ROOTS' alliance provide access to Canada
ROOTS Sustainable Agricultural Technologies Limited (ASX:ROO) has entered the Canadian agricultural market with the signing of a non-binding exclusive agreement with Water Ways Technologies Inc (TSX-V:WWT), a leading Israeli based agriculture technology company that specialises in providing water irrigation equipment solutions to farmers around the world.
The agreement with Water Ways Technologies Inc facilitates the distribution of ROOTS’ patented Root Zone Temperature Optimization (RZTO) technology in Canada.
This is a significant market opportunity for ROOTS as Canada is actively promoting new agricultural innovations through the C$3 billion ‘Canadian Agricultural Partnerships’ innovation program.
The combined ROOTS/WWT offering delivers a more comprehensive and technology-led irrigation solution to primary producers in Canada, particularly in the cannabis market where intense competition has led to a downturn in cannabis prices.
Growers are increasingly searching for new and innovative technology solutions to reduce production and energy costs in order to improve margins.
A combination of ROOTS’ RZTO and Water Ways’ irrigation technology could potentially deliver Canadian growers with a major competitive advantage.
ROOTS to capitalise on Water Ways’ market presence
Under the terms of the agreement, Water Ways will have the right to import and sell ROOTS’ patented Root Zone Temperature Optimization (RZTO) technology in Canada and capitalise on Water Ways Technologies’ established market presence where it has well-entrenched commercial relationships.
Established in Israel in 2004, Water Ways Technologies is an irrigation and agriculture technology company and a global provider of smart irrigation and water systems solutions for agricultural producers.
Its proprietary Precise Irrigation System has been deployed in over 15 countries by fresh produce cooling rooms, vineyards, water reservoirs, fish farms and sorghum silos.
ROOTS and Water Ways have been assessing collaboration opportunities for six months and have determined that the RZTO technology complements and strengthens Water Ways’ smart irrigation and water system solutions offering a comprehensive solution to meet the needs of both RZTO as well as providing a smart system of water for irrigation.
Canadian agricultural exports valued at C$85 billion by 2025
Canada has excellent potential for ROOTS as it is one of the largest agricultural producers and exporters in the world with agricultural and agri-food exports valued at approximately C$85 billion by 2025 (Report of Canada’s Economic Strategy Tables: Agri-food).
With federal programs like the “Canadian Agricultural Partnership”, a five-year, C$3 billion investment program launched by the federal government, Canada is actively promoting Ag-Tech innovations.
In pointing to the potential for accelerated sales growth, ROOTS chief executive and co-founder Dr Sharon Devir said, "ROOTS continues to strengthen its presence in North America and we see considerable scope for growth in Canada by partnering with Water Ways.
‘’By combining our respective technologies to deliver a better outcome for growers, we are exceptionally well-placed to capture sales more rapidly.
‘’Water Ways' well-established presence in Canada also provides us with a seamless and cost-effective market entry.
“Both companies have identified the cannabis sector as a market that presents significant commercial opportunity, and if we can deliver growers in Canada with a technology-led pricing advantage, we are confident we can build a strong presence here.”
With regard to cannabis, ROOTS reported in October that its technology had increased the yield of dry cannabis flowers by up to 118% compared to uncooled crops from various strains within a climate-controlled greenhouse at Canndescent’s facilities in Southern California.