EnCoate is a joint venture between AgResearch and Ballance Agri-Nutrients. Its products are based on biopolymer technology developed within AgResearch - the first product to be launched (in 2004) was Bioshield™, a bacterium-based grass grub insecticide in which the biopolymer extends shelf life at ambient temperatures from four hours to 12 months. Two more products are currently under development. One is a bioherbicide, the other is a coating for fruits such as lemons, apples and bananas. Other bio-based health care products are also targeted.

This highlights that EnCoate^®'s biopolymers have broad applications in a number of food and agribusiness areas. AgResearch licensed its biopolymer technology to EnCoate at an early stage and continues to work with EnCoate to develop the technology for further industries and applications. EnCoate, in turn, licenses its value-added IP to companies with the resources to commercialise the resulting products. That is, at each stage, IP is licensed to the entity best positioned to maximise its market potential. Licence deals to date are small but represent 'runs on the board'.

EnCoate aims to enter the substantially larger markets of probiotics (a deal is expected to be in place by late 2006), food coatings (2007) and seeds (2007). At this point, the technology will have been proven for all key market areas currently envisaged. EnCoate will not require a permanent R&D partner but will continue to contract them on a project-by-project basis. EnCoate is an example of AgResearch's strategy of working with industry partners to produce products that help New Zealand farmers while leveraging the knowledge gained for further commercial opportunities around the globe.