Business
Maple Leaf signs 1.5 million Rmb organic fertilizer supply agreement
Maple Leaf signs 1.5 million Rmb organic fertilizer supply agreement
About this update from Maple Leaf Green World, Inc.
[{"type":"text","content":"\n\n\n\nNov. 18, 2009 (Canada NewsWire Group) -- CALGARY, Nov. 18 /CNW/ -- Maple Leaf Reforestation Inc. (\"Maple Leaf\" or the \"Company\") is pleased to announce that it has signed an agreement with the town of Lingquan, Hunan in China to supply organic fertilizer to the town-operated starch processing project.Under the agreement:- The town of Lingquan, Hunan (\"Lingquan\") is to grow 10,000 mu(1,650 acres) of sweet potatoes starting in early spring 2010. Thesweet potatoes will be used for processing starch.- Maple Leaf will be responsible for providing 250 kgs of fertilizerper mu or 2,500 tons in total for the whole project.- The fertilizer will be purchased by Lingquan for approximately$100 Cdn (600 Rmb) per ton, which is a discounted price. The totalvalue of the agreement is approximately $234,000 Cdn(1.5 million Rmb). Maple Leaf has provided the fertilizer to Lingquanat a discounted purchase price because it believes that forming arelationship with Lingquan is priority number one. If Lingquan issatisfied with the quality of the fertilizer Maple Leaf hopes thatthe relationship will grow and a higher price will be obtained forany future fertilizer supply agreements that may be entered.- Maple Leaf will receive approximately $4,700 Cdn (30,000 Rmb) as adeposit for this order.- Maple Leaf will begin production of the organic fertilizer forLingquan in December, 2009 with delivery of the entire order to occurin early spring 2010.- In addition, Lingquan will be renting some space in Maple Leaf'sproduction facilities for the purpose of processing the starch fromits sweet potatoes. The rental arrangement will last for a durationof two months and Lingquan will pay Maple Leaf a total rental fee ofapproximately $3,120 Cdn (20,000 Rmb).- The residue from the starch production of approximately 17,500 tonswill be given to Maple Leaf at no charge. Maple Leaf is able to usethe residue to produce additional organic fertilizer.This agreement comes shortly after the Company's organic fertilizer plant was awarded a grant of approximately $78,000 Cdn (500,000 Rmb) from the Hunan Provincial Government in recognition of Maple Leaf's efforts in implementing effective environmental improvement programs (see news release dated November 9th, 2009).Raymond Lai, President and CEO of Maple Leaf comments, \"We are very pleased to see the organic fertiliz...