TFSA investors: this cheap agricultural conglomerate could offer excellent returns in 2021
International agricultural growth (TSX: AFN) provides systems for agricultural and commercial applications, which include several key product and service offerings, including storage, structures and project management. These components are individually valuable products and services, but by bundling them into systems and solutions, Ag Growth International (AGI) is able to combine the company’s diverse product line with design, engineering capabilities. and AGI project management to provide customers with plant-wide solutions. worldwide.
Shifting from selling individual products and services to providing complete solutions and systems is a significant change as AGI aims to become a key strategic partner for agricultural customers. Throughout most of AGI’s history, the company has successfully focused on material handling equipment, first on the farm and later for agricultural and commercial applications, with several well-known brands. . AGI then turned the company’s attention to storage, first with the acquisition of the Twister line in 2007, then more significantly with the acquisitions of Westeel in 2015 and MFS in 2017.
An innovative technological offer
In addition to North America, AGI also manufactures handling, storage and processing equipment at the company’s Brazilian and Italian facilities. AGI storage, handling and processing equipment is used in applications on all five platforms. AGI’s technological offering is based on an Internet of Things sensor base generating robust data streams of practical data from all agricultural and AGI systems and delivered in rich, intuitive and software platforms. beautifully designed.
The company’s technology platform offers monitoring, operating, measuring and mixing controls, automation, risk monitoring, on-board electronics, farm management, grain marketing and agronomic tools. for agricultural retailers and grain buyers. These products are available as stand-alone offerings, as well as in combination with larger agricultural or commercial systems from AGI. A number of these components are now part of a technology platform called AGI SureTrack.
Automated monitoring system
AGI SureTrack is a software and hardware platform that brings together data from the entire farm to better manage crop production and overall farm activity. This allows users to monitor and market crops based on content and robust traceability. Cereal buyers use the AGI SureTrack platform to deliver premium programs to producers who are able to provide some or all of the traceability data layers throughout the production, packaging and storage of crops.
As an example of how controls and technology complement other components in the AGI product catalog, AGI SureTrack’s highly automated monitoring system works with packaging equipment to effectively maintain the quality of stored grain. and allows remote monitoring and control. Many types of customers benefit from the AGI SureTrack functionality, including producers, grain buyers, agricultural retailers and food processors. In short, several features make AGI SureTrack unique.
Highly specialized services
Engineering and project management have also become a central part of AGI’s complete system approach, enabling the company to offer highly specialized services, as well as more turnkey solutions to customers of the business. These services quickly spread throughout AGI. To meet the needs of commercial grain handling customers, AGI offers custom design and engineering for bulk and high capacity handling and storage solutions.
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The Motley Fool recommends AG GROWTH INTERNATIONAL INC. Fool contributor Nikhil kumar has no position in any of the stocks mentioned.