In its most recent press release, Ceres Inc (NASDAQ:CERE) announced the expansion of the distribution network for its forage sorghum seed products. The decision came on the backdrop of favourable product response for its new hybrid seeds.
Favorable Product Response
By expanding the network, Ceres plans to make its new line of products accessible to a wider market. The company has already pre-tested the products through sales to feedlots, dairies and forage producers. The company reported that its improved forage sorghum hybrids showed higher performance and yield over existing market products during commercial plantings and pre-commercial field evaluations.
Higher yields per acre and enhanced forage quality directly translates into increased value of crop and also allow dairies and feedlots owners to produce more beef and milk per acre. As a result of high performance displayed by its products, Ceres has been able to widen its distributor network by three-fold over the last one year. Such growth in distributor network includes new seed outlets in Wisconsin and Texas.
Revenues unchanged
The company will market premium Blade brand or private label seed products through distributors. Meanwhile, it will continue to offer the products to forage producers directly. The company’s President and CEO, Richard Hamilton is confident that they will be able to surpass previous year’s sales records through such network expansion. The company is accepting see bookings for its Blade brand hybrids ahead of the summer and spring season plantings.
Apart from this, the company had also recently reported its second quarter financial results for the period ended on February 29, 2016. The company’s revenues were mostly unchanged at $0.4 million year-over-year. A rise in services revenues was balanced by fall in product sales in Brazil, according to the press release. Ceres anticipates most of its forage sorghum seeds sales to take place in the third and fourth quarter, based on the timing of the plantings.
