Ceres (NASDAQ:CERE) creates seeds that produce renewable feedstocks, which include corn and sugarcane, to replace fossil fuels. This involves a combination of complex plant breeding and biotechnology. Ceres believes that its feedstocks increase biomass productivity, reduce crop inputs and improve the cultivation of marginal land.
The initial focus is on the Brazilian market, which relies heavily on renewable energy sources. Still, it has not been easy to get traction because of the extreme drought conditions.
Ceres is also a fairly small operator. During the past year, revenues dropped from $6.6 million to $5.4 million. A key factor for the decline was a reduction in collaborative research and government grants.