Plant Impact: A trail-blazer with heavyweight backing

Soaring food prices have brought the issue of food supply and production sharply into focus.

The world’s population has just hit seven billion and is predicted to reach nine billion by 2050 with the question of how all of these additional people are going to be fed becoming ever more pressing.

Preston-based Plant Impact (LON:PIM) is one company aiming to solve some of these potential problems with a range of environmentally friendly products that boost crop yields through improved nutrition and protection from pests and the elements.

While the group is still in the early stages of its development, it has already attracted heavyweight backing. 

In May, Japanese crop protection firm Arysta Life Science, which has deals with Plant Impact across a number of countries, took a 9.1 per cent stake in the firm, paying 45p per share or a 76 per cent premium to the market price at the time.

Plant’s new chief executive, John Brubaker, is also a veteran of Arysta, having worked for the firm since 2005 as global head of business development responsible for acquisitions.

He highlighted the platform of high-potential crop enhancement and anti-stress technologies as key drivers for Plant when he took over in August. 

Plant Impact’s leading crop nutrition product is InCa, a calcium delivery system that enables plants to absorb and retain calcium in tissues where it is most needed.

This is especially important in parts of the plant that have insufficient calcium levels under normal growth conditions. 

Boosting calcium leads to stronger cell walls and a healthier plant. This in turn helps to reduce the ingress of disease and that means healthier, higher-yielding crops. 

Potato growers in the Netherlands have seen double digit percentage yield increases and marketable quality benefits by using InCa, the firm says.

PiNT – a nitrogen product that is eco-friendly and improves plant growth – is another key plank in the crop nutrition division and can be combined with either calcium or potassium to boost the quality of produce.  

PiNT has been included in large scale soya trials with Syngenta in Brazil.

InCa and PiNT are targeting markets worth US$500 million and US$750 million, supported by other products such as Cocoa Stress Tolerance, which enables cocoa plants to withstand disease attack by increasing nutrient levels and plant health.

On the protection side, key product BugOil is awaiting UK and US approval. 

BugOil is a natural insecticide that combats sap-sucking insects with no detrimental effect on higher organisms and with no harmful residues. 

Plant Impact says it can be sprayed onto crops the day before they are harvested and shipped out.

Approval in the UK is especially important as it is required for overseas registrations.  

The group says it remains in close contact with the regulatory authorities and is providing the additional data demanded on BugOil, but added the majority of its focus this year would be on the crop nutrient side. 

Arysta injected £2.1 million into Plant Impact through the share subscription in May, of which £1 million was earmarked for development work on its turf and ornamental market in the US and the horticultural market in Brazil. 

Gardens, golf courses and outfield turf management represent major potential markets for PiNT, which helps turf grass retain nitrogen for longer.

Group revenues last year to March rose by 26 per cent to £1.78 million, though this was below expectations due to the delays for BugOil, which meant an expected milestone payment did not come through. 

On a like-for-like basis, crop nutrient revenues rose by 96 per cent with strong growth in the Netherlands and UK due to good demand for InCa.