Agritech

Aguia natural fertiliser beats chemical yields in Brazil corn trials

Wed 01 Jun 22, 12:49pm (AEST)
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Key Points

  • Aguia’s ‘Pampafos’ natural phosphate product yields 95% of yield achieved by using chemical Triple Superphosphate in corn crop trials in Brazil; Pampafos supersedes TSP at another site
  • Feedstock for the Pampafos product extracted from Brazilian Três Estradas Phosphate Project
  • Aguia’s price has increased 34.5% YTD, growing 42% over the last month, an impressive feat amongst ongoing volatility

Aguia Resources (ASX:AGR) has seen its natural phosphate fertiliser product, 'Pampafos', return successful results in two separate agronomic tests on corn crops in Brazil with a like-for-like dosage of Pampafos replacing the traditional petrochemical Triple Superphosphate (TSP) fertiliser product. 

A trial at the Eldorado do Sul Agronomic Station saw Aguia's natural fertiliser product achieving 95% of the yield achieved by that of TSP.

Corn productivity results from a simultaneous trial at the Pelotas Agronomic Station, using a dosage of 125kg/hectare, saw Pampafos surpass the crop productivity achieved by using TSP. Regional universities partnered with Aguia in both trial. 

Studies were conducted in areas with no history of cultivation.

(Source: Aguia) A look at the company's Pampafos trials conducted so far
(Source: Aguia) A look at the company's Pampafos trials conducted so far

Aguia's organic product a strong offering

The results add to Aguia's existing test catalogue which consistently support the company's claims Pampafos is equal, if not superior to, TSP. 

Since late 2019, Aguia has been undertaking agronomic tests of its natural fertiliser product in Brazil, which the company reports is garnering solid interest among local farmers. 

Trials have been conducted in agricultural areas where demand for phosphate is high. A test on Maize crops from July 2020 demonstrated the ability of Pampafos to surpass productivity achieved by using TSP, and the company has also conducted Rice and Oat crop tests through 2021. 

In all cases, Pampafos either matched or surpassed the performance of those crops treated with TSP. 

In February this year, Aguia reported its results for wheat crops, with the outcome the same.

Organic product pivots towards carbon friendly agriculture

The key advantage of the Pampafos product, according to Aguia, is that its natural manufacturing process ultimately mitigates the soil damage caused by repeated applications of chemical fertiliser products. 

The implications for the Brazilian agricultural sector are significant, seeing as repeated episodes of drought are impacting Brazilian crops in recent years. 

The company also stands to benefit from changing consumer behaviours which prioritise environmentally-friendly products and supply chains, including a lesser dependence on chemical products. 

Organic fertiliser demand is growing around the world. This interest is reflected in the company’s share price performance through 2022: year to date, the price is up 13%. 

Over the last 30 days, Aguia has seen an increase in its share price of over 40%. 

The ASX has launched a new Agribusiness Index.

A look at Aguia's charts over the last six months
A look at Aguia's charts over the last six months

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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