CropLogic (ASX: CLI) Enters Australian Market Acquiring Tasmania-Based Ag Logic

KEY TAKEAWAYS:

  • CropLogic of New Zealand acquired Ag Logic, an agronomy firm based in Tasmania, Australia.
  • Tasmania was the preferred choice owing to being the largest producer of potatoes in Australia, boasting of an exemplary R&D infrastructure and being home to some of the major processors in the country.
  • Heads of both companies expressed their excitement and enthusiasm about the deal and felt that since it was based on like-minded ethos, it would work well for both entities.

New Zealand based agronomy service provider CropLogic Limited (ASX: CLI) announced recently that it had acquired Ag Logic, an Australian service provider in the agronomy sector,
based in Tasmania. Courtesy the strong knowledge base and expertise of Ag Logic as also its growth potential, this acquisition is likely to prove to be strategically advantageous for CropLogic in terms of facilitating the expansion of its technology platform.

There are several reasons as to why CropLogic chose Tasmania as its starting point to exploring the Australian market, primary among them being the fact it is the largest producer of potato in
Australia with its yield per hectare being 31% higher than the rest of the country. The island state also boasts of a long and rich history of irrigated farming and excels in the field of agricultural
research and development. Last but not the least is the location wherein it is in close proximity to Southern Australia, in addition to being home to some of the major processors in the country.

As per the Managing Director of CropLogic, Jamie Cairns, the company views this acquisition as one that would present growth opportunities and enhance its commercial presence in the
Australian market. CropLogic hopes to capitalize on the advantages offered by Tasmania and Ag Logic and to this effect the acquisition will occur over a three-year period and multiple
milestones.

Dr Reuben Wells of Ag Logic also commented on the deal, stating that he was impressed with CropLogic’s work ethics and understanding of the agricultural processes. He went on to point out that the two companies shared the ethos of using complex tools to create simplified designs and was excited about the upcoming opportunities.

 

About CropLogic Ltd (ASX: CLI)

CropLogic is a scientific, crop-growth forecasting system with a world-first capability to predict the response of agricultural crops to water and fertiliser input decisions. CropLogic’s algorithms deliver daily prescriptions to growers that give them the best possible yield and greatest profits. Value is driven across the industry and includes; crop processors, who need accurate yield forecasts to manage supply risk, and consumer companies who want to demonstrate sustainable management.

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