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Two Chances to Reduce One Expensive Risk

Two Chances to Reduce One Expensive Risk

Chitosan IG — A dual-action platform designed to suppress selected toxigenic fungi and adsorb aflatoxin B1 at two critical risk windows: pre-harvest and during processing/storage.

Chitosan IG

Slide 2

Executive Summary

Why This Matters Now

The Threat

Aflatoxin contamination costs the US corn industry alone USD $52M–$1.68B annually under warmer conditions.

Global losses estimated at USD 6–18 billion/year. Aflatoxins are heat-stable — once formed, they cannot be cooked out. Prevention is the only viable path.

The Opportunity

Chitosan IG addresses both risk windows — field infection AND post-harvest recontamination.

Peer-reviewed research shows chitosan suppresses selected toxigenic fungi and may reduce mycotoxin accumulation under field validated conditions. Non-toxic, biodegradable, GRAS-pathway.

The Ask

Partner with us on a validated pilot — your grain, your conditions, measured results.

We are not selling a silver bullet. We are proposing a risk-reduction tool backed by evidence, designed for your supply chain, ready for controlled validation.

First commercial focus: Aflatoxin B1 risk reduction — especially Aspergillus flavus and A. parasiticus in corn and feed ingredients.

Slide 3

The Business Problem

Protect Margin Before the Downgrade Happens

Load rejection at the elevator

Aflatoxin levels above 20 ppb (FDA action level) = full load rejected or deep discount.

Feed downgrade or destruction

Contaminated grain loses feed-grade status → disposed of or heavily discounted.

Export market lockout

EU limit: 2 μg/kg AFB1 — one failed lot can lose an entire export contract.

Liability and reputation exposure

Animal losses and feed safety violations create cascading business risk.

US Corn Industry Annual Loss Estimate

$52M–$1.68B

Under warmer contamination-prone conditions
(climate scenarios based on recent warm years)

Fungi → Crop mapping:

  • A. flavus / A. parasiticus → Aflatoxins → Corn, feed ingredients
  • F. graminearum / F. culmorum → DON, Zearalenone → Wheat, barley
  • F. verticillioides → Fumonisins → Corn
  • Penicillium verrucosum → Ochratoxin A → Stored cereals

Slide 4

Health Stakes

Aflatoxin Is Not Just a Quality Issue — It’s a Health Crisis

Human Health Impacts

  • Hepatocellular carcinoma (liver cancer) — AFB1 classified IARC Group 1 carcinogen
  • Immune suppression — impaired lymphocyte function, increased infection susceptibility
  • Child growth impairment — stunting linked to chronic dietary AF exposure in SSA/Asia
  • Acute poisoning outbreaks — 2004 Kenya: 125+ deaths from contaminated maize
  • Heat-stable — decomposition >237°C; cooking/roasting cannot eliminate once formed

Regulatory limits: EU 2 μg/kg AFB1 | US/FDA 20 μg/kg total AF | WFP 10 μg/kg

Animal / Feed Impacts

  • Weight loss and poor feed conversion — direct economic impact on livestock operations
  • Reduced growth rates — swine particularly susceptible (inefficient AF detoxification)
  • Reproductive issues — impaired oocyte maturation, reduced fertility in breeding stock
  • Immune suppression — increased disease susceptibility, higher veterinary costs
  • Mortality — acute aflatoxicosis can be fatal; chronic exposure increases mortality rates

AFM1 transfer to milk → nursing piglets, dairy products; 0.5–5% of ingested AFB1 becomes AFM1.

Touchpoint 1 — Pre-Harvest

Infection Starts in the Field — So Should Prevention

Fungal colonization of grain begins during flowering and seed development. By harvest, toxin levels may already exceed regulatory limits. Treating only at storage ignores the largest window of vulnerability.

Chitosan’s pre-harvest mechanisms:

1. Direct antifungal action — disrupts fungal cell walls/membranes, inhibits hyphal growth

2. Plant defense elicitation — ~3-fold upregulation of defense genes (TaPAL, TaPR1, TaPR2) = systemic acquired resistance acquired resistance

3. Mycotoxin pathway suppression — downregulates trichothecene biosynthesis genes in F. graminearum

Published Results

Chitosan HCl on Wheat — Fusarium Head Blight

6% severity vs. 20% control

FHB-resistant genotype DBC480, 21 dpi. Chitosan reduced fungal spread and some mycotoxin accumulation.

