In addition to extensive current applications, AgraTech is seeking to expand the reach of this all natural product. For a variety of functions, from military to medicinal, AgraTech research & collaboration is dedicated to chitosan, AgraTech’s specialty chemical and chitosan-based products. Learn more about AgraTech by exploring our:
For more details, phone: (877) 460-5510
The manufacturing subsidiary, KYTOSAN USA, LLC, will initially offer high-quality industrial-grade chitosan flakes, focusing on consistency in the properties of the chitosan. Continuous efforts will be made to produce higher grades of chitosan, particularly medical-grade chitosan. The flexible and high-margin chitosan manufacturing process (patent number: 8,318,913) developed for the project was designed to facilitate the addition of high-grade production lines. The Company is currently in discussions with numerous entities that have expressed serious interest in acquiring AgraTech’s domestically manufactured chitosan product.
KYTOSAN USA will market chitosan to industrial and other commercial users of chitosan, many of whom have already expressed keen interest through letters of intent to purchase considerable quantities of the domestically-produced chitosan from the subsidiary. The manufacturing subsidiary will also provide consistently high-grade chitosan to AgraTech subsidiaries and affiliates that produce chitosan-based products for the consumer, industrial, agricultural, and pharmaceutical markets. These ventures will provide substantial revenue for the parent company and will broaden the chitosan manufacturing subsidiary’s customer base.
AgraTech management intends to establish a second chitosan-manufacturing subsidiary to exploit technology related to agricultural crop enhancement. A liquid formulation of chitosan which, when used as a coating on the leaves of crops, will enhance crop yield by 20% or more. Biopolymer Technologies, AgraTech’s research and development subsidiary, will develop a process for efficiently producing the liquid crop-enhancer. The potential market for the chitosan plant coating could be considerable according to information obtained from reports published by the USDA's National Agriculture Statistics Service.
The Company, in choosing to develop the chitosan coating as a chitosan-based product recognizes the relative simplicity in its production and application. The process would be largely automatic, reducing labor costs. It requires minimal additional equipment to manufacture. Packaging a concentrated form of the coating can be done in 55-gallon drums. For larger farms, those with thousands of acres, the product can be stored in tanks for transportation to the farms in tanker trucks. At the farm site, the concentrate is diluted with water and then pumped through an existing irrigation system, eliminating the need for the farmer to purchase additional equipment.
The coating has other notable advantages. It is biodegradable, non-toxic, and environmentally friendly, key features as various industries move away from synthetic chemicals and materials. Chitosan has antifungal properties and will stimulate a plant’s defense against insects. A natural product that offers farmers both substantial yield enhancement and crop protection has extraordinary potential in the market place.
Additionally, AgraTech is working in collaboration with a research scientist who specializes in chitosan-based crop enhancement. He works with specific crops, focusing on fungal, bacterial, and viral plant infections that negatively impact crop yield or threaten human health. These natural remedies have the potential to significantly increase crop yields for commercial farmers without threatening the environment. The strategy of establishing a separate subsidiary will be used for each technology developed by Biopolymer Technologies that the Company decides to manufacture. Currently, two other technologies will be manufactured and sold by AgraTech subsidiaries: the hydrophobic glass coating and the resorbable dental surgical membrane. Both technologies are discussed under “Research and Development.”
Some AgraTech intellectual properties, particularly the early-stage pharmaceutical products, will be licensed to other companies for manufacture and marketing. In these instances, licensing the patents involved would be more profitable than establishing subsidiaries for manufacturing and marketing the products. Companies ideally positioned to produce and market these products will provide revenue to AgraTech in the form of licensing fees and royalties. Additionally, AgraTech can then position itself to be the supplier of chitosan to the licensees.
AgraTech will become an innovative world class leader in the manufacture of chitosan and chitosan-based products through a continuous emphasis on research & development in manufacturing techniques and new products.