Botry-Zen gets set for a major expansion

By Mark Peart

Friday 23rd July 2004

Dunedin biotech company Botry-Zen looks likely to increase its workforce four-fold to keep pace with strong international demand for its biological control agents.

Botry-Zen, which is listed on the Stock Exchange, has developed a fully commercial dry powdered agent to deal with fungal infection in grapes, extending the shelf life to more than six months from the six-week maximum of its previous frozen paste version.

Botry-Zen chief executive John Scandrett told an Environment Court hearing in Dunedin last week this "breakthrough" would help the company enter the European market.

"We have had an Italian consultant undertaking field trials in the northern hemisphere and have received favourable reports on the product's use," Scandrett told the hearing.

He said the potential for growth in this area was "huge," with Italy having about 908,000ha of grape land compared with New Zealand's 14,000ha.

"Even a small share of the market would result in considerable production increases for our company."

Botry-Zen has started field trialing and product registration in Europe and the US, a process expected to take another two years to complete.

Under a limited licence arrangement Botry-Zen will be marketed in Italy in a restricted commercial release this northern hemisphere season.

From March next year the company plans to implement a comprehensive Italian market development programme.

It lost nearly $1 million last year and is forecasting a similar loss this year.

However, Scandrett defended the company's performance, saying there was always a high cost early on getting an enterprise like Botry-Zen off the ground.

Botry-Zen is expanding its Dunedin manufacturing plant for October completion.

Scandrett said the company's existing 2800sq m plant needed extensive modification to allow the granulated product to be ready for the local market in September, and its high volume international markets, once registration was secured.

The company is also considering a second plant on greenfields land on the Taieri Plain near Dunedin to meet expected export demand during the next two to three years.

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