Skin Elements Ltd Secures NZ$600K Farmlands Order for ECO Nurture
Skin Elements secures NZ$600,000 order under exclusive Farmlands distribution deal
Skin Elements Limited (ASX: SKN) has executed an exclusive New Zealand distribution agreement with Farmlands Co-Operative Society Limited for its ECO-Nurture horticulture bio-stimulant, triggering an initial order of 4,000 litres for NZ$600,000 (plus NZ GST).
The transaction marks the Company’s first commercialisation agreement for ECO-Nurture, converting four kiwifruit growing seasons of trials into revenue and a national distribution channel.
Farmlands is New Zealand’s leading farmer-owned rural co-operative, transacting more than NZ$2.5 billion in business annually. Ranked among the top 20 companies by turnover in New Zealand, it operates 80-plus stores nationwide, giving Skin Elements immediate access to a broad rural customer base.
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Inside the Farmlands distribution agreement
Under the agreement, Farmlands will market, sell, supply and distribute ECO-Nurture across New Zealand’s agriculture sector on an exclusive basis, with an initial focus on the kiwifruit industry.
The deal covers an Initial Period that commences on execution and ends when ECO-Nurture receives Agricultural Compounds and Veterinary Medicines (ACVM) authorisation from the New Zealand government. On that authorisation date, the parties intend to enter a Farmlands National Sales Agreement for the exclusive ongoing sale and distribution of the product.
ECO-Nurture commercialisation had been signalled weeks earlier when Skin Elements disclosed it was in advanced-stage negotiations with the co-operative, with the NZ$600,000 payment at that point still contingent on a definitive agreement being finalised.
A separate obligation, the GroPlus Commitment, requires Skin Elements to procure that existing New Zealand customer GroPlus purchases 2,333 litres for NZ$350,000 (plus NZ GST) within the 12 months following execution. If GroPlus falls short, Skin Elements must pay Farmlands the difference. This figure is distinct from the NZ$600,000 initial order.
A Minimum Value requirement applies annually from the year of ACVM authorisation. If the parties cannot agree that value within 30 business days of authorisation, Farmlands’ appointment as exclusive distributor ceases automatically.
| Term | Detail |
|---|---|
| Initial Order | 4,000 litres of ECO-Nurture for NZ$600,000 (plus NZ GST) |
| Initial Period trigger | Ends on ACVM authorisation from the NZ government |
| Next stage | Farmlands National Sales Agreement (exclusive ongoing distribution) |
| GroPlus Commitment | 2,333 litres for NZ$350,000 (plus NZ GST) within 12 months |
| Products covered | SUPER Concentrate 5L, RTU 565ml, RTU 5L |
A billion-dollar problem in New Zealand’s most valuable crop
New Zealand kiwifruit is the country’s most valuable crop export and the initial target market for ECO-Nurture. The industry has been severely impacted by the PSA bacteria (pseudomonas syringae pv. actinidiae), which attacks the plant structure, causing vines to wither and reducing fruit yield and quality.
Key figures from the announcement include:
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Global kiwifruit revenue of NZ$5.03 billion in the 2024-25 season.
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Kiwifruit accounts for in excess of 30% of New Zealand’s total fruit and vegetable annual export value.
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Estimated economic loss of up to NZ$1 billion in the decade following the 2010 PSA outbreak.
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CEO commentary references Zespri International Limited reporting kiwifruit sales of NZ$5.9 billion in the 2025/26 season.
ECO-Nurture is positioned as a natural, plant-based alternative to existing chemical sprays, including copper sulphate, which may accumulate and become toxic to humans, animals, plants and soil. According to the Company, the adoption of a viable, effective plant-based alternative represents a major unrealised market opportunity.
What is ECO-Nurture and why it matters
ECO-Nurture is a sustainable, horticulture-specific bio-stimulant developed from Skin Elements’ plant-based SE Formula, a biotechnology research and development programme.
A bio-stimulant supports overall plant health by improving the plant’s tolerance to stress. ECO-Nurture works through a plant-based mode of action that enhances the plant’s own defence system, and is made from environmentally friendly, biodegradable plant-based materials. In independent laboratory testing and field trials, it has demonstrated effectiveness against a range of bacteria that damage food crops.
For investors, the product positions Skin Elements within what management describes as the GREEN-Tech transition, offering a chemical-free alternative to conventional crop protection. The Company frames this shift as addressing a global, unrealised market for sustainable agricultural inputs.
Four seasons of trials behind the deal
Skin Elements completed a comprehensive multi-stage testing regime for ECO-Nurture against PSA over the past four kiwifruit growing seasons, forming the basis for ACVM approvals now in progress.
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First stage: A laboratory efficacy test conducted by the NZ government’s Plant & Food Research (PFR) validated ECO-Nurture’s effectiveness in killing PSA. PSA showed no signs of developing resistance, a core desired characteristic for sustainable long-term crop protection.
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Second stage: Glasshouse trials sprayed two concentrations of ECO-Nurture on kiwifruit vines. Both delivered disease control comparable to current chemical-based products, and even the more diluted 1:999 ratio (one part ECO-Nurture to 999 parts water) proved effective, a positive outcome for crop economics.
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Third stage: Live orchard application across 120 kiwifruit orchards delivered efficacy comparable to, and in some cases greater than, chemical treatments. Testing also showed no soil toxicity and confirmed the product was environmentally safe for orchards and orchardists.
CEO Dr Peter Malone referenced three years of kiwifruit orchard trials with more than 100 orchards alongside industry partner GroPlus. This provided an effective real-world performance measure for orchardists contemplating a transition from chemical sprays.
Expansion potential beyond kiwifruit
Initial testing indicates ECO-Nurture has potential across other fruit and vegetable crops, covering pip fruits through to tomato crops.
The Company views this as a sound foundation to pursue expansion across the broader horticultural sector and into different geographic markets.
CEO Commentary
“Skin Elements is excited to report its distribution agreement for ECO-Nurture with our national distribution partner Farmlands for New Zealand. This announcement is the culmination of three years of kiwifruit orchard trials with over 100 orchards with our industry partner GroPlus. The launch of ECO-Nurture 100% natural bio-stimulant represents a significant step in Skin Elements’ growth and development strategy, seeing the introduction of GREEN-Tech supporting an alternative transition towards plant-based crop protection solutions in kiwifruit orchards. With over 80 plus stores nationwide, Farmlands are able to support the kiwifruit sector continuing to grow with Zespri International Limited (Zespri) reporting continuing annual kiwifruit growth with 2025/26 season recording kiwifruit sales of NZ$5.9Billion.” said Dr Peter Malone, Chief Executive Officer.
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What comes next for Skin Elements
The key near-term catalyst is ACVM authorisation, when the parties intend to enter the Farmlands National Sales Agreement and unlock ongoing exclusive distribution. The Company is currently progressing towards approval under the Agricultural Compounds and Veterinary Medicines Act 1997 (NZ).
In the interim, the NZ$600,000 initial order and the GroPlus Commitment provide an early revenue pathway while the ACVM process advances.
For investors, the agreement represents the first commercialisation of ECO-Nurture, converting years of research and development into exclusive access to New Zealand’s most valuable crop export via a top-20 national distributor. Whether the arrangement translates into recurring, long-term revenue remains conditional on ACVM authorisation and the parties agreeing the annual Minimum Value within the required timeframe.
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