Avivagen Inc. (VIV:TSX.V; VIVXF:OTCQB) announced in a news release that a buyer, Industrias Melder in Mexico, increased the volume of its OxC-beta Livestock order first placed in March to 2 tons from 300 kilograms.
This is significant for two reasons. One, it is Avivagen's first sale of the product in Mexico. Two, it represents the first application of OxC-beta in the dairy sector, thereby commercially validating the product.
Industrias Melder's upsized order follows positive results of two animal tests done by one of its dairy farm customers. In the first test, some of the farm's best milk producing cows were given OxC-beta Livestock and after 42 days, their health and productivity and the quality of their milk were assessed.
The results showed improvement in the quantity and quality of the milk the test cows produced. The farm's bulk tank milk's somatic cell count, a standard indicator of milk quality, dropped 54%. Milk with lower somatic cell counts often garners farms financial incentives or premiums. The lower somatic cell count also indicated improved health of the cows from which the tested milk came. In fact, the farm was financially rewarded by a global diary processor for the improvements in milk yield, quality and reduced bacterial levels it showed.
The same dairy farm conducted a second test but on a group of cows with chronic health, productivity and milk quality production problems. The results were improved cow health and milk quality. The bulk tank milk's somatic cell count decreased 67%. The number of animals deemed healthy by their veterinarian increased 8%.
"The successful outcome of these latest tests in Mexico is consistent with earlier dairy trials in New Zealand and China and provides yet further evidence of OxC-beta's benefits for dairy cattle, in addition to swine, poultry, companion animals and humans," the release noted.
Kym Anthony, CEO of Avivagen, stated, "We are very excited to announce this increase in the initial sale of OxC-beta™ Livestock to Industrias Melder and we are working to further formalize a long-term relationship with them. This sale has a twofold significance. First, it represents a critical step in bringing OxC-beta™ Livestock to Mexico, a market with annual feed sales of more than 36 million tonnes. Second, this is the first application of OxC-beta in the dairy sector and therefore it provides crucial commercial validation of the product that other customers will look to when making purchasing decisions."
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