CubicFarms Announces New Feed as a Service Agreement with Crosswind Jerseys in South Dakota

Jul 6, 2023 | Press Releases

VANCOUVER, British Columbia, July 6, 2023 – CubicFarm® Systems Corp. (“CubicFarms” or the “Company”) (TSX:CUB), a leading local chain agricultural technology company, today announces that its ruminant livestock feed subsidiary company, HydroGreen Inc. (“HydroGreen”), has entered into a Feed as a Service (“FaaS”) agreement with Crosswind Jerseys, a prominent dairy in Elkton, South Dakota. Feed delivery is set to commence on Friday, July 7, 2023.

Under the terms of the agreement, HydroGreen’s existing production facilities in Sioux Falls, South Dakota, will supply Crosswind Jerseys with a contracted monthly delivery of 45 tons of HydroGreen feed. Crosswind Jerseys has recognized the numerous animal performance benefits of sprouted grain produced in HydroGreen equipment, and they plan to use the feed to boost the performance of their approximately 2,100 milking cows.

The partnership is built, in part, upon previous successful feeding trials and research conducted at Crosswind Jerseys, which investigated rumination activity, dry matter intake, conception rates, and milk weights. The results and data from these trials have demonstrated the favourable impact of HydroGreen as a feed ingredient on numerous health and performance measures.

Notable improvements include a 12 percent increase in rumination activity and dry matter intake, a 5 percent increase in milk production, and an 8 percent increase in conception rates. Furthermore, HydroGreen forage boosts protein levels up to 25 percent higher than the parent grain, accompanied by high digestibility, minimizing dietary energy wastage.

“There is tremendous need for daily consistency and herd health for dairies all over. We are excited to embark on this FaaS partnership with Crosswind Jerseys to help meet their daily nutritional needs,” said John de Jonge, Interim CEO and President of HydroGreen. “The delivery of HydroGreen feed to their dairy operation highlights our shared commitment to enhancing livestock feed production efficiency and animal welfare.”

The partnership between CubicFarms, HydroGreen, and Crosswind Jerseys represents a significant advancement in livestock feed production, embracing innovative technology and business models to improve animal nutrition and farm sustainability. Through collaborative efforts, the companies aim to set new industry standards and support farmers across Canada and the U.S.

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Forward looking and other cautionary statements

Certain statements in this release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws, including, without limitation, statements with respect to: the estimated harvesting capabilities of the machines, nutritional benefits of feed produced by the machines and quality of the feed in general. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such statements can be identified by the use of words such as “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”, and other similar terminology, or state that certain actions, events, or results “may”, “can”, “could”, “would”, “might”, or “will” be taken, occur, or be achieved.

These statements reflect the Company’s current expectations regarding future events, performance, and results and speak only as of the date of this news release. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except as required by securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if the Company’s expectations regarding future events, performance, or results change.

About HydroGreen
HydroGreen produces Automated Vertical Pastures™, a type of smart farming equipment that uses a unique process to sprout grains such as wheat and barley, in a controlled growing environment to efficiently produce a high-performance feed ingredient for livestock 365 days a year. HydroGreen’s equipment is simple and easy to operate and performs all growing functions automatically, including seeding, watering, lighting, harvesting, and re-seeding, which allows livestock businesses to feed consistent nutrition every day with minimal labour. When balanced correctly in the ration, HydroGreen sprouted grain modifies animal digestion which enhances productivity and reduces the amount of enteric methane emitted in ruminant livestock. The result also enables environmental benefits to the farm while helping to meet increasing demand for valuable farm-based inset and offset carbon credits.

About CubicFarms
CubicFarms is a leading local chain agricultural technology company developing and deploying technology to feed a changing world. Its proprietary ag-tech solutions enable growers to produce high quality, predictable produce and fresh livestock feed with HydroGreen Nutrition Technology, a subsidiary of CubicFarm Systems Corp. The CubicFarms™ system contains patented technology for growing leafy greens and other crops on-site, indoors, all year round. CubicFarms provides an efficient, localized food supply solution that benefits our people, planet, and economy.