Russia’s invasion of Ukraine has sent global fertilizer prices to record highs – ammonia, nitrogen, phosphates, potash, and sulfate costs are up about 30% since the beginning of the year. While that’s not surprising, given Russia is a top exporter of fertilizers, the dramatic increase in cost has many farmers looking elsewhere for viable alternatives.

In this article, we’ll look at why coca-based liquid biofertilizers could become an excellent alternative to conventional synthetic fertilizers, and how Power Leaves Corp. aims to bring these new products to market over the coming year.

A Massive Market

The global fertilizer market is worth roughly $200 billion per year, according to Verified Market Research (“VMR”). However, while fertilizers are indispensable in agriculture and farming, long-term overuse of synthetic fertilizers can lead to high soil acid levels that kill off beneficial microorganisms and eutrophication – or harmful runoff into lakes and oceans.

The good news is that organic liquid fertilizers can help improve soil structure, provide necessary nutrients, and increase water holding capacity, making them an excellent alternative to their synthetic cousins. These organic fertilizers only represented about $10 billion in 2021 sales, but VMR believes they could reach $21.4 billion by 2028 – a 13.8% annual growth rate.

Following Russia’s invasion of Ukraine, the soaring cost of conventional fertilizers could spur farmers to consider organic biofertilizers a viable alternative. These products could help farmers reduce fertilizer usage, improve crop yields, enhance soil health, and emit less carbon. And, as a result, it could be a win for farmers, markets, regulators, and the environment.

Why Coca Could Fill a Role

Power Leaves believes that coca leaves could pave the way for next-generation biofertilizers. In a recent study, mineralized organic liquid fertilizer based on 4% coca leaf-based formulation produced a 34% and 28% higher yield than commercial biofertilizer in two experimental centers focused on growing pea crops (a demanding crop as far as fertilization goes).

Unlike most biofertilizers, Power Leaves Corp. believes that it could create organic biofertilizers without any scarce ingredients. With 240,000 hectares of coca leaves planted in Colombia, the main raw ingredient has an almost unlimited supply. As a result, farmers could rely on a steady supply without disruptive pricing – a huge benefit given current issues.

Power Leaves has already signed five letters of intent with large Colombian companies involved in sugarcane, palm oil, industrial hemp, and cannabis to supply up to 1,000 tons of its liquid biofertilizer. And by next year, Power Leaves expects to be producing upwards of 740 tons per year to meet growing demand in Colombia – and beyond.

Looking Ahead

The global fertilizer market could be on the cusp of a significant reorganization as Russia’s invasion of Ukraine sends prices sharply higher. Organic liquid biofertilizers could become a key beneficiary of these trends while providing a way for farmers to use more sustainable methods to avoid the harsh downsides of synthetic fertilizers.

Power Leaves expects to become a major provider of premium coca-based liquid biofertilizers over the next year. The company is well-capitalized to develop its operations in Colombia focused on coca extracts for the food and beverage industry, as well as coca leaves for the liquid organic biofertilizer market.

If you’re interested in investing in Power Leaves Corp. ahead of a potential public listing, complete the form below, and we’ll send you more information:

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