Bacteria-Coated Seeds: Seeds are coated with our proprietary bacteria that enhances crop productivity.
The NuTerra Biosensor: Our IoT device monitors salinity levels, moisture levels, temperature, and other critical statistics.
Implementation and Maintenance Services: NuTerra provides support to its users by providing installation and maintenance services.
Key Revenue Streams
Cost of Goods Sold (COGS): Includes seed production, coating, warehousing, and shipping. The costs of the Nuterra Biosensor covers both hardware and software development, as well as its distribution to different regions.
Research & Development (R&D): Significant investment (estimated 25-45% of revenue in the first three years) required to expand the application of the solution beyond cabbages to other green-leaf crops, root plants, and fruits.
Sales & Marketing: Focused on direct sales to large and medium-sized farms, aided by governmental subsidies and NGO partnerships to fund initiatives.
General & Administrative Expenses: Minimal overhead to maintain operational efficiency.
Cost Structure
Bacteria-Coated Seeds: Priced at $400 per pound with a production cost of $200, achieving a 50% contribution margin.
Biosensors: Priced at $1,000 per unit with a production and software cost of $600, achieving a 40% contribution margin.
Pricing Strategy
Scalability and Economies of Scale
Warehousing and shipping costs are distributed per unit and optimized as the business scales. NuTerra’s scalable model ensures sustainable growth while maintaining high contribution margins.
Initial R&D efforts will focus on cabbage and lettuce crops, with plans to extend to other crop types. NuTerra Solutions aims to transform saline soil farming through its innovative solutions, creating significant ROI for customers while addressing global agricultural challenges.
