Crop Logic enters into CBD joint venture
CropLogic Limited (ASX:CLI) has entered into a joint venture (JV) with experienced Oregonian agriculturalists, the Shephard Brothers.
The JV will see the companies work together to grow premium CBD hemp trimmed flower, with CropLogic implementing its agricultural skillset and agtech over an additional 16.6 acres of premium hemp, cultivated specifically to produce trimmed CBD flower (as opposed to bio-mass).
Trimmed flower is modelled to have a significantly higher return on investment than hemp biomass. It is a premium CBD hemp product that attracts a high sale price.
Prices of US$450/lb have been commonly observed by CropLogic and price ranges of between US$300 to US$600/lb being common (price variance largely due to grade, marketing and quantity).
The Shephard Brothers are famous in Oregon. Their nursery supplies much of the blooming stock (flowers and vegetables) to much of the west coast including some of the largest chain stores in the USA.
The brothers are experienced agriculturalists. They will demonstrate CropLogic’s digital applications, including CropLogic realTime1 over CBD hemp trimmed flower production. Their contribution to the JV will include providing acreage, shedding and storage and also labour and machining during the trimming process.
CropLogic will provide hemp plant management expertise as well farm management, agronomy and agtech expertise.
Proceeds from the joint venture will split equally. It is expected this venture will produce between 8,000 and 10,500 lbs of trimmed flower.
“Local interest in CropLogic’s Hemp Trial Farm has drawn much local attention to CropLogic and in particular our agronomy, farm management and agtech expertise,” said CropLogic CEO James Cooper-Jones.
“We have drawn on this interest and joined with the Shephard Brothers to develop a premium CBD hemp trimmed flower product to demonstrate CropLogic’s farm management, agronomy and agtech expertise.
CropLogic realTime monitors and tracks key crop metrics, such as soil moisture and irrigation, and converts observations into data 24/7. This information is then collated in a concise and accurate format, providing actionable insights for users to make cost-saving decisions. Users can view this data in a user-friendly application called CropLogic GrowerView, which can be accessed via desktop, as well as on both Android and Apple iOS. CropLogic has developed this tool with the expertise of leading agronomists, leveraging over 30 years of research.
“We are pleased to partner with agriculturalists of the calibre of the Shephard Brothers and are keen in expanding CropLogic’s proprietary knowledge of not only hemp, an exciting and emerging crop, but also expand our knowledge of cropping generally.
“The Shephard Brothers’ understanding of plant development including flowering will be of great benefit to CropLogic, as will their experience in marketing and product positioning.”