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Commercial Success of ECLAIR Programme
AGRE-0022: Development of enhanced quality liquid fertilisers based on naturally occuring seaweeds |
AGRE-0022: Development of enhanced quality liquid fertilisers based on naturally occuring seaweeds
Science Background
There is a growing demand for alternatives to chemical fertilizers. Seaweed has traditionally been used as a natural fertilizer and can reduce the run-off of nitrate and phosphate from soil associated with soluble fertilizer. The use of seaweed extracts as foliar sprays has been shown to be beneficial for a wide range of crops. Such extracts contain trace elements and compounds that stimulate plant growth, increasing yield and quality, as well as giving better seed germination and root development. At the time this project was initiated, several seaweed extracts were being marketed, but these gave varying results that did not always support the claims of their manufacturers.
Objectives
Hence, this project set out to establish the potential value of seaweed-based products in nutrient poor soils through the development of quality-controlled products. These would then be tested on a range of crops under various conditions by independent experienced growers. Heriot-Watt University’s Institute of Offshore Engineering (IOE) and the Agricultural University at Wageningen (WAU) entered into a contract, with Associate Contractors the government agricultural research station TEAGASC in Ireland and the Orkney Water Test Centre Ltd (OWTC), a Heriot-Watt University-owned company. OWTC Ltd, the participant with manufacturing capability, was responsible for product development, with IOE responsible for project management and both TEAGASC and WAU responsible for field trials. Further support, from Farm Future, was sub-contracted by IOE to coordinate organic grower trials in the UK.
Farm
Future coordinated organic grower trials in the UK
Significant changes and results since end of ECLAIR
The plan was to commercially develop the product through OWTC Ltd. The final base product was not the result of novel technology, but based on a systematic approach to develop a defined optimised product through the application of largely existing technologies, particularly applicable to rural SMEs. Hence, it was not possible to protect the intellectual property available to OWTC Ltd by the use of patents. A commercial agreement was established with a UK company already dealing with the marketing/sales of seaweed and related products. Following an introduction through Highlands & Islands Enterprise, an agreement was established with Neptune Europa Ltd (Lanark, UK) and through them links with distributors to commercial glasshouse growers and the turf industry. A series of commercial grower trials and preliminary marketing efforts were initiated, with good feedback (1995-1996), encouraging full commercialization.
However, several major problems were encountered. Heriot-Watt University (Edinburgh) made major policy changes in 1996, leading to the assimilation of the Institute of Offshore Engineering (IOE), whose main activities were oil-related, into a traditional academic department – Civil and Offshore Engineering. The University also merged OWTC Ltd with a sister company Environment & Resource Technology (ERT) Ltd, and the controlling shareholding (90%) was acquired by the Norwegian engineering contractor Kvaerner. Kvaerner wound down non-oil industry related activities, particularly at the Test Centre in Orkney. This stopped any further work on seaweed products. Following these changes, the project coordinator, Prof. Johnston, took early retirement from Heriot-Watt University, then subsequently resigned his directorship with ERT Ltd. The early commercial trials through Neptune, as already indicated, were very encouraging. Unfortunately, Neptune ceased trading. Nevertheless, many of the contacts made within the horticultural market remain enthusiastic and have indicated that they would support new moves to commercialize the product.
Results
At end of this ECLAIR project
Before the project had been completed OWTC Ltd invested in significant additional work aimed at widening the potential market for a product range based on the foreground information from the project. It was quickly learned in initial commercial trials that conventional agriculture, although (theoretically) a potentially large market, was going to be slow to penetrate. Although the organic market was very interested in the product, and pleased with trials through Farm Future, its buying power was relatively low and the market diffuse.
Current position
Following the ECLAIR trials OWTC concentrated on developing products for the horticultural market. Before stopping work on seaweeds OWTC undertook additional development work with internal funding, significantly altering the product from its formulation for the primary agricultural target of the original project. Initial test marketing has sold over 20,000 litres. The coordinator (through his consultancy Johnston Environmental Ltd, UK) has continued assessment of the horticultural market with respect to the impact of changing public attitudes towards chemical use in food production. Niche markets have been identified for products based on seaweed and related materials and, in collaboration with suppliers, a range of new products have been developed and tested under their labels.
Particular attention has focused on optimisation of selected growth promoting properties, increase in shelf-life, compatibility with other products, and definition of support services required in different market sectors. Such key findings will be protected as trade secrets, rather than through patents.
Impact
Commercial
During 1998 there have been positive moves, particularly in the commercial and retail horticultural markets, reflecting increased demand for organic food. Although there have been problems in commercializing these seaweed products, the time is now more appropriate for marketing a product derived from a natural, fresh, sustainable crop; even to ‘traditional agriculture’.
The Orkney Seaweed Company Ltd (Orkney, UK) has been established and significant outside private investment and enterprise funding is anticipated as this type of activity is ideal for rural SME development. The company is also establishing a mainland-based distribution unit and is setting up direct contractual arrangements with specialist horticultural agents/advisers. Manufacture will move to the northern Orkney isle of Westray, to ensure supply of freshly harvested weed. It is anticipated that a new product range will be launch in the autumn of 1999, at key horticultural trade shows in the UK. Other partners in Ireland and the Netherlands were not interested in commercialization of the product since their role was as crop trial partners.
Associated
The use of natural fertilizers has environmental benefits throughout Europe by reducing use of chemicals.
Contacts
Author
Farm Future
Johnston Environmental Lt
© Copyright 2006 Policy Statements
Updated
by CPL Press:
03/07/2007
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