N2OFF: Save Foods Increasing its Potential Market Reach Following Pre-Harvest Regulatory Approval in California

Rhea-AI Summary

N2OFF, Inc. (NITO) gains approval for pre-harvest treatment in California, expanding market potential in the $14 billion organic products sector. The approval allows Save Foods to broaden its reach, reduce waste, and enhance food safety, positioning the company favorably in the sustainable agriculture market. Save Foods' FieldProtect treatment has shown significant results in extending the shelf life of strawberries, a key product in California's agricultural industry.

Insights

Market Research Analyst

The recent registration of Save Foods Ltd.'s FieldProtect for pre-harvest use by the California Department of Pesticide Regulation represents a significant expansion in the product's applicability within the state's agriculture sector. This development is noteworthy considering California's status as a leading market for organic products, which reached a sales volume of $14 billion. The state's agricultural exports also experienced a 7% increase in 2021, amounting to $22.5 billion, indicating a robust market environment conducive to the adoption of new agricultural technologies.

FieldProtect's ability to extend the shelf life of strawberries, as evidenced by the trial results showing an 85% reduction in waste, addresses a critical pain point in the supply chain—food waste and spoilage. Given that California accounts for approximately 90% of U.S. strawberry production, the economic impact of reducing waste in this commodity could be substantial. The potential for FieldProtect to enhance yield and quality aligns with the industry's growth trajectory and the state's commitment to sustainable farming practices, potentially offering Save Foods a competitive edge in the market.

Agricultural Technology Expert

FieldProtect's registration for pre-harvest use is a testament to its compliance with California's stringent environmental and safety standards, a critical factor for technology adoption in the state's regulated agricultural sector. The product's eco-friendly profile is aligned with the increasing demand for sustainable agriculture solutions, which is particularly relevant in California, where over 2.13 million acres are dedicated to sustainable farming.

The technology's promise in extending the shelf life of strawberries and potentially other premium produce could lead to broader implications for the agri-food supply chain, including reduced logistical costs, lower carbon footprint due to less waste and improved profitability for farmers. However, the long-term success of FieldProtect will depend on its scalability, cost-effectiveness and integration with existing agricultural practices. As the market for sustainable agriculture solutions continues to evolve, the adaptability and effectiveness of such innovations will be closely monitored by stakeholders.

Financial Analyst

The expansion of FieldProtect's use in California's agricultural sector could have a positive influence on N2OFF's financial performance, particularly if the product captures a significant share of the market for pre-harvest treatments. The company's focus on a high-value crop like strawberries, which have a farm value of $1.99 billion in California, suggests a strategic targeting of lucrative segments within the agricultural market.

Investors should consider the potential revenue streams from this new market opportunity, alongside the risks associated with the adoption rates of new technologies in agriculture. Factors such as the rate of adoption among farmers, the cost-benefit ratio of the product and the company's ability to scale operations to meet demand will be important in determining the financial impact of this development on N2OFF's performance. While the company's CEO has expressed confidence in the technology's contribution to sustainable production practices, the market's response and the measurable outcomes of FieldProtect's wider application will be the ultimate test of its commercial viability.

Company is now poised to offer its solution in California targeting the $14 billion market of organic products

Neve Yarak, Israel, March 25, 2024 (GLOBE NEWSWIRE) -- N2OFF, Inc. (NASDAQ: NITO) (FSE:80W) (“N2OFF” or the “Company”), a pioneer agri-food tech company offering sustainable solutions for agriculture and plant-based food, previously announced that the California Department of Pesticide Regulation (CDPR) registered for use Save Foods Ltd.’s pre-harvest treatment, FieldProtect, based on its compliance with California laws and regulations pertaining to pesticide registration.

The approval now extends the use of the product in California from exclusively post-harvest processes to include pre-harvest applications, which significantly broadens Save Foods' potential market reach. We believe this marks an important step forward for Save Foods in providing food safety and reducing waste from field to fork, paving the way for its potential commercial expansion in California.

The Company believes entry into the California agricultural sector, which generates substantial revenue and leads in organic production in the United States, places Save Foods in a favorable position within the sustainable agriculture market. FieldProtect is designed to meet the stringent environmental and safety standards set by the CDPR, demonstrating the Company's commitment to providing eco-friendly solutions that benefit growers, consumers, and the environment.