Francesconi et al. (2020) Molecules

Chitosan + Seaweed Biostimulant on Wheat

80% reduction in infection area

84% fewer conidia produced. Infected spikes reduced 38.5%–53.8%. DON levels reduced.

Gunupuru et al. (2019) PLOS ONE

Key Mechanistic Finding

Chitosan strongly downregulated F. graminearum genes for cell growth, respiration, virulence, and trichothecene biosynthesis — while conventional fungicides (tebuconazole) actually upregulated the toxin pathway.

Slide 6

Touchpoint 2 — Processing & Storage

Grain Is Still Vulnerable After It Leaves the Field

Harvest handling, auger damage, drying delays, temperature swings in transit, and condensation in bins create new opportunities for A. flavus proliferation — even on grain that tested clean at harvest.

Risk Progression

Harvest
Mechanical damage exposes kernel interior

↓

Drying
Delays >24h at >18% MC = rapid mold growth

↓

Transport
Condensation, mixing of clean & hot grain

↓

Storage
Hot spots, moisture migration, months at risk

↓

Processing
Surface dust & fines = high contact area

Why chitosan IG is suited to this stage:

  • Can be applied directly to grain surfaces where contact with fungi and newly produced toxin is highest
  • Designed to adsorb/sequester aflatoxin B1 already present near grain surfaces
  • Inhibits A. flavus spore germination, hyphal development, and conidia production on grain
  • Non-toxic, biodegradable — compatible with feed-grade and food-grade grain handling

Storage-Stage Evidence

~75% mycelial growth inhibition

Chitosan combinations reported ~75% inhibition of A. flavus mycelial growth and complete inhibition of conidia germination on corn grain surfaces.

Mechanism: spore aggregation, abnormal morphology, swelling, bud tube polarization, leakage of intracellular contents → growth arrest.

Gong et al. (2024) Sustainability 16(8):3171

Slide 7

Dual-Action Mechanism

How Chitosan IG Works: Two Modes, One Platform

Mode A

Fungal Suppression

Suppresses selected toxigenic fungi under validated conditions

  1. Electrostatic binding to negatively charged fungal cell walls
  2. Membrane permeabilization → leakage of intracellular contents
  3. Spore aggregation + abnormal morphology + swelling
  4. Inhibition of hyphal growth and conidia germination
  5. Downregulation of mycotoxin biosynthesis genes

Pre-harvest bonus: Also elicits plant systemic acquired resistance (SAR) — ~3× upregulation of defense genes TaPAL, TaPR1, TaPR2.

Mode B

Aflatoxin B1 Adsorption

Designed to adsorb/sequester aflatoxin B1 already present near grain surfaces

  1. Cationic amino groups bind anionic mycotoxin molecules
  2. High surface area formulation maximizes contact with toxins on grain
  3. Sequestration reduces bioavailable toxin near kernel surfaces
  4. pH-responsive activity in slightly acidic grain surface environments

Key advantage at storage/processing: Product contacts grain exactly where surface contamination and newly produced toxin concentrate — fines, dust, kernel surfaces.

Claim boundary: Efficacy depends on formulation, dose, moisture, pH, contact time, fungal species, and matrix. Does NOT claim complete detoxification.

Slide 8

Evidence Base

Recent Peer-Reviewed Research Supporting Chitosan Efficacy

Study Target Key Result Stage Year
Francesconi et al. (Molecules) F. graminearum on durum wheat FHB severity 6% vs 20% in resistant genotype; ~3× defense gene upregulation; mycotoxin biosynthesis genes downregulated Pre-harvest (spike application) 2020
Gunupuru et al. (PLOS ONE) F. graminearum on wheat 80% less infection area; 84% fewer conidia; 38.5–53.8% fewer infected spikes; DON reduced Pre-harvest (seedling drench + spray) 2019
Gong et al. (review) (Sustainability) A. flavus on corn ~75% mycelial inhibition; complete conidia germination inhibition on corn grain surfaces (chitosan combo) Storage 2024
Wieczorek et al. (Int J Mol Sci) A. flavus, P. expansum Complete spore germination inhibition (CS:ZnO films); membrane permeabilization; reduced spore viability 30–50% Storage / packaging 2024
PMC12529745 (review) (Food Sci Nutr) Aflatoxin global review AF contamination → HCC, immune suppression, child stunting; USD 6–18B global annual losses; heat-stable → prevention required Full chain 2025
Mitchell et al. (Food Addit Contam) US corn economics USD $52.1M–$1.68B annual loss to US corn industry under warmer conditions (climate model) Market impact 2016

