13th Mar 2006 07:01
Plant Health Care PLC13 March 2006 Embargoed until 7am 13 March 2006 Plant Health Care plc ("PHC" or "the Group") Myconate - Successful Test Results Plant Health Care (AIM: PHC.L), a leading provider of natural products forplants and soil, is pleased to report the success of its Myconate testprogramme, which has now been completed to a level suitable to commencecommercialisation. Following its announcement in December last year regarding the first tranche ofdata, the Board is pleased to report further test results have now beencompleted which fully endorse the positive early findings announced previously. PHC's novel Myconate technology helps crops to develop larger root mass, throughthe stimulation of mycorrhizal fungi, so they can prosper under stressfulconditions. Myconate works by triggering the colonisation of beneficialmicro-organisms called mycorrhizal fungi. With more mycorrhizal fungi at work,each plant can draw more nutrients and moisture out of the soil. More nutrientsmake for healthier plants, and significantly greater overall yields. The Boardbelieves Myconate could be the key to changing the face of farming. The safetyand ease of application of Myconate means that management practices need not beover-hauled. The procedure is a straightforward blending process, either tankmixing the Myconate with the fertilizer during planting, or applying theMyconate to the seed before planting. The 2005 Myconate tests were performed in numerous countries in the Americas,Europe and Africa, in different soil and climate conditions, with the testsconducted on many different crops and using a range of application methods. Highlights from the trials include: • Average corn (maize) yield increases of 9% • Average soybean yield increases of 13% • Reliable yield increases in 8 other major crops • Application methods are simple, versatile and consistent - Myconate can be applied as both a seed coating and from tank-mixing with fertilizer • Myconate, with either application method, generates equal levels of seed germination and stand density (number of plants per hectare) • In the tests, Myconate increased root density by over 50%, aiding their early-stage plant growth • Based on the trial successes in 2005, all of the major chemical and seed companies participating have elected to take the trials to the next phase of testing in 2006 The tests have had the added benefit of raising the profile of Myconate amongits target markets prior to commercial rollout. PHC is currently evaluating thevarious routes to commercialise Myconate, including both developing its owndistribution channels and partnering with one or more of the major agrichemicalor seed companies. Whilst these routes are not mutually exclusive, it is notlikely that an attractive partnering deal would be achieved until after afurther period of trials. Trial Results The majority of the trials in this final tranche have been successful andconfirmed the results of trials dating back to 1997, with yield increases in therange of 2%-30% with standard seed coating techniques and where "side dressing"(i.e. mixing the Myconate with fertiliser at time of planting) has beenemployed. The best results have been observed from the tests on corn andsoybean, the two largest row crops in the world. Especially encouraging are theindependent results from the French corn studies on non-GMO corn seed. In thislarge scale trial the corn yields from Myconate treated seed were 12%-24% higherthan the control fields. Examples of the results are shown in the two tables below: Myconate Corn (Maize) Trials Year Location Increase over control 2005 Masset, France +21% 2005 Pontiac, IL +16% 2005 White Corn, CA 0% 2005 Atlanta, IN +2% 2005 Toluca, Mexico +37% 2005 Julesburg, CO 0% 2005 Istanbul, Turkey +5% 2004 Sheridan, IN +25% 2002 Owosso, MI +8% 2002 Avon, IL +8% 2001 Poland +20% 1998 Jabalpur, India +27% Myconate Soybean Trials Year Location Increase over control 2005 Atlanta, IN +6% 2005 Yuma Co., CO 0% 2004 Sheridan, IN +40% 2004 Atlanta, IN +3% 2002 Yuma Co., CO +21% 2002 Rocky Ford, CO +10% 1999 Tipton, IN +18% 1999 Brazil +16% 1997 Purdue University +8% Although certain tests did not indicate yield increases, they neverthelessprovided highly valuable information and have given PHC a better understandingof the most appropriate application methods for Myconate in commercial settings. Whilst positive test results are the ultimate aim, considerable experience canalso be gained from understanding the background to the negative results (e.g.0% yield increases, as seen in Julesburg, Colorado and White Corn, California).In these examples, certain plants had reached their genetic maximum potential,while other negative results allowed PHC to assess the shelf life of Myconate.Like any other chemical product, Myconate is affected by its exposure to air,water, and sunlight. This information will be incorporated into thecommercialisation plans. Size of Market The size of the worldwide agricultural market presents a huge opportunity forPHC, as Myconate has applicability to a wide range of crops. For example, thecorn and soybean markets represent a total value to farmers of about $90billion. The table below shows an indication of the potential value of themarket that PHC is entering: Worldwide Yield Price Average Estimated Estimated Hectares kg Per Per kg Trial Gross kg Yield Gross Value of (million) Hectare Yield Increase kg Yield Increase (million) Increase Soybean 91 2,234 $0.21 13% 26,428 $5.5 billion Corn 147 4,907 $0.08 9% 64,919 $5.2 billion (Maize) (Sources: Company and trial data, UN and Chicago Board of Trade, analystcalculations) Based on the trial successes, all of the major chemical and seed companies withwhich the Group currently partners have elected to take the trials to the nextphase of testing in 2006. The next phase of testing is expected to be completedby the first quarter of 2007. John Brady, CEO of Plant Health Care commented on the results, "These successfulresults are extremely encouraging, yet it comes as no surprise to witness thepositive effects of the 2005 trials, in which the application methods werevaried to determine the response of Myconate. The greatest improvements havebeen in large volume row crops such as corn and soy bean, but other importantimprovements are in the higher value crops, such as tomatoes. "The feedback from these large chemical and seed company trials has contributedsignificantly towards our determining the best routes to full commercialisationand we are now in a position to initiate the rollout of Myconate." The full document of results is available from the Plant Health Care website. -ends- For further information please contact:Plant Health Care plcJohn Brady, CEO Tel: 001 603 525 3702 Tavistock Communications Tel: 020 7920 3150Jeremy CareyChristian Taylor-Wilkinson Notes to Editors: About Plant Health Care Plant Health Care plc ("PHC") is a leading provider of natural products forplants and soil. Established in 1995 in Pittsburgh (Pennsylvania) in the UnitedStates, PHC currently has approximately 70 employees and has operations in theUS, Mexico, UK, Spain, and the Netherlands. The Company listed on the AIM marketof the London Stock Exchange in July 2004. Ticker symbol is PHC. PHC's products are aimed at the horticulture, agriculture, turf grass,commercial landscaping, forestry and land reclamation industries and are bothenvironmentally beneficial and on the whole more cost effective than syntheticchemical alternatives. Through the commercialisation of these products, PHC iscapitalising on current long-term trends toward natural systems and biologicalproducts for plant care and soil and water management uses. Web Site: www.planthealthcare.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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