Verde Agritech Ltd T.NPK

Verde Transportation Cost.

[bomstocks]

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.

[okavongo]

Don't worry, Verde will survive even without electrical trucks. And transportation cost is not the main subject for the company. Many messages from you on this subject. I noticed the "Tandem large dump trucks with no driving cabin,with in wheels motors driven by AI software". Just a few mines in the world own electric dump trucks and I can't imagine Verde deliver K Forte

[bomstocks]

Okavongo, Could you tell me what is the main issue with Verde if there is one. I just took the data from Verde own publication. Freight cost clearly stands out the biggest component of site delivery cost. Thanks

[okavongo]

Sales. It's only about sales. Because Verde products are easy to extract, to mill, mix (for BAKS), fill in bags and deliver for farmers. It cost money of course and it could be possible to optimize this in the future (train). But a few % won't change the story.

[bomstocks]

Okavongo, I hope you are right. But the numbers showed the freight cost as of Q3 2021 is 80% of sale cost (3233/4022) As of end of Q3 2021, Verde sold 400,000 tonne out of total demand for Brazil of 45 MT. That is 0.89 %, not even 1%. I would venture to say most of Verde customers now are small farmers in the Minas Gerais region, where the fertilizer is made. As verde expand to farther states, the