MD&A: Milestones achieved 12 months ended Sept. 30, 202 Commercialization / Marketing Activities:
2020/21 season
The Company is seeing accelerated growth as it continues to commercialize its proprietary crop productivity tool as revenue increased by 47% in USD terms (which is how the company invoices its customers) for the 12 months ended September 30, 2021 compared to the same period in the previous fiscal year (see table in Results of Operations). This represents growth and progress made in the Southeast berry market, first time revenue in Michigan, New Jersey and the Pacific Northwest, and first trials secured in California. The Company now has over 40 customers across the US who have used its solution commercially and has begun sales of its new dispenser system for honeybees.
BVT secured 24 grower deals for the 2021 blueberry growing season in Georgia and the Carolinas, the Company’s second season selling commercially following EPA approval in August 2019, and its largest market currently. This includes a 100% customer retention rate, with all 11 growers from the last growing season committing to using BVT again in the next growing season, plus thirteen new grower customers secured.
In 2021, BVT expanded its sales efforts across the US. The Company hired new sales representatives to service the Pacific Northwest and California regions. BVT secured its first grower trials in berry crops and almonds in California, where the Company received regulatory approval and its commercial license to sell in January on its proprietary Vectorite with CR-7 (Clonostachys rosea CR-7) (CR-7) biological fungicide. Eight commercial-scale grower trials were being conducted in berries, including with two of the world’s largest berry companies and their growers on blueberries, caneberries (blackberries and raspberries) and strawberries in the three main growing regions in the state for 7 berries, which are among the most productive and diverse agricultural growing areas in the world.
BVT also conducted trials with almond growers and key crop advisors in the main almond growing region in the state, the Central Valley.
Market expansions:
Mexico
The Company completed three official registration trials of the Company’s proprietary Clonostachys rosea CR7 (CR-7) biological fungicide on commercial strawberry and tomato crops in Mexico. BVT worked with a Mexican government approved researcher to conduct the biological efficacy trials which are a requirement for the registration process in Mexico. Results confirmed the efficacy of CR-7 in controlling key diseases on the crops as expected. The Company has submitted the efficacy trials for review by the Mexican agriculture authority and is preparing the remaining registration dossier for full submission to the Mexican health authority.
In anticipation of the commercial launch in Mexico, the Company has started market development activities of its proprietary bee vectoring system with delivery of Vectorite™ with CR-7 by both bumble bees and honeybees. It has completed early trials with two major Mexican berry growers on blueberries and blackberries. The growers, who farm in multiple states across Mexico, saw positive results. Further trials are being planned for the next growing season. In addition, the company has built partnerships with two major bumble bee companies serving the Mexican market and some large commercial honeybee companies who provide pollination services to growers.
Switzerland
The Company announced the opening of its new European office and R&D center in Switzerland’s Agri & Co Innovation Center, where the Company joins other innovative organizations in the country’s flourishing ag-tech community. The new location is designed to help BVT continue its innovation in biological crop protection delivery systems. It includes a fully equipped laboratory, growth chambers, greenhouse space for trialing (which started in spring 2020), and 95 hectares of land leased to a local grower who will host trials in his fields, as well as office space.
In addition, BVT has received the full support of Agri & Co staff and the Swiss canton of Fribourg’s state government, access to experts in various fields, as well as facilitated R&D collaborations with other ag-tech innovators. The Company has submitted for regulatory approval in Switzerland in 2018 and its dossier is under review by the Swiss authorities. Increasing restrictions on use of chemicals in Europe positions BVT favourably in this significant market. Industry partners, as well as farmers, need crop disease management alternatives that appeal to the environment conscious consumer. BVT is in active discussions with potential partners and is working on multiple testing and go-to-market agreements.
Canada
The company has commenced the few additional studies that will allow BVT to apply for Canadian registration (through the Pest Management Regulatory Agency, or PMRA). The Company is working with its regulatory consultant to organize the process for submission. It should be noted that for the bulk of studies required by the PMRA, the Company can use the studies that were submitted to the US EPA that resulted in approval in the USA.
Peru
The company has announced it is expanding into Peru, extending its presence into a major global blueberry market. The Company will also pursue other crops including avocados. BVT has begun the development work needed to enter Peru, including trial and regulatory requirements.