Seed money granted

Business owners Tony Merceica and Gary McKenzie are both Bachelor of Science graduates from UWA with specializations in Agriculture.

Both men say production of Cocopeat is a labour of love.

"We turn over $2 million per annum but there's not much spare cash in those figures."

For this reason the $11,000 grant is a real bonus for the company.

They employ a fluctuating number of staff (10-15) depending on the time of year to help produce the coconut husk by-product which is imported from India and processed in Middle Swan.

"It is often used as a substitute for peat as it is free of bacteria and produced without environmental damage," Mr Merceica said.

Commerce Minister Michael Mischin said the grant provided a small financial boost for small to medium businesses to help turn innovative ideas into viable businesses.

"The successful applicants are developing innovations that have real-world relevance and will help build WA's reputation for developing quality solutions for key global markets," Mr Mischin said.

The Valley Flower Farm owners have been seeking to fine-tune their product so it is viable in hotter, drier weather.

"If you use this as a mulch or base for lawn it retains a lot of water and keeps things from drying out," Mr Merceica said.

The money will be used to fund more research and development for the new product.

Mr Merceica said the cocopeat is currently used on their property as a bed for the flowers to grow in hot houses.

"While we use this peat on the flower beds it helps both parts of the business," he said.

The product is supplied to businesses across Australia, and more specifically WA.

"The beauty of the product is the coconut husk does not break down like conventional compost and it is quite light to carry and use as a base in pots.

"We add worm juice, dolomite, eucalypt and other matters to make it up to a real bio-active product."

Mr Merceica said the men had taken 5-6 years to refine the product.

Perth Hills MLA Frank Alban said the Valley Flower Farm located in Middle Swan showed a great initiative as a small business and was a deserving winner of the innovation vouchers program.

"Between 2011 and 2013, the Innovation Vouchers Program has provided financial support of more than $600,000 to 32 WA businesses," he said.