RLF AgTech capitalizes on the growing demand from the agricultural sector
Technology-focused plant nutrition company RLF AgTech (ASX: RLF) had a busy March quarter, capitalizing on growing demand for agricultural commodities, record feed and fertilizer prices and the need for nutrition efficiency plant in the global food production sector.
During the period, the Perth-based company saw a 62% increase in cash advances for its Asian business operations compared to the prior corresponding period, and a 35% increase in sales staff to facilitate the expansion of its Asian sales channel.
The growth of the sales team is designed to provide increased regional market opportunities and product support for RLF branded technologies and its distributors.
The new hires will focus on the company’s core markets, including seed dressings and treatments, soil and fertigation, and foliar technologies.
They are expected to contribute to increased earnings during the first six months of employment.
Plant proton delivery
During the March quarter, Broadacre Plus Max, the foliar formulation of RLF’s premium Plant Proton Delivery Technology (PPD), was exported from the company’s Asian manufacturing facility to Turkish distributor TIM Plant Care.
Turkey is the world’s largest flour exporter and the 10th largest wheat producer.
RLF said it will apply its experience in increasing wheat production in Asia to the Turkish market after product evaluations and government registration of the PPD technology by TIM.
Opportunities in Africa
RLF has also been pursuing additional commercialization opportunities in Africa, including recent trials in Tunisia where its products have achieved increased yields of up to 38% with a strong return on investment for farm owners.
RLF had discussions with a large French conglomerate with a distribution network along the Ivory Coast in West Africa comprising over 40,000 cotton, maize, rice and groundnut farms.
The company’s PPD products have been exported in preparation for the new season of testing and evaluation programs.
Reducing agricultural emissions
RLF has signed a non-binding letter of intent with the Commonwealth Bank to establish a framework of solutions to reduce agricultural emissions by reducing traditional fertilizer inputs while increasing the carbon stored in the soil to generate carbon credits.
The initiative will be managed by subsidiary RLF Carbon, launched last year to develop business opportunities for Australian and global farmers in the emerging soil carbon market.
Before the end of the quarter, RLF completed an initial public offering of $8.5 million through the issuance of 42.5 million shares at $0.20 each for an indicative market capitalization of $37 million. of dollars.
RLF was admitted to the ASX in April and said it remains fully funded to embark on its key objective of becoming a market leader in providing high-value crop nutrition products that generate exceptional yield, a strong return on investment for farmers and a more sustainable approach to farming.