Ghent, Belgium
28 February 2012

Devgen nv (Euronext Brussels: DEVG) today announces the successful conclusion of farmer trials in India of two new premium hybrid rice varieties. Sales of these new products start in the upcoming planting season beginning in May 2012.

During these trials, Devgen’s new hybrid rice varieties were grown in several hundred locations across key rice markets in India’s Eastern states. Over 125,000 farmers visited the sites as part of the pre-launch marketing campaign. The farmers who conducted the tests and those who visited the fields gave highly positive feedback on yield, grain quality and plant type. The market potential of these improved hybrid rice varieties is therefore substantially validated.

Furthermore, extensive seed production trials showed that these products have improved production efficiency over current hybrid seed products, hence an expected lower cost of goods and reduced production risk.

“These trials in real farmer field conditions are the final step in the multi-year product development process of a new rice hybrid”, stated Thierry Bogaert, CEO of Devgen. “We are confident that as their volumes ramp up these products have the potential to make significant top and bottom line contributions to our seed business. These new hybrid varieties are important products as we step up from our current product portfolio to our breakthrough next generation hybrid rice varieties that are expected to enter the market in 2014.”

Devgen’s new premium hybrid varieties are targeting the important medium maturity (126-135 days) market. This segment accounts for more than 30% of the 44 million hectares rice in India and represents a potential volume of between 100.000 and 125.000 tons of seed per year.

Rice is Asia’s most important food crop grown by millions of farmers on approximately 140 million hectares across the region, representing 90% of the worldwide rice acreage. India is the world’s largest rice producer, accounting for 20% of global rice production, but at present hybrid rice seeds account for less than 3% of the market due to the limitations of existing hybrid seeds. To capture this significant market opportunity, Devgen has employed its advanced breeding research platform since 2005 to develop improved hybrid rice seeds and next generation hybrid rice seeds that will help farmers meet the increasing need to grow more food on less land using less water, labour and agrochemicals.
 

Website: http://www.devgen.com

Published: February 28, 2012