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SC Shrimp Processing & Biotechnologies, Inc. recognizes
that being a chitosan commodity seller has limits; therefore,
SC Shrimp has begun to examine potential high-profit applications
that will allow us to be not only a manufacturer of chitosan,
but a manufacturer and seller of chitosan-based end-use
products as well.
One particular end-user application that shows promise
is a formulation of chitosan which when used as a coating
on the leaves of crops will enhance crop yield by 20% or
more. The technology is patented by another company, but
we have reason to believe that we can negotiate a favorable
license of the patent from the owner. Our research to date
has shown that the coating is not in use and there are no
competing products with the same function. Wet-Sol, produced
by Schaeffer Manufacturing Company, a manufacturer of oils,
greases, and other lubricants, enhances crop yield by strengthening
the root system of the crop. Because the chitosan coating
works through the leaves, Wet-Sol could be considered a
companion product rather than a competitor.
The market size for the chitosan plant coating has the
potential to be considerable. Based on information obtained
from reports published by the USDA's National Agriculture
Statistics Service, the acreage planted in 2003 for the
crops listed in the patent is about 5.5 million acres. However,
that does not include corn planted for use as grain, which
was estimated at 78.7 million acres in 2003.
The advantage to developing the chitosan coating as the
company’s first chitosan-based product is the relative
simplicity in its production and application. The process
would be largely automatic, reducing labor costs, and requires
only a few additional pieces of equipment. Packaging a concentrated
form of the coating can be done in 55-gallon drums, or stored
in tanks for transport by tanker truck to those farms with
thousands of acres to treat. At the farm site, the concentrate
is diluted with water, and then pumped through the existing
irrigation system, eliminating the need for the farmer to
purchase additional equipment.
The coating has other advantages as well. It is biodegradable,
non-toxic, and environmentally friendly, which are very
important qualities as various industries move away from
synthetic chemicals and materials. Also, according to scientific
literature, chitosan has antifungal properties and can stimulate
a plant’s defense against insects, thereby protecting
the plant in addition to enhancing its production.
It is SC Shrimp Processing & Biotechnologies, Inc.’s
goal to be a leader in the manufacture of chitosan and chitosan-based
products through an emphasis on research & development
in manufacturing techniques and new products.
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