RLF AgTech capitalises on growing demand from agricultural sector

RLF AgTech ASX March 2022 agricultural sector fertiliser plant nutrition
RLF AgTech listed on the ASX last month after raising $8.5 million.

Technology-driven plant nutrition company RLF AgTech (ASX: RLF) has recorded a busy March quarter, capitalising on growing demand for agricultural commodities, record food and fertiliser prices and the need for plant nutrition efficiency in the world’s food production sector.

During the period, the Perth-based company posted a 62% increase in advanced cash receipts for its Asian business activities compared to the previous corresponding period, and a 35% rise in sales personnel to facilitate an expansion to its Asian sales channel.

The sales team growth is designed to provide increased regional market opportunities and product support for RLF-branded technologies and its distributors.

New recruits will focus on the company’s major markets including seed primers and treatments, soil and fertigation and foliar technologies.

It is expected they will contribute to increased revenue during the first six months of employment.

Plant proton delivery

During the March quarter, RLF’s premium plant proton delivery (PPD) technology foliar formulation Broadacre Plus Max was exported from the company’s Asian manufacturing facility to Turkish distributor TIM Plant Care.

Turkey is the world’s largest flour exporter and 10th largest producer of wheat.

RLF said it would apply its experience in increasing wheat production in Asia to Turkey’s market following product evaluations and government registration of PPD technology by TIM.

Opportunities in Africa

RLF has also been seeking additional marketing opportunities in Africa including recent trials in Tunisia where its products achieved increased yields of up to 38% with a strong return on investment for farm owners.

RLF held discussions with a large French conglomerate with a distribution network along the Ivory Coast in West Africa comprising more than 40,000 cotton, maize, rice and ground nut farms.

The company’s PPD products have been exported in readiness for new season trials and evaluation programs.

Reducing farm emissions

RLF executed a non-binding letter of intent with the Commonwealth Bank to establish a framework for solutions to reduce farm emissions by reducing traditional fertiliser inputs while increasing carbon stored in the soil to generate carbon credits.

The initiative will be managed by subsidiary company RLF Carbon, launched last year to develop commercial opportunities for Australian and global farmers in the emerging soil carbon market.

ASX admission

Prior to the end of the quarter, RLF completed an $8.5 million initial public offering via the issue of 42.5 million shares at $0.20 each for an indicative market capitalisation of $37 million.

RLF was admitted to the ASX in April, and said it remained fully funded to embark on its key objective of becoming a market leader in the provision of high value crop nutrition products driving exceptional yield, strong farmer return on investment and a more sustainable approach to agriculture.

    Join Small Caps News

    Get notified of the latest news, interviews and stock alerts.