FURTHER UPDATE  25/05/2017

This article from 2015, "The Pesticide Problem" tells us that the volume market for pesticides for the French grape industry was 60,000 tonnes per annum. I am assuming therefore, that this is 60 million litres per annum. I am happy to be clarified on this.

France is Europe's greatest user of pesticides by volume.


Sumi-Agro France has specifically contracted with Eden Research(EDEN.L) to resolve this problem.

Last year, Sipcam in their first use of the award winning 3AEY achieved 20% market share in some geographies, as RNS'd by Eden. So, in time, if Sumi-Agro could reach up to 20% market share in France, this would imply product sales of 12 million litres.

Back to last year's AGM example of a changed pricing model., Slide 11 which is based on 1 million litres sold. In this example, Eden could receive net income of 12 x 1 x 2.5 million euros, namely 30 million euros, some £26 million per annum.

Even if the litres conversion is slightly out and  Eden doesn't achieve 20% market share and the exchange rate fluctuates a bit, it is clear to see that potential future income generated from France alone is substantial. Add in Italy and Spain and 3AEY is a very healthy revenue and profit line in Eden's accounts. 

On this basis, the shares do look cheap with still a market capitalisation of around £20 million and this takes nothing else into account in Eden's current commercial and development portfolio.

END OF UPDATE

UPDATE 10/05/2017

The British innovation that is rejuvenating the wine industry

http://www.bbc.co.uk/programmes/b08p5l79

Eden on BBC Radio 4 today

UPDATE:

Further evidence that pesticides are not favoured by the EU.  It is early days, but clearly there is a move to reduce the chemical element within pesticides and in due course, one imagines, replace them with more natural solutions that are less harmful.

END OF UPDATE


It has been fascinating to see articles in the British press this week in regards to booming sales of organic wines and Aldi launching a new range of organic wines to complement this demand.

Pesticide free, the global pesticide market is soon to be worth $81 billion per annum.  That is an astronomical figure that affects…

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