Sales of this firm’s fertilizer product increased tenfold year over year.
Having already sold all of the soil and plant fertilizer it can produce in 2018, Verde AgriTech Plc (NPK:TSX; AMHPF:OTCQB) announced it will add another processing plant in 2019 to meet demand.
“Though it pains us to turn away buyers because we have now reached maximum production capacity, we are even more determined to accelerate our expansion and supply an ever greater numbers of Brazilian farmers,” President and CEO Cristiano Veloso said in a news release.
During the most recent planting season, Verde AgriTech sold about 10 times more Super Greensand (called K Forte in Brazil) than it did in 2017, for a total of nearly 40,000 tons (40 Kt). To fill the rest of its existing orders by the season end in late November, the company has been running its plant around the clock every day.
Once the rainy season begins, and for its duration, through March, Verde shifts to processing and selling another of its products, Alpha, which gets sprayed on crops after they begin to grow.
Due to Verde AgriTech maxing out production capacity, it will build a second processing facility where it will be able to produce 600 Kt per year. The new plant, together with the current one that accommodates 200 Kt production, will allow for 800 Kt in total annual production. The company projects that it will attain that quantity in 2020. “Our expansions are only just beginning,” Veloso noted.
According to the release, “financing for the expansion is budgeted to be a mix of accumulated cash flow and subsidized debt from Brazil’s development bank (BNDES).”
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