S&W Seed Company Commences Commercial-Scale Sorghum Production
January 19, 2017 at 08:31 am EST
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S&W Seed Company announced that it has commenced commercial-scale production of its hybrid grain sorghum and hybrid forage sorghum operations. This marks S&W's initial entry into the "vertical production model" for sorghum, which S&W anticipates will allow it to capture a higher gross profit and move closer to the end customer of this gluten-free, non-GMO, whole grain that is projected to gain increased traction across the United States and the world for its high protein levels, excellent fiber source and other nutritional benefits. This move to a "vertical production model" within hybrid grain and hybrid forage sorghum builds upon S&W's currently deployed "royalty licensing model" for these crops, and aligns S&W's operations more closely with the company's existing alfalfa seed operations. S&W anticipates producing seed that will be sold directly to existing and new distributors under both branded and private label programs. S&W acquired the operations of SV Genetics ("SVG") sorghum program in May 2016 with the goal of advancing deployment of the proprietary high-yielding, disease resistance germplasm worldwide. The company has royalty-based licensing agreements with 12 partners in 9 countries that are currently increasing production, and commencing commercial-scale production of hybrid grain sorghum and hybrid forage sorghum operations is the first step in the company embarking on its dual strategy to expand vertically as well.
S&W Seed Company is a global multi-crop, middle-market agricultural company. The Company is primarily engaged in the breeding, production and sale of alfalfa and sorghum seeds. The Companyâs product crops include alfalfa, sorghum, sunflower, stevia, Australian wheat and pasture seeds. Its alfalfa seed is primarily used for growing alfalfa hay, which is grown throughout the world as forage for livestock, including dairy and beef cattle, horses and sheep. Its sorghum comes in two types: forage and grain. In addition to alfalfa, the pasture seed market in Australia includes medic, clovers, vetch, forage cereals, and certain grasses. It operates seed cleaning and processing facilities, which are located in Texas, New South Wales, and South Australia. Its seed products are primarily grown under contract by farmers. Its seed platform develops and supplies germplasm designed to produce higher yields for farmers worldwide. The Company sells over 600 seed products in more than 40 countries.