www.fukubonsai.com/1H2c.html

DEVELOPING HAWAIIANITE™

              DEVELOPING HAWAIIANITE™ glass case exhibit containing sample jars of the original citrate-soluble fertilizer in use at Fuku-Bonsai since 1973 and the various trials that were a part of the search for a replacement. 

              The bottom of the exhibit shows a 1-page Hawaiianite informational sheet and will show an original copy of the Memorandum of Agreement creating the DHC, Uniever, and Fuku-Bonsai global alliance. It will include the ½# Introductory Package and other information.

              (Left)  A pedestal with the “Excessive Use Report” mounted on the face with the specific penjing of the report showing 18 months of changes (after 12 months of the original MagAmp followed by 6 months of Hawaiianite Medium).

              The glass case and “Excessive Use Report” is sufficiently portable to be taken to public presentations for immediate credibility.

 

           The first citrate-soluble fertilizer was patented by WR Grace in 1962 with “MagAmp™” registered tradename. It was not generally known, had limited availability, and was only in 50-pound sacks. It was favored by Hilo orchid growers and available to Fuku-Bonsai.  We became its most loyal customer; and after it was sold to Sumitomo of America, we received permission to repackage to make it available to our customers. We also included a complimentary packet with each bonsai sold.

                     The diminishing supply of rock phosphate and Environmental Protection Agency (EPA) requirements forced exploration for new sources of phosphorous. “STRUVITE” is a pollutant in agricultural waste water and in municipal sewage treatment plants (where a concrete-like lining clogs up piping and machinery).  We were contacted by several researchers trying to produce a salable fertilizer product to reduce or recover costs.  “STRUVITE” had a general N-P-K formulation of about 4-5% nitrogen and 18-24% phosphorous but with no potash.  Specific formulation varied with the extraction process used. Fuku-Bonsai agreed to evaluate results with the understanding that we wanted a superior replacement for MagAmp™. Initial trials were poor but results improved over time.  We also researched extracted sea water nutrients.

           1.       FUKU-BONSAI “NUTRIENT GRANULES™.”  Fuku-Bonsai has used MagAmp™ since 1973 and has researched it extensively to understand the unique traits. 

           2.       STRUVITE (5-29-0) extracted from cattle wastewater ponds. Initial products dissolved in water. Their efforts toward improving the quality of the fertilizer ceased once they achieved their primary objective of meeting the minimum Environmental Protection Agency requirements. Kansas Environmental Management Association (KEMA)

           3.       STRUVITE (5-28-0) extracted from municipal sewage treatment plants.  Small sizes were less suitable. We ran trials for a full year but could not get a commitment to be supplied with their “SGN 350 Oversize.” Ostara (Crystal Green) 2013-2014

           4.       SEAWATER FERTILIZER desalination pretreatment extraction. Extracted as a powder that dissolved in water. This technology is still in early research and development stage. Blue Realm Logic/RMC Energy (2014-2015)

           5.       DHC/UNIEVER (Korea) Magamo (7-40-6) These introductory samples began the collaboration with Fuku-Bonsai to develop the optimum citrate-soluble on-demand high-phosphorous fertilizer that resulted in Hawaiianite™.  (January 2016)

SUMMARY OF HAWAIIANITE™ COLLABORATION

                     James Jin of Uniever Green, DHC's trading company, contacted Fuku-Bonsai in early January 2016.  He told of how Jae Jo Moon, the founder and president of DHC, had mastered the original 1962 patent, and could create a custom citrate-soluble fertilizer exclusively for Fuku-Bonsai. Over a large number of email exchanges James Jin effectively translated Fuku-Bonsai emails and relayed input from Jae Jo Moon. The original 1962 patent only produced variations of an NPK formulation of 6-40-6 or 7-40-6.  Jae Jo Moon had figured out how to create a wide range of other citrate-soluble formulas.  Equally important, he is able to set a specific percentage of both “water-soluble” and “citrate-soluble” ratios of each nutrient component

                     That establishes the specific characteristics of our Hawaiianite™ fertilizer. By keeping the water-soluble nitrogen low, even sensitive plants are far less likely to burn. Some water-soluble phosphorous produce a noticeable initial positive benefit, while the great majority of the high-phosphorous content is retained in controlled release citrate-soluble form. 

