Where Food Comes From (WFCF) is exactly how it sounds: it’s a company that authenticates and tests food from food producers, sellers and the like, explains Jimmy Mengel, editor of The Crow's Nest.
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If a company wants to slap a label on their product that says “Organic”, “Natural” or anything of the sort, Where Food Comes From is there to ensure that they meets those rigid standards.
The Company supports more than 12,000 farmers, ranchers, vineyards, wineries, processors, retailers, distributors, trade associations and restaurants with a wide variety of value-added services.
The stock itself is pretty interesting, and somewhat volatile—it’s gone anywhere from $0.56 to $1.50 over the last year. They have just signed a new deal with Ben and Jerry’s ice cream as exclusive provider of third party verifications for Ben & Jerry’s Caring Dairy Standards.
Under the program, dairy farmers that supply Ben & Jerry’s with milk and cream must comply with three core areas of focus: animal care and herd management; sustainable farming; and farmer livelihoods, which ensures safe dignified conditions for all involved on the farm.
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Where Food Comes From will conduct on-farm audits with Ben and Jerry’s dairy suppliers to confirm compliance to these standards.
This should be one one many deals to come. Indeed, earlier this year, McDonald’s (MCD) announced that a portion of their U.S. beef will be from sustainable producers by 2020.
Tyson (TSN), Wendy’s (WEN), Cargill and many others have also discussed verification and sustainability projects — all because their customers are demanding it. A lot of future demand for Where Food Comes From’s services will come from these industry giants.
Revenue for the first six months of 2017 increased 25% to $6.6 million from $5.2 million in the same period last year. Verification and certification services revenue increased 15% to $5.5 million from $4.8 million year over year.
Things are stead for the company, and I think with a few more big deals—like the one with Ben and Jerry’s—and we’ll see this stock quietly grow over the next year or two.
