Shares of Terragen Holdings Ltd (ASX: TGH) doubled earlier today, up 100% at 27 cents apiece. They have since partially retreated and are currently swapping hands for 24 cents apiece, still an impressive 78% gain on yesterday's closing price.
Investors are bidding up this ASX share on the back of a company announcement that suggests Terragen's Mylo feed supplement reduces methane in dairy cows.
While it's been a fairly consistent walk downwards for Terragen's shareholders over the past five years, today's announcement marks a new direction for the developer of agricultural bio solutions.
What did this ASX share announce?
The Terragen share price took off this morning after the company announced the results from research conducted at dairy research farm, Elinbank SmartFarm.
Testing involved 40 lactating cows separated into groups, with one cohort receiving Terragen's Mylo organic feed supplement at 10mL/day for 40 days.
"Mylo, in use across 125 Australian dairy farms, is one of the tools a livestock producer can use to increase productivity, reduce methane emissions and meet sustainable agriculture goals," Terragen says.
One in three Australian dairy cows use the product daily, and it offers the farmer a return on investment "of at least 5:1", the company says.
The study's findings showed that those cows receiving Mylo in that protocol produced 7.5% less methane per litre of milk and gained 21% more weight than control cows.
"This research indicates that Mylo can reduce methane emissions by the equivalent of 100 tonnes of CO2 per 350-cow dairy farm per year," it added.
"More research at Ellinbank SmartFarm is planned to determine if higher doses of Mylo will reduce methane emissions further."
Terragen also said its findings have implications for the broader beef industry due to the amount of weight cattle gained by including its product in feed.
Despite today's gains, this ASX share is still almost 30% in the red for the past 12 months.
