Plant Health Care's Brazil partnership progresses ahead of plan

Biological agricultural product developer Plant Health Care said on Monday that its partnership with Nutrien Soluções Agrícolas for its ‘Saori’ soybean seed treatment was progressing ahead of expectations in Brazil.

The AIM-traded firm said the two companies had now signed a five-year commercial agreement, under which Plant Health Care would supply Saori for Nutrien's use on soybeans in Brazil.

Saori was launched by Nutrien in September last year, with the grower response described as “very positive”.

Plant Health Care’s revenue from sales of Saori to Nutrien was expected to top $0.75m in the first half of 2022, growing to more than $5m by 2025.

Nutrien was expecting to treat about 150,000 hectares of soybeans in 2022, expanding to more than one million hectares by 2025.

The company said the total addressable market for Saori in Brazil in 2022 was estimated at 40 million hectares of fields, with Plant Health Care claiming that Saori-treated fields were “healthier and more robust”, with lower incidence of disease compared to untreated fields.

In its own trials, the average yield increase was almost 10%, the board added.

“I am very pleased to see the positive response of Brazilian soybean growers to Nutrien's initial launch of Saori during the 2021-2022 season,” said chief executive officer Chris Richards.

“Building on that positive early momentum, we expect Saori-treated soybean seed to be planted on about 150,000 hectares next season, and many multiples of that amount over the next few years.

“Nutrien Ag Solutions is the very best partner for Saori, with multiple channels for making Saori available to Brazilian soybean growers.”

Richards said Saori was “the first of many” launches of products from the company’s ‘PREtec’ platform.

“We plan to launch PHC279 in the United States through our distributor, when regulatory permits have been obtained, expected in the second half of 2022.

“Thereafter, major PREtec product launches are planned each year.

“These launches underpin our confidence in Plant Health Care's growth projections for the coming years.”

At 1327 BST, shares in Plant Health Care were up 8.64% at 11.95p.

Reporting by Josh White at Sharecast.com.