Agriculture innovator Roots Sustainable Agricultural Technologies — which regulates underground temperature for better crop growth — is making a move into China in a deal with one of the world’s leading global AgTech integrators.

In its first significant commercial sale of $323,000, Dagan Agricultural Automation will install and exclusively use the company’s root zone temperature optimisation (RZTO) technology to heat eight crops in eight greenhouses across eight acres.

Roots shares gained 10 per cent on the news and closed Monday up 2 per cent at 48.5c

The tech heats or cools the roots of a crop using water through underground pipes and can alter the root zone temperature by as much as 10 degrees.

Roots’ technology will become part of a newly-established agriculture project to the north-west of China’s capital Beijing, with crops such as vegetables, herbs and flowers.

Roots Sustainable Agricultural Technologies executive chairman, Sharon Devir, and his co-founding partner Boaz Wachtel.
Roots Sustainable Agricultural Technologies executive chairman, Sharon Devir, and his co-founding partner Boaz Wachtel.

Chief and co-founder Dr Sharon Devir said the sale was a significant milestone for the company, which only listed on the ASX in December.

“Dagan’s order is a professional endorsement of the disruptive innovation of Roots’ technology and its ability to address critical climate management issues,” he told the market.

“Planners for projects like this in China are looking to improve production efficiency to optimise use of scarce arable land, and more efficiently deal with groundwater depletion.”

Project construction will commence immediately, with the Roots installation team to arrive in China in early February to prepare and supervise the installation.

Israel-based Dr Devir and fellow co-founder Boaz Wachtel have tested he technology in some of the world’s harshest conditions to deliver consistent produce no matter the time of year, promising local strawberries in the middle of winter.

Their root zone technology is said to increase crop yield by as much as 50 per cent, mitigating extreme heat and cold stress while reducing energy consumption by 80 per cent.

ROO share price movements since listing.
ROO share price movements since listing.

While this may be their first entry into China’s $1.15 trillion agriculture market the company say the deal is a key step in showing off their products to project managers in China and abroad.

“Dagan is a sophisticated and well-established company with a global presence and extensive foot print in China with several plans for expansion in that market,” Dr Devir said.

“We are pleased that they chose Roots’ technologies for integration in their upcoming project in China and we look forward to exploring other project possibilities with them.”

The latest news comes after the company announced a world-first pilot in open-field crops of WA apricot trees last week.

Roots shares have traded between 30c and 67c since listing in December at an issue price of 20c.


This special report is brought to you by Roots Sustainable Agricultural Technologies.

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