Banner Year for Enviro-Ag Industry
Friday January 6, 6:00 am ET
RENO, NV--(MARKET WIRE)--Jan 6, 2006 -- AXcess News just released a story on the enviro-ag industry, covering two companies on both sides of the spectrum that are making moves into new agricultural markets. One, Itronics, which makes liquid bulk fertilizer out of recycled photochemicals and the other, Monsanto, which just got USDA approval on a second-generation bioInsecticide.
Earlier this week enviro-ag company, Itronics, Inc. (OTC BB: ITRO), announced that it more than doubled the capacity of its photochemical processing plant in North Reno, highlighting the company's silver processing and production of its five-ounce silver bars made from those liquid's concentrates.
Itronics said that it would double production of silver, moving up to as many as 60,000 troy ounces verses 20,000 last year.
Dr. John Whitney, Itronics President, was quoted as saying, "This increase in photochemical processing and silver recovery capacity is necessary to support expanding sales of GOLD'n GRO chelated liquid multinutrient fertilizers."
While most readers following Itronics made note of the silver. Last month AXcess News interviewed Whitney, pegging Itronics as "The Silver Baron of Envrio-Ag" in a story about the company's silver production. In that story we noted that much of the inventory (silver) Itronics had was in the form of bulk photochemicals it stored for manufacturing its GOLD'n GRO brand of liquid fertilizers. What AXcess News lauded over was the fact that it bought the raw materials when silver was below $7.00 an ounce. But we missed the reason entirely as to why Itronics was sitting on such a large stockpile of photochemicals -- bulk fertilizer sales in 2006.
At the time, Whitney was tight-lipped and would not indicate where his company was heading in 2006.
Last year, AXcess News said that Itronics was on a path to expand its fertilizer markets and that eventually the company would get EPA approval on its labeling in order to sell in those states. Another factor was the slow time it took to get farmers to warm to a new form of fertilizer that could improve production yields. That comes in the form of test crops and from there, sales slowly develop. Now, Itronics sees itself poised to fulfill that demand after having gotten approval last year in over seven new markets, bringing the total to 10 states.
But Itronics isn't alone in creeping up on new ag markets. Monsanto just announced a second-generation bioInsecticide getting approved by the USDA the day before it announced record profits for the quarter.
For Monsanto, USDA approval of a second-generation bioinsecticide is a milestone in its fight to get hybrid seeds readily accepted by commercial farmers who have shunned newer seed technologies over fears of mutations of crops or worse. Not much different than the uphill fight Itronics has faced.
Monsanto only expects a 40 million-acre market penetration this year, which is small numbers for Monsanto. While Itronics has not released details, it too is expecting a growth year in those markets where its GOLD'n GRO liquid fertilizer has been approved -- and now their plant capacity can handle it.
Source: AXcess News
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