CropLogic Limited (ASX: CLI) is a global agricultural technology company, currently servicing a considerable chunk of horticultural growers in Washington, with a market share as high as 30% in some crops.
The company today announced that USA operations are underway this season with its first realTime site set-up, which was launched in 2017 in Washington in collaboration with a local agronomy company. Deep scientific knowledge support for the Columbia Basin was provided by this agronomy services company. Columbia Basin, Washington State (highly productive) was selected by CLI for its operations.
Currently, realTime orders have increased 50% over 2018 in Washington State which is beyond management’s expectation. CLI announced that it will establish two new sales zones in North and West each to further target apple and hops growers and increase its market share.
The decision to establish new sales zones was taken to address the available market for CLI’operations in Washington State at AUD 9.3 million-AUD 18.6 million. Row crop industry will also be on the target in-line with CLI’s growth strategy. CLI used realTime in 2018 for a trial with apple and hop growers. Outcome from system was robust and responsive and growers’ response was also positive. The trial pushed the management to further focus on Washington State by establishing two new sales zones.
Washington State is the largest producer of crops like apples and hops with apple representing ~66% of the national crop. Hops industry in Washington State account for USD$382 million. Also, few growers there yield double of the national average in few crops.
CropLogic’s realTime, is a hardware technology which convert results outcome into data 24/7 after monitoring and tracks key metrics of horticulture like soil moisture and irrigation. Data is collated in a concise format which helps user to take cost-saving decisions. The output can be accessed by using application – CropLogic GrowerView. The technology has been created by CLI after a research of 30 years with the help of leading agronomists.
CLI in its earlier announcement communicated about the arrangement of lease financing facility for Australian farmers who are willing to purchase RealTime to optimize their farm yields. The lease financing will be through GRENKE, a German financier who caters its services to 32 countries. Buyers of RealTime with lease finance will enjoy the flexibility to return the amount over a period of time. The facility can be availed by submitting lease application through an online portal which takes minutes to process it and finalize the formalities. After approval, grower will be directly in contact with GRENKE for lease financing purpose.
GRENKE’s Management is quite hopeful with interest CLI’s prospects in Australia and other region. Also considers the technology to be useful to horticulture growers after seeing the market trends.
The company’s stock closed the day’s session flat at a price of $0.036 on 11 April 2019.
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