Meiji Seika aiming to globalize its agrochemical business

Meiji Seika Kaisha has turned its gaze to overseas markets for its pesticides, which it has been primarily marketing in Japan. The shift in strategy is spurred by the emergence of a number of its proprietary products that appear to have international market appeal as well as the perception that the domestic market is shrinking while offshore demand is expected to enjoy steady long-term growth.

To facilitate its move abroad, it is considering forming alliances with pesticide makers in other countries as soon as possible.

The company said the most promising product in its pipeline of new agrichemicals is its proprietary Zaxa liquid, a nonselective herbicide with a biologically active L—optical isomer as the effective ingredient. Zaxa liquid is applied to foliage and absorbed into plants through their leaves and stems, disturbing their synthesis of glutamic acid and destroying them. Meiji expects pesticide registration in Japan for the herbicide by the end of this year.
 
The next product is a fungicide given the development code of AF-92 that is applied to paddy fields to prevent rice blast. It is regarded as a supplement to the company’s highly popular Oryzemate, which is widely used for rice-blast control. AF-02 was registered as a pesticide in Japan in 2009, and its market launch is slated for the 2011 fiscal year. It will be promoted as a rice-blast preventive in Japan, but other applications are envisaged for overseas markets because it had shown efficacy against other diseases besides rice blast.

An insecticide with the development code of ME5343 that is under development for use on vegetables and fruits to combat sap-sucking insects such as aphids promises to have the largest market among Meiji’s candidate pesticides.

Meiji is anticipating annual sales of l0 bn yen ($11l mn)-20 bn yen for ME5343 in formulation terms, on the basis of a global market for pesticides to fight sap-sucking insects valued at some 130 bn yen. It plans to apply for Japanese pesticide registration for the insecticide in the 2011 fiscal year and to begin sales in the 2013 fiscal year.

Another new insecticide with the development code of ANM-138 is repotted to have significant action against tiny, difficult-to-manage harmful insects such as thrips and to be effective against diamondback moths and other Lepidoptera insects as well. Damage caused by these insects is extensive worldwide, and Meiji puts the global market for pesticides effective against these insects at 5bn-10 bn yen in formulation terms. The submission of its application for ANM-138’s registration as a pesticide in Japan is set for the2012 fiscal year, to be followed by market introduction in the 2014 fiscal year.

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