Kraig Biocraft Laboratories Inc (KBLB)

[jealmc79]

KBLB has genetically modified the domestic silkworm in Vietnam to be ‘hardier’ and disease resistent, and to produce cocoons 30% larger. (30% larger = 30% more production and profits)

KBLB is using hybridization to attempt to breed hardier and more productive spidersilk worms. They did not genetically insert something into the worms to accomplish this. It's the same thing the Chinese have been doing to produce their eggs that they sell to the Vietnamese. KBLB's 30% larger eggs were compared to their non hybrid Spydasilk cocoons not the Chinese mundane silkworm cocoons. I'm sure the Chinese mundane cocoons are as large or larger than the ones KBLB has produced so far.

Vietnam produces over 1,000 metric tons of silk each year.

So what does this all mean? In my humble opinion, KBLB is contracting with the Vietnamese silk industry to provide enhanced silkworms domestically. They have negotiated for new facilities, pricing for the worms, and a commitment for the industry to buy from them instead of China or India. Why wouldn’t Vietnam welcome that relationship when it results in lower cost, higher production, and a huge profit increase? Additionally, why wouldn't KBLB look to make a profit from their years of research and development?

If you're thinking KBLB is going to compete against China in the mundane silkworm egg market and going to make money doing it you are wrong. Last time I checked a DFL was selling for $.04 in Vietnam and the cost of eggs makes up about 5% of the expense of producing cocoons. I'll let you do the math to figure out how much that is for 1000 metric tons of silk since there are some on this board that are jealous of my spreadsheet skills. Hint: It isn't that much.

Competing against China to sell silkworm eggs to dirt poor farmers who sometimes get subsidized for silkworm eggs doesn't sound like a recipe for success to me and is way to small of a market to worry about. Makes more sense to convert the farmers to DS and provide them free eggs in exchange for an agreed upon price for the DS silk in return.