With a global food shortage, it’s advantage Harvest Minerals being based in the bread basket of South America.
“…It’s a simple business. We’re selling in excess of breakeven. We’re making profit. Full stop…”
The middle class in Brazil is numerous. It numbers over 100 million and just like the middle class across the globe it wants to know the provenance of its food. It wants clean food, it wants to know how it was planted or reared, who planted or nurtured it, who lullabied it, what conditions the produce was raised in, was it kind to the environment, will it be glorious to the taste buds and kind to the gut?
That’s a big ask particularly as there is a global food shortage with the parameters of livestock and agriculture being redefined with the blame finger of climate change being pointed at the windy bottoms of the beef brigade.
Harvest Minerals Limited is not directly involved with the broader food chain debate, but ironically integral to it whatever the market conditions dictate.
The AIM-listed company is a remineraliser producer and its main product KP Fértil® is an organic, multi-nutrient, direct application fertiliser which is beloved of Brazilian farmers from the hobby farmers to the mainstream. It’s part of the culture to be a farmer as the region’s agricultural production feeds about 10% of the world’s population. Feedback from local and international consumers is listened to and Harvest’s Chairman Brian McMaster quotes the coffee bean producers who use the company’s fertilizer. “They can taste the difference in the berries when they use our organic fertilizer.”
The company is making its products available to the hobbyists and residential farmers alike not just with its 25kg and higher margin offerings, but through a savvy relationship with a Brazilian bank, consumers have access to a verified, credible credit line.
The Brazilian banks get it, so McMaster is scratching his head about what it is that some investors are not getting about the company’s trading figures. ‘Breakeven is 40,000 tonnes. We’ve sold 80,000 tonnes. We’re selling in excess of breakeven. That is we’re making profit. The business is currently profitable. Full stop.”
Listen to Brian talk to Sarah Lowther about how the company is in an organic sweet spot in the bread basket of South America and what shareholders might be tasting this time next year.
Read the 2021 corporate Presentation
Follow the company on Twitter – @harvestminerals
The author was remunerated but does not hold shares in the company