Post by
hjangel on Mar 26, 2009 2:21pm
Potential Revenues
In 2008, Forterra sold 150 tons of worm castings to an American grower and reported $127,500.00 in revenue from that particular sale. There are approx. 2200 pounds in a ton so the math works out to 0.3863 per pound or $850.00 per ton of worm castings.
In other news releases during 2008, Forterra reported that it realized approximately 0.50 per pound for worm castings and I believe $96.00 a pound for worm tea (great margins on the tea).
As of January, 2009, the company reported that it had increased production capability in its new facility and through an outsourcing arrangement with Pagonis Live Bait...
"We are increasing our active production of tray beds of worms to 1,500
from about 600 prior to the move to the new plant, and also will be sourcing
additional castings from our new partner, Pagonis Live Bait Ltd., from which
we acquired WormSense Inc., which we announced on November 17. We are very
satisfied with the performance of the breeding process that we have been
employing and refining since late last year. We now also are breeding worms
for sale to Pagonis," Mr. Denyes said.
Previous notes on DD suggest that 1500 worm beds would produce in excess of 1,000 tons per month (which translates into 2,240,000 pounds). If these numbers are accurate, then one months production sold at 0.50/lb would generate revenues of $1,120,000.00.
With two distribution agreements signed (Turf Logic's market includes Ontario where pesticide bans are in place, plus Alberta and British Columbia where there are millions of lawns and people choosing to use organic pesticide free products without the aid of legislation) and more possibly in the works, is it any wonder Forterra is contemplating the need for additional production facilities?!?
As always, do your own DD & GLTA - HJ
Comment by
fatcats on Mar 26, 2009 3:02pm
Wow you guys are overdoing it now. This has been an impresive smoke show. Be Careful, people in your positions should be more diligent and responsible to protect their profesional credentials.
Comment by
MrStockington on Mar 26, 2009 3:48pm
A good sign that a stock is starting to get noticed is when the first basher emerges from the crowd. I am not sure how you figure some of the previous posts have been overdone since they were created by guys/girls that have been participants on this board for a while now. There is nothing wrong with a little speculation when you have earned the respect of the board to do so.