Harvest Minerals gets approval for smaller KP Fertil bags

The AIM-traded firm said KP Fértil, produced at the Company's 100% owned Arapua Fertiliser Project in Brazil, was previously only able to be sold in bulks of between 13 and 50 tonne, or one-tonne bags suited for larger wholesale farmers and smaller-scale agricultural markets and co-operatives, respectively.

It said the addition of the 25 kilogram bag option was an “important diversification” of marketing channels to include small-to-medium sized farmers and resellers.

The new size would also allow further commercialisation of the fruit and vegetable market segments, which should see an increase from existing sales volumes since those buyers were more inclined to buy smaller bags of fertiliser.

Harvest’s board said that notably, the 25 kilogram bag packaging was part of a “more pulverised market”, and would drive higher profitability margins than selling in bulk.

Additionally, it was expected that the KP Fértil branding would benefit, as the bags would provide greater visibility to Harvest's product throughout the region and country.

“We are pleased to be entering the market of small bags, which we have been planning since last year,” said chairman Brian McMaster.

“MAPA's approval of the 25 kilogram bag positions Harvest as a contender in the higher-margin retail and reseller fertiliser market, which supplies the likes of home gardeners, small farmers and fruit and vegetable producers.

“Our sales and marketing team will be launching a marketing campaign to promote the new packaging in the coming weeks, and I look forward to updating shareholders as we progress with our commercialisation efforts.”

At 1332 BST, shares in Harvest Minerals were down 2.57% at 2.97p.