Message #20 From:
NewsBot Date: March 2, 2008 07:47:42 AM
Origin Agritech Announces World's First Genetically Modified Phytase Corn
Phytase Corn developed by Leading Biotech Scientists in China
GM Phytase Corn Saves Feed Costs and Improves the Environment
Origin Agritech Limited (NASDAQ GS: SEED) (“Origin”),
a leading technology-focused supplier of crop seeds and agri-biotech
research in China, today announced it has licensed a new genetically
modified corn to officially introduce the next generation of corn
product into China. Origin’s phytase corn is
expected to be one of the first transgenic corn approved and sold
commercially into the domestic marketplace. Transgenic phytase corn is
expected to be commercially launched in 2009.
Phytase is currently used as an additive in animal feed to breakdown
phytic acid in corn, which holds 60% of the phosphorus in corn. Phytase
increases phosphorus absorption in animals by 60%. Phosphorus is an
essential element for the growth and development of all animals, and
plays key roles in skeletal structure and in vital metabolic pathways.
Phytase, as an additive for animal feed, is mandatory in Europe,
Southeast Asia, South Korea, Japan, Taiwan for environmental purposes.
The worldwide phytase potential market size is US$500 million, including
US$200 million for China alone, according to the China Feed Industry
Study. The corn seed market in China is estimated at US$1 billion. While
currently microbiology is universally used to produce phytase, Origin
plans to be the world’s first to introduce
transgenic phytase corn.
Phytase transgenic corn, developed by and licensed from the Chinese
Academy of Agricultural Science (CAAS) after 7 years of study, will
allow animal feed producers the ability to eliminate purchasing phytase
and corn separately. It will eliminate the need for mixing the two
ingredients together, saving time, machinery, and labor for the animal
feed producers.
“Phytic acid, the main form of phosphorous in
plant-origin animal feeds, is poorly available to monogastric animals as
they lack the enzyme capable of hydrolyzing phytic acid to release
phosphate. Genetic modification is the world class standard and that is
where China is moving,” Dr. Yun-Liu Fan, a
distinguished scientist of CAAS and member of the Chinese Academy of
Engineering commented. She continued, “our
genetically modified corn will reduce the need for such phosphate
supplements and reduce feed costs. We partnered with Origin because of
their strong execution ability, research and production capability, and
sales network to benefit the Chinese animal nutrition market.”
Origin’s GMO phytase-producing corn is
expected to reduce the need for inorganic phosphate supplements as
animals will directly absorb more phosphate from their feed, reducing
animal feed’s high cost. Inorganic phosphates
may be contaminated with fluorin and heavy metal residues created in the
manufacturing process. These fluorin and heavy metal residues in the
feedstuff are toxic to animals, and dangerous to humans.
In China, annual fecal phosphorus from animals totals 2.5 million tons
which has led to serious environmental problem. The usage of this
product should also reduce the phosphorus pollution caused by animal
waste and excess fertilizer use. Phytic acid in animal manure is a major
source of phosphate pollution. Phytase decreases the excretion of
organic phosphorus in feces by 40%, thus largely reducing phosphate
pollution.
Phytase transgenic corn has passed the Ministry of Agriculture
evaluation for safety in the transgenic "intermediate-test" and
"environmental-release" stages and is currently in the final stage of
evaluation for "production test" safety.
The Chinese animal feed market is large and increasing to fill the
growing demand for meat products by the large populations in China. On
average, people in more developed countries consume an average of 75
kilograms (kg) of meat annually with recent meat consumption in China at
only 23kg per person annually. However, China is the world’s
leading pork producer with over 50% of the world's production and
consumption. Over 530 million hogs are raised annually in China, as pork
is the traditional meat of the Chinese people and represents
approximately 65% of all meats consumed in the country. According to RTT
news, official data revealed that prices of food items soared in early
January 2008, and pork prices climbed 43% on an annual basis in January
2008. China’s rising middle class is
demanding more meat consumption, as it is estimated that for every 1%
increase in take-home pay, the average Chinese family will increase its
meat consumption by 2%.
Dr. Gengchen Han, Origin’s Chairman and
Co-Chief Executive Officer, said, “In the
past few years, our focus on key biotechnology has accelerated
significantly. With our 40 in-house R&D professionals mainly engaged in
the research of genetic transformation, molecular biomarker testing and
genetic mapping activities, and our external alliances with top
agriculture biotech research institutions in China, Origin has
established several genetic engineering plant technology platforms which
include herbicide tolerance, insect resistance, nitrogen efficiency, and
drought stress tolerance in corn inbred lines. We look forward to the
commercial roll-out of Phytase corn seeds.”
About Origin
Founded in 1997 and headquartered in Beijing, Origin Agritech Limited
(Nasdaq: SEED) is one of China’s leading,
vertically-integrated agricultural technology company specializing in
hybrid seed research, development and production to supply the growing
populations of China and Southeast Asia. Origin develops, grows,
processes, and markets hybrid seeds to farmers throughout China and
parts of Southeast Asia via a network of approximately 3,200
distributors. The hybrid seed industry is estimated at US$2 billion and
that is expected to double by 2010. The animal nutrition market is
estimated at US$1.6 billion. The Company currently operates facilities
in 30 of China’s 32 provinces as well as
Beijing. Since Origin launched its first entirely internally developed
seed in 2003, the Company has developed and commercialized a proprietary
seed portfolio of twelve corn hybrids, twelve rice hybrids and two
canola hybrids. For further information, please log on www.originagritech.com.
Forward Looking Statements
This release contains forward-looking statements. All forward-looking
statements included in this release are based on information available
to us on the date hereof. These statements involve known and unknown
risks, uncertainties and other factors, which may cause our actual
results to differ materially from those implied by the forward-looking
statements. In some cases, you can identify forward-looking statements
by terminology such as "may," "will," "should," "could," "expects,"
"plans," "anticipates," "believes," "estimates," "predicts,"
"potential," "targets," "goals," "projects," "continue," or variations
of such words, similar expressions, or the negative of these terms or
other comparable terminology. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance or
achievements. Therefore, actual results may differ materially and
adversely from those expressed in any forward-looking statements.
Neither we nor any other person can assume responsibility for the
accuracy and completeness of forward-looking statements. Important
factors that may cause actual results to differ from expectations
include, but are not limited to, those risk factors discussed in
Origin's filings with the SEC including its transition report on Form
20-F filed with the SEC on February 15, 2007. We undertake no obligation
to revise or update publicly any forward-looking statements for any
reason.
