As demand continues to grow in the agriculture sector RLF AgTech (ASX: RLF) has revealed $1.2 million in annual sales contracts from long-standing Chinese customers for the upcoming FY2023 beginning on the 1 July.
The forward annual contracts for FY2023 represent an average 80% increase in sales for two of RLF AgTech’s long-standing customers – Sichuan Davofeng and Hainan Kangxifeng.
Sichuan Davofeng’s contract is worth $600,000 and represents a 100% increase on FY2022 levels, while Hainan Kangxifeng’s agreement is also valued at $600,000 and is a rise of 60%.
RLF AgTech managing director Ken Hancock said the company is “particularly pleased” with its long-standing customers committing to “substantial increases” in product orders and increasing the availability of the company’s plant nutrition products ahead of China’s high growth season.
Technology-driven plant nutrition
RLF AgTech describes itself as a “technology-driven plant nutrition” company that develops products to empower farmers, nourish people and restore the earth.
The company has combined plant science with advanced chemistry and manufacturing to create plant nutrition products for commercial agriculture.
According to RLF AgTech, its plant proton delivery technology enables farmers to grow higher-yielding, better-quality and more nutritious produce, while also supporting the plant’s ability to store and reduce atmospheric carbon.
ASX-listing to drive international expansion
RLF AgTech listed on the ASX last month after raising $8.5 million in its initial public offering (IPO).
The rationale behind the ASX listing was to capitalise on the rising demand for agricultural commodities, record food and fertiliser prices and the need for plant nutrition efficiency globally.
Funds from the IPO are being used to expand RLF AgTech’s sales team in Asia to increase distribution of its products in the region.
The company will also use funds to penetrate more international markets and will support establishing and expanding strategic hubs in these jurisdictions.
In parallel, RLF AgTech is working on commercialising its carbon project.
“In the years ahead, commercial agriculture is destined to play a significant role in sequestering carbon,” the company explained.
RLF AgTech said its technologies will support this trend using integrated crop nutrition and carbon management systems to capture and store carbon dioxide by boosting organic matter in the world’s soils.