Organto Announces Planting for Recently Acquired 53-Hectare Organic Farm, Shares Up Over 5 Percent On News

Organto Announces Planting for Recently Acquired 53-Hectare Organic Farm, Shares Up Over 5 Percent On News

By: Dylan Sikes - AllPennyStocks.com News

Friday, January 8, 2016

According to a report by Organic Monitor on the global organic food & drink market, the global market for organic products is worth some $70 billion. North America accounts for around 50% of the market, according to the report. The U.S. is expected to see solid growth over the next few years, according to a separate report. The report entitled, “United States Organic Food Market Forecast & Opportunities, 2018” notes that solid growth for the U.S. organic food market is expected to continue until 2018. The organic food market in the U.S. is expected to grow at a compound annual growth rate (CAGR) of 14%.


Karan Chechi, Research Director at TechSci Research, notes that in 2010, the organic food market accounted for around 4% of the U.S.’s overall food market. However, demand for organic food products continues to increase. According to a 2012 estimate by the Organic Trade Association, around 81% of the families in the U.S. reported that they purchased organic food at least some times.

The bullish outlook for the organic food products industry augurs well for Organto Foods Incorporated (TSX-Venture:OGO), a Canada-based company seeking to be the leading vertically-integrated branded organic fresh produce company in the world by 2018. According to OGO’s own estimates, the natural and organics industry has been growing at more than 15% per annum over the past decade. Further, OGO expects the industry to grow at more than 14% per annum over the next five years. The organic fruit and vegetable segment alone has been growing at more than 12%-13% per annum and has reached close to $15 billion in the U.S.

This morning, Organto Foods provided an update on developments from its Monjas Farm. The company had previously disclosed in a regulatory filing that it acquired, pursuant to the terms of a 10-year lease to own agreement, a 53-hectare organic farm located in Monjas, Guatemala from a private landowner. The property consists of an existing 3.2 hectare greenhouse that provides the company with immediate production capabilities in organic beans and related vegetables. OGO has started seeding and planting of organic French green beans and plans to start shipping the first product from the Monjas Farm in the coming months under the Organto brand.

Peter Gianulis, President & CEO at Organto Foods, said that at a time when quality organic farmland is scarce and in high demand, the company has successfully secured a high quality asset with existing infrastructure.

Since the Company’s name change and trade commencement on Dec 22nd, 2015, shares of OGO have been trading higher, with shares currently trading up over 5% on today’s news at $0.30.

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