Note: Results shown represent specific experimental conditions. Efficacy depends on formulation, dose, crop type, moisture, pH, contact time, and fungal species. Full citations on slide 14.

Economic Logic

The Cost of Inaction Dwarfs the Cost of Prevention

We do not fabricate ROI numbers. Instead, we connect the documented costs of failure to the logic of treatment.

Load Rejection

A single 1,000-bushel truckload of corn at $4.50/bu = $4,500 at risk per load rejected at the elevator. Multiple loads per farm per season.

Feed Downgrade

Grain exceeding feed-grade limits loses its highest-value market. Downgrade to salvage or destruction = 30–100% revenue loss on that lot.

Export Lockout

EU limit 2 µg/kg vs. US 20 µg/kg. One failed test can lose a contract worth millions in annual export volume.

The Treatment Logic (not a fabricated ROI)

1. If chitosan IG prevents even one load rejection per season on a mid-size farm, the value saved likely exceeds several years of treatment cost.

2. For elevators handling 10M+ bushels: even a 1% reduction in downgrades represents substantial recovered value.

3. For feed processors: reduced testing failures = fewer batch holds, lower disposal costs, steadier supply.

4. For exporters: maintaining EU-eligible status on premium lots preserves the highest-value market channel.

5. For livestock operations: reduced feed contamination → fewer veterinary interventions, lower mortality, better FCR.

Actual ROI will be determined through your pilot — we don’t fabricate numbers before measurement.

The Core Question Answered

Why Spray Before Harvest and Again During Processing?

Timeline

FIELD → FLOWERING → HARVEST → DRYING → TRANSPORT → STORAGE → PROCESSING

← TOUCHPOINT 1: Pre-harvest spray →

← TOUCHPOINT 2: Processing/storage application →

Touchpoint 1 addresses:

  • Field infection during flowering/grain fill
  • Fungal colonization before symptoms are visible
  • Early toxin formation that becomes irreversible
  • Boosts plant immune response (SAR) for sustained resistance

Without TP1: Grain arrives at harvest already contaminated. No storage treatment can undo toxins already formed.

Touchpoint 2 addresses:

  • New contamination during harvest damage, drying delays
  • Fungal regrowth from moisture migration in bins
  • Adsorption of surface-level AFB1 already present
  • Contact where fines and dust concentrate toxin

Without TP2: Even clean-harvested grain can develop contamination during months of storage — one hot spot can condemn a bin.

Neither touchpoint alone covers the full risk window. Together, they reduce exposure at both origination points.

Claim Discipline

What We Say — and What We Don’t

✓ What We Are Saying

  • Chitosan IG suppresses selected toxigenic fungi under validated conditions.
  • May reduce fungal growth, spore germination, hyphal development, and toxin-production potential.
  • Designed to adsorb/sequester aflatoxin B1 near grain surfaces.
  • A risk-reduction tool — not a standalone solution.
  • Non-toxic, biodegradable biopolymer from natural sources.
  • Evidence of antifungal activity in peer-reviewed literature.
  • Efficacy depends on formulation, dose, crop, moisture, pH, contact time, fungal species, and matrix.

✗ What We Are NOT Saying

  • Does NOT sterilize grain or destroy all fungi.
  • Does NOT claim complete detoxification of mycotoxins.
  • Does NOT work against all mycotoxin types universally.
  • Does NOT replace proper drying, aeration, and storage management.
  • Does NOT have fabricated ROI percentages.
  • Does NOT have specific regulatory approvals (yet).
  • Does NOT claim specific application rates without trial validation.

We distinguish clearly between “evidence of antifungal activity” and “validated commercial performance.” Pilot trials bridge that gap.

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