Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Organic Weed Killer Receives Green Light


Organic Weed Killer Receives Green Light For Sales To Farmers & Commercial Users

Certified Organics has received “New Zealand commercial registration” for its Organic Interceptor™ weed killer, the last of the regulatory consents required for it to freely market the product in New Zealand.

The company has been advised by the Agricultural Chemicals and Veterinary Medicines Group of the Food Safety Authority it has approved Organic Interceptor™ for sale in commercial sized packs, typically to farmers and other large-scale users of herbicides.

This follows on the ERMA consent Certified Organics received in April 2002 to market its pine based, organic weed killer ready-to-use range to the New Zealand home & garden market. Organic Interceptor™ has organic certification in New Zealand from BIO-GRO and AgriQuality Certenz.

We will commence marketing Organic Interceptor™ immediately to agricultural and commercial users as the production capability and a distribution network has been assembled in expectation of the registration being granted, albeit nearly four month later than we had anticipated. Original advice by authorities indicated a two month process which would have seen us well placed for a spring launch to farmers and commercial users, late August. Regrettably because of this delay we have missed the bulk of potential spring sales to farmers.

Australia is our next target market and we have been working all year on obtaining the necessary regulatory consents for both home & garden and commercial applications. However, the progress in Australia has been even slower than in New Zealand and this means that we don’t expect the key approvals until early to mid 2003, a six to nine month delay on what we had hoped for.

Now that we have the New Zealand commercial registration we will be focusing strongly on introducing Organic Interceptor™ to the more than 900 certified organic farmers in New Zealand and those in conventional agriculture who are still looking for alternatives to chemicals to control weeds at this stage of the growing season. We are also geared up to promote the product to less seasonal users such as local authorities, sporting facilities, golf courses and educational institutions.

Our market research indicates that there are an increasing number of farmers who want to switch from conventional chemical herbicides. Similarly, a large number of local authorities and urban maintenance contractors are very interested in a certified organic weed killer as more and more local-body constituents reject chemical usage in their streets. Trials have been conducted by a number of farmers and local authorities and the results have been encouraging.

Sales of the recently launched home and garden range of Organic Interceptor™ demonstrate there is a good market for a chemical free, organic weed killer. Sales for the first half of the year were only $97,000 but since we launched our home and garden product range mid June sales have shown a steady increase. In July we achieved sales of $55,000, although approximately 60% of this related to our first shipment of certified organic shampoos to Australia. Sales in August were $70,000, September $105,000 and in October were in excess of $180,000.

While this increasing sales momentum is extremely encouraging, the slower than anticipated start to the year and the slow speed of processing our New Zealand commercial registration application, along with delays in Australian registrations, mean we will not break the $1 million revenue mark for the 2002 financial year. We now expect revenue to be around $800-900,000 for the year.

While the delays have reduced the 2002 revenues, there have also been decreases in operating and market-launch costs here and in Australia so that we expect to be still on target to hold the year’s forecast operating loss to some $1.8 million, which will include an amortisation and depreciation payment in the order of $600,000.

Achieving this result will require us to continue to maintain a tight control over operating costs and the successful completion of the current capital raising.

The capital raising process commissioned earlier this year based around the private placement of up to 10 million new shares, as approved by shareholders at the June 2002 annual meeting was expected to have been concluded some time in the third quarter 2002. We have to date, however, been unable to obtain firm commitments from the parties who have expressed interest over the last few months.

While we are still working through the placement process with several interested parties, the Board has decided that it is prudent to actively review its capital-raising strategy and timing. The Board is also giving consideration to the possibility of introducing an additional investment banking advisor to widen the pool of potential investors.


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news