Harpin Distribution Agreement

RNS Number : 5330B

Plant Health Care PLC

21 February 2011

 



21 February 2011                                                                                        

Plant Health Care plc ("Plant Health Care" or "the Company")

Direct Enterprises enters into exclusive US downstream distribution agreement with Monsanto for Plant Health Care harpin seed treatment technology

Plant Health Care (AIM: PHC),  announces that Direct Enterprises, Inc. ("DEI"), a leading provider to the seed treatment industry, has entered into a multiyear agreement with Monsanto Company to become the exclusive distributor of N-Hibit^® HX-209 (Harpin αβ protein) dry formulated seed treatment to the seed treatment distribution market.  As part of the agreement DEI has agreed to purchase Monsanto's current N-Hibit HX-209 inventory, which it had acquired from Plant Health Care in 2009. DEI, based in Westfield, Indiana, is a significant distributor of seed enhancements and application equipment with a sales force located throughout the soybean and corn growing regions of the United States.

Bill Haubner President of DEI commented:  "We've worked extensively with Plant Health Care's Harpin technology since 2008 and we see this as a great opportunity to enhance our offerings of high value products to the seed treatment industry.  We've performed replicated soybean seed treatment trials across 10 Midwestern states and we experienced an average increase of 3.5 bushels/acre.  By agreeing to purchase Monsanto's current N-Hibit HX-209 inventory, we're aggressively expanding our footprint in this growing market.  We are dedicating substantial marketing and sales resources to this project and as a result already have significant orders for Harpin in both the seed treatment and foliar markets."

The downstream treatment market is the largest and most important segment of the soybean treatment industry. Due to soybean seeds' limited shelf life and the need to return unused soybean seed inventories to the food chain, the seed must be treated as close to planting as possible and consequently downstream treatment is the established channel to market.

The decision to allow N-Hibit HX-209 to be applied by down-stream treaters is consistent with Monsanto's decision to give farmers the option of having all soybeans treated by the retailer who sells the beans which significantly multiplies the market size for Harpin treatments. 

Concurrent with the signing of the agreement, Monsanto announced that N-Hibit HX-209 continues to be an added value product for growers.  Whilst serving a variety of seed companies, DEI's round-the-clock delivery system is also focused on servicing the down-stream seed treatment industry.  DEI has announced that the 2011 season pricing, as previously communicated by Monsanto, will remain in effect.

The announcement of the relationship between DEI and Monsanto is an extension of the current agreement between Plant Health Care and Monsanto which remains in place.  Also, to further expand the opportunities in the seed treatment market for Harpin-based products, Plant Health Care is developing a liquid formulation that facilitates ease-of-use in seed treatment processing plants, while continuing to deliver the improved vigour, plant stand, and yield of N-Hibit HX-209.

John Brady, CEO of Plant Health Care, commented: "This is a significant step forward for Plant Health Care. The inventory overhang has been purchased by DEI and will immediately begin to move into the 2011 seed treatment and foliar markets.

"Furthermore, giving farmers the option, previously not available to them, to treat all varieties of Monsanto soybean and cotton seeds with N-Hibit HX-209 greatly expands our market size.  We're excited about this opportunity to enhance our already excellent relationship with a highly regarded distributor to the seed treatment industry like DEI. This is a very beneficial agreement for all parties".

For further information, please contact:

Plant Health Care plc
John Brady, Chief Executive Officer
Tel: [phone]
[e-mail]

Evolution Securities	Tavistock Communications
Tim Worlledge / Tim Redfern	Jeremy Carey/Simon Compton
Tel: [phone]	Tel: [phone]
[e-mail] [e-mail]	[e-mail]   [e-mail]

Notes to Editors:

About Plant Health Care plc: Plant Health Care plc ("PHC") is a leading provider of naturally derived products for plants and soil. Established in 1995 in Pittsburgh (Pennsylvania) in the United States, PHC currently has approximately 90 employees and has operations in the United States, Mexico, the United Kingdom, Spain and the Netherlands. The Company's ordinary shares have been quoted on the Alternative Investment Market ("AIM") of the London Stock Exchange since July 2004 and listed on the Official List of the Channel Islands Stock Exchange in February 2010 (ticker symbol/ mnemonic: PHC).

PHC's products are aimed at the agriculture and landscape industries and are environmentally beneficial. Through the commercialisation of these products, PHC is capitalising on long-term trends toward natural systems and biological products for plant care and soil and water management. Further information is available at: www.planthealthcare.com.

 

END

 

 

NRABRGDDISBBGBI