Key Takeaways
- Lely has invested in Grassa through a cooperation agreement supporting a two-year pilot to industrialize grass valorisation in the Netherlands.
- The investment funds the installation of a large-scale grass processing facility in Gelderland, enabling new protein extraction and fibre processing capabilities.
- Farmers participating in the initiative will be compensated for grass proteins delivered, creating the potential for a new revenue model.
- The partnership aims to accelerate sustainable dairy farming by improving nutrient efficiency and reducing environmental impact.
- Lely sees strategic value in exploring whether grass processing can evolve into a scalable business model for farmers.
Lely Invests in Dutch Scale-Up Grassa to Advance Grass Processing Innovation
Lely has announced a strategic investment in Dutch agri-tech scale-up Grassa, formalized through a cooperation agreement that deepens the companies’ joint efforts to elevate grass valorisation as a new agricultural opportunity. The investment supports Grassa’s two-year pilot project to scale up grass processing across the Netherlands.
The initiative signals Lely’s intent to explore future opportunities in grass-based value creation while contributing to more sustainable dairy production. This marks a notable strategic move for Lely, known for its automation and dairy technology portfolio, as it evaluates grass processing as a potential additional business model for farmers.
New Processing Facility Enables Protein Extraction at Scale
Infrastructure to Support Protein and Fibre Separation
The project includes installing a large-scale grass press in Gelderland, where farmers will deliver fresh grass. The facility will separate grass juice—processed into high-quality proteins usable in animal feed and potentially future human nutrition—from ‘opened’ grass fibre.
Financial Incentives for Farmers
Opened grass will be returned to farmers for direct use or silage. Importantly, farmers will receive financial compensation based on the grass protein they provide, representing a potential additional income stream tied to biological raw material value.
Lely Highlights Strategic Potential Behind the Investment
“We see the potential of grass. By optimising its value, we can provide both cows and humans with highly valuable nutrition while improving farmers’ prosperity and the environmental impact of the farm further,” said André van Troost, CEO of Lely. “With this investment, we aim to accelerate and scale up the process of grass valorisation.”
Grassa CEO Rieks Smook welcomed the investment, emphasizing shared goals in creating sustainable economic pathways for dairy farmers.
Exploring Commercial Viability and Scalable Adoption
Lely and Grassa will continue evaluating the long-term commercial feasibility of grass valorisation. This includes assessing whether the model can scale into a widely adoptable business opportunity that enhances both economic and ecological outcomes for dairy farms.
