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Gold/Mining/Energy : Verde Agritech
NPK.TO 0.9200.0%Nov 28 9:30 AM EST
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To: kidl who wrote (15701)6/20/2017 12:43:56 AM
From: stuffbug  Read Replies (1) of 16582
 
What's not entirely clear to me ... Is 1 tonne of Greensand equal 1 tonne of KCL in terms of overall fertilizer requirement?
No, Super Greensand contains approx. 10% K2O; Potash is typically 60% K2O.
So it appears that farmers will require 6 times as much Super Greensand per application.
However, only 1 application of Super Greensand is required.

Here's where the numbers get tricky.
Equal cost to the farmer - is that total potassium cost or per application?
If a farmer normally applies 1 tonne of potash to his grain crops, he will require 6 tonnes of Super Greensand.
But grain crops require up to 3 applications; does that mean at least 2?
If yes, then equivalent cost per tonne of Super Greensand = 2 * 350 / 6 = 117
If Verde sells to a farmer who normally uses 3 applications, then equiv. cost = 350 * 3 / 6 = 175

This highlights the importance of finding customers who typically apply potash at least 3 times for each crop.

Although cost will most likely be an important factor for initial sales in Brazil, I suspect that won't be the case for the cannabis and organic products market in North America. If trials demonstrate that Super Greensand is far superior to potash, the Verde product will command a generous premium. One negative is that transportation costs from Brazil to North America will be significant.
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