FIVE POINTS, Calif., July 9, 2013 /PRNewswire/ -- S&W Seed Company (Nasdaq: SANW) today announced the initiation of its dormant alfalfa seed production program with the planting of production acreage in Manitoba, Canada. This marks the company's first planting of production acres of its "dormant" alfalfa seed varieties, which is suited for cooler climates such as the northern United States, Canada, Europe and China. The expansion into the dormant alfalfa seed space opens up a large and previously untapped market opportunity for S&W.
Alfalfa seed is ranked by dormancy, and since 1980, S&W had focused primarily on breeding and producing "non-dormant" alfalfa seed varieties that are suited to warmer climates. This initial production of dormant acreage, which is suited for cooler climates, will be planted with the company's Rhino variety. Rhino is a "3" dormancy, meaning it allows for approximately three hay cuttings per year, and has outstanding yield characteristics. Across 34 unbiased university yield trails, Rhino outperformed all other varieties tested by an average of 3%, translating into substantial incremental profits for hay farmers. The company currently has 160 acres of Rhino established in Manitoba that is expected to be available for sale in the fall of 2014.
Mark Grewal, president and chief executive officer of S&W Seed Company, commented, "Today's announcement is a milestone event for S&W Seed Company. For the last 30 years, we have exclusively focused on developing the world's leading non-dormant alfalfa seed varieties, and now for the first time we have gone into seed production with a dormant variety. The dormant alfalfa seed market is by most estimates equivalent to that of the non-dormant, and thus this has the potential of greatly expanding the addressable market opportunity for S&W Seed Company. Additionally, we are seeing tremendous growth in places like China which has the ability to increase the size of the dormant alfalfa seed market as a whole."
Mr. Grewal concluded, "We are still early in the process, but are executing on all the various steps needed to become a growing player in the dormant market in the coming years."
About S&W Seed Company
Founded in 1980, S&W Seed Company is a global agricultural company, headquartered in the Central Valley of California. The company is the largest producer of non-dormant alfalfa seed varieties in the world, with production operations in the San Joaquin and Imperial Valley's of California, as well as in South Australia. The company has worldwide sales and distribution through both a direct sales force as well as dealer-distributors. The company's proprietary varieties are designed to meet the shifting needs of farmers that require high performance in poor and highly saline soil conditions and have been verified over decades of university-sponsored trials. Additionally, the company is utilizing its research and breeding expertise to develop and produce U.S.-based stevia leaf. Stevia is an 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 10-K for the fiscal year ended June 30, 2012, and other filings made by the Company with the Securities and Exchange Commission.
SOURCE S&W Seed Company