Plant Health Care (PHC ) has received registration approval for its bio stimulant organic-chemical fertilizer Harpin αβ to be used as a seed treatment in Argentina. 

Plant Health Care's Harpin αβ works by triggering the plant's own self defence systems, leading to a robust physiological response, in a manner similar to vaccinations in humans.   

The plant responds to the biostimulant with improved crop quality, nutrient use efficiency, tolerance to abiotic stress and ultimately, increased marketable yield. The product is also described as having ‘a very favourable human and environmental safety profile.’ 

The Company highlighted that the regulatory process in Argentina for agricultural products involves detailed review and approval by Senasa, the Country's National Food Safety and Quality Service, which classified Harpin ab as a biostimulant organic-chemical fertilizer. 

Plant Health Care said the successful review of Harpin αβ ‘confirms the Argentinian government's commitment to promoting cost effective, sustainable and safe products.’ 

Going ahead under the terms of the registration approval, corn and soybeans will be the first crops to receive regulatory approval for Harpin ab in Argentina.  In the current season, Argentina has 24 million hectares (60 million acres) of corn and soybeans planted in total.  

According to Plant Health Care, growers spent more than $100 million on soybean seed treatments in Argentina in the most recent season. Meanwhile, the overall size of the biological market in soybeans is growing rapidly and was valued at about $75m in 2021. 

The Company told investors that it is currently working with multiple organizations that are evaluating Harpin ab and that it will select in-country distribution partners in due course. 

Chris Richards, Chief Executive of Plant Health Care, said: ‟Harpin ab registration in Argentina is key to the further expansion of Harpin ab use into large row crop markets." 

Last month, Plant Health Care announced a new distribution agreement with a leading distributor in the UK for exclusive access to its biostimulant Harpin αβ in all crops in the UK.  

Plant Health Care said it views the deal as “an important step” towards the firm building a stronger presence in Europe, which is the world's largest market for sustainable agriculture. 

Harpin αβ has been sold on a small scale in the UK for 14 years as ProAct® which launched into the potato market in 2019. To date, it has shown to increase the number of tubers per plant, increase marketable yield and to improve Calcium uptake for better storage. ​  

The Group, which signed its exclusive distribution agreement with Agrii, a distributor which offers agronomy services, technology and strategic advice, said it has worked alongside the distributor for several years in order to establish the grower benefits of Harpin ⍺β.   

Plant Health Care, which believes this latest distribution agreement with Agrii will result in more growers being able to access the yield improvement and sustainability benefits that ProAct® offers, said it also expects to see greater demand for biological solutions in the UK.   

View from Vox 

Back in April 2021, Plant Health Care delivered year-on-year revenue growth to FY20 with the Group's commercial business turning profitable and cash flow positive for the first time.   

Looking ahead, Plant Health Care said it is ‘well-positioned’ for growth in 2021 with Harpin αβ ‘gaining traction’ together with very strong distributor partners, it told investors.   

In a recent update for the six months to 30 June 2021, the Group said it expects trading for the full year to be in line with management expectations following strong Harpin αβ sales.  

The Group saw revenue increase by 13% year-on-year to $3.5m compared to $3.1m in 1H20. In particular, in-market Harpin 𝜶β sales growth in were “most encouraging”, the Company reported, as the division’s revenue increased by 26% to $2.4m, up from $1.9m in 1H20.   

In a research note, Arden Partners said 1H21 has come “with a trajectory of demand which suggests a good second half to come, traditionally the seasonally stronger part of the year.”    

According to data presented in a recent statement, Brazilian soybean farmers spent $2.85 bn on disease control in the 2019/20 season, around 90% of which was for ASR control.   

PHC said it is set on ‘a highly ambitious plan’ with its current pipeline of PREtec products targeting markets with a value of more than $5bn. ‘With outstanding grower benefits and an excellent sustainability profile, we are confident of a bright future for PREtec products,’ it said.   

Analysts at Arden remain positive on the stock with their research confirming a “huge market opportunity'' for PREtec, which it believes is only partly reflected in the current share price.   

Reasons to  PHC

London-listed Plant Health Care is a leading provider of proprietary agricultural biological products and technology solutions focused on improving crop performance.   

Its commercial business is driven by sales of Harpin αß, a recombinant protein which acts as a powerful biostimulant, promoting the yield and quality of crops. PHC sells the proprietary soil treatment Myconate in selected countries and sells both Harpin αß and Myconate through specialist distributors globally. In Mexico, PHC distributes third-party biological products.   

PHC utilises its PREtec platform to generate numerous products and it is focusing on three products targeting very large market opportunities with a value of more than $5bn.   

The Group said these products are currently under evaluation with six potential commercial partners. Meanwhile, PHC also continues to evaluate further candidate products from its robust pipeline of development candidates for additional crops and indications.   

In a trading update released in January 2021, the Group reported robust in-market sales growth of Harpin αβ with in-market sales in Brazil for sugarcane coming in at three times those of 2019, while in-market sales to corn came in at 1.8 times higher than the prior year.   

Meanwhile, the Group hailed its progress in bringing the first products from the PREtec platform to market. It highlighted it is planning for initial commercial launch in Brazil during the second half of 2021.   

Follow News & Updates fromPlant Health Care  here: