Fertoz Ltd., an Australian-based organic fertilizer manufacturer and supplier with mining operations primarily in British Columbia, has invested $1.28 million to jointly develop a fertilizer pellet plant with Montana-based Excel Industries, which supplies organic chicken litter-based fertilizer and compost, as well as other products, to growers in Montana.
Fertoz will work with Excel and its affiliate Range Cubes Mill LLC, based in Kinsey, Mont. Construction is under way on the Montana plant, which boasts good rail access. It will be capable of producing 80,000 mt/y of pellets, with first sales targeted for the end of this year.
The pellets will contain nitrogen, phosphorus, and potassium (NPK) for the organic and regenerative agriculture market in North America, which is expected to grow at a compound annual growth rate of more than 14% over the next five years.
Daniel Gleeson, who was named Fertoz CEO in April, said demand for complete organic NPK products is high, but they have been very limited to growers in the past. The Fertoz rock phosphate will add value to Excel’s products.
Montana is well located in terms of sourcing key input ingredients cost-effectively, including from Fertoz’s nearby rock phosphate mines, as well as its proximity to organic markets in the U.S. West Coast and Pacific Northwest, as well as Alberta and Saskatchewan.
“Our facility will have the ability to make custom blends of NPK, based on growers’ true soil requirements plus other key elements, including microbes and humates, creating a truly value-added product to increase soil health and maximize product utilization,” Gleeson said.
The pellets will allow Fertoz and Excel to effectively deliver at half the cost the same nutritional benefits as synthetic fertilizer, which often is used only up to 40% in the soil due to leaching and other issues, he added, noting capital payback is expected within 15 months.
Fertoz is evaluating leasing options, as well as USDA grants, to assist with funding while maintaining balance sheet flexibility. It is estimated that sustainable farming practices are used on more than 140 million acres nationwide.
Gleeson also announced that Fertoz has discovered high-grade rock phosphate in the Fernie region of B.C. that will add easily accessible phosphate to its future supply capabilities to help meet growing future demand.