August 14, 1998
Background Detail
Technico Pty Ltd. is an Agri-biotechnology
company based in the Southern Highlands of New
South Wales, specialising in the production of seed potatoes. Its shareholders represent
venture capitalists, horticultural technology and potato growers.
Potatoes are generally unable to reliably produce a "true to type" botanical
seed and the industry normally sources its seed potato requirements through a vegetative
propagation program. The field production program can take up to 5 years to produce high
volumes of affordable certified seed. In tropical climates the quality of seed production
is adversely affected through disease and climatic challenges which make a multiple
generation, seed potato production program virtually impossible.
Technico's TECHNITUBER® technology over comes the time barriers and disease challenges
faced by traditional seed production schemes by reducing by at least half the number of
field multiplications required to produce commercial volumes of affordable, early
generation seed potatoes. The technology has been taken up by various food processing
organisations to enable them to develop a reliable supply of early generation seed
potatoes.
The technology has recently won the Australian Technology Award for Excellence in the
Development of Agri-biotechnology. The technology is also selected for inclusion in the
Australian Technology Showcase.
In 1985 the company commenced R&D on the TECHNITUBER® seed production technology
which is a dramatically new method of producing miniature seed potato propagules in
significant volumes for a low unit cost. Initial commercialisation of the technology
occurred in 1995.
Technico has carried out demonstration and commercial plantings of TECHNITUBER® seed in
every Australian State and the Northern Territory. The company has also carried out
demonstration and varietal trial plantings in Indonesia, Thailand, Sri Lanka and
Venezuela. Through these plantings Technico has proven the TECHNITUBER® seed technology
has the ability to reduce by at least half the current number of field multiplications
required to produce economic volumes of seed potatoes.
In addition to supplying TECHNITUBER® seed to Frito Lay for local and export use,
Technico's major business activity is the production of early generation seed potato
material through the utilisation of TECHNITUBER® seed and other appropriate technology.
Technico has established field production operations to supply various commercial
processors with early generation certified seed. Technico provides growers with the
initial TECHNITUBER® seed stock - complete with agronomy advisers and a professional
vacuum seeding service. Then after the growing process, usually over two field
multiplications, the company then sells the seed to contracted buyers who grow the actual
commercial processing or fresh market potatoes.
The agronomy support program has developed additional technologies, which enable the
TECHNITUBER® seeds to be graded to a uniform size to suit vacuum seed planters, and to be
further pre-conditioned to enable even field emergence. The combination of these technologies provides Technico with a valuable
combination of
technologies and resources.
Operations
The company has embarked on a global commercialisation program with projects being
developed in the USA and Europe with a particular emphasis on Asia.
Internationally, we have licensed Frito Lay to utilise our technology for the production
of TECHNITUBER® seed for crisping varieties of potatoes on a worldwide basis. The US food
maker has constructed two high volume TECHNITUBER® production facilities - one in the USA
and one in Mexico.
Technico has established its Australian research and production facilities at Paddy's
River near Goulbourn, NSW and Technico's first off-shore TECHNITUBER® seed production
facility is currently under construction in China.
The main facility at Paddy's River was constructed in 1995 at an initial cost of
A$1.75mllion. Additional facilities have been constructed over the past 3 years to take
our production capacity to approximately 4,400,000 TECHNITUBER® seeds which are supplied
to our own operations in Australian as well as exported to Asia.
Technico currently employs 12 staff at the Paddy's River facility - an increase of 5 in
the past 12 months, and 10 management and agronomy staff. Technico has also recently
established agronomy offices in South Australia and Western Australia. An additional 5 to
6 staff will be required over the next 12 months.
The TECHNITUBER® seed technology has the ability to significantly affect world potato
production particularly in areas of most human need, such as India and China.
China, with its substantial population is the second largest producer of potatoes in the
world (second only to Poland-Russia). Worldwide, potatoes one of the four food staples,
has an annual value in excess of US$100 billion. Processed potato products such as fries,
crisps and starch are widely used as fast food and snack foods across the world.
Demand for clean early generation seed potatoes is increasing dramatically in the region
as the demand for potato and processed potato products increases. Thus the china facility
and the planned production facility in India illustrate Technico's drive to meet this
growing demand
Technico's is also currently constructing its first off shore TECHNITUBER® seed
production facility in China. The new company - Technico Horticultural Kunming Ltd has
been established as a 100% Technico owned operation in Kunming, Yunan Province. Hunan is a
rapidly developing regional centre, is situated approximately 1,000 km west of Shanghai
and has a population of approximately 25 million people.
Technico's first stage investment in China will be approximately $7.5 million to construct
an
initial TECHNITUBER® seed production facility with a capacity of approximately 8 million
TECHNITUBER® seeds.
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