                    This is a major breakthrough as most other high-phosphorous fertilizers are water soluble and immediately release ALL nutrients in far greater amounts than plants can possibly absorb and use!

                     Hawaiianite™ is a magnesium ammonium potassium phosphate controlled-release fertilizer that will not burn and has only, minimal leaching. It can be applied in fewer larger quantities to produce labor and overall savings with environmental benefits.  The fertilizer has a distinctive attractive appearance but is expensive to produce.

                     Small ½# Introductory Packages favorably test-marketed at Fuku-Bonsai at $7.50 per package ($15 per pound).  The target market is every possible high-traffic supermarket or retailer as this is the ideal universal, easy-to-use, all-plant, all-purpose, high-phosphorous, controlled-release fertilizer for the most sophisticated plant specialist as well as  casual gardeners with just a few treasured plants!  These growers want the best possible fertilizer regardless of cost.  Our initial challenge is to make it widely available at an “affordable cost.”

                     There is no other comparable fertilizer! We will focus to dominate the supermarket niche as it is the best way to make Hawaiianite™ widely available.  We can repackage, allow for a 40% supermarket mark-up, ship cartons containing 44 such units to any part of the U.S. via US postal flat rate box WITH RETAIL PRICING PROJECTED TO BE LESS THAN $7.50 RETAIL! 

                     Fuku-Bonsai will have a lead role to research, publish results of trials, promote and creat demand.  We are ideally positioned to develop English promotional and marketing materials on our website and via email marketing. Except in Hawaii, we will earn commissions without physically handling the product! Once we convey our detailed information and camera ready copy, DHC will factory-package and label to our specifications. Uniever Green will coordinate shipping and payments.  Non-exclusive international, national, or regional distributors will make irrevocable letter of credit payments, pay customs and port charges, and take possession upon the shipments clearing customs at entry ports.  This is a more efficient and lower cost distribution system that will further lower retail prices once it is fully established.   

HAWAIIANITE™ MEMORANDUM OF AGREEMENT

                     By November 2016, we discussed DHC and Uniever Green creating and sending us a “Letter of Commitment and Support” to provide Fuku-Bonsai with the standing and credibility to seek financing. While DHC currently supply Korean and Japanese accounts, they have limited knowledge of Western business practices. They were concerned that such a letter would saddle them with unlimited liability.

                     There are two areas of liabilities:  1) Only the manufacturer can control the “guaranteed analysis”. And, 2) Liabilities resulting from the use of the fertilizer.  DHC would be responsible for the content to match their specification but not have liability for use.  Fuku-Bonsai and Uniever Green would be responsible for establishing conservative “directions for use” with any contrary use at the user’s risk.  We would need to include such disclaimers in all labels and business forms.  I forwarded a concise one-page good faith Memorandum of Agreement.

                    Email notice of agreement and photos were received on November 30 with six hard copies.   Final Hawaiianite™ Coarse samples were received on December 8.  On December 9, I received back all “Consent in Lieu of Meeting” unanimous authorization from Fuku-Bonsai Inc. officers, directors, and advisors for two officers to sign on behalf of the corporation as required by our by-laws.

  
Jae Jo Moon of DHC           James Jin of Uniever Green

 

Fuku-Bonsai president David Fukumoto (left)
 secretary-treasurer Wallace Oki (right) 

PRELIMINARY HAWAIIANITE PLANS

                     Hawaiianite can be produced in “Medium”, “Coarse”, and “Extra Coarse” grades. Medium (6-9 month release), is better for short-term crops, broadcast for maintenance of landscapes, or as a stirred-in top-dressing for potted plants.  Coarse (1 to 1.5 year release) isand ideal for incorporation in potting media or beds for long-term crops or in planting holes when installing landscapes. Extra Coarse (2 or more year release). The actual release period is determined by the quantity used. Excess beyond the needs of the plants will be available for the future.

                     We will initially feature Hawaiianite Coarse with a 1.5+ year release as the ideal general use grade in small packaging. Medium and Extra Coarse may be made available if demand warrants, possibly in Commercial Cartons only. Hawaiianite will be initially hand-packaged into the smallest consumer size by Fuku-Bonsai during the Hawaii introductory period until all packaging specifications and labeling are complete.  There will be factory packing in the future.  Three packaging sizes:

           1.       1/2# INTRODUCTORY PACKAGE:  For sale in high-traffic supermarkets and all possible retailers to make Hawaiianite available to everyone and to encourage a full range of documented trials. To be packed 44 units per USPS flat rate box.

