Roots Sustainable Agricultural Technologies Limited (ASX: ROO) has received a second sale and installation agreement from Dagan Agricultural Automation, its exclusive distribution partner in China.
The A$278,000/ US$200,000 purchase order from the sale is payable to Roots in instalments during 2019, with the first instalment to be paid immediately. Installation will be overseen by Roots’ technical team.
The new project in China from Dagan, one of the world’s leading Ag-tech integrators, will involve the installation of Roots’ proprietary RZTO heating and cooling technology in 10,000 sqm greenhouses, growing five crops including tomatoes, herbs and flowers.
The order follows the successful completion of Roots’ first agricultural project in China with Dagan, where RZTO heating and cooling systems were installed in nine greenhouses. It also formed part of Dagan’s distribution agreement with Roots, with exclusivity conditional on US$19 million in sales over a five-year period.
Dr Sharon Devir, CEO and co-founder said, “This second order from Dagan further strengthens our presence in the world’s largest agricultural market and aligns with our long-term targets in the region.
We’re already seeing great yield and quality increases from crops grown in the first project. This second substantial sale validates the confidence our distribution partner has in our root zone temperature optimisation technology. This is particularly important in a country which accounts for 53 per cent (nearly 550 million tons) of global vegetable production.”
“We believe China’s vast agricultural requirements offer significant long-term sales opportunities for Roots’ RZTO technology.”
“We continue to focus on showcasing our technological capabilities and establishing sales networks in additional territories expecting that our sales activity with Dagan will increase dramatically in the coming years.”
