S&W Adds Additional Alfalfa Seed Acreage
FIVE POINTS, Calif., March 5, 2012 /PRNewswire/ — S&W Seed Company (NASDAQ: SANW) today announced that it has secured approximately 360 additional acres for production of S&W’s proprietary alfalfa seed varieties. The additional acreage, which will be harvested in calendar 2012, is comprised from contract growers. Today’s announcement brings the total secured acres to over 4,664, representing an approximate 95% increase from the 2,400 acres harvested in Fall 2011.
To date, of the 4,664 acres secured for the fall 2012 harvest, the company plans on producing its proprietary alfalfa seed varieties internally on 1,621 of those acres, representing 35% of the company’s planned 2012 harvest. By producing a portion of its alfalfa seed internally, through farming on leased land, the Company hopes to obtain a consistent supply of alfalfa seed that is potentially at a lower cost than the average cost of contracted seed.
Mark Grewal, chief executive officer of S&W Seed Company commented, “Our ability to continue growing revenues begins with increasing our seed production. Today’s announcement, where we are effectively doubling our seed production capabilities, puts S&W in a position to capitalize on the increasing demands for the company’s proprietary alfalfa seed varieties and becomes an indicator of the company’s future revenue opportunities. As evidenced by the strong growth in seed sales during the first half of fiscal year 2012, we are excited about the future of our alfalfa business.”
According to the USDA, alfalfa hay is commanding record prices due to shortages and increased global demand. In December 2011, the USDA reported that the national average price was $199 per ton, compared with $121 per ton in the previous year. While not a direct correlation, with the significant increase in price for alfalfa hay, S&W expects increased demand for hay production in the future, which will, in the opinion of the management of S&W, also increase the demand for S&W’s proprietary varieties.
About S&W Seed Company
Founded in 1980 and headquartered in the Central Valley of California, S&W Seed Company is a leading producer of warm climate, high yield alfalfa seed varieties, including varieties that can thrive in poor, saline soils, as verified over decades of university-sponsored trials. S&W also offers seed cleaning and processing at its 40-acre facility in Five Points, California. Additionally, the company has recently launched a business expansion initiative centered on its plan to mass produce stevia leaf in the U.S. in response to growing global demand for the all-natural, zero calorie sweetener from the food and beverage industry. For more information, please visit www.swseedco.com.
Safe Harbor Statement
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may,” “future,” “plan” or “planned,” “will” or “should,” “expected,” “anticipates,” “draft,” “eventually” or “projected.” You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors and other risks identified in the company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2011, its Quarterly Report on Form 10-Q for the period ended December 31, 2011, and in other filings made by the Company with the Securities and Exchange Commission.
Contact: Matt Szot Robert Blum, Joe Dorame, Joe Diaz Chief Financial Officer Lytham Partners, LLC S&W Seed Company 602-889-9700 www.swseedco.com firstname.lastname@example.org
SOURCE S&W Seed Company