Commodity prices are soaring amid rising geopolitical pressures, which have led to supply disruptions across the globe. AppHarvest Inc (NASDAQ:APPH) represents the opportunity to create food security in the United States, according to AppHarvest President David Lee.
"I think our story is more relevant than ever," Lee said Wednesday on "Benzinga Live."
Forecasts show that climate conditions won't allow the world to produce enough food without incorporating new technology, Lee said.
How Can The US Ensure Food Security? With an AgTech company that engages in developing and operating controlled environment indoor farms.
"AppHarvest is ready to continue to grow along its mission and I think the world needs it," Lee said.
Commodity exports are being held back across the world, which highlights the need for self-reliance, he said: "The idea that we can create an industry right in Appalachia that serves better quality food locally and creates better jobs is, I think, a solution that really is needed today."
With AppHarvest shares surging nearly 50% in a month, Lee said he believes investors are starting to come around to the idea that companies like AppHarvest are necessary.
The AgTech company is focused on execution, as demand is not a problem, and neither is technology, the exec said.
"The technology of today that we have is more than sufficient to generate something like a 20x yield improvement versus open-field farms," Lee said. "We have to just, day in and day out, deliver what we say and begin to execute."
Lee told Benzinga the company is focused on exceeding guidance while staying on track to quadruple AppHarvest farms by the end of 2022.
After the market closed Wednesday, AppHarvest was named one of five finalists for the 24th annual SXSW Innovation Awards in the New Economy category for its 60-acre indoor farm in Kentucky.
See the full interview here:
APPH Price Action: AppHarvest has traded between $2.62 and $25 over a 52-week period.
The stock closed down 4.12% Wednesday at $4.65.
Photo: courtesy of AppHarvest.
