- Organic fertiliser producer Fertoz has signed a distribution deal with Archer Daniels Midland (ADM)
- ADM is one of the world’s largest processors of soybeans, cocoa, wheat, and corn — servicing over 200 countries
- The deal will see Fertoz products be available in ADM stores, as well as online and through wholesale channels
- The Fertoz organic fertiliser range is produced from phosphate taken from rock resources
- Shares in Fertoz today gained 13.6 per cent to trade at 12.5 cents each
Shares in organic fertiliser producer, Fertoz, have jumped 13.6 per cent today after the company inked a major distribution deal with an NYSE heavy hitter.
The deal, made with American global food processor Archer Daniels Midland (ADM), will see Fertoz products listed on ADM’s wholesale channels by March 2020.
“We are pleased to announce a new supply agreement with ADM, one of the world’s largest agribusinesses,” Fertoz Executive Chairman Patrick Avery said.
“This is a great endorsement of our company – we continue to expand our base of distributors and manufacturers that promote or use our fertilizer products.”
Fertoz organic fertiliser products will be up for purchase in physical ADM outlets, as well as online sales channels — additional to the distributor’s wholesale options.
“The deal with ADM not only de-risks the company from a volume growth target perspective, but it also represents strong validation of the quality of our organic rock phosphate fertilisers and blends from a global leader in food production, processing, storage and transportation,” Patrick continued.
Organic fertiliser and phosphate?
Fertoz bakes up its organic fertiliser from phosphate found in rock resources. The company’s organic solution is used for an array of crops such as hemp, canola, grains, beans, and more.
“As demand for organic packaged foods has grown among label-conscious consumers, so too has demand for organic inputs,” Patrick added.
“We are pleased that after reviewing a range of competing products, ADM has chosen to market Fertoz’s organic rock phosphate to its substantial grower and distributor network.”
ADM employs over 40,000 people and deals business in over 200 countries. It’s one of the world’s largest processors of soybeans, cocoa, wheat, and corn. ADM is a likeable stock on the NYSE as well, currently trading for US$40.40 per share.
ADM also processes crops for food consumption, animal feed, renewable fuels and alternatives to industrial chemicals.
“Following our recent efforts to gather contact details of organic farmers, we are now targeting all relevant potential customers within a 100-mile radius of our key distribution centres,” Patrick said.
“This targeted approach is generating promising leads that we expect to convert into sales in 2020. This should compensate for the lower-than-expected sales in 2019, which, as shareholders know, was impacted by a 1 in 100-year weather event.”
Since shares in Fertoz saw a 13.6 per cent increase on the Australian market, it’s now trading for 12.5 cents apiece. The company’s market cap is currently valued at $14.14 million.