Blog
Why Investing in MFiber Is the Right Move
The only positive economic indicator is blind human optimism and investors sense trouble ahead. This has triggered a search for value in a marketplace weary of government intervention and manipulated financial statistics.
In a world where our central bank allows money center banks to borrow funds at the fed window at a floating rate, currently .16 of 1 percent, and invest long term into government 10-year treasuries at 2 percent, in a sense borrowing short term and investing in long term fixed assets, they have spoiled and rewarded inefficient big banks which by being “too big to fail” in the minds of our central bank policies are “guaranteed to fail.” Our American leaders have created a casino capitalism which has overvalued stocks, bonds and urban real estate.
Given this premise, where should prudent companies invest? We at North Development have found a fundamental value or durability in companies like Renew Biomass and other rural companies that grow and manufacture foundational crops such as Miscanthus fiber products in pet food or absorbency agricultural products that dry out chemicals. Whether putting more fiber into a pet or human diet, or drying out nutritional products for customers, we see our current endeavors as holding fundamental value.
We have also invested in rural real estate. We own property on the Mississippi River where Consolidated Grain and Barge just completed a new $15 million grain export facility, which brings state-of-the-art export capabilities to the Mid-South farm belt. We own an 80,000 square foot retail center in southeast Ohio on the Utica Shale. Not only is this area rural, but farmers have extensive income from the oil sector. Understand we do not anticipate runaway growth in these investments like there was in real estate in Chicago in the 1990’s or the stock market in 1999, but we believe there is backbone and stability in these investments in the coming decade.
Ninety-five percent of Americans living today only understand the word inflation and the concept that assets generally go up. I believe the next 10 years will introduce Americans to the word deflation, which has not been observed since the 1930’s.
The owners of Renew Biomass are finding that Miscanthus fiber or non-wood cellulose fiber has the same qualities as the standard southern pine tree cellulose fiber, but can be sold profitably for 50 percent less than wood cellulose powder. Maintaining value and reducing cost will be the painful reality of future business. The owners of Renew Biomass know they can deliver this deflationary value to the American people.
Cal Boender, President
Calvin D. Boender was raised in the Dutch Christian Reformed area of Highland, Indiana. After high school, he attended Calvin College and graduated from Grand Valley State College, in 1978, with a bachelor's degree with honors in Political Science.
An accomplished real estate developer throughout the past 35 years, Boender made his first investment in the agriculture industry in 2007. He partnered in various agricultural ventures with companies as diverse as Consolidated Barge & Grain and Topo Solutions Inc. Intrigued by the potential of M-Fiber, he formed Renew Biomass in 2015 to unlock the potential of Miscanthus grass. Since that time he has focused on disrupting the $2.4 billion dollar dietary fiber market and is in the process of bringing M-Fiber to the $28 Billion Dollar US Pet Food Market.
Cal has been a major contributor to various philanthropic causes and non-profit organizations addressing the needs of children and less-fortunate individuals. He resides in the suburbs of Chicago with his wife and two dogs, where he enjoys reading and biking.