Organic phosphate producer and agri-business hopeful Fertoz (ASX: FTZ) has announced it has signed a Memorandum of Understanding with Limoges Seed Farms, a Canadian seed business.
Fertoz is a fertilizer supplier that develops and markets a range of organic fertilizers for sale into the premium agri-business markets of North America and Australia.
Phosphate is a crucial plant nutrient that enables healthy plant development, cell division and tissue growth.
Phosphates are added to the soil for plants to absorb, although several complexities mean that soil acidity plays a crucial role in how much a plant can absorb.
According to Fertoz, its proprietary organic rock phosphate “is a relatively highly available source which works best in acidic soils as a stand-alone product and in basic soils when combined with sulphur or humate products.”
The two parties have signed a mutually-beneficial “agronomic” agreement with associated volume and price targets, which Fertoz executive chairman Pat Avery calls “a great opportunity for Fertoz to foster company growth.”
“We expect this to fast-track our growth opportunities, as this will help us supply a large farming area, with rapidly increasing organic acres and conventional acres, where Fertoz’ high-quality products can vastly improve crop yield and soil health,” said Mr Avery.
Limoges supplies progressive solutions to improve farm production and accelerate business growth by providing access to “superior crop genetics” and “advanced” fertilisers.
Fertoz’s specialisation in rock phosphate is seen as a “solid strategic fit” for Limoges, with the company hopeful of ramping up production of new and improved organic products through close collaboration and knowledge sharing.
“We are pleased to join with Fertoz as it scales up and continues to penetrate the market. We are at the forefront of agribusiness and will help Fertoz to capture additional revenue and explore various opportunities to improve operations,” said Limoges founder, Marcel Limoges.
“We provide highly sought-after agronomic services on crops and soils, and believe that through improving production quality, we can assist Fertoz to generate a higher return on investment,” Mr Limoges said.
According to the company, Limoges provides farmers with a range of scientifically-proven practices that foster sustainable growth whilst minimising environmental impacts. Some of its specialities include “inoculant technologies”, consulting services and carbon capture.
Moving forward, Fertoz intends to leverage its existing partnerships with its growing list of distributors which could potentially lead to a broad base of consumers that adopt its products.
Its overarching business plan is to specialise in supplying the organic fertiliser market with “direct application phosphate rock”, and eventually become a leading global organic fertiliser company with strong recurring sales being backed by dwindling arable land and falling soil quality in already well-established farming regions.