Sustainable land management specialist Fertoz (ASX:FTZ) is on track to reach nameplate capacity at its Fertify NPKS pelleting plant in Montana, US, following the start of commercial operations earlier this month.
Nameplate capacity at the pelleting plant, which is currently producing at 70% capacity, is expected to be achieved in September this year.
As a result, Fertoz’s joint venture partner, Excel Industries, is recruiting additional operating staff to move from double to triple shifts to increase production capacity.
Fertoz, which has a $23.20 million market capitalisation, says it is currently engaged with national distributors to expand operations sustainably.
Fertoz is currently fulfilling 5,000 tonnes of initial orders, and its first orders have been delivered to growers in North Dakota, US.
The company also notes that demand for its fertiliser products continues to grow following the addition of Fertify to its portfolio, in conjunction, with more growers focusing on positive regenerative farming outcomes.
Addressing the production milestone, Fertoz Managing Director and Chief Executive Officer Daniel Gleeson says: “We are seeing a transformational shift in demand for our fertiliser products with the addition of Fertify to our product portfolio.
“On the back of this strong demand, we are assessing the best strategy for Fertoz to expand our operations…”
We are currently fulfilling initial orders for Autumn application, and there is strong demand building from farmers regarding the Fertify product for application in next Spring also. This growing demand aligns well with our plans to reach nameplate plant capacity in September.
Farmers are increasingly becoming more focused on the positive impacts of a regenerative system of inputs of which Fertify is a key input, improving soil health in a natural and sustainable way.
On the back of this strong demand, we are assessing the best strategy for Fertoz to expand our operations, and we are in discussions with national distributors across North America to ensure we can achieve this in a sustainable way, ensuring market awareness of Fertify and broad sales coverage.”
Fertoz is focused on developing regenerative and organic fertiliser products based on its customers’ needs and the increasing demand for soil health improvements globally.
The company had $1.22 million cash at hand and $1 million in unused finance facilities as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au