           2.       1 KG (2.2#) GROWER PACKAGES:  Ideal for small nurseries, gardeners and hobby specialists.  To be packed 10 units per USPS flat rate box.

           3.       10 KG (22#) COMMERCIAL CARTON (OR BAG): For nurseries, landscapers, and other commercial users.  To also fit into a US postal flat rate box.

BUILDING A HAWAIIANITE COMMUNITY

                        To keep everyone informed, we are rebuilding our emailing capability. We plan a free monthly FUKU-BONSAI NEWS email newsletter that will include HAWAIIANITE,  TRUE INDOOR BONSAI and other news. Just as our website has become an extraordinary True Indoor Bonsai resource, there will be extensive information at:  www.fukubonsai.com/HAWAIIANITE.html.

"HAWAIIANITE™ SUPPORTER" PROGRAM

                         For those who want updated information, for those who want to participate in field or comparative trials, for those who want to become wholesalers or distributors, or those with the interest and financial means to become Fuku-Bonsai stockholders, we created the "HAWAIIANITE™ SUPPORTER" program that is similar to the Kickstarter fundraising program but with Fuku-Bonsai wholly responsible and communicating directly with supporters.

                           It will be costly to assist individuals so there is a minimum $50 membership fee. The benefits will be modest but may include Hawaiianite and True Indoor Bonsai as gifts, but of our choosing and in relationship to the supporter level, as well as possible discounts.  A Fuku-Bonsai website section will hold all HAWAIIANITE™ SUPPORTER information at:  www.fukubonsai.com/1H4.html

HAWAIIANITE™ SUPPORTER LEVELS:

             A)         SUPPORTER ($50 minimum)

             B)         PARTICIPANT ($250 & up)

             C)         MAJOR SUPPORTER ($1,000 & up)

             D)         SUPPORTER-INVESTOR ($10,000 & up)

                        Fuku-Bonsai stockholders and directors have authorized the sale of 20,000 shares at $25/share to raise up to $500,000 of working capital.  We will seek grants and the support and participation of major Hawaii investors and partners who may be represented on Fuku-Bonsai's Board of Directors.

DEVELOPMENT & DISTRIBUTION

                          The initial import shipment to Fuku-Bonsai in Kurtistown will be used to expand bonsai production, for sale to those willing and able to run documented trial for publication and for the initial packaging and marketing trials.  Once packaging components and details are documented, samples will be forwarded to DHC and future shipments will be factory packaged to allow direct import shipments throughout the global marketing area.

                           "BIG ISLAND AND HAWAII FIRST!"  The Big Island is at the end of the supply chain and our fertilizer costs are normally the highest.  We plan to introduce Hawaiianite on the Big Island  with the goal of making the costs the lowest!  We seek partners who will support and assist in this goal as well as develop an efficient marketing and distribution network to lower the costs for everyone! 

PLANS FOR FUTURE EXPANSION

                           Hawaiianite may be cost-effective with major crops such as corn, soybeans, potatoes, and if so, we will scale up to supply the market.  Once Fuku-Bonsai is in positive cashflow and has a solid record of profitability, we will have the option to sell additional stock at a higher price per share. Fuku-Bonsai has significant equity and will also qualify for significant loans with the 12-acre Kurtistown property with all  inventory and improvements as first mortgage collateral.

                           We invite inquires from individuals, retailers, and distributors.  Upon developing a marketing and distribution team for the United States, we will begin marketing internationaly.  WE INVITE YOU TO JOIN US!


For more information, please contact:  David W. Fukumoto, president & founder, FUKU-BONSAI
              PO Box 6000 (17-856 Olaa Road), Kurtistown, Hawaii 96760
              Phone (808) 982-9880;  Email:  david.f@fukubonsai.com;  URL:  www.fukubonsai.com

March 2017

 


***  Go to the next Hawaiianite information article:  www.fukubonsai.com/1H2d.html   
          "The Pros and Cons of Water-Soluble Fertilizers!"
 
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***  Go to the Hawaiianite Price and Order section
***  Go to the Hawaiianite Information section
***  Go to the Hawaiianite How-to-use section (including trial reports)
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