The move will help Rivulis market worldwide the drip irrigation technology that serves 70% of Israel’s farmers but only 10% of their overseas’ counterparts. The Rivulis distribution network will enable Agam to break into the global market.
Agam develops fertilizer and irrigation optimization software for farmers using satellite based remote sensors.
Rivulis’s (formerly John Deere Water) expertise is in the development, production and installation of drip irrigation and its estimated 3 million shekel purchase of Agam is part of its efforts to penetrate the world agricultural market with its technology, which serves 70% of Israel’s farmers but only 10% of their overseas’ counterparts.
Buying out Agam’s operation will serve as the basis for establishing a subsidiary called Mann Irrigation, fully owned by Rivulis and offering its customers fresh software based solutions which will provide added value to crops at all stages, not just at the planning and installation stage. Rivulis explains that unifying all operations under a single
subsidiary will open it up to the world market and not restrict it to its existing customers.
Rivulis whose CEO is Richard Klapholz, believes that the chief stumbling block to inserting its technology into the market is the relatively difficult transition from traditional experience and intuition based irrigation methods to drip irrigation. Rivulis estimates that the information collated from remote sensors, as opposed to sensors inserted into the ground or attached to the crop, will allow the farmer to assess growth and uniformity in his fields and thus optimize fertilizer and irrigation use, thus improving both crops and yields.
It is estimated that Rivulis ended 2015 with ten million US dollars in profit and a turnover of $220 million.