Background
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Contact
Details
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Company
Development
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Markets
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Markets
- Other Crops
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Background
Botry-Zen Limited was formed in April 2001 to research, develop and
commercialise biological control agents for use in the agriculture and
horticulture industry. The company is publicly listed on the New Zealand
Stock Exchange’s Main Board. Click here to view the Company's
Listing Profile.
The first
biological control agent to be released commercially by Botry-Zen Limited
is a new product called BOTRY-Zen which was
specifically developed for the effective control of Botrytis cinerea
fungal infection in grapes ("bunch rot"or "grey mould").
Botry-Zen
Limited (the company) owns an exclusive licence to technology giving
the company the ability to produce, distribute and sell BOTRY-Zen (the
product).
The technology
was developed through the co-operative efforts of the Horticulture Food
Research Institute of New Zealand Limited (HortResearch),
Winegrape Tech (a joint venture between Winegrowers
of New Zealand Limited and New Zealand Grape Growers Limited) and
Zenith Technology Corporation Limited (Zentech)
and is the subject of an international patent application.
The company's
head office and manufacturing plant are located in Dunedin, New Zealand.
Contact
Details
Registered Office
27 Willis Street
Dunedin
New Zealand
Corporate Office
27 Willis Street
Dunedin
New Zealand
PO Box 5664
Moray Place
Dunedin 9058
| General
Manager: |
Stephen Lorimer |
| Sales
and Marketing Manager: |
Brett Bensemann |
| Production
Manager: |
Ted Young |
| Production
Manager: |
Peter Foster |
| Technical
Manager: |
Kirstin Bevan |
| Operations
Manager: |
Nicola
Whiston-d'Ardis |
| Product
and Sales Enquiries: |
info@botryzen.co.nz |
Company
Development
Following
the conclusion of the 2001 field trials the Company initiated the formal
steps towards securing full product registration under the Pesticides
Act 1979 ("Product Registration"). The Agricultural Compounds
and Veterinary Medicines Group completed their review process in late
June and the company was informed of the granting of full BOTRY-Zen
Product Registration for grapes under the Pesticides Act 1979 on 8th
July 2002.
The initial Product Registration was for BOTRY-Zen in a spore suspension
format. Since then the Company has made significant improvements to
the BOTRY-Zen product formulation that has extended the shelf life,
made it easier to transport and store (as it can now be stored at room
temperature) and made it easier for growers to use. BOTRY-Zen is now
presented as a water dispersable granule. Consequently the former Product
Registration was not renewed and, in 2004, an application was made to
register BOTRY-Zen in the new format. In October 2004, BOTRY-Zen was
granted full product registration for use on grapes, kiwifruit, blackcurrants
and ornamental flowers under the Agricultural Compounds and Veterinary
Medicines Act 1997.
Further
expansion of the Dunedin manufacturing capacity coupled with the product
development enhancements are significant steps and raise the possibility
of product being produced in New Zealand for use overseas which would
allow the Company to utilize the plant in the New Zealand off-season
to meet northern hemisphere market demand.
Markets
New Zealand
Direct losses attributed to Botrytis infection and associated
control costs have been estimated to cost the New Zealand wine and grape
growing industry $30 million per year.
The Company
will focus initially on establishing a market for BOTRY-Zen in New Zealand
and achieving widespread grower acceptance. By the year 2004, there
were approximately 17,807 hectares of planted grapes in New Zealand.
The planted area has more than doubled since 1995, when there were 7,500
hectares under vine, and continues to grow.
Not all
grape growing areas are equally susceptible to Botrytis infection,
as this depends partly on prevailing climatic conditions, although any
grapevine anywhere in the country can be a target for the fungus. As
the more susceptible areas – those that are warmer and wetter
- include major grape growing regions such as Auckland, Gisborne, Hawkes
Bay and in some years Marlborough, the Company's conservative assumption
is that Botrytis infection can represent a potential annual risk
to approximately two-thirds of the total New Zealand vineyard area.
The Company
has the objective of, achieving a significant market penetration for
BOTRY-Zen, and to develop it as the product of choice for the control
of Botrytis infection in the New Zealand grape growing industry.

Australia
The Australian grape growing industry, measured by hectares of grapevines
planted, is about 10 times the size of the New Zealand industry and
is growing exceptionally quickly. The area under vines in Australia
doubled between 1988 and 1998. There were, in 2001, approximately 122,915
hectares of grape vines in Australia.
