Biotech advance in grape controls

Dunedin biotechnology company BOTRY-Zen is looking to add another two biological controls to its product suite.

Chief executive John Scandrett told the company's annual meeting that it was evaluating the commercial prospects of two newly developed controls for grape diseases to add to its BOTRY-Zen biological control for the grape-wasting botrytis cinera fungus.

BOTRY-Zen has an agreement with the New Zealand Wine Institute and HortResearch for new products, and a $200,000 grant it has received from the Wine Institute will help with the evaluation.

Chairman Max Shepherd said the company had started a new phase in its development funded by a $4.2 million rights issue.

The underwritten issue would see three principal shareholders cancel 90 million shares and all shareholders offered new shares at 5.5c.

Shepherd said this year it would commercially sell three tonnes of BOTRY-Zen, enough to treat botrytis on 350ha of New Zealand vineyards.

It plans to start a major redevelopment of its Dunedin plant in coming weeks to increase capacity, and an application for $500,000 to New Zealand Trade and Enterprise would fund product registration in Europe and the United States.

"We have not absolutely turned the corner, but there are enough positive things out there, particularly the results from last year, that have given us so much more confidence," Shepherd said.

Scandrett said discussions were under way with a European company with capacity to manufacture BOTRY-Zen under licence to meet projected market demand in Europe.

- NZPA