Verde Agritech Ltd T.NPK

Financial Post article on Thursday

[15Stanmore]

The FP article on November 4 (Fertilizer crisis means higher prices for every plate of food) has the following quote:

"Fertilizer is so vital to Walter do Carmo Padu Jr's coffee trees that he can't imagine producing any beans without it. That's a problem because getting his hands on the stuff is now harder than at any time in his 20 years of farming as the world faces record fertilizer prices in the latest threat to food security. 

In Brazil's Minas Gerais state, the coffee heart of the worls's biggest exporter, Padu is still waiting for deliveries on about half the fertilizer he paid for five months ago"

This is an interesting counterpoit to Verde's process of delivering the fertilizer a farmer needs when planting, and not expecting to be paid until the crop has been harvested and sold 6 months later. If the norm by Verde's competitors is to have farmers pay in advance, then Verde's approach is clearly a very attractive alternative. We then offer competitive pricing that includes free delivery within the three closest states. And we then need to hire droves of sales people to convince customers of the attractiveness of out business model?

Does this approach to marketing raise questions in anyone else's mind?

Cheers,

S

[mferguson71]

This business model is no different than the North American ag industry. Only difference is that there is an institutional lender that accepts the risk. But the theory of taking it and paying for it 6 months later is not a surprise.

[15Stanmore]

Hello mferguson, Thanks for your post regarding the models used in the Ag industry to assist farmers. I agree it is a common practice for farmers to receive the inputs they need (seed and fertilizer) and not have to pay for these essential inputs until they have generated a saleable (and we assume profitable) crop. As you pointed out, this financing arrangement is often accomplished through an

[Benedictus]

Hi Stan, I think this falls under the David vs Goliath situation Verde is in. A quick read of Mosaic's recent earnings call transcript in regards to its Brazilian positioning offers a very helpful  understanding of just what Verde is up against in terms of trying to gain shares and expand sales.   

[okavongo]

You're right about David and Goliath. And also we should remember Verde products are not "standard potash". That means more efforts to explain the product. I can also imagine salesmen have to bring advices about the different products Verde. K Forte is not the only one now ;) And about the way to use it, the quantity should also depend of the soil quality, the kind of farming, etc

[okavongo]

And maybe this farmer paid 6 months before to get a discount. I think Verde can do the same.

[15Stanmore]

Hello okavongo. How long have you been working at Verde? Are you one of the remote work anywhere employees or do you go into the Office in the city? Glad to have your contributions from another viewpoint. Have a great week at work!

[okavongo]

Funny to read that. I'm a private investor focused on the commodity space (precious metals, base metals, phosphate and potash for ex). I collaborate also with "les Daubasses" the most popular value investmen letter in France. For ex : https://blog.daubasses.com/tag/okavongo/ Funny comment but more important, interesting comment to understand how you think... Before this comment

[DiggeDiego]

So maybe time for Cristiano to step down as CEO and take the role as sales manager. You can not take on all the roles as he has today in a big company, I wonder he will understand that, and if it will be to late?

[15Stanmore]

Hello DiggeDiego, Why don't we appoint Mr. Veloso as Verde's Ambassador at Large, and let him focus on advancing Verde's stated purpose "to improve the health of the people and the planet". Given his status as a financially independent individual (he has lived for years without needing to receive a cash salary from the Company) he can announce he will become a "$1 per

[Ciao]

CV imho does not have the best interests of the common shareholder in mind. We can't trust him with this "golden egg" of a deposit to benefit us all.  Now thanks to Stan's work here, we can't even trust the financials. NPK's share price would not being so well if it wasn't for the rise in fertilizer prices. How sales was achieved (and whether receivables will