Plant Health Care PLC
13 November 2006
13 November 2006
Plant Health Care plc
('PHC' of 'the Company')
Plant Health Care announces exclusive supply agreement with Tate & Lyle
and
receives its largest order in Company history
Plant Health Care plc, the leading provider of natural products to the
agriculture and landscaping industries is pleased to announce that it has
secured from Tate & Lyle an exclusive agreement for the use of a by-product of
Tate & Lyle's European molasses fermentation process in North America and
Mexico. This forms the base for Plant Heath Care's non GMO certified organic
fertiliser, Organic Plant Food ('OPF').
Plant Heath Care also announces its first US distribution agreement for OPF with
ADG LLC, a California based agricultural distribution company. The agreement
specifies an opening order for over $1.0 million, the single largest order in
the company's history, for immediate delivery. ADG is a newly formed
distribution company owned by David Griffin, a principal in Salinas based
Shamrock Seeds.
OPF is one of only a very few organic plant based fertilisers in the world that
contains a high nitrogen content, making it a real alternative to the more
traditional animal fertilisers. Importantly for the farming community, the OPF
formulation contains almost 100% more nitrogen than the current plant-based
products on the market, which the company believes will allow the yield of
organic crops to approach that of conventional crops. The Board believes that
OPF will offer the lowest price per unit of nitrogen for any liquid organic
product currently on the market.
This distribution agreement marks the start of PHC's strategy to capture a major
share of the rapidly growing US organic agricultural market. OPF has already
seen steady growth in demand in Europe over the past two years, and the Board is
confident of a similar success in North America. Not only does the North
American market boast one of the largest vegetable industries for organic crops
in the world, but, as a result of the recent E.Coli outbreak in the US, there is
an enormous demand for non-animal based fertilisers.
John Brady, CEO of Plant Health Care, commented, 'We are delighted to sign our
first US distribution agreement for OPF and receive the largest order in the
company's history. It is a great opportunity for Plant Health Care to become one
of the dominant players in the organic fertiliser market which is worth around
$7million to $8 million a year in California alone. We are confident that OPF
can gain a major market share as it offers the farming community a safe
alternative, whilst fulfilling all their requirements and at a low cost.
'We are already in discussions with a number of other distributors in the US,
Canada and Mexico'
-ends-
For further information:
Plant Health Care plc Tavistock Communications
John Brady, Chief Executive Jeremy Carey
+1 603 525 3702 Tel: 020 7920 3150
email: jcarey@tavistock.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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