LONDON (ShareCast) - (Sharecast News) - Biopesticides company Eden Research announced on Wednesday that its foliar biofungicide product 'Mevalone', branded '3LOGY' in Italy and 'Araw' in Spain, has received certification for use in organic farming.
The AIM-traded firm said the certification, received by its partner Sipcam Oxon, followed the initial approval of its three EU-registered active ingredients for use in organic farming earlier in the year.

It said Sipcam had been selling 3LOGY and Araw for the primary use of treating and preventing botrytis, which is a widespread fungal disease that causes grey mould on many fruits and vegetables, leading to the rapid loss of commercially-valuable crops.

Following certification, the product can now also be used in organic vineyards, creating a "significant opportunity" for Eden to enter a new market.

The company noted that Spain and Italy were in the top three EU countries with the largest organic farming areas, with Spain having the overall largest area of permanent crops.

More specifically, Spain and Italy each had more than 100,000 hectares of organic grapes harvested across the country, followed by France with over 78,000 hectares.

It said it expected an equivalent inclusion would soon be received by Eden's partner Sumi Agro in France.

As consumer sentiment for sustainable and organic products had grown in recent years, Eden said the European viniculture industry had increased its attention and commitment to sustainability and protecting the environment.

Europe would account for 78% of the global organic wine market by 2022, and globally the market was projected to grow at a 9.2% compounded annual growth rate between 2017 and 2022.

In the UK, consumers were reportedly willing to pay 38% more for organic wine, and there was a "broad audience" of environmentally-conscious consumers who now opted for a grape with a greener footprint.

"We are pleased to begin selling our products to organic growers in Italy and Spain, a commercial development that will contribute to the enlargement of our addressable market in Europe and to the ongoing growth of sales in these important countries," said chief executive officer Sean Smith.

"Sustainable farming practices are clearly a priority for wine producers globally as the organic wine market has increased rapidly over recent years."

Smith said Italy and Spain were "at the centre" of the movement, with organic wine production forecast to increase by 70% in Spain between 2018-2023 and Italy's organic vineyards amount for 15.5% of its total vineyards - apparently the highest amount in the world.

"Our products give organic growers an effective and sustainable solution comparable to conventional chemistry but in a way that is aligned with the fundamental elements of organic production."

At 1552 BST, shares in Eden Research were up 4% at 7.8p.

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