Terragen Holdings secures a landmark supply agreement for its probiotic and biostimulant products with Ravensworth Feedlot, alongside a $2.8 million funded trial at Mort & Co’s Grassdale feedlot to validate its probiotic’s impact on cattle performance.
- First large-scale supply agreement with Ravensworth Feedlot
- Minimum 360,000 doses of Terragen Probiotic for Ruminants contracted
- Mort & Co and MLA fund $2.8m cattle feedlot trial
- Ravensworth to subscribe for 1 million Terragen options
- Projected 25-50% sales uplift in early 2027
Terragen’s Breakthrough Commercial Supply Deal
Terragen Holdings Limited (ASX:TGH) has secured its first large-scale commercial supply agreement for its flagship Terragen Probiotic for Ruminants (TPR) and Great Land Plus (GLP) products with Ravensworth Feedlot, a major livestock operator in New South Wales. The deal, set to commence in late 2026, mandates a minimum order of 360,000 doses of TPR, intended for deployment across operations handling up to 40,000 cattle per day.
This milestone validates Terragen’s microbial solutions at scale within a significant agricultural enterprise, marking a key step in its commercialisation strategy. The agreement’s initial 12-month term includes provisions for GLP supply and a rebate arrangement tied to sales within New South Wales, with Ravensworth actively assisting Terragen’s market penetration.
As part of the arrangement, Ravensworth will subscribe for 1 million options exercisable into Terragen shares, set at the lower of a recent 10-day volume weighted average price or $0.05, expiring three years post-issue. This equity participation aligns Ravensworth’s interests with Terragen’s growth trajectory and will be executed once the first payment under the supply agreement is received.
Large-Scale Feedlot Trial Backed by MLA and Mort & Co
Complementing the supply deal, Meat & Livestock Australia Donor Company (MDC) and Mort & Co have contracted to fund a $2.8 million trial assessing the impact of Terragen’s TPR Ultra probiotic on feedlot performance and eating quality across 10,000 head of cattle at Mort & Co’s Grassdale feedlot in Queensland. The trial, starting mid-June 2026, will run over a 110-day feeding program with replicated control and treatment cohorts, under the scientific oversight of Professor Jane Quinn from Charles Sturt University.
Terragen is supplying both the TPR Ultra probiotic and an automated dispensing unit designed to integrate seamlessly into commercial feeding operations. The trial aims to validate previous research indicating improvements in carcass value and feed efficiency, with results expected to be reported by April 2027. While Mort & Co has announced a potential sale process for the Grassdale feedlot, this is not anticipated to affect trial execution.
Financial Impact and Growth Prospects
Terragen anticipates revenue contributions from the Ravensworth supply agreement beginning January 2027, forecasting a 25% increase in sales in the first quarter of 2027, potentially rising to 50% if key performance indicators are met. This translates to over $250,000 in incremental sales initially, possibly exceeding $500,000 relative to FY2026 sales.
The scale and scope of these agreements come after Ravensworth’s independent assessment of Terragen’s GLP product demonstrated a 12% increase in maize silage yield, underscoring the commercial viability of Terragen’s biostimulant offerings. This follows earlier positive sales momentum for Terragen’s ruminant probiotic, which surged 87% in the prior quarter amid advancing livestock trials and regulatory approvals Terragen’s Ruminant Probiotic Sales Surge.
Terragen’s microbial products target enhanced feed digestion and nutrient availability in cattle, alongside improved plant growth and soil health in cropping systems. GLP’s ability to boost crop yields while reducing reliance on chemical fertilisers positions Terragen within the growing sustainable agriculture sector, which has been buoyed by recent independent trials confirming significant yield and revenue gains Terragen’s Great Land Plus Yield Boost.
Conditions and Commercial Risks
The supply agreement’s execution is contingent on Ravensworth completing a planned feedlot expansion and the installation of an automated Terragen dispenser at its facility, which Terragen will fund. Ongoing purchases beyond the minimum order are at Ravensworth’s discretion, introducing variability in future sales volumes. The outcomes of the Mort & Co trial will also be pivotal in determining potential long-term supply contracts, with Terragen committed to updating the market on any developments.
These developments come on the back of Terragen’s strategic capital raises earlier in the year, which fortified its balance sheet to support commercialisation efforts and research programs Terragen Cuts Losses, Raises $7M.
Bottom Line?
Terragen’s first large-scale supply deal and funded trial set the stage for meaningful sales growth, but execution hinges on feedlot expansion and trial outcomes.
Questions in the middle?
- Will Ravensworth extend purchases beyond the minimum order after initial deployment?
- How will the Mort & Co trial results influence Terragen’s long-term supply contracts?
- What impact might Mort & Co’s potential Grassdale feedlot sale have on future commercialisation?