Last checked at 23 May 2022 07:00
RNS
23 May, 2022
Plant Health Care plc
("Plant Health Care" or the "Company")
Long-term commercial agreement signed with Nutrien Ag Solutions for PHC's Saori® soybean seed treatment
Plant Health Care® (AIM: PHC.L), a leading provider of novel patent-protected biological products to global agriculture markets, announces its partnership with Nutrien Soluções Agrícolas ("Nutrien") for its Saori® soybean seed treatment is progressing ahead of expectations in Brazil.
Highlights
· PHC and Nutrien have now signed a five-year commercial agreement under which Plant Health Care will supply Saori for Nutrien's use on soybeans in Brazil.
· Saori was launched by Nutrien in September 2021; grower response has been very positive.
· PHC's revenue from sales of Saori to Nutrien is expected to exceed US$750k in the first half of 2022, growing to more than US$5m by 2025.
· Nutrien expects to treat approximately 150,000 hectares of soybeans in 2022, expanding to more than one million hectares by 2025.
· The Total Addressable Market for Saori in Brazil in 2022 is estimated at 40 million hectares of soybean fields.
· Saori-treated fields were healthier and more robust, with lower incidence of disease compared to untreated fields.
· In PHC's own trials, the average yield increase was almost 10%.
Background
Plant Health Care has invested more than $25 million in its PREtec peptide technology platform ("Vaccines for Plants"). PREtec is a novel class of technology which stimulates the plant to defend itself. Derived from natural proteins, PREtec is an environmentally friendly approach to protecting crops and is compatible with mainstream agricultural practices.
The Company plans major launches of PREtec products every year. Saori was the first product to be launched from the PREtec platform and is based on Plant Health Care's PHC279, a novel technology that makes soy plants healthier, improves resistance to multiple diseases and increases yield.
Ongoing field trials in Brazil with more than 200 soybean farmers in the 2021/22 season confirmed the benefits of Saori. Initial reports indicated Saori-treated fields were healthier and more robust, with lower incidence of disease compared to untreated fields. In PHC's own trials, the average yield increase was almost 10% and more than 90% of the Saori-treated fields showed a positive response.
With 40 million hectares (99 million acres) of soybeans planted in Brazil, this is a very large opportunity. Brazilian soybean farmers spent US$2.85 billion on disease control in the 2019/20 season. Saori offers a highly cost-effective tool to farmers to reduce spend on disease control and to increase yield.
Chris Richards, CEO of Plant Health Care said, ‟I am very pleased to see the positive response of Brazilian soybean growers to Nutrien's initial launch of Saori during the 2021/22 season. Building on that positive early momentum, we expect Saori-treated soybean seed to be planted on about 150,000 hectares next season, and many multiples of that amount over the next few years. Nutrien Ag Solutions is the very best partner for Saori, with multiple channels for making Saori available to Brazilian soybean growers. Saori is the first of many launches of products from the PREtec platform. We plan to launch PHC279 in the USA through our distributor, when regulatory permits have been obtained, expected in the second half of 2022. Thereafter, major PREtec product launches are planned each year. These launches underpin our confidence in Plant Health Care's growth projections for the coming years."
"Offering biological products is an important step to increasing the sustainability of Nutrien Ag Solution's product portfolio. As a company, we're looking for ways to make it easier for our customers to adopt sustainable practices on their lands, which is why we've invested a billion dollars into partnerships, research, and development into expanding our offerings of nature-based products," said Jeff Tarsi, Interim President of Global Retail, Nutrien Ag Solutions. "We're excited that we can partner with companies like Plant Health Care to bring more biological options for growers looking for alternatives to traditional synthetic products."
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About Plant Health Care
Plant Health Care offers products to improve the health, vigour and yield of major field crops such as corn, soybeans, potatoes and rice, as well as specialty crops such as fruits and vegetables. We operate globally through subsidiaries, distributors and supply agreements with major industry partners. Our innovative, patent-protected biological products help growers to protect their crops from stress and diseases, and to produce higher quality fruit and vegetables, with a favourable environmental profile. Find out more at Vox Markets and the company website: www.planthealthcare.com
About Nutrien
Nutrien is the world's largest provider of crop inputs and services, playing a critical role in helping growers increase food production in a sustainable manner. We produce and distribute 27 million tonnes of potash, nitrogen and phosphate products world-wide. With this capability and our leading agriculture retail network, we are well positioned to supply the needs of our customers. We operate with a long-term view and are committed to working with our stakeholders as we address our economic, environmental and social priorities. The scale and diversity of our integrated portfolio provides a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders. Nutrien Soluções Agrícolas is the retail business of Nutrien in Brazil, which has built a major presence through acquisitions and organic growth over the past decade.
This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended.