Plandai Biotechnology Inc. (PLPL) Exploring Opportunities in the U.S. Poultry Market

Plandai Biotechnology Inc. (OTC Markets: PLPL) (the “Company” or “Plandai”), a producer of nutraceutical and highly phyto-available extracts, discusses the benefit of its SORBEO™ proprietary PREMIX as an affordable and cost effective formulation for the poultry industry in the U.S.

The United States has the largest broiler chicken industry in the world with about 16.5 percent of production exported to other countries in 2017. In 2017, almost 9 billion broiler chickens, weighing over 55 billion pounds live weight, were produced. More than 41 billion pounds of chicken product was marketed, measured on a ready-to-cook basis. Americans consume more chicken than anyone else in the world – more than 92 pounds per capita in 2017 – the number one protein consumed in the United States.

In the U.S., five broiler companies – Tyson Foods Inc., Pilgrim’s Pride Corp., Sanderson Farms Inc., Perdue Farms Inc. and Koch Foods Inc. – produced about 60 percent of the U.S.’ ready-to-cook (RTC) chicken last year, according to WATT Global Media’s Top Poultry Companies database. Between them, they produced about 493.21 million pounds weekly and earned a collective $28.1 billion in revenue.  Approximately 25,000 family farmers have production contracts with these five companies, accounting for over 95 percent of their broiler chicken production, with the remaining 5 percent raised on company-owned farms.

Tyson Foods is one of the leading supporters of American agriculture, relying heavily on successful private farmers to support their chicken business. According to public records, Tyson pays more than $800 million annually to more than 4,000 independent poultry farmers contracted with them. In 2017, global chicken sales of Tyson Foods amounted to approximately $11.41 billion.

In spite of substantial qualitative and quantitative advancements in different sectors of the poultry industry, the industry will continue to face numerous challenges on a global basis. Feed cost is one of the most serious challenges for the industry. There are issues surrounding inclusion of antibiotics in poultry feed and also the use of alternatives to antibiotic growth promoters. Maintaining peak levels of poultry health is vital for farmers and producers wishing to give their flocks a fighting chance.

A healthy chicken is one that has regular access to optimal nutrient intake. While many drugs are available for improving chicken health, supplements and additives are highly effective at boosting the immune system and supporting healthy functions. Many common health problems can be mitigated or even avoided by improving diets and relieving elements that could contribute to poultry stress. Improving chicken health by using feed supplements and additives that work to optimize the consumption of nutrients.

Phytofare® is currently being investigated as a beneficial feed additive in poultry diets.

Traditionally, commercialization of green tea catechins as a food supplement to the poultry industry has been restricted due to very poor absorption and metabolization in the intestine due to the alkaline pH environment. In all prior studies and investigations, the catechin concentrations delivered to the target tissues in chickens were found to be too low to perform any effective antioxidant defense.

Bioavailability of catechins is very low and erratic due to limited absorption, elevated presistemic metabolism and rapid elimination. Once ingested, catechins reach the small intestine intact and then are metabolized to the methylated, glucuronidated or sulfated metabolites. Catechin metabolites that reach the colon are usually further metabolized by local enzymes and then absorbed.

Plandai proprietary sciences have overcome the bioavailability challenges with botanical extracts through clinical validation in both humans and chicken studies that have addressed the known pharmacokinetics barriers of isomeric form and identification; solubility, dosage, permeability, metabolism, excretion, target uptake and disposition.

Extrapolating the data from previous commercial studies using Sorbeo™ Phytogenic premix and projecting it to what the potential effect could be for a broiler farm indicates that over a period of a year the profit per chick space can be increased by up to 18%. In conclusion, this equates to increased profitability for the producer and a more desirable source of protein for the consumer. A true win-win for the poultry industry.