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Yuma, Ariz. – The Limoneira Company plans to expand its use of liquid natural clay (LNC) technology at its citrus farm in Yuma, Ariz., following a successful two-year trial. This technology, offered by Desert Control, aims to increase water and nutrient efficiency, which is critical to soil health and long-term productivity of citrus cultivation in desert conditions.
The purchase order, received by Desert Control on January 31, 2024, includes applying LNC to an additional 6,652 trees on 60 acres with a goal of completing deployment by April 2024. Includes: This step is part of Limoneira's water conservation and sustainability strategy. , which includes fallow and tolerance programs.
Edgar Gutierrez, Limoneira's vice president of agricultural operations, affirmed the decision to expand the use of LNC technology, citing its effectiveness in improving soil health and optimizing the use of natural resources. The move is in line with the company's commitment to sustainable and profitable farming practices in arid regions.
Desert Control CEO Ole Kristian Sivertsen highlighted the company's path from a small pilot project to its first full-scale commercial deployment in the U.S. in July 2022, reflecting growing confidence in the scalability of LNC technology. did. The move from pilot contracts to commercial deployment means he endorses LNC as a proven solution in sustainable agriculture.
Desert Control and Limoneira's partnership began with a technology pilot involving 50 trees and has since demonstrated significant improvements in water savings. Desert Control reports that his production capacity per unit has more than doubled and application efficiency has increased 30 times, adding value to his future LNC implementations.
This commercial deployment of LNC on the Limoneira ranch is a milestone for Desert Control and represents the first full commercial adoption of LNC in the United States. Marty Weems, Managing Director of Desert Control Americas, expressed his enthusiasm for continuing his work with Limoneira, the pioneer of Limoneira. Sustainable desert farming practices.
Desert Control specializes in AgTech solutions to combat desertification, soil degradation, and water scarcity. The company's LNC technology strengthens sandy and dry soils to retain water and nutrients, potentially increasing crop yields and ecosystem resilience while conserving water and natural resources.
Information in this article is based on a press release from Desert Control.
Investment Pro Insights
As Desert Control (DSRT) continues to make strides in sustainable agriculture leveraging liquid natural clay (LNC) technology, the company's financial health and future prospects are becoming increasingly important to investors and stakeholders. I am. According to real-time data from InvestingPro, Desert Control has a market capitalization of USD 38.65 million, which is a key metric for understanding a company's size and market value.
InvestingPro Tips highlights that Desert Control has more cash than debt on its balance sheet, and its net income and sales are expected to increase this year. These insights are particularly pertinent as they suggest solid financial footing and growth potential, consistent with the company's recent success in expanding the use of his LNC technology on Limoneira's ranch.
We note that despite the company's encouraging progress, Desert Control has not been profitable in the trailing twelve months as of Q1 2023 and trades at a high earnings valuation multiple of 7.68x. That is important. However, analysts expect the company to be profitable this year, which could be a turning point in its financial performance.
The InvestingPro platform provides further analysis and additional tips for those interested in Desert Control's financial and performance metrics. Right now, you can save up to 50% on your InvestingPro subscription with our special New Year sale.Use coupon code SFY24 Purchase a 2-year InvestingPro+ subscription for an extra 10% off or SFY241 Get an extra 10% off your 1-year InvestingPro+ subscription and get access to tons of InvestingPro tips that give you a more comprehensive understanding of your company's potential.
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