Industrial Hemp Production in US and Canada Offers Significant Market Opportunity for AgraBurstPRO™
SIOUX FALLS, SD, Nov. 08, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- GroGenesis, Inc. (GROG), a global pioneer in sustainable agriculture technology, announced today that the company has entered the industrial hemp cultivation market in the US and Canada with its broad spectrum, organic adjuvant, AgraBurstPRO™. Based on positive feedback from hemp growers, the company has identified industrial hemp as a significant new market for AgraBurstPRO™, an organic input which optimizes the uptake of any agricultural input applied to any plant. After conducting due diligence on the hemp industry and the prospects for the legalization of industrial hemp production in the U.S., the Company field tested AgraBurstPRO™ with hemp producers who were impressed by the positive results exhibited in the health of their plants, growth rate improvement and plant size enhancement.
Mr. Richard Kamolvathin, President and CEO of GroGenesis, said, “After completing numerous field trials with our partners to validate the effectiveness of AgraBurstPRO and its more efficient delivery of all applied inputs on any plant, including hemp, it became apparent that the industrial hemp industry in Canada, where hemp farming is already legal, and the probability that hemp cultivation will become legal in the U.S. soon, presents a lucrative market for GroGenesis. Recent control test reports from cultivators have strongly encouraged us to proactively target the hemp market -- a lucrative market to tap with the multitude of industrial uses, rapid growth rate to harvest and the yet-to-be-realized potential of CBD oil.”
Kamolvathin continued, “As an organic science company focused on the reduction of toxic chemical inputs into the environment, we believe it is important to identify and add new market opportunities in other viable market sectors that align with our core values and as we continue to commercialize our flagship product, AgraBurstPRO for agriculture. Our strategy is to apply the same business model that we have used in the past by developing business relationships with distribution partners that are in a specific market sector and provide the technical, manufacturing and marketing assistance, in addition to specific protocols, for our distributors to be successful under their own private level brand.”
Hemp, one of the fastest growing plants with a sixty-day growth cycle in many states, is cultivated for fiber, oil, and seeds which are subsequently refined into numerous products including wax, biodegradable plastics, resin, textiles, pulp, paper, rope, clothing, biofuel, animal feed, paint and hemp oil. In addition, the use of CBD oil is being researched on its beneficial effects for anxiety relief, anti-seizure, pain relief, anti-acne, food ingredients and promising potential for cancer therapy.
According to the Hemp Business Journal, the U.S. hemp industry’s sales in 2017 was $820mm, including $190mm for Hemp-Derived CBD products, $181mm for personal care products and $137mm for hemp food products. However, as legal and regulatory hurdles are removed and consumer knowledge on CBD oil develops, it is estimated that the U.S. hemp industry will grow at a 5-year Compound Annual Growth Rate (CAGR) of over 14% (2018-2022) to a $1.9 Billion dollar market by 2022. In Canada, over 100,000 acres of hemp was under cultivation in 2017 with significant increases in production forecasted over the next five years.
Mr. Kamolvathin concluded, “AgraBurstPRO, as an organic input, can be an integral part in the protocols for the production of food crops, flowers and turf, in addition to cash crops such as palm oil, tobacco and hemp. With the prospect of the legalization of hemp production in the U.S, there is a significant market opportunity for the agriculture industry in both Canada and the US. Both new and veteran hemp cultivators will be establishing their farming protocols that can include AgraBurstPRO, an input that enhances drought tolerance, disease resistance and crop yields. We look forward to positively impacting the industrial hemp industry in North America and internationally."
AgraBurstPRO™ is an organic, broad spectrum adjuvant which acts as an efficient delivery system for all applied agricultural inputs. Applied as a surfactant, AgraBurstPRO™ facilitates the rapid and direct absorption of inputs through the leaves and stems of a plant which results in the more efficient access of applied and available nutrients, resulting in less fertilizer required, improving drought tolerance and increasing crop yields. By optimizing the plant's uptake of applied pest and weed controls and fertilizers, food producers can minimize other input costs, reduce the health risk to workers and produce healthy food for farmers' families and consumers. AgraBurstPRO™ improves the natural health of all plants -- including food crops, trees, vegetables, grasses and cash crops such as tobacco, palm, flowers and hemp-- by dramatically stimulating the nutrient and water uptake in plants. The solution applied as a spray is a plant-based extract which is organic, non-toxic, carcinogen-free, biodegradable and safe for use in all soil conditions. Its application amplifies every plant's natural capacity to absorb nutrients through its own foliage while augmenting root development and soil uptake. Any agricultural input's performance is enhanced by integrating the application of AgraBurstPRO™ either separately or in an input manufacturer's original formulation--including fertilizers, herbicides and fungicides.
