[VIDEO] DuSolo Fertilizers’ 2015 May See Takeout Offer from Mosaic
Dusolo Fertilizers Inc. (TSX.V:DSF) (OTCMKTS:ELGSF) has a future that is intimately bound with the future of Brazil, as is demonstrated in this latest updated video. Mosaic Co (NYSE:MOS), the world’s largest manufacturer of finished phosphate products, announced that it was actively seeking to purchase Brazilian phosphate producers.
In late 2014, Dusolo Fertilizers began producing Direct Application Natural Fertilizer (DANF) at its wholly owned plant in Campos Bellos, Brazil. The company had then achieved what many thought impossible: it acquired a a fully operational processing facility and a series of high grade phosphate deposits right in the heart of the Cerrado – Brazil’s ‘California’ in terms of agricultural productivity.
The plant produced just over 11,000 tonnes in 2014 during its brief start-up phase and has undergone an upgrade so it can process 160,000 tonnes in 2015 – which is the targeted output for that year. The company has already received an order for 40,000 tonnes of DANF fertilizer from a local producer of soybeans, and the company expects it will sell its entire production of DANF in short order.
DANF is an extremely friendly, natural fertilizer product derived from high grade phosphate rocks. DANF traditionally yields excellent solubility values that render the phosphorus more available for the plant’s consumption over a longer period of time.
Eran Friedlander: What we have at Bomfim is high grade surface mineralization of phosphate that we can easily extract and process into material that is sold locally asDirect Application Natural Fertilizer. The market is already there, the farmers are already used to using this type of material, and they are craving to get as much as possible.
Narrator: Dusolo’s role in providing low cost natural fertilizer to area farmers cannot be understated, especially in light of Brazil’s dependence on agriculture.
Francisco Turra, Former Minister of Agriculture and Supply: Brazil is the second largest food producer in the world. In the past 15 years, we increased Brazilian agricultural production by 156%.
Interstitial:Brazil is the world’s largest exporter of soybean, coffee, sugar, orange juice concentrate.
Francisco Turra: This is a country that has a diversity of fruit and flower production, everything you can imagine – animal protein…
The world’s top coffee exporter, a leader in the production of coffee, sugarcane, ethanol, soybeans.
The privileged land, climate, soil and water…we have everything.
Interstitial: 69 Million Hectares: Brazil’s present cultivated area:
300 Million Hectares: Brazil’s potentially arable land.
Francisco Turra: Agribusiness has been carrying the Brazilian economy. 5 million farms. Also, 4.1 million small farms that are not just providing for their livelihood, but are already companies and rural businessmen that are supporting the country in all areas.
Interstitial Small Scale Agriculture occupies about 23% of Brazil’s arable land.
Suemi Koshiama, FarmerWe produce here 600 hectares of mango, reaching an annual productivity of 10,000 tonnes of mango, and 12,000 tonnes of grapes. We pack fruit every day here. Ever day of the year, there are trucks full of fruit. Of course, during the second semester, the production in even greater due to the increase of exports in the trade window.
It is very important for us to have two seasons every year, and to harvest during the entire year. The nutrition of our fruit production is entirely based on fertilization.
Narrator Brazils continuing dependence on fertilizer imports remains one of its biggest barriers to expansion of its agricultural exports. With commodity prices lower in 2014 however, Brazil still imported a record quantity of fertilizers in that time frame. Brazil continues to import over 50% of its phosphate-based fertilizers as growth in agricultural demand outstrips increasing domestic supply. For the past 25 years, there has been an average growth in fertilizer demand of close to 6 percent. Yields in certain crops, such as corn, have nearly doubled in that timeframe, thanks to the standardization of fertilizer use.
Considering the huge gap between current land under cultivation, at 69 million hectares, and the potentially arable 300 million hectares, it is clear that Brail’s demand for fertilizers has nowhere to go but up. That is one reason why there’s increasing investment in domestic fertilizer producers in Brazil, and why Dusolo is perfectly positioned to capture a significant portion of that rising tide of investment.
Brazil has three major project areas in Brazil that encompass a total of 240,000 hectares of mining claims that are all prospective for phosphates and other types of agricultural minerals. At Bomfim in the months ahead, Dusolo will continue to expand resources through definition drilling, and will enhance its understanding of the ten target zones in the target area that make it such a valuable enterprise.
And as if that wasn’t enough, on February 24th, 2015, Mosaic, the world’s largest producer of finished phosphate products, declared that it was interested in buying Brazilian phosphate producers if they came up for sale.
So 2015 could, in fact, be a huge year for Dusolo Fertilziers.
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