Given that
the Australian industry faces similar Botrytis problems to New
Zealand the Company expects there should be a significant demand for
BOTRY-Zen in Australia and it has engaged a Sydney-based consultant
to advance the registration and trialling steps necessary to precede
commercialisation in Australia. Early attention will be given to the
options associated with establishing a dedicated plant in Australia
or to developing a formal distribution network through which New Zealand
manufactured product can be marketed.
Americas
Contacts with viticulture industry parties in the USA are being developed
further as a matter of priority and the Company is evaluating all options
related to establishing a formal presence in that market. In-market
evaluation has confirmed that the costs of registration and trials will
not be insignificant and the formation of a new United States registered
company to assist the overall process is currently seen as a likely
beneficial step.
The Company continues
to assess partnering arrangements to cover the trialling and registration
steps together with the linked distribution and marketing functions.
With the appropriate partnering resources in place in this key, and
very large market, the significant commercial potential for Botry-Zen
can be further developed.
Key US
industry parties already have fully developed joint ventures and/or
their own viticulture operations in South America and the Company holds
the view at this time that access to those markets can best be developed
as part of a central USA initiative.
Europe
European market interest is expanding as growers recognise that BOTRY-Zen
can be used effectively in what is known as “integrated spray
programmes”. Essentially these are programmes where biological
products are widely implemented to manage Botrytis risk through
most of the season but where also, when needed, some chemical application
may be made. Growers and consumers alike are becoming very focused in
strongly supporting such programmes where chemical utilisation is kept
to a minimum. (Traditionally, widespread chemical use has seen the build
up of disease resistance to the chemical fungicide solutions and also,
chemical programmes considerably raise the risk of residue problems
in the end product).
Trial
work has been undertaken in Italy, France and Germany and in virtually
all situations the same positive outcomes as our New Zealand activities
were realized.
Our close
interaction with companies in Italy and Germany is being maintained
and a number of potential long-term partnering opportunities are being
reviewed. Discussions are ongoing in respect of marketing and distribution
possibilities.
The Potential Market in Patent Co-operation Treaty Countries
In addition to Australia and New Zealand, the Company's exclusive licence
from Winegrape Tech (NZ Winegrowers) includes the production, distribution
and sale of products based on the saprophytic fungus for the grape growing
industry in all countries covered by the Patent Co-operation Treaty
(PCT). The 100 plus countries that are parties to the PCT include most
of the world's major wine producers.
The following
PCT member countries are among the top 10 world wine producers and represent
markets for BOTRY-Zen or similar saprophytic fungus-based products:
|
PCT Country |
Number
of Hectares of Grapes (2000) |
| Australia |
111,000 |
| France |
914,000 |
| Germany |
105,000 |
| Greece |
129,000 |
| Italy |
908,000 |
| Romania |
248,000 |
| South
Africa |
117,000 |
| Spain |
1,230,000 |
| United
States of America |
415,000 |
| Total
hectares: |
4,177,000 |
| |
|
| New
Zealand hectares |
12,194 |
| New
Zealand hectares as % |
0.29% |
| |
|
Opportunities
for either exporting BOTRY-Zen to these countries, or establishing licensing
arrangements or directly controlled manufacturing facilities in them,
are to be evaluated on a country-by-country basis by the Company. Many
countries have rigorous bio security, quarantine and other import controls
for products containing live biological organisms and the results of
the field trials required for registration purposes in one country may
not be accepted in other countries. Accordingly the Company intends
to undertake a comprehensive analysis of the relative advantages of
exporting BOTRY-Zen from New Zealand to those countries or manufacturing
it in those countries for the local market. The recent successful research
and development work referred to earlier now allows the Company to present
the product in a format that has been found to significantly extend
the shelf life. Given seasonal variations in northern and southern hemispheres
plant utilisation should now extend across a full year production cycle
rather than the previously anticipated 20 week production cycle.
The Potential Market – Other Crops
Botrytis cinerea also attacks and seriously damages crops such as berryfruits,
cut flowers and tomatoes. In New Zealand and elsewhere, Botrytis infection
can be a significant problem in the kiwifruit industry as in this context,
the fungus attacks the fruit after it has been harvested, making it
soft and unmarketable.
BOTRY-Zen also
has activity against Sclerotinia in kiwifruit which can cause significant
crop loss or damage to the fruit early season.
Under its
exclusive licence agreement with Winegrape Tech, Botry-Zen Limited has
the right to pursue commercial development of the patent rights and
other technology associated with the saprophytic fungus organisms in
relation to all other crops in all PCT countries. The Company intends
to focus its initial commercial efforts on the grape growing industry
and plans to continue the co-operative research programme with HortResearch
into the use of BOTRY-Zen or similar products on other crops.
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