YUMA, AZ - Limoneira Company is set to broaden the use of Liquid Natural Clay (LNC) technology on its citrus ranch in Yuma, Arizona, following a two-year pilot's success. The technology, provided by Desert Control, aims to bolster water and nutrient efficiency, which is crucial for soil health and the long-term productivity of citrus cultivation in desert conditions.
The purchase order received by Desert Control on January 31, 2024, involves the application of LNC to an additional 6,652 trees across 60 acres, with the goal to complete the deployment by April 2024. This step is a part of Limoneira's water conservation and sustainability strategy, which includes fallowing and forbearance programs.
Edgar Gutierrez, Vice President of Farming Operations at Limoneira, affirmed the decision to expand the use of LNC technology, citing its effectiveness in enhancing soil health and optimizing the use of natural resources. The move aligns with the company's commitment to sustainable and profitable farming practices in arid regions.
Desert Control's CEO, Ole Kristian Sivertsen, highlighted the journey from a small pilot project in July 2022 to the first full-scale commercial deployment in the United States, reflecting the growing confidence in LNC technology's scalability. The transition from pilot contracts to commercial deployments signifies LNC's endorsement as a proven solution in sustainable agriculture.
The partnership between Desert Control and Limoneira began with a technical pilot involving 50 trees and has since demonstrated significant improvements in water conservation. Desert Control has reported a more than doubling of production capacity per unit and a 30-fold increase in application efficiency, adding value to the upcoming LNC deployments.
This commercial roll-out of LNC at Limoneira's ranch marks a milestone for Desert Control, representing the first complete commercial adoption of LNC in the U.S. Marty Weems, Managing Director of Desert Control Americas, expressed enthusiasm for continuing the work with Limoneira, a pioneer of sustainable desert farming practices.
Desert Control specializes in AgTech solutions to combat desertification, soil degradation, and water scarcity. Its LNC technology enhances sandy and arid soils to retain water and nutrients, potentially increasing crop yields and ecosystem resilience while conserving water and natural resources.
The information in this article is based on a press release statement from Desert Control.
InvestingPro Insights
As Desert Control (DSRT) continues to make strides in sustainable agriculture with its Liquid Natural Clay (LNC) technology, the company's financial health and future prospects become increasingly relevant to investors and stakeholders. According to real-time data from InvestingPro, Desert Control holds a market capitalization of 38.65 million USD, which is a critical metric for understanding the company's size and market value.
InvestingPro Tips highlight that Desert Control holds more cash than debt on its balance sheet and that its net income and sales are expected to grow this year. These insights are particularly pertinent as they suggest a solid financial foundation and potential for growth, aligning with the company's recent success in expanding the use of LNC technology at Limoneira's ranch.
Despite the company's promising advancements, it is important to note that Desert Control has not been profitable over the last twelve months as of Q1 2023, and it is trading at a high revenue valuation multiple of 7.68. However, analysts predict that the company will be profitable this year, which could be a turning point for its financial performance.
The InvestingPro platform offers even more in-depth analysis and additional tips for those interested in Desert Control's financials and performance metrics. With a special New Year sale, InvestingPro subscription discounts of up to 50% are currently available. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription, and gain access to numerous InvestingPro Tips that can offer a more comprehensive understanding of the company's potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.