Even though pasture grasses grown to nourish livestock are, on the whole, beneficial to livestock, they can cause serious health problems among some cattle, sheep and horses grazing throughout the United States. The culprit is toxic endophytes or fungi in fescue grasses, which are costing livestock producers more than $1 billion each year in reduced weight gains and lower conception rates. Pennington Seed Inc., a subsidiary of Central Garden and Pet Company (NASDAQ: CENT), today announced an agreement expected to revolutionize the agricultural industry with newly developed varieties of toxin-free forage grasses. Pennington, in a partnership with New Zealand’s AgResearch institute and the University of Georgia Research Foundation Inc., will produce, package and distribute the first-ever endophyte-enhanced forage tall fescue varieties beginning in the summer of 2000.

The breakthrough technology, proven through years of research and grazing tests to reduce health risks among livestock, is patented by AgResearch and licensed exclusively in North America to Pennington. A limited number of strategic partners within the forage fescue industry will co-market the varieties under sublicense agreements offered by Pennington.

While not harmful to humans, endophytes develop in the grass plant’s cell wall and can stunt growth and reproduction among grazing animals, costing farmers at market. However, removing the fungus is not the answer. Fungus free grasses do not survive more than three to five years under current grazing and climatic conditions. Researchers at the University of Georgia (UGA) and AgResearch, in conjunction with Pennington, have found a solution. Using standard inoculation and infection techniques, scientists have introduced an endophytic fungus that maintains the drought and pest resistance of the wild variety without producing the harmful toxins. The new varieties are expected to last at least seven years.

"This is the greatest revolution in forage fescue since the initial discovery of fescue grass back in 1925," explains Sonny Pennington, president and chief executive officer of Pennington. "We’ve improved the technology by identifying an endophyte that doesn’t produce toxins, yet still provides the longevity farmers depend on. Livestock producers around the world will now get the best of both worlds."

Tall fescue, grown on more than 40 million acres nationwide, has been the most widely grown pasture grass in the humid areas of the eastern U.S. for the past half-century. Its popularity is due to its broad range of adaptation, ease of establishment, drought tolerance, reliable winter growth and persistence. In spite of the overall benefits of traditional forages, the cool-season bunch grasses have acquired a reputation for possibly causing health risks to livestock, including reduced conception rates, reduced weight gains and intolerance to high temperatures.

Research has shown that the toxin-free varieties are both long lasting and healthy to livestock, notes Dr. Joe Bouton, professor of crop and soil sciences at UGA. "We would have folded our tent early if the data hadn’t been so positive, but so far, we have seen excellent results in both persistence and animal performance," he says. "The University will continue to broaden the scope of its research."

The University of Georgia Center for Agribusiness and Economic Development conducted a survey of livestock farmers in 14 southern states to gauge the potential demand for the product. The results revealed an overwhelming interest in a technology that could save producers a significant amount of money annually in livestock performance.

"We estimate that demand in the first four or five years of commercial availability may exceed our ability to supply this seed," concludes Pennington. "The UGA survey indicates that there is a 100 million pound market for a seed that would be nutritious to livestock, as well as produce a drought-tolerant, insect-tolerant pasture grass. Following the initial release in 2000 of two tall fescue varieties tried and tested in the Southeast, we will produce up to five more varieties over the next few years tailored specifically for various regions of North America."

AgResearch is New Zealand’s innovation institute for the country’s food and fibre industries. The institute is internationally recognized for pastoral science and technology development for economic and environmentally-friendly food production and processing systems. The team of mycologist Garry Latch, plant chemist Brian Tapper and animal scientist Lester Fletcher selected the novel endophyte.