"Though it pains us to turn away buyers because we have now reached maximum production capacity, we are even more determined to accelerate our expansion and supply an ever greater numbers of Brazilian farmers," President and CEO Cristiano Veloso said in a news release.
During the most recent planting season, Verde AgriTech sold about 10 times more Super Greensand (called K Forte in Brazil) than it did in 2017, for a total of nearly 40,000 tons (40 Kt). To fill the rest of its existing orders by the season end in late November, the company has been running its plant around the clock every day.
Once the rainy season begins, and for its duration, through March, Verde shifts to processing and selling another of its products, Alpha, which gets sprayed on crops after they begin to grow.
Due to Verde AgriTech maxing out production capacity, it will build a second processing facility where it will be able to produce 600 Kt per year. The new plant, together with the current one that accommodates 200 Kt production, will allow for 800 Kt in total annual production. The company projects that it will attain that quantity in 2020. "Our expansions are only just beginning," Veloso noted.
According to the release, "financing for the expansion is budgeted to be a mix of accumulated cash flow and subsidized debt from Brazil's development bank (BNDES)."[NLINSERT]
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: Verde AgriTech. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Verde AgriTech, a company mentioned in this article.