With China having lost more than 100 million pigs due to the recent outbreak of African swine fever in the mainland, attention has been thrust upon preventative measures, leading a Chinese Group to engage chemical company Zoono (ASX: ZNO) for a 10-year distribution arrangement. 

The Chinese Group will use the Zoono China brand to sell Zoono products to farmers and food producers and processors in China where a key to the partnership will be to minimise the impact of African Swine Fever. 

As part of the agreement, Zoono China must place a minimum order of chemical products to the value of NZD $3.1m in the first year, $4.6m in the second year and $9.3m in the third with orders thereafter to increase by a minimum of 10% per annum. 

The announcement of Chinese distribution for Zoono comes just one day after announcing strong virology results for the testing of ZOONO Z71 Microbe Shield which was found extremely effective in counteracting the African Swine Fever virus. 

Completed at GLP Laboratories, an independent party, Zoono’s latest test results inactivated the Afrian Swine Fever virus by more than 99.99% resulting in zero deaths in the test pens whilst pigs remained infected within the control pens. 

The breakout of African Swine Fever in China (the largest consumer of pork), commenced in August 2018, decimating the local pig population.

Following the lab data release and China distribution announcement, shares in Zoono surged to hit a high of $0.45 per share, a rise of 87.5% above Friday’s close of $0.24.