Marrone Bio Innovations Inc (NASDAQ:MBII) shares jumped Friday after the company announced an exclusive commercial agreement with multinational agribusiness UPL to distribute its REGALIA MAXX Fungicide in South Africa.
South Africa is a major producer of wine and table grapes, with more than 120,000 hectares in production. Marrone’s REGALIA MAXX stimulates plants’ ability to fight diseases and has been used in North America to manage botrytis and other grape diseases.
“We know growers around the world are looking for more environmentally-friendly and effective products,” Marrone Chief Commercial Officer Kevin Hammill said in a statement. “Developing a strategic partnership with UPL, an organization that shares a common vision for the value biologicals provide growers, will allow MBI to capitalize on our product portfolio and expand our global footprint.”
READ: Marrone Bio Innovations receives first approval for REGALIA MAXX for cannabis and hemp in Canada
South Africa is one of the largest crop protection markets in Africa, valued at roughly $300 million. Danie Marais, UPL’s head of marketing for Africa, the Middle East, Australia and New Zealand, believes Marrone’s product can make a difference for farmers.
“UPL is excited to partner with MBI and provide South African farmers with MBI’s leading biological solution, REGALIA MAXX,” Marais said. “Access to this product will enable our farmers to add value to their export crops by lowering chemical residues and providing consumers with quality produce.
“The introduction of REGALIA MAXX to UPL’s bio-solutions product range is an excellent starting point, in what we anticipate to be a long, mutually beneficial and rewarding relationship between UPL and MBI.”
Marrone Bio has also submitted registration for its bioinsecticide GRANDEVO in the country.
The Davis, California-based company’s products are made from naturally occurring substances such as microbes, bacteria, plant extracts, fatty acids or pheromones.
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