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About GroGenesis, Inc.
GroGenesis, Inc. is a sustainable agriculture technology services enterprise offering food producers a non-toxic proprietary, all-natural, non-GMO surfactant which enhances soil and crop health and reduces the health risk to farm workers due to its non-toxic properties. GroGenesis' flagship product, AgraBurstPRO™, is a non-toxic, concentrated agricultural input solution which enhances the ability of the plant to more efficiently use the added nutrients incorporated in fertilizers, resulting in less fertilizer required. The application of AgraBurstPRO™ can begin the process of improving the health of the soil while minimizing the use of conventional chemical agricultural inputs. For more information, please visit the Company's website at www.GroGenesis.com.
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This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to, the development of our products, our limited financial resources, our ability to raise the working capital needed to fund the expansion of our current and future distribution commitments, our ability to retain key employees, our competitors' ability to develop better or less expensive alternatives to our products and the risks and uncertainties discussed under the heading "Risk Factors" in Item 1 of our Annual Report on Form 10-K for the fiscal year ended May 31, 2017, and in our other filings with the Securities and Exchange Commission.
Contact: GroGenesis, Inc. (605) 836-3100 email@example.com
The most obvious market for AgraBurstPRO is the rapidly growing organic food industry. From 2005 to 2014, the organic sector grew from less than $14 Billion to $35 Billion. The U.S. organic industry continued its steady growth in 2016, with food sales increasing 8.4 percent to $43 billion. Considering that total food sales increased only 0.6 percent, the preponderance of the growth is in the organic sector. According to the Organic Trade Association in its 2016 Organic Industry Survey, organic food now accounts for 5.3 percent of all food sales in the US--alot of room to grow as consumer demand for organic food accelerates. Global sales of organic food totaled approximately $90 Billion in 2016 vs. $80 Billion in 2015.
Farmers who are already Organic-certified have an economic interest in maintaining that certification and, if possible, increasing their crop yields. By incorporating AgraBurstPRO in their organic protocols, farmers can realize higher incomes from the improved yields (Yield increases in field tests in Colombia, Cuba and Bangladesh have recorded increases in production from 15% to 40%). Field tests are currently being conducted in two states in the US for soybean and corn.
Conventional Farmers Considering Transitioning to Organic
This significant market includes farmers already committed to converting from conventional (chemical) farming to organic farming. But there also is an increasing interest from conventional farmers in adopting organic methods, but not willing to accept any decrease in yield. There is a growing number of conventional farmers that would abandon chemical inputs IF they could afford the 3-5 year transition time necessary to get their land "Organic--Certified". It takes years of NOT using chemicals to get to the point that a soil sample does not register any chemical residue--a requisite for Organic certification.
To date, this transition period was economically challenging because yields typically declined and the higher expected premium organic produce prices were not realized until after certification. With AgraBurstPRO, farmers converting to organic can "afford" to complete the process because of the higher yields . As noted previously, field tests have recorded yield increases ranging from 15% on coffee to over 40% on rice.
Conventional farmers who want to continue using their current protocols always are driven to maximize their crop yields. The fact that AgraBurstPRO is organic AND increases crop yields substantially is a plus for these farmers. Although they do not care to become Organic-Certified, using a non-chemical input reduces the toxic work conditions inherent with andling chemical inputs.
Additional Non-food Markets
As a broad spectrum agricultural input, AgraBurstPRO is effective with any plant. Non-food crops that have been, or are currently, in field tests with AgraBurstPRO are flowers, cannabis, tobacco, turf, ornamental trees, coffee, cacao, palm (palm oil), corn, mangoes, banana, lawn/turf (golf courses, lawns and sports arenas) and pasture grasses.