News
Launch of Sustainable Solutions Business
19 November 2007
TyraTech Inc. (AIM: TYR), the pioneer of safer, effective and natural pesticide products, today announces the US launch of its “Sustainable Solutions” business with Nature’s Natural, a peat replacement and horticulture product that will also provide a mass-market medium for the delivery of TyraTech’s natural pesticides.
Douglas Armstrong PhD, Chief Executive Officer of TyraTech, said: “The development of Nature’s Natural and the entirely new Sustainable Solutions business has been driven by the long-standing needs of our international partners and potential customers for pest and disease management products that make sustainable business practices the easy economic choice. The Nature’s Natural peat alternative could eliminate the costly and environmentally damaging depletion of natural peat bogs, and will be an ideal medium for the delivery of our natural pesticides whilst generating an early revenue stream for us.”
Nature’s Natural is created using a proprietary technology that can separate, compost and purify livestock waste on site. The production machinery is being sold by TyraTech directly to large-scale US dairy farmers and is designed to provide safe and sustainable treatment of organic waste and solids whilst generating an agricultural, farm and home garden peat replacement product. The potential value of the US market for the sale of the machinery alone is approximately US$400 million, based on the number and scale of dairy farms across the country. First sales have now been made, providing an early source of revenue for the Company. By means of contractual agreements with each producer, TyraTech also retains the rights for up to two thirds of the material generated on farms using this technology for use in its Nature’s Natural product lines.
Sustainable Solutions provides waste and associated pollution management for dairy farms, as well as an end product that is available as a low-cost, high quality hygienic bedding for cattle. TyraTech is also developing a process that will apply the Company’s safer and effective products for repelling insects and parasites to the bedding to improve cattle wellbeing and productivity.
Nature’s Natural’s low salt, pathogen and seed content, along with its high water retention and nutrient content, also mean it is valuable to horticultural markets, such as nurseries in need of a sustainable peat moss substitute for various potting and gardening uses. The annual US market for peat moss is in excess of US$245 million. The nutrient-rich soil alternative can then be used as a medium for TyraTech’s natural pesticides that kill or repel insects and nematodes that impair plant growth.
Take up of the machinery by agricultural and horticultural markets will be driven by the cost savings and additional revenue streams that producers and users will be able to generate through its application. By reducing the amount of cattle manure that is spread on the land or retained in collection lagoons, it can provide significant economic and environmental compliance advantages for the farmer, especially by curtailing the pollution of the water table and the bad odours that effect neighbours in the farming community. The Nature’s Natural approach lowers the farm’s on-site waste content, allowing for larger and more sustainable herds to be managed within strict US government regulations. There are further environmental advantages such as the lowering of greenhouse gas emissions via the processing of cow manure before the composting process releases these gases. As an alternative to peat it also reduces the commercial extraction pressures currently placed on the world’s endangered natural peat bogs.
“As a growing dairy farm, bedding expenses and waste management considerations are two significant limiting factors in our operations,” said Eddie O’Donnell, General Manager of Irish Acres Farms, which has been trialling the TyraTech manure management bedding system for its 1,500 head dairy herds in Indiana and Ohio.
O’Donnell continued, “The Nature’s Natural system has dramatically decreased our bedding costs, lowered waste management labour costs, and should enable us to increase herd size and milk production without hitting regulatory nutrient effluent limits. In this important part of our operations, we project positive cash flow from the first month and expect material annual savings. While the financial and compliance benefits are indeed significant, it is TyraTech’s ability to help us create a healthy and safe environment for our cows, neighbours and community that makes the technology additionally invaluable.”
Douglas Armstrong PhD, Chief Executive Officer of TyraTech, added: “We are pleased with the initial demand shown by the agricultural community in the US and intend to progressively grow this early-stage revenue capture model. Our multiple shots-on-goal approach to the major international markets involving the control of insects and prevention of parasitic disease provides us with the ability to capitalise on a diversity of global opportunities.”
For further information
| TyraTech Inc. Alan Reade, Executive Chairman www.tyratech.com |
1 (321) 409 - 7720 |
| Nomura Code Securities | |
| Charles Walker/ Clare Terlouw | Tel: +44 (0) 20 7776 1200 |
| www.nomuracode.com | |
Media enquiries:
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| Heather Salmond | Tel: +44 (0) 20 7398 7700 |
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About TyraTech
TyraTech is pioneering a new class of highly effective, non-toxic, pesticides and anti-parasitic compounds to address global agriculture, horticulture, functional foods, healthcare and veterinary markets. Using a revolutionary chemoreceptor screening process, TyraTech has identified proprietary blends of natural oils that stimulate the reactions and biological behaviour of insects and parasites so that they can be effectively repelled or killed. TyraTech’s technology prevents the development of resistance and avoids the environmental concerns and human health risks of chemical solutions whilst still being at least, if not more, effective.
The Company’s products have been validated through strong partnerships with multinational conglomerates operating within a growing US$23 billion worldwide market that is being increasingly driven by environmental legislation and end-user demand.
TyraTech continues to develop new product applications based on safe, natural ingredients with a broad range of partners around the world.
For further information, see www.tyratech.com
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