EarthRenew Releases a Letter to Shareholders from the CEO - Seite 3

Well-Positioned in an Aggressive Growing Market

We believe that EarthRenew is well positioned to participate in a market that continues to gain momentum. The agriculture and agri-food sectors are key economic drivers in Canada and the organic food industry is considered one of the fastest growing sectors of this market.¹ The World of Organic Agriculture 2019 report noted that the total areas of organic farmland in Canada increased by more than 45% between 2011 and 2017, compared to a 1% decline in farmland overall. The Canadian Government estimates that the nation’s organic farming industry is made up of more than 4,200 certified organic and transitional producers working on more than 930,000 hectares of land. We recognize that consumers are looking to the agri-food industry to produce healthy and environmentally sustainable organic food.  To meet this demand, we project that farmers will need to consistently produce high-yield, chemical free crops.  We believe that EarthRenew sits at the intersection of this need with a new organic fertilizer offering that helps farmers rebuild and sustain levels of soil health needed to grow such crops.

There is another key factor affecting the availability of chemical fertilizer: phosphate uncertainty. The majority of global phosphate production occurs in the Western Sahara in Morocco, which contains approximately 50 billion tons, or 72% of the 70 billion tons available worldwide². Together with China, Algeria, and Syria, the four nations with the largest phosphate reserves account for over 80% of the global supply³.  As the demand for food supply increases around the world, we understand that reliance on phosphate has become a concern, prompting governments and private businesses to develop alternatives. Potentially, with future phosphorous supplies uncertain and over-use becoming a major issue, we believe that the timing is ripe for companies like EarthRenew who can offer new sources of nutrients for crops in the form of organic bio-fertilizers. 

Furthermore, we are of the opinion that the use of organic-based fertilizers benefits the environment (and consumers) when you consider the decreased dependency on chemical-based fertilizers and the reduction of excess nutrients leaching into watersheds. 

Addressing the Growing Challenges of Dealing with Manure Waste

We’ve discussed how EarthRenew’s product benefits the soil to grow plants; EarthRenew also provides a solution for many livestock producers who would like to scale their operations, but are limited by their ability to handle disposal of manure waste. We see manure waste as a growing problem in many regions throughout North America due to the excess amounts of phosphorus contained in manure. While the nitrogen in manure is very useful for crops, the phosphorous, in excess, can leach into groundwater causing the familiar algae blooms we see in freshwater bodies. For example, Lake Erie has been battling algae blooms the last few summers, threatening the drinking water supply for millions of people, killing off fish populations and turning the water toxic over large areas.  By co-locating at feedlots, EarthRenew presents a business solution that we anticipate will reduce or eliminate farmers excess manure problems.