CropLogic delivers maiden shipment from hemp farm
Today’s announcement by CropLogic Limited (ASX:CLI) regarding the first biomass shipment from its Hemp Trial Farm in Oregon is a significant event on a number of fronts.
Not only is it an important milestone in terms of initiating deliveries for the payment of $15.4 million based on a supply agreement struck in August, but it should also finally put to bed unsubstantiated detrimental statements that were made on social media channels, seemingly directed at manipulating the company’s share price.
As an award-winning global agronomy, farm management and ag-tech company, CropLogic has successfully shown its wares in terms of executing successful agricultural methods in growing a lucrative crop.
The company stands to benefit from showcasing its technologies and expertise to the broader farming community as it has applications across a wide range of crops.
Underlining the significance of the group’s maiden shipment, CropLogic chief executive James Cooper-Jones said, ‘This milestone caps off a seed to sale story for the hemp trial farm and speaks volumes to CropLogic’s agronomy, farm management and ag-tech expertise.’’
Further share price catalysts on the horizon
Cooper-Jones also confirmed that the harvest timeline remained on track.
There remains an element of ‘dialling in’ of machinery and processes to the extent that would be commonly expected for a project such as the trial farm, however this notwithstanding the harvest is progressing well.
The methodology of swathing (sometimes called windrowing in Australia and New Zealand), field drying and then combining biomass has to date been successful.
A process of brushing after combining had been considered, but management and buyers have been pleased with the consistency of biomass material from the combine as shown below.
Adopting this strategy potentially eliminates or at least reduces the need for brushing.
This not only reduces the cost of brushing but also streamlines the harvesting process both this season and in any eventual expansion.
The harvest progress is such that the company’s warehousing procedure is now being implemented.
This includes bagging the biomass into supersacks, weighing and tagging and then storing for sale.
CropLogic’s progress in building inventory, as well as commencing sales is important as it indicates the company’s capacity to continue to meet its supply obligations.