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  • Roots Sustainable Agricultural Technologies has signed a 12-month Letter of Intent with leading Italian ag-tech producer, Cairo & Doutcher
  • Under the agreement, Roots will install its two-in-one heating and cooling system at Cairo & Doutcher’s growing facilities
  • Cairo & Doutcher will pay for the initial demonstration system with an option for a future distribution agreement
  • Roots has gained 2.13 per cent on the market and is selling shares for 4.8 cents apiece

Roots Sustainable Agricultural Technologies has signed a 12-month Letter of Intent (LOI) with a leading ag-tech producer and nursery, Cairo & Doutcher.

Roots is developing and commercialising technologies to address critical problems faced by agriculture today. These problems include plant climate management and the shortage of water for irrigation.

Cairo & Doutcher is an early adopter of agricultural technology, utilising innovative cultivation techniques to improve the quality of its pomegranate, mango, avocado, herb and flower crops.

The Italian company also supplies seedlings, graftings and cutting varieties to wholesale growers from its nursery facility.

Under the LOI, Roots will install its hybrid ground source heat exchange system, combined with a heat pump, at Cairo & Doutcher’s growing facilities in Southern Italy.

This technology will improve crop quality and increase yields for herbs and flowers.

Roots’, Root Zone Temperature Optimisation (RZTO) optimises plant physiology for increased growth, productivity and quality by stabilising the plant’s root zone temperature.

Leveraging the principle of Ground Source Heat Exchange (GSHE), Roots installs a closed-loop system of pipes.

The lower part is installed where the soil temperature is stable and not affected by the weather, while the upper part in the target crop’s root zone is just below the soil surface.

Water that is flowing through the lower pipes is charged by the soil’s stable temperature. The water (hot or cold) is pumped through the pipes installed in the root zone, where the hot or cold water is released.

The RZTO significantly increases yields, increases growing cycle planting options, improves quality and reduces extreme heat and cold stress.

The companies have said that if the demonstration is successful, the parties will look to collaborate on an exclusive multi-year distribution agreement in Italy.

Roots’ CEO Sharon Devir says that this agreement is an important first step towards expanding its global footprint in the Italian market and says demonstrating the effectiveness of RZTO in local growing conditions, is an essential part of the ag-tech sales process.

“Roots’ RZTO technology addresses universal crop production and climate management challenges faced by growers across the world. Italy is one of the largest agricultural producers in the European Union with the sector accounting for around two percent of Italy’s GDP,” he said.

“As most of Italy’s producers are family run farms of around 10 hectares, our climate management technology is perfect for enabling these growers to increase yields and crop quality, increase the number of growing cycles and improve overall profitability year-round,” he added.

Roots has gained 2.13 per cent on the Australian Securities Exchange and is selling shares for 4.8 cents apiece at 2:48 pm AEST.

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