S&W Seed Company (NASDAQ:SANW) Q2 2023 Earnings Call Transcript

They had to be make sure that we were the right partner, and we had to make sure that they were the right partner in the sense that, obviously as I stated we’re both doing what are in kind of the sweet spot of our execution, right? We’re a seed company that then sells to farmers, and they’re basically a liquid fuels company that refines and sells to their customer base. And, this isn’t about companies trying to do something where they ha not have maybe not much experience. This is both of the companies in the sweet spot of what they’ve been doing for decades. And so we’re just more than pleased that Shell came about and we take those lessons as we talk to Ingredion about Stevia. So I have nothing new to announce on Stevia, to your question, but we’re still working on that.

We still think it’s a great opportunity. We’ve been breeding that crop for 12 years, and we think there’s a lot of value there. And we’ll continue to work with Ingredion on who we remember, who is the market leader in the US market’s about $600 million to $800 million in Stevia sales finished product sales. And we think it’s a big market and we think Ingredion is the right partner. We just haven’t come to an understanding of what each of the company’s contributions is going to be yet.

UnidentifiedAnalyst: Thank you for taking my questions and good show on the Shell deal.

Mark Wong: You’re more than welcome. Thanks again. We appreciate that.

Operator: And this concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks. Thank you.

Mark Wong: So thanks everyone for being on the call. It’s one of those calls that hopefully we’ll all look back and it’s a point in history that is a change maker for S&W Seeds. We remain focused on the near term, on our traits in sorghum on DT this year and the new traits coming and we’re focused on cost control and building sales and making sure that we can get the profitability as quickly as possible. In addition, though, the Shell thing is just a huge opportunity. The markets are gigantic, and you’ll be hearing more about that opportunity from us over the next earnings calls as we work with Shell and define the details of our plan in real time. So thanks again everyone for being on the call, and we look forward to speaking with you in the next couple of quarters. Thanks again.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.