MARKET
Market Size
The Australian Fertilizer Market is valued at $2 billion pa. It is 5,500,000 tonnes of product.
The size per state is
New South Wales 1,500,000 tonnes - $545,000,000
Queensland 800,000 tonnes - $290,000,000
Victoria 1,100,000 tonnes - $400,000,000
Tasmania 300,000 tonnes - $109,000,000
South Australia 800,000 tonnes - $290,000,000
Western Australia 2,000,000 tonnes - $727,000,000
Market Penetration
Indications currently project a national take up of IOMAT of 1% in year 1, 2% in year 2, 5% in year 3 and 10% in year 4. There should then be stronger growth as the effects of eating better food are more appreciated.
In year 1 the projection will be
New South Wales 15,000 tonnes - $5,500,000
Queensland 8,000 tonnes - $2,900,000
Victoria 11,000 tonnes - $4,000,000
Tasmania 3,000 tonnes - $1,100,000
South Australia 8,000 tonnes - $2,900,000
Western Australia 20,000 tonnes - $7,200,000
In year 2 the projection will be
New South Wales 30,000 tonnes - $11,000,000
Queensland 16,000 tonnes - $5,800,000
Victoria 22,000 tonnes - $8,000,000
Tasmania 6,000 tonnes - $2,200,000
South Australia 16,000 tonnes - $5,800,000
Western Australia 40,000 tonnes - $14,400,000
In year 3 the projection will be
New South Wales 75,000 tonnes - $27,000,000
Queensland 40,000 tonnes - $14,500,000
Victoria 55,000 tonnes - $20,000,000
Tasmania 15,000 tonnes - $5,500,000
South Australia 40,000 tonnes - $14,500,000
Western Australia 100,000 tonnes - $36,000,000
In year 4 the projection will be
New South Wales 150,000 tonnes - $55,000,000
Queensland 80,000 tonnes - $29,000,000
Victoria 110,000 tonnes - $40,000,000
Tasmania 30,000 tonnes - $11,000,000
South Australia 80,000 tonnes - $29,000,000
Western Australia 200,000 tonnes - $72,000,000
Profitability
Based on a selling price similar to the competition a Gross Profit of 30% is readily achievable.
In year 1 the Gross Profit will be
New South Wales $1,650,000
Queensland $870,000
Victoria $1,200,000
Tasmania $330.000
South Australia $870,000
Western Australia $2,160,000
In year 2 the gross Profit will be
New South Wales $3,300,000
Queensland $1,740,000
Victoria $2,400,000
Tasmania $660,000
South Australia $1,740,000
Western Australia $4,320,000
In year 3 the gross Profit will be
New South Wales $8,250,000
Queensland $4,350,000
Victoria $6,000,000
Tasmania $1,650,000
South Australia $6,000,000
Western Australia $10,800,000
In year 4 the gross Profit will be
New South Wales $16,500,000
Queensland $8,700,000
Victoria $12,000,000
Tasmania $3,300.000
South Australia $12,000,000
Western Australia $21,600,000
Qualification
These estimates are based on some fundamental assumptions, such as universal starting date and the same take up rate, state by state. This would not happen exactly as indicated above.
It should be noted that a farmer would normally buy the product on a trial basis to service a small part of his property, usually 10 percent. He will then be very impressed and the second time around will probably buy enough to service his entire property. He will also tell his friends who will usually follow the same trend. Word of mouth is a great selling tool.
IOMAT - Introducing IntentionOne Mineral Agriculture Technology
IOMAT - Personnel
IOMAT - Mineral Agriculture Technology - What is it?
IOMAT - Sale and Distribution
IOMAT - The Market
IOMAT - Summary of IOMAT Trials
IOMAT - Patents & Trademarks
IOMAT - References
IOMAT - Chemical Free Food - THE AGRICULTURE / FOOD/ HEALTH CONNECTION
IOMAT - Soil Data
IOMAT - Production & Financial Benefits
IOMAT Products