Periodic Reporting for period 1 - BioSeedMat (A labour-efficient, organic herbicide-free and micronutrient infused seed tape and delivery mechanismaiding the growth and harvest of agri-products)
Période du rapport: 2016-05-01 au 2016-07-31
Terraseed Ltd examined the commercial potential for its seedmat technology aimed at cost efficient weed control for organic farmers, and the replacement of herbicides in conventional crops. The seedmat comprises a two-part system: BioSeedMat – a seedmat or tape manufactured by laminating seeds between paper sheets that provides a barrier for weed control, used in combination with BioSeedGel – a mulch used to hold the mat in place and promote establishment. The Company’s existing seedmat lacks the registration needed for use in organic farming, is relatively expensive compared to herbicides for conventional farmers and requires the use of sand as a mulch which is costly and unsustainable. The feasibility study aimed to address these issues and develop a strategy for establishing improved products in both organic and conventional markets.
The company determined freedom to operate and commercial viability. A new patent application has been filed. The market potential for BioSeedMat / Gel was clearly demonstrated in the organic market as anticipated, but the study identified a larger market with conventional growers driven by the review and withdrawal of pesticides under EU Legislation. Market analysis showed market to be 584,000 ha of close-spaced crops in the EU where BioSeedMat / Gel has the most commercial potential. The Company concluded that the best route to market is through a licensing model for users and distributors for both geographic territories and product sectors. It believes it can sell sufficient licences to generate substantial profit from Royalty fees and in-house activity, to give a return of 339% on investment within 5 years. We believe there is a compelling case for developing BioSeedMat / Gel as the primary agent for replacing pesticides for weed control in the global agriculture market. A commercial project, funded by the SME Instrument Phase 2, will generate substantial growth in employment and profits for the company and its partners in the EU and wider international markets.
The Company has received expressions of interest in taking-on manufacturing and distribution licenses from large growers in the US, Canada and Italy which will lead to significant employment opportunities, wealth creation and environmental improvement as the technology is adopted. The reduction in agrochemical use will also have significant benefit to consumer health and wellbeing through the reduction of contaminants in food, water and the environment.