Today Nuseed Group Executive, Brent Zacharias, provided an overview of Nuseed’s Value Beyond Yield^TM strategy and gave an update on Seed Technologies third quarter trading at the (Virtual) Macquarie Australia Conference.

Seed technologies trading update for the third quarter
Solid demand and new seed varieties have supported expansion into Latin America[1], North America and Europe in the third quarter. In Australia, improved weather conditions have increased canola orders compared to the prior corresponding period however not of a magnitude to offset the first half drought impact on summer crop sales and reduced canola royalties. We remain on track to post revenue growth for the Seed Technologies¹ segment for the full year.

Progress in commercialising Nuseed’s unique output traits
We are in the final stages of order confirmations for the first sales of our Aquaterra™ omega-3 canola oil, with oil shipments scheduled for the final quarter of this financial year. Having allocated our entire 2020 oil volume, we are now pushing forward with plans to more than double oil production this year for sales in 2021. We expect Aquaterra™ sales in financial year 2021 to deliver a small positive EBITDA contribution, increasing considerably in the following years as we ramp-up oil production and reach further economies of scale.  The first sale of our new Value Beyond Yield crop, carinata, is expected to make a small positive contribution to earnings in the current year.

A copy of the Macquarie Presentation is available here.

[1] Excluding the discontinued seed treatment operations in South America