Sulphur burner technology is not new. It even looks old fashioned! So what is making it apparently fashionable again? New economics– I have read that the investment in SAG unit pays off in one to two years? New designs for the machines? New uses? Sweetwater International & a few other companies’ marketing campaigns? Yes, sulfur burner technology is relatively old, it actually dates back to the Egyptians! However due to new designs and improvements that we have implemented, it has become more popular, affordable, and applicable in today’s world. Because of this, many customers realize a return on their investment very quickly. Customers not only improve water penetration in the soil, which reduces water needs, but because micronutrients can then get to the roots, many customers are able to reduce fertilizer costs because the fertilizer is utilized more efficiently.
What about the SAG performance against the solutions of Gypsum and Industrial Acid solution?
There are many times when gypsum and acid injection are preferred methods of treating sodic conditions. Sulfur burner technology is an alternative that for many is more economical and safe. By this I mean, elemental sulfur is relatively inexpensive around the world. It is easy to transport, store, and load into one of our machines. Sulfuric acid on the other hand is becoming harder to transport to remote locations due to some governmental restrictions. It is also dangerous since it is so corrosive in its current state and many choose not to keep it on-site. So in summary, it comes down to appropriate application, cost, and safety that give us many advantages over other products. We will not hesitate to suggest the best solution to our client, even if it is not our solution however.
You’re active in several segments of the market: agriculture, industry, turf & landscape. What is the rough share of each of them in the company’s turnover and which one is the most promising in terms of future growth?
Sweetwater has been around for about 10 years now. Because of our time and investment in securing patents, our marketing is just starting. As such, our market share is small, but rapidly increasing. Here in the U.S., we have dealt mostly with the golf industry. This makes up close to 85% of our installations. Another 5% has been dedicated to industrial use such as CBM and Wastewater treatment. But the real opportunity we feel is in worldwide agriculture that is currently only about 10% of our customer base. For many years now we have been working with government organizations in 15 countries such as Pakistan, Morocco, and Afghanistan in making this technology available to farmers who are struggling. With new improvements to our designs, we hope to not only continue our push domestically but globally as well.
In 2004, the OPIC (Overseas Private Investment Corporation), a U.S. Government Agency, provided $1.1 million in insurance to your company for the manufacture, sale and leasing of the SAG machines throughout Pakistan. At that time you estimated that the project would increase farmers’ annual crop yields by more than 30 percent. What has been actually achieved?
Yes, OPIC did approve us for insurance coverage, which we are very proud of. As far as yields go, many of the farmers in Pakistan now using the technology have seen crop yields in excess of the 30% we predicted. Not only that, the quality of the crops has been significantly increased as well.
At the same time you have established on the spot – in the village of Shapur, a research and training institute to train farmers in irrigation management and conduct further research into SAG technology. Your estimate was that 185 permanent employees would be hired in the first five years of the project. Can you tell us a bit more about what’s going on in terms of research in Pakistan?
Just for clarification, the SAG is short for Sulfurous Acid Generator. It is the name that we adopted while working in Pakistan and has stuck with the product there. In the US, we call our machine the Sweetwater Solution Generator. In essence, they are one and the same, just referred differently in different parts of the world.
As for our research in Pakistan, it continues to go forward. Our research farm is comprised of 57 acres of various crops and has been very successful in demonstrating how a variety of crops can benefit significantly from improved irrigation water. It has been our privilege to host government and other entities there as well and we hope to expand the research opportunities there in the future. We currently have approximately 14 full time employees in our operations in Pakistan.
You have installed your machines in about 15 countries. As salinity problems in water and soils continue to expand around the world, where do you see the largest economic potential for your technology and do you intend to replicate in other places –e.g. North Africa and China – what you have done in Pakistan, i.e. manufacturing on the spot?
Great question, we do see a need growing for this technology since so many countries are dealing with ever increasing water quality problems. We often get confused as a desalinization process and it takes some educating to help people understand when our technology can be of benefit to the client. Our machines are designed to neutralize bicarbonates and carbonates in irrigation water. Once these elements are significantly reduced, bound up salts become more soluble and are then effectively leached down through the soil profile.
As for potential for our machines around the world, we are always looking for the most economical means to provide this technology to those who can most benefit from it. As demand grows however, I can foresee a time when we would need to expand production facilities in more strategic locations to meet our customers’ needs. Our dedication to patent protection makes this possible and will help to ensure that we can provide our customers with a product that is superior while maintaining affordability advantages as well.
When you approach a new market, how do you decide on the ideal profile for your potential distributors in agriculture? Will you rather go to people mostly dealing with irrigation equipment or with agriculture machinery?
Our company philosophy has been to find the best and most competent people to work with and represent our ideals as a company, and the success will follow. The same applies to the kind of distributors we look to work with. We value customer service highly and look for companies that are dedicated to providing a quality product or solution; not just another machine they have to sell. In fact, we require that any potential customer submit water and soil analysis so that we can assess whether or not our technology will even provide a benefit to them. We simply won’t sell to people who don’t qualify or simply do not need this technology. We expect our dealers to have this same commitment.
Is Sweetwater International intending to finance and sustain its ambitious growth targets on its own or will you positively look at partnerships?
Sweetwater has never been on it’s own, we currently have very wonderful partners. We have found good people who have believed in our vision and goals and helped us a long the way. I think it is rare that new companies have the resources to do it on their own. As we look to opening new markets around the globe, we know that we will have to form partnerships to develop these markets, both financially and culturally.
Finding the right people to work with will always be a challenge, but when you find the people who have the same values and ethics you as you, it can be a wonderful experience. We see a bright future for Sweetwater and not just because there is a market for our technology, but the potential to do some real good in the world has always been the driving force behind our business. Seeing people grow crops in abundance where before, they could not, is a real treat for me personally and I am proud of the work we do.