CropLogic considers entry into billion-dollar Oregon hemp market
Published 26-NOV-2018 10:44 A.M.
|
3 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Ag-tech junior, CropLogic (ASX:CLI), is weighing up an entrance into the industrial hemp market in Oregon, USA.
To facilitate this, the company has appointed two consultants: Green Rush Advisory Group (corporate advisor) and Green Light Law Group (law firm). Both parties will work closely with CLI to explore opportunities in Oregon — the USA’s third largest state for industrial hemp production.
By way of background, CLI is an award-winning, New Zealand-born ag-tech player. CLI offers farmers and growers of irrigated crops digital agricultural technology expertise, weaving together science, agronomy and technology into an expert system for decision support.
After launching its product offering into Washington State last year, the company is currently servicing a significant number of horticultural growers in the region, holding up to 30% market share in some crops.
This latest promising announcement, meanwhile, comes off the back of CLI’s November investor presentation, which noted the company’s interest in appointing a consultant to navigate the burgeoning Oregon market.
CLI believes it is well-placed to take advantage of the emerging agronomy and digital agricultural trends in hemp and CBD production.
According to a recent report by the Brightfield Group, the US industrial hemp market could reach US$22 billion in value by 2022. An additional report by Grand View Research Inc. indicated that increasing consumer demand for high-quality cosmetics, personal care products and protein supplements were among the prime market drivers.
The Grand View Research report also indicated that increasing R&D work to develop agronomy practices in regards to hemp production has made a positive impact on hemp quality and yields. Considering that CLI has been involved in the agronomy space in Oregon for some time, Grand View Research’s findings are highly promising.
Under the terms of appointment, Green Rush and Green Light will provide a comprehensive report on the industrial hemp market in Oregon. Depending on the results of the report, CLI will target an entry into this market during the 2019 Oregon growing season.
CLI CEO, James Cooper-Jones, commented on the announcement: "CropLogic is focused on seeking out and expanding the crops that we target and furthering our understanding on how we can service new industries and integrate our farm management, agronomy and digital ag-tech experience.
"In each of our growth regions, CropLogic is looking for crops with high performance, growth trajectory and market share potential. Dependent on region potentials, our target crops may vary — from citrus in Sunraysia in Australia to hops and apples in Washington State, potatoes in Idaho, or hemp in Oregon in the USA.
"I am looking forward to meeting industrial hemp growers in Oregon on my visit to the region at the end of November and finding out how we may be able to service this market," Cooper-Jones added.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
