The Company
Background
Contact Details
Company Development
Markets
Markets - Other Crops

 

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

Telephone: +64 3 477 6447
Facsimile: +64 3 477 2953
Email enquiries@botryzen.co.nz
Product & Sales Feedback Form Feedback Form



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.

Orchard

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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