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Venture capital deal brings probiotics in


Venture capital deal brings probiotics in from the cold

13 June, 2007

EnCoate, the 50/50 owned AgResearch and Ballance Agri-Nutrients Joint Venture Company, today announced it is close to signing a multi-million dollar deal that will see an injection of venture capital money to finance the development of a revolutionary line of probiotic formulations that will enhance food products.

Once the agreement is signed EnCoate will receive $6.3 million in investment from one of Australasia’s biggest life sciences venture capital funds.

Probiotics are microbes that have beneficial health effects on humans and animals. However, current technology limits their application to yoghurt and other milk products as they must be refrigerated.

EnCoate’s goal is to extend the shelf-life of probiotics to two years at room temperature and humidity with special formulations. Current technology does not allow probiotics to be mixed with other ingredients, which considerably limits the scope of their application. EnCoate has developed a technology that can stabilise these microbes so they can be used to enhance foods such as breakfast cereals, infant milk-powders and dog-biscuits.

Bridgit Hawkins, Acting EnCoate CEO, says this opens a potentially huge global market for probiotic ingredients.

“Probiotics have been recognised for many years as giving significant health benefits. Until now consumers have been strictly limited to a small range of products offering the benefits of probiotics.”

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The technology was developed by a team of scientists at AgResearch’s Lincoln campus near Christchurch and led by Dr Trevor Jackson of the Crown Research Institute’s Biocontrol, Biosecurity & Bioprocessing Section.

Bridgit Hawkins says the start-up phase of the business involved developing the science, looking at proof of concept, looking for business opportunities and engaging with end users to ensure the technology was appropriate.

“This involved developing what is known as a biopolymer coating that had first been used in the production of biological control agents in agriculture. The first commercial product to use this technology was for the control of grass grub. It has been commercially available in the marketplace for some years.

“With the new probiotics opportunity, the business is now positioned ahead of its competition and is an attractive investment proposition,” says Bridgit Hawkins.

“What’s more, EnCoate has potential beyond extending the shelf life of probiotics, with the core technology behind EnCoate being the biopolymer, which has applications including in agricultural biology, food and seed coatings, and vaccines.”


About EnCoate
EnCoate is a joint venture company between New Zealand’s leading fertiliser company, Ballance AgriNutrients Limited and AgResearch Limited, New Zealand’s primary sector Crown Research Institute. EnCoate specialises in the development of proprietary food-grade biopolymer technologies. These simple biopolymers have broad application in extending the shelf-life of food and microbe-based agricultural and health products at up to ambient temperatures. Additional technologies include fungal and bacterial products and delivery systems.
www.encoate.com
About Ballance Agri-Nutrients
Ballance Agri-Nutrients is New Zealand’s leading fertiliser specialist, with manufacturing plants located in Whangarei, Mount Maunganui and Invercargill. In addition, the company owns the ammonia-urea manufacturing plant at Kapuni in Taranaki, and Super Air, one of the country’s largest agricultural aviation companies.
Ballance is a 100-percent farmer-owned co-operative, with some 18,000 shareholders throughout New Zealand. It was officially launched in 2001, bringing together a number of regional fertiliser co-operatives to become a truly national company. The company places a strong emphasis on delivering value to its shareholders and on the use of a scientific approach to plant nutrient management.
www.ballance.co.nz
About AgResearch Ltd
New Zealand’s largest Crown Research Institute, AgResearch comprises a number of renowned research centres but most importantly it is made up of hundreds of individual scientists, technicians, their teams and support staff. Their work targets the key issues faced by the pastoral and biotechnology sectors, and leads to innovative products and knowledge that benefit all New Zealanders.

Through its mission, 2020 Science, AgResearch endeavours to keep the country prosperous to 2020 and beyond. The strategy is underpinned by its five big ideas : to double the value of dairy production while halving the costs and impacts on the environment; to double the value of meat and textile production while halving the costs and impacts on the environment; reducing the risk of pests and diseases gaining a foot-hold in New Zealand and helping to manage those already here; working with rural communities and agribusinesses to ensure they both remain sustainable for future generations in a global environment; and making the most of opportunities beyond food and fibre.
www.agresearch.co.nz

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