hebejeebeThere are thirty-eight major field tests underway throughout North America from Canada to Mexico. These field tests are being conducted on lands controlled by five of the largest agro-giants in the world. The tests are proceeding under the scrutiny of these organizations.
My fertilizer contacts tell me that all tests are coming in at expectations or better.
Since I spent many years on the board of trade, I can tell you that there is a close to zero probability of any significant change in yields or quality from this time forward, especially since the rains throughout mid-America the last ten days.
I now believe that the agro-giants will establish a contract price of fourteen hundred dollars per ton for liquid and six hundred dollars per ton for bulk.
At these prices, the revenue stream from tipping fees becomes minor relative to fertilizer sales.
The significance of this is that at these prices no one in the world can compete with IBR for manure contracts. Manure is devoid of the separation problems related to metal, glass, plastic, wood, etc. The cost factor therefore plunges at the same time the revenue picture remains stable to higher.
I also tend to believe the price of IBR fertilizer will rise every year for at least ten years.
I base this on the established fact that the soil of the user or the farm capital will increase in value with every year of product use.
The failure of Thermo Tech was predictable. They were really nothing more than land spreaders and suffered the fate of those involved in an outdated technology.