Japanese giant Suntory to partner Aust plant biotech

Unlisted Australian horticulture group Oasis Horticulture has teamed up with Japanese beverage company Suntory in an R&D joint venture to develop new plant varieties for the international market.

It's not the first time Suntory has partnered with an Australian plant breeding group -- in 2003 the company bought blue rose breeders Florigene from Nufarm after more than a decade of collaboration.

The new JV, to be known as Bonza Botanicals, will focus on the development of hardier, prettier and unique flowers, according to Oasis finance director Richard Faithorn. The use of genetic modification technology is not planned -- the companies will utilise more standard techniques including cross-breeding and gamma irradiation to introduce new traits.

"Through this major investment, we are convinced that the team can set the benchmark globally for plant and flower development," said Suntory's Shigeru Sarada in a statement. "We are pleased to be working with the Oasis team through Bonza Botanicals, to further develop the group's knowledge and capabilities in providing innovative and market defining intellectual property for next generation plant biotechnology."

Faithorn said the JV was intended to be a long term initiative, and the two companies would share in it equally. "We are looking at it very much as a marriage," he said. While the terms of the JV were not disclosed, Faithorn said it was backed by "pretty significant" funding.

While Australia's market for so-called greenlife is significant -- worth AUD$1.8 billion in the year ending June 30, 2003 -- the marketing focus for the JV will be the giant US and European markets.