Eden Research inks deal with Colombia distributor

15th Jun 2023 12:00

(Sharecast News) - Biopesticides specialist Eden Research announced the appointment of Anasac Colombia on Thursday, as the exclusive distributor of 'Mevalone' in Colombia.

The AIM-traded firm said the strategic partnership was made ahead of a regulatory application that would seek approval for the use of Mevalone on ornamental crops, specifically to prevent and treat outbreaks of botrytis cinerea.

It described botrytis infection as a common concern for plant growers and florists, as it affects various plant tissues including grown and cut flowers.

Typically, fungicides were used to combat Botrytis and prolong the lifespan and visual appeal of high-value flowers.

The severity of the disease, crop variety, and environmental conditions determine the level of chemical control required.

Given Colombia's warm and humid climate, fungicide usage was prevalent in flower production, especially for the export market.

Eden said Colombia held a significant position in the global cut flower market, ranking as the second-largest exporter of cut flowers worldwide in 2021.

With exports valued at $1.73bn, cut flowers represented a substantial portion of Colombia's overall export market.

The United States alone imported $1.35bn worth of Colombian cut flowers.

Additionally, research conducted by Mordor Intelligence suggested that the Latin American biopesticides market was projected to experience 13.8% growth between 2020 and 2025.

Anasac, a company with a strong presence in Mexico, Central and Latin America, and Asia, operates in 19 countries.

Having a significant market presence in Colombia, it currently generates annual sales of over $18m and was looking to substantially increase its market share.

The partnership with Eden Research would enable Anasac to offer Mevalone to ornamental plant growers and florists once regulatory approval was obtained.

Eden said the regulatory application for Mevalone's use on ornamental crops in Colombia was currently in progress, and on approval, ornamental plant growers and florists would be authorised to apply Mevalone during flower production and after harvest.

"We are looking forward to making our entrance into the Latin American market with Mevalone in Colombia," said chief executive officer Sean Smith.

"With Anasac as our chosen distribution partner in Colombia, we are confident the company's impressive network across the region will enable Eden to capitalise on the significant commercial opportunities that exist in this substantial and growing market."

Smith said the company expected the initial target application to be the "first of many to come" in Colombia, as it looked to expand the Mevalone label to other crops and disease targets.

"Our continued territorial push across mature and emerging markets underlines our commitment to serving the growing global demand for sustainable disease and pest control in horticulture."

At 1138 BST, shares in Eden Research were up 29.85% at 8.7p.

Reporting by Josh White for Sharecast.com.