Re: Industry need for multiple sources
posted on
Dec 24, 2007 07:13AM
Dave, I have no direct knowledge, but suspect it is a factor. There has been some discussion of a second US plant being in the long term business plan. There are also ongoing discussions with interested parties regarding international production facilities as other markets (specifically, China, India, and Eastern Europe) open up. I realize that is not what you were referring to, but with just one manufacturing facility, it is recognized that the risk factor is even higher than if there were multiple production sites. Currently, there seems to be no competition. There is a history of inferior Beta glucan products that have been marketed and tested. Most of them did not perform well because of low bioactivity and purity. The reputation of those inferior products must be overcome by BIOAGRA's marketing team. At this point, competition could conceivably HELP stimulate sales. We would, however, have a clear advantage of being first to enter the market with a production scale capable of meeting market demands. As regards Richard's comment, a significant amount of the product being produced, or in inventory, is going into testing. As more corn is earmarked for bio-fuel production and the cost of grain correspondingly continues to rise, the need to improve feed conversion will help drive sales. Legislation has been introduced in both the House of Representatives (HR-962) and the Senate (S-549) to eliminate the use of sub-therapeutic antibiotics as growth stimulants in food animals. As those bills gather momentum and gain additional endorsement, I anticipate interest will grow in Agrastim, probiotics, herbal products and other alternatives. I believe we are at the right place, at the right time. We'll see. Merry Christmas, -zties |