Eden Research shares rise on EU product approval

Biopesticide and microencapsulation technology developer Eden Research announced on Tuesday that its three EU-registered active ingredients - geraniol, eugenol and thymol - had all been approved for use in organic farming, following their inclusion in the EU's Organic Production Regulation.

The AIM-traded firm said organic farming covered 12.6 million hectares of agricultural land in EU member states in 2017, equivalent to 7% of the total utilised agricultural area.

Between 2012 and 2017, land assigned for organic growing within those member states increased by 25%.

In Italy and Spain, the conversion rates from conventional to organic agriculture grew by over 60%, with the share of organic production there totalling 15.2% and 13.9%, respectively.

Under the approval, Eden said its products would provide organic growers with high levels of efficacy “often associated” with conventional chemical pesticides, thus providing the company's growers with another alternative and sustainable solution.

“We are very excited by this approval for EU organic farming as this opens up a new commercial opportunity for Eden which is relevant to all of the products that we have developed and continue to develop using our three EU registered active ingredients,” said chief executive officer Sean Smith.

“It is clear that there is growing demand from consumers within the EU for organic products and this is matched by rapidly growing production.

“Consequently, areas assigned by EU Member States for organic agriculture have grown by 70% in the last 10 years, with organic retail sales reaching €34bn in 2017.”

At 1427 GMT, shares in Eden Research were up 12.44% at 10.12p.