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S&W Seed: Planting salt tolerant dormant seed varieties for marketing in fiscal 2015

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S&W Seed: Planting salt tolerant dormant seed varieties for marketing in fiscal 2015.

By Ian Gilson, CFA

S&W Seed (Nasdaq-small:) has announced it will start planting dormant seeds in preparation to building a plant base that will produce seeds for sale in fiscal 2015. The plants will be grown in farmland close to its seed processing facility in Five Points CA.

The first variety grown will be SW4328, with a dormancy rating of 4, which is at the lowest rating of seeds produced by S&W Seed. This seed was certified by the California Crop Improvement Association in Feb. 2012.

The annual alfalfa market world-wide is about 100 million pounds of seed of which about half is of dormant varieties. North America is the largest market. Profitability should be close to that of other proprietary seeds.

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