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SIGROW AQUA: feasibility study of a disruptive Nutrient Management System for hydroponic farming

Periodic Reporting for period 1 - SIGROW (SIGROW AQUA: feasibility study of a disruptive Nutrient Management System for hydroponic farming)

Reporting period: 2017-02-01 to 2017-06-30

Based on Sigrow market research, Hydroponic market will become one of the highest growth market in the agricultural market. It is expected to reach a total production value of 27 Billion USD worldwide by 2020, compared to almost 18BUSD in 2014 (Research and market, 2015). The annual growth is expected to be at around 17%. With Sigrow Aqua pro version, Sigrow can assure the correct usage of both water, fertilizer and other minerals. The correct usage of resources can be reduced by more than 30%. In any case, Sigrow approach is not to reduce the usage, but to be able to demonstrate that by measuring, the final yield will be maximized.
The objective carried out is a detailed feasibility study in accordance to the purposes and activities already described in Phase I one proposal.
The main outcome of this project is a completed Feasibility report, including a business plan. The report provides a comprehensive perspective of SIGROW project and the estimated results of its implementation within the International market. Specifically, the business plan should detail how SIGROW as a leading product meets the identified need and there is a proper market strategy capable of ensuring the return of investment and company's high growth.
As a result of phase 2, we will be ready to launch into the market an integration platform that assure the correct usage of both water, fertilizer and other minerals. SIGROW is a disruptive integration which will be able to determine whether the mixture of his fertilizer/liquid fertilizer with water is optimum, and if the mixture that he is giving to the plant is functioning, and not only raising up the salinity level of the plant.
Aqua pro technical feasibility study uptdate: Aqua pro feasibility study consisted of several stages with the following goals
1. Calibration robustness in time: Below the readings of the probes of the same mix during a period of 60 days (20 April 2017 to 20 June 2017). It’s observed a drift lower than 10% during a period considered feasible for a maintenance).
2. Life expectancy test for continuous readings are being conducted and after 62 days (by 20 Jun 2017) of operation the drift stays within 10% band.
3. Calibration robustness against temperature fluctuations
Technical risk assessment for commercial deployment and contingencies
Market competitors update: As far as our research, at the moment, there is no company in the agricultural and hydroponic market that have a commercial version of a sensor comparable to the Sigrow Aqua
Business strategy assessment: Based on the business discoveries by interviewing growers in different EU countries we can state that a real-time data system to monitor fertilizer (Potassium) and toxic minerals (Chloride / Sodium) is desired.
The ultimate value to be brought by the system is: An increase in yield quality and/or quality errors reduction that justifies the investment.
Market analysis: After analyzing the market competition (described in other section), Sigrow has already contacted its main distributers and customers of the V1 of the Sigrow sensor family:
Pricing strategy and financial forecast.
Further actions: Sigrow is ready to move forward toward a final prototype of the Sigrow Aqua Pro sensor. Sigrow will pursue H2020 Phase II. The access of external funding will be crucial for Sigrow to be able to bring to the horticulture industry the Aqua Pro benefits.
With Sigrow Aqua pro version, Sigrow can assure the correct usage of both water, fertilizer and other minerals. The correct usage of resources can be reduced by more than 30%. In any case, Sigrow approach is not to reduce the usage, but to be able to demonstrate that by measuring, the final yield will be maximized.
During our first research with potential customers, Sigrow has already reached an initial agreement for the distribution of the product in Almeria, Spain, where a concentrated of total 50K Ha of Hydroponic Greenhouses are installed. Based on the experience of Sigrow Soil sensor with the customer, a first 30 units’ batch is already pre-sold once a prototype is in full function. The expectation of potential sales out of this agreement is of around 1.200 units in 2 years, which will create a total revenue of 4M€ and a EBDITA of 1.316 M€. This figure does not include other revenues included on the SaaS program, which will include alert service, daily reports, and other features that Sigrow is already offers to its customers through the Air and Soil sensors
First 3D prototype case. Probes will be introduced to original board for fully ready system