Today, African Agriculture Holdings Inc (NASDAQ: AAGR) announced a multi-year supply agreement with Dr. Kahn, a South Korea-based diversified holding company, to supply alfalfa to South Korea.

What Happened? Under the terms of the agreement, African Agriculture will supply up to the entirety of the specific production of the 700 hectares currently under development. The supply agreement will likely contribute to 2024 and 2025 revenue.

Why Does It Matter? "The scope of this agreement proves out our growth strategy, providing us with a validation by a leading South Korean company, representative of the highest quality control standards in that market," stated Alan Kessler, Chairman and CEO of African Agriculture.

"We have now sold into nine countries in the Economic Community of West African States (ECOWAS) regionally, with additional commercial international shipments to the Gulf. This supply agreement to Asia represents further commercial validation of our pilot program, and we look forward to scaling our production. As a company focused on global food security and sustainability, we are committed to enhancing Africa's role of feeding the world."

Mr. Lee, the CEO of Dr. Khan, commented, "We continue to witness an increase in demand for alfalfa hay as the fragmented dairy and beef industry improves, requiring necessary nutritional content, and modernizes its operations, necessitating this important relationship with African Agriculture."

Price Action: AAGR shares traded lower by 5.98% at $1.10 premarket on the last check Thursday.

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This article EXCLUSIVE: African Agriculture Holdings Strikes Major Alfalfa Supply Deal with South Korea's Dr. Kahn originally appeared on Benzinga.com

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