Agtech powerhouse CropLogic Limited has commenced the harvesting and shipping of hemp biomass from its Oregon Farm Trial.
The award-winning global agronomy company, CropLogic Limited (ASX: CLI), made the headlines again this week after it released its quarterly update for the period ending 30 September 2019.
During this quarter the company hit many milestones at its Central Oregon Hemp Farm Trial by making use of CLI's agtech and farm management expertise, including the completion of planting, growing and crop management activities.
As a result, the company was able to successfully complete its first industrial hemp compliance test—before subsequently securing an offtake agreement worth $15 million—and has now commenced the harvesting and shipping of raw hemp biomass.
At this point, CLI's harvest timeline has continued to remain on track, despite the lack of automation present in certain machinery and processes being used in the trial. However, the company has stated that this is largely unavoidable for a project of this scale.
CropLogic also considered employing the methodology of swathing—which is also known as "windrowing" in Australia and New Zealand—however management decided this was unnecessary as they were already pleased with the consistency generated by the farm's combine process.
According to the CEO of CropLogic, James Cooper-Jones, "The commencement of shipping of biomass is a significant milestone in the hemp trial farm.
"This milestone caps off a seed-to-sale story for the hemp trial farm and speaks volumes to CropLogic's agronomy, farm management and agtech expertise." CropLogic CEO, James Cooper Jones
As part of the supply deal CropLogic will also have the potential to extend the agreement further, which should give the company an opportunity to maximise its returns even further.
The company's planned expansion of its Oregon hemp cropping operations also progressed significantly during the quarter, along with its investigations into the possibility of further expansions into the Australian market. In aid of this, CLI has already begun introducing changes at its Mildura, Australia office, including a significant reduction in Human Resources staff.
This period has also been a busy one for CropLogic's Washington State, Idaho and Oregon agtech operations. With the growing season now drawing to a close, the company has confirmed that the progress made in these regions will now be assessed and analysed, before plans for 2020 are drawn up.
The company wrapped things up by providing a snapshot of its strategy for the upcoming quarter, which will kick off with the completion of the final stages of the Hemp Farm Trial.
CLI also have plans to pursue additional sales channels for its remaining supply of hemp biomass, begin processing trimmed flower product as part of its joint venture with the Shephard Brothers, and progress plans for the 2020 season for Washington State and Idaho, along with expansion plans in Oregon and Australia.
To learn more about CropLogic, visit their Company HQ here
Disclaimer: Past performance is not an indicator of future performance.
Disclaimer: past performance is not an indicator of future performance
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