Roots Sustainable Agricultural Technologies has executed a third sale and installation agreement with Dagan Agricultural Automation, its exclusive distribution partner in China, for a state-of-the-art greenhouse project.
The A$64,400 sale involves the installation of Roots’ proprietary Root Zone Temperature Optimisation (RZTO) technology in two-thirds of a one-hectare greenhouse in the Guiyang district of Guizhou. Roots’ heating and cooling systems will be used to stabilise the root temperature of various vegetable crops within the greenhouse, including tomatoes and lettuce.
The remaining third of the greenhouse will be used as a control measure, allowing the farmer to directly compare RZTO crop yield, quality and performance to un-treated control-group crops.
Under the agreement, Roots will receive 70 percent of the sale payment upon shipment of equipment with the remainder payable upon installation completion. Installation will be overseen by Roots’ technical team and is expected to be completed in May 2019.
This installation represents Roots’ third agricultural sale to Dagan and follows substantial orders of A$323,000 and A$278,000 respectively. It also forms part of Dagan’s distribution agreement with Roots, with exclusivity conditional on US$19 million in sales over a five-year period.
Dr Sharon Devir, CEO and co-founder said, “Roots continues to build momentum in the world’s largest agricultural market, securing our second RZTO installation order from Dagan this quarter. It highlights the strength of our partnership with one of the world’s leading ag-tech integrators, as well as the significant opportunity for our heating and cooling technology in a market that produces more than 50 percent of global vegetable production.”
“This state-of-the-art pilot will further support Roots’ China operations, enabling us to demonstrate the benefits of our root zone heating and cooling technology in a sizable greenhouse alongside control crops. A successful pilot is expected to lead to a larger installation phase for this particular project and further sales activity in the future.”
“Our patented root zone technology has already been successful in increasing crop yield and quality on numerous crops under varying conditions, while also considerably reducing heating and cooling costs for growers.”