Business
Independent Study Demonstrates Economic Benefits to Farmers by Adopting TK47
TORONTO , July 7, 2015 /CNW/ - Verde Potash (TSX: "NPK") ("Verde" or the "Company") i...
About this update from Verde Agritech Ltd
[{"type":"text","content":"\n\nTORONTO, July 7, 2015 /CNW/ - Verde Potash (TSX: \"NPK\") (\"Verde\" or the \"Company\") is pleased to announce the results from an independent study aimed at evaluating the economic benefits to farmers who adopt TK47 as the potassium source in their nutrient management systems. The assessment was based on agronomic results achieved from a 10 months field trial on carrot and corn crops, carried out in Minas Gerais State by an independent agronomic consultancy company. \n\nTable 1, below, presents a simulation of farmers' incremental profitability when using TK47 at various price points per ton. The results show that even at higher TK47 prices, the products' superior benefits still translate into higher profits for farmers. \n\nTable 1 – Farmers' Incremental Profitability replacing KCl with TK47\n\n\n\n\nTK47 price per ton (US$)\n\n\nFarmers' Incremental Profitability per\n\n1,000 hectares of carrots and corn when using TK47 instead of KCl\n\n\n\n180*\n\n\nUS$ 1,822,501\n\n\n\n280\n\n\nUS$ 1,393,928\n\n\n\n380\n\n\nUS$ 965,356\n\n\n\n480\n\n\nUS$ 536,783\n\n*Verde's PFS published on April 1, 2014 used US$186 as the product's sales price.\n\nThe economic assessment took into consideration all costs associated with applying TK47 and KCl, including soil improvement, fertilization, application and freight costs. Table 2, below, presents data from the assessment that demonstrates that higher yields were achieved using half the standardly applied dosage of K2O from TK47. \n\nTable 2 highlights that higher yields of carrots and corn were achieved using TK47. Of the total carrot production, TK47's plot produced 67.01% of Class A carrots, which have a higher market value, whereas KCl's plot produced 49.76%. Also, less discarded carrots were produced from TK47's plot than from KCl's, 9.08% vs. 10.91%, respectively.\n\nTable 2 – Partial Data Used to Calculate Economic Benefits\n\n\n\n\n\nTK47\n\n\nKCl\n\n\n\nTotal Potassium (K2O) used\n\n\n300kg/ha\n\n\n600kg/ha\n\n\n\nTotal number of Potassium applications\n\n\n1\n\n\n4\n\n\n\nTotal carrot production\n\n\n66.1 t/ha\n\n\n63.3 t/ha\n\n\n\n- Class A carrot production (measuring between 18 cm to 26 cm)\n\n\n44.3 t/ha\n\n\n31.5 t/ha\n\n\n\n- Class B carrot production (measuring between 14 cm to 18 cm)\n\n\n15.8 t/ha\n\n\n24.9 t/ha\n\n\n\n- Discarded carrot production (non-comm...