Wide Open Agriculture’s China Deal Faces Uncertainty Over Pricing and Sales Timing

Clarifying the Deal Structure

Wide Open Agriculture Limited (ASX: WOA) has provided important clarifications regarding its recently announced offtake and distribution agreement with Univar Solutions China. While the initial announcement on 30 April 2025 highlighted the signing of this strategic partnership, the company has now detailed that the agreement will not generate any immediate financial impact.

The agreement is structured to support a phased market entry into China, with Wide Open Agriculture assisting Univar in developing a market strategy and undertaking initial marketing activities. These efforts include market testing and engagement with potential customers, wholesalers, and manufacturers to build demand for WOA’s lupin-based plant protein ingredients.

Market Preparation and Sales Timeline

Under the terms of the agreement, Univar is required to engage buyers in China promptly to assess and promote WOA’s products. However, actual sales are contingent on a minimum six-month market preparation period. Only after this phase will Univar be obligated to purchase a minimum of 50 tonnes of product within the following 12 months.

Importantly, Wide Open Agriculture has emphasised that no revenue will be recognised until pricing is agreed between the parties. This pricing negotiation remains outstanding, and the company has committed to updating the market once terms are finalised.

Strategic Implications for Wide Open Agriculture

This clarification underscores the cautious and methodical approach Wide Open Agriculture is taking to enter the large and complex Chinese market. By partnering with Univar, a well-established distributor, WOA aims to leverage local expertise to build a sustainable commercial presence for its next-generation plant protein ingredients.

WOA’s lupin-based proteins are positioned to meet growing demand for plant-based food and beverage solutions, offering versatility and clean taste. The partnership with Univar could be a significant step in scaling WOA’s footprint in Asia, but the timeline and financial impact remain dependent on successful market development and pricing agreements.

Investor Considerations

Investors should note that while the agreement signals progress in WOA’s international expansion strategy, the lack of immediate revenue means the financial benefits will be realised only in the medium term. The company’s transparent disclosure aligns with ASX continuous disclosure obligations and helps set realistic expectations around the timing of commercial returns.

As Wide Open Agriculture continues to pioneer lupin protein solutions, the evolving partnership with Univar will be a key development to monitor, particularly as pricing and initial sales volumes become clearer.