Verde Transportation Cost.Regarding cost, Verde is enjoying a slim edge over its closest competitor Mosaic Brazil. But this slim very slim advantage could easily wiped out if MB could refuce its cost or willing to undersell Verde by 5 $/T.
And the behemoth MB could easily do so when it feels the pressure from Verde.
Verde is selling its biological fertilizer in Brazil by showing the evidences of the fertilizer superiority and by words of mouth from farmer to farmer.
Right now Verde has a small, very small number of farmers adopting Verde way with little incentive from Verde except better crop yields, better produces and less labor cost.
But Verde in order to become a major player in Brazil, will have to convince a vast majority of farmers to switch to Verde way, Verde will need a bigger incentive to sell even Verde fertilizer is superior in every aspect.
It is imperative for Verde to switch farmers to gain a bigger hold before MB undersells Verde and snubs Verde out.
Verde must reduce the transportation cost by adapting modern technologies and electrifying its own fleet of delivery vehicles.
The manufacture cost of Verde is about 40 $/T, the lowest and Verde probably cannot reduce it meaningfully further.
The only cost Verde can reduce to survive is in transportation.
The business of Verde is the business of moving biological dirt (Glauconite rocks) around versus competitors moving concentrated chemicals.
It is a must for Verde to think about transportation in parallel with its expansion plan in order to survive.
I have full faith in Cristiano and the scientific inclined Verde BOD, but some inquiries or suggestions sent to Verde would help. If you agree, could you do so.
Thanks from a substantial shareholder.