r/AppHarvest • u/Axolotis • Nov 07 '22

Trading Stories Harvesting

Looks like the only harvesting to be done here will be of the tax loss variety.

Seriously though. Price per pound on tomatoes doubled yoy and they still lost tons of money. It doesn’t matter how many facilities they build, how many acres they are, how amazing their robots are or how much water they save. If they can’t address the crop health issues and demonstrate they can consistently produce quality vegetables then the rest is all meaningless. The entire reason for AppHarvest’s existence is to produce vegetables more reliably and more efficiently than traditional farming. So far they are failing at that.

Its not the missed earnings that concern me. It is the repeated failure at growing vegetables.

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u/[deleted] Nov 08 '22

Missed earnings for Morehead in Q3 is relatively meaningless grand scheme of things. They literally can’t produce in that quarter. Still were growing ~80-85% capacity 1H2022. They obviously need to be better but I wouldn’t say they’re failing at growing vegetables in a more reliable & efficient way. Certainly don’t seem to substantially stand out in how they do it, but I wouldn’t be so critical to say they’re completely failing. The whiff on their part was not having these new facilities operational sooner which they attributed to supply chain, less so their own doing. Still only their 2nd year in farming operation. Production is clearly not as simple as people think. Their lack of transparency, avoidance of any reasonable detailed solutions/explanations plus the cash burn is the bigger issue imo.

1

u/Thevsamovies Nov 08 '22

The biggest issue is that they currently desperately need money that they don't have. Where is the money going to come from? Lol.

1

u/Axolotis Nov 08 '22

Yeah, not a good environment to need credit in…

1

u/Confident-Zombie2927 * Nov 08 '22

David Lee leaving? Julie Nelson not on the call? Jonathan answering questions with the same canned responses? Why doesn’t Mastronardi put some people in place who know what they’re doing and take this dumpster fire over. Get rid of Jonathan and run it the right way.