Botry-Zen excited by powder development

Revenue flows next year will fall short of target as Dunedin biotechnology company Botry-Zen refines its natural control product for the multimillion-dollar grape-rotting disease, botrytis.

Shareholders were told at the company's annual meeting in Dunedin yesterday that the company was pursuing an international breakthrough in which the live, natural biological control, Botry-Zen, is contained in a powder, rather than liquid or frozen form.

The company is also cementing a partnership with a German biotech company which could have research, marketing and distribution benefits.

Company director John Forrest said growers found the previous frozen block format awkward to store and handle and the eight-week life-span too short.

Dr Forrest said the company had developed a process which turned the frozen paste into a fine powder with a shelf life of about six months and which was easy to handle and transport.

The liquid concentrate form had a shelf life of 20 days. The next step was to turn it into granules with a shelf life of up to a year.

Dr Forrest said the powder development was a breakthrough.

Botry-Zen is working with a German company which has also developed a process of keeping a live organism in a powder form.

One of the German company's equity shareholders is a distributor of horticulture products.

Rather than establish standalone companies in Europe and the United States, Dr Forrest said commercial partnerships like this would provide distribution and market connections.

"We will have direct access to the distribution channels we need in Europe," he said.

Chairman Max Shepherd said the company still had development work to do to make the product user-friendly.

He expected Botry-Zen to be widely available and in use from next year.

Plans to expand the Dunedin plant were on hold and consultants would look at the equipment and infrastructure needed to produce Botry-Zen in its new format.

Chief executive John Scandrett said it was intended that the plant would be the company's main manufacturing base.

The company is registered to supply Italy, which has 908,000ha of vineyards and a larger area of kiwifruit orchards than New Zealand.

Mr Scandrett said trials were planned on the new powder format and the company was working with Zespri International after early trials showed Botry-Zen could control sclerotinia in kiwifruit.

Other trials would look at its effectiveness controlling botrytis on cut flowers, tomatoes and berries.

Botry-Zen reported an operating deficit of $980,000, before tax and depreciation for this year.

The stock fell 0.4c to 11.5c yesterday.

- NZPA