our proprietary process creates high-quality products that can serve as functional proteins for the food industry,” Rodas elaborated.
Looking Forward
To summarize, Magdalena is set to redefine its business strategy by embracing the growing field of industrial biology, which not only ensures business sustainability but also positions it at the forefront of scientific innovation in agro-food production.
Further Reading:
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