Terragen’s Growth Hinges on Upcoming Feedlot Trial Outcomes and Capital Plans

Expanding Horizons in Livestock Probiotics

Terragen Holdings Limited has made significant strides this quarter by broadening its probiotic product portfolio to include the beef and lamb feedlot sectors. The introduction of its dry format Terragen Probiotic® for Ruminants (TPR) is already being used in the rations of approximately 12,000 lambs daily, reflecting early commercial traction with monthly sales around $25,000. This expansion marks a strategic shift from the company’s previous focus on the dairy sector, tapping into a growing market segment driven by increasing demand for heavier lambs year-round.

Complementing this product launch, Terragen is advancing plans for a large-scale commercial feedlot trial. The company has commissioned the design of an automated microbial dispensing unit, engineered to seamlessly deliver its concentrated probiotic Ultra formulation. This innovation aims to facilitate adoption by large-scale feedlots and generate robust data to validate the product’s efficacy in commercial settings.

International Market Access and Trials

Terragen’s international expansion continues apace with regulatory approvals secured in New Zealand, a key milestone that opens the door to broader market penetration. The company is targeting regulatory clearances in Canada and Brazil by mid-2026, with the Canadian Food Inspection Agency granting approval for importation of product to support North American feedlot trials. These trials, led by Agriculture and Agri-Food Canada and supported by prominent research institutions, will commence imminently and represent Terragen’s first international animal study, underscoring the global potential of its probiotic technology.

Diversification into Companion Animals and Home Gardening

Beyond livestock, Terragen is developing a companion animal probiotic range, having completed a successful canine safety and palatability trial. Scale-up manufacturing is underway, with plans to extend the portfolio to equine and feline products over the next year. Additionally, the company is launching Naturalift, a one-litre plant probiotic for domestic gardens and nurseries, leveraging its agricultural-grade microbial technology to appeal to home gardeners. This product will be available online from November 2025, with retail expansion planned for 2026.

Collaborations and Sustainable Agriculture Initiatives

Terragen’s collaboration with Mort & Co Fertilisers to trial its microbial product Great Land Plus (GLP) in composting has yielded promising results, accelerating manure aging and supporting sustainable soil management practices. This partnership has already led to commercial sales and integration of GLP into Mort & Co’s composting program, highlighting the environmental benefits of Terragen’s microbial solutions.

Financial Position and Outlook

Financially, Terragen reported cash reserves of approximately $3 million as of 30 September 2025, down from $4.8 million the previous quarter due to seasonal demand fluctuations and significant raw material purchases intended to support production for the entire financial year. Operating cash flow was negative, reflecting ongoing investment in research, development, and commercialisation activities. The company is currently assessing its capital requirements but remains confident in its ability to continue operations and meet strategic objectives, supported by historical investor backing.