S&W Seed Company Consolidates Processing Assets

Agricultural seed technology firm S&W Seed Company announced Monday that it has consolidated its US seed production operations at its mechanized facilities in Nampa, ID and New Deal, TX. The company said in a release that it also sold its seed processing plant in Five Points, CA.

S&W’s decided to carry out the consolidation after examining a variety of strategies to reduce its cost of goods (COGS) structure for producing and packaging its goods.

“Among the many strategies we considered, the relocation of seed production from ore expensive regions such as California to more cost-effective regions was highlighted as one of the best ways to effect immediate impact on achieving our goals for reducing COGS and improving gross margins,” said Mark Wong, the firm’s CEO, in a statement. “The sale of our California facility will reduce our overall production costs, anticipated to be approximately $1 million on an annualized basis, and further allows us to improve our capital structure through the pay-off of long-term debt associated with the facility.”

The company operates production facilities in Australia and the two sites in the US. S&W’s sale of the Five Points plant closed on January 21.