It is somewhat of miracle that grocers in the cold climate of Canada can sell “fresh’’ strawberries in the middle of winter.
It would be a greater miracle if those strawberries tasted remotely like those grown on the Prairies and not the taste of cardboard.
Miracles, as they say, never cease.
A Vancouver-based company has developed a technology to grow strawberries indoors and provide customers with sweet succulent berries from the vine.
Affinor Growers Ltd., best known for growing cannabis, has expanded into production of romaine lettuce and strawberries. The first crop from the 15,000 square foot greenhouse at Port moody B.C., will be harvested this year. First produce will be sold in the Greater Vancouver area. Darn.
The company just announced signing a distribution agreement with a nation-wide Canadian wholesaler.
Plans for expansion include greenhouses in Southern Alberta, Ontario and the island of Aruba.
Affinor has a patented technology for vertical towers using hydroponic growing methods.
The technology has numerous benefits: locally grown low emissions production, less land needed, 95 per cent less water used, water recycled, and it is organic and fresh.
The technology allows four to 10 times the density of plants, thus increasing production.
Affinor still has its sights set on the growing cannabis market with a 15,000 square foot greenhouse leased at Abbotsford. Quality cannabis like it plans to grow commands a $10 or $20 per gram premium at the retail store level.
The global cannabis market will grow at 34 per cent a year for some years, according to the company.
The smart farming market will be worth $18 billion by 2026.
The business plan reaches out to changing consumer tastes for more fresh fruit and organic product.
Financial projections in the business plan predict $6.1 million revenues this year with $3.4 million from cannabis and a profit margin of $3.2 million.
By 2026, revenues are expected at $55.5 million, with $45.8 million from cannabis and profit margin of $29.6 million.
With 221 million shares outstanding that would be about 13 cents a share. Current price is four cents.
Most of the cannabis companies in Canada are still floundering for revenues and profit, and drowning in debt. Investors should wait and see if Affinor is an exception.
The company’s best bet might be the development of fresh fruits for Canadian consumers.
CAUTION: Remember when investing, consult your adviser and do your homework before buying any security. Bizworld does not recommend investments.
Ron Walter can be reached at [email protected]
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
