Vancouver, B.C. (FSCwire) - Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF) (“Organto”), a leading vertically integrated provider of value-added branded organic vegetables, today announced it has entered into a strategic agreement with ProSpection Consulting LLC (“ProSpection”) to develop and manage supply of certified organic products for Organto from strategic third party suppliers in Egypt, sub-Saharan Africa and India. This agreement aligns with Organto’s strategic asset light business model which includes production of organic vegetables from both company operations and strategic third party suppliers.  Prospection’s in-depth experience working in the Middle East, African and Asian markets will play an important role as supply is expanded from these regions.

 

Marcus Meurs, President and COO of Organto commented, “This is a significant step for Organto as we move beyond our own production to partnering with strategic third party suppliers in the African and Asian markets, enhancing our year round supply capabilities while also allowing us to expand our product categories.  We have worked  with ProSpection for many years and are confident that their market knowledge and on the ground local expertise will serve us well as we expand our supply capabilities to meet growing market demand for fresh and healthy food options.”

 

Headquartered in Cairo, Egypt with partner companies in Dubai and Hong Kong, ProSpection is a boutique consulting firm widely known for its detailed cooperation with growers and buyers in the Middle Eastern, African and Asian markets.   The combined fresh produce experience of Prospection’s partners and senior staff exceed 100 years. Under the new agreement, ProSpection will coordinate with local growers to grow organic certified products under the Organto brand, to be distributed to Organto’s growing customer base, initially in Europe followed by expansion to North America.  Supply from these growing regions is expected to start in Q4, 2017, expanding rapidly in volume through 2018.  

 

Heike Hagenguth, Managing Partner of ProSpection commented, “We are very honored to be a partner in this exciting venture. Throughout our journey with Organto we have learned about the company’s philosophy which we full support.  We are what we eat, and Organto thrives to bring only the best to consumers’ tables. At ProSpection we have a passion for growers in the Middle East, Africa and India where we see much untapped potential.  Adding value through quality management and linking growers to Organto and its markets means opening new markets for many growers who could not otherwise access these markets, in turn  improving the livelihood of many individuals. We are very excited to take our cooperation with Organto to a new level and towards a long-term successful partnership.”

 

About ProSpection Consulting LLC

 

ProSpection’s office in Egypt was established in 2012 and has delivered tailored support programs for growers and importers ever since, including but not limited to quality control and quality management programs, strategy, marketing, training etc. Today ProSpection executes procurement plans for several multi-national and regional buyers in the Far East and extends export support to growers in Egypt, Saudi Arabia, Lebanon, Jordan and other locations. Recent additions of subsidiaries and partner companies in Dubai, Hong Kong and Egypt not only help to deliver services even closer to the client, but also provide import and export facilities for buyers and growers and to keep a close eye on market trends, prices and other intelligence. Founder and Managing Partner Heike Hagenguth has a long track record of working with private sectors and NGOs in the region and is a regular value chain and marketing consultant to UN, ITC and FAO projects in Middle East and Central Asia.

 

About Organto Foods Inc.

 

Organto is a leading vertically integrated provider of value added fresh-cut, branded organic produce serving a growing socially responsible and health conscious consumer around the globe.  Organto employs a business model that is integrated from the “table to the field”.  Driven by consumer demand for healthy and organic food products, it operates an integrated business model with extensive logistical, processing and growing capabilities, providing complete traceability from the table back to the field.  Operations are currently located in Guatemala, Argentina, the Netherlands and the USA, as well as secured third party supplies in Uganda, Peru and Argentina with plans to continue to expand year-round supply capabilities via strategic third party growers and processors into the African and Asian markets. Organto’s business model is rooted in its commitment to sustainable business practices focused on environmental responsibility and a commitment to the communities where it operates, its people and its shareholders. 

 

ON BEHALF OF THE BOARD,

 

Arnoud Maas

CEO

 

Neither the TSX Venture Exchange (the “TSX-V”) nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.

 

For more information contact:

 

Investor Relations

604-634-0970

1-888-818-1364

info@organto.com

 

This release may include certain forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995 (“forward-looking statements”). In particular, and without limitation this news release contains forward-looking statements respecting the expected benefits of the relationship with ProSpection, plans to expand supply of organic products from the Agreement ProSpection and the growing markets being served; management’s beliefs, assumptions and expectations; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about the following: expected increases in demand for Organto’s products; cost increases; dependence on suppliers, partners and contractual counter-parties; changes in the business or prospects of Organto; changes and trends in consumer preferences; unforeseen circumstances; risks associated with the organic produce business generally, including inclement weather, unfavourable growing conditions, low crop yields, variations in crop quality, spoilage and similar risks; transportation costs and risks; general business and economic conditions; and ongoing relations with distributors, customers, employees, suppliers, consultants, contractors, partners and joint venturers. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law.

To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/organto07192017_0.pdf

Source: Organto Foods Inc. (TSX Venture:OGO, OTC Pink:OGOFF)

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