According to the California Department of Food and Agriculture, in 2022, California generated over $59 billion in market value from its diverse range of products and in 2021, agricultural exports increased 7% from 2020 to $22.5 billion, while organic product sales reached $14.0 billion, marking a 16.4% rise from the previous year. We believe that California’s commitment to sustainable farming on over 2.13 million acres provides an ideal backdrop for FieldProtect’s introduction.

Previous trial on strawberries, revealed promising results whereby Save Foods’ research and development team managed to dramatically extend the shelf life of strawberries. The trial has shown an 85% reduction in waste of fresh strawberries compared to the industry standard..

According to the California Department of Food and Agriculture, in 2021, the California strawberry industry highlighted its vibrant dynamism and critical economic role, reinforcing the state's position as the premier strawberry producer in the United States, accounting for approximately 90% of the country's production. The sector reported a total annual farm value of $1.99 billion, positioning strawberries among the top agricultural commodities in California. This flourishing market offers a remarkable opportunity for companies providing cutting-edge solutions specifically designed for berry production. Save Foods is now poised to offer its treatment to extend the shelf life of berries and other premium produce, particularly strawberries, which are a standout product in California's agricultural portfolio.

David Palach company’s CEO said, “Our technology and services aim to boost yield, enhance quality, and promote sustainable production practices among California's strawberry farmers. As the industry continues to expand, Save Foods remains dedicated to delivering advanced solutions that contribute to the growth and success of California's agriculture, solidifying our sustainability role in supporting this vital sector”.

About N2OFF Inc.:

N2OFF Inc. (formerly known as Save Foods, Inc.) is an innovative agri-food tech company that through its three operational arms delivers integrated solutions for improved safety, quality, and sustainability every step of the way from field to fork. Save Foods Ltd., N2OFF's majority-owned Israeli subsidiary, focuses on post-harvest treatments in fruit and vegetables to control and prevent pathogen contamination, significantly reduce the use of hazardous chemicals, and prolong fresh produce’s shelf life. NTWO OFF Ltd., N2OFF's majority-owned Israeli subsidiary, contributes to tackling greenhouse gas emissions, offering a pioneering solution to mitigate N2O (nitrous oxide) emissions, a potent greenhouse gas with 265 times the global warming impact of carbon dioxide. NTWO OFF Ltd., aims to promote agricultural practices that are both environmentally friendly and economically viable. N2OFF also owns minority position in Plantify Foods, Inc., a Canadian company listed on the TSXV that offers a wide range of clean-label healthy food options that are nutritious, gluten free, non-allergenic, use whole natural ingredients, and are easy to prepare. For more information on N2OFF's and NTWO OFF Ltd. visit our website: www.n2off.com

www.n2off.net

Forward-looking Statements:

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on our current expectations, they are subject to various risks and uncertainties, Actual results, performance or achievements could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including market conditions as well as those discussed under the heading “Risk Factors” in our prospectus filed with the SEC on February 7, 2024, and in any subsequent filings with the SEC. Except as otherwise required by law, we undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. We are not responsible for the contents of third-party websites.

Investor Relations Contacts:

Michal Efraty
+972-(0)52-3044404
michal@efraty.com

FAQ

What is the significance of N2OFF, Inc. gaining approval for pre-harvest treatment in California?

N2OFF, Inc. gaining approval for pre-harvest treatment in California allows Save Foods to expand its market reach, reduce waste, enhance food safety, and position itself favorably in the sustainable agriculture market.

How does the approval of FieldProtect in California impact Save Foods 's market potential?

The approval of FieldProtect in California allows Save Foods to extend its product use from post-harvest to pre-harvest applications, significantly broadening its market potential in the $14 billion organic products sector.

What results were achieved in the trial on strawberries conducted by Save Foods ?

The trial on strawberries conducted by Save Foods showed promising results with an 85% reduction in waste of fresh strawberries compared to the industry standard, demonstrating the effectiveness of the FieldProtect treatment in extending the shelf life of strawberries.

How does Save Foods aim to contribute to California's agriculture sector?

Save Foods aims to boost yield, enhance quality, and promote sustainable production practices among California's strawberry farmers by offering advanced solutions like the FieldProtect treatment to extend the shelf life of berries and other premium produce.