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Annual Review of Global Biopesticide and Biocontrol Industry 2017qrcode

Apr. 6, 2018

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郑敏 Paul Zheng
Paul Zheng

Paul Zheng, editor of AgroPages.com. Email: paul@agropages.com

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In 2017, due to the mitigation of pest and disease pressure in Latin America in the second half of the year, the business of biopesticide companies in Latin America was impacted to varying degrees. However, the mature markets such as Europe and North America still maintained a considerable growth rate due to the encouragement by governments and the ban on pesticides, especially Bacillus Subtilis and other biopesticides have experienced a significant growth. Driven by the double-reduction program of pesticides and fertilizers, the biopesticide industry became a new growth point in the field of crop protection of China in 2017.
 
Looking back over the past year, the global biopesticide industry was still in the consolidation phase, and the industry related events occurred frequently. This article cites several major key words such as mergers and acquisitions, distribution cooperation, investment and expansion, product registration or listing, and analyzes the major events that have taken place in the global biopesticide industry in the year.
 
Mergers and Acquisitions
 
Jan. Futureco Bioscience sold a minority stake to Sumi Agro Europe in an attempt to attain strategic mutual growth. 
 
May. Biobest acquired an equity stake in Borregaard Bioplant and its Swedish subsidiary Biobasiq Sverige AB.
 
Jun. Lallemand Plant Care acquired all remaining distribution rights to the BioBoost and BYSI-N biological line of products from BrettYoung. 
 
Jun. Certis USA acquired 100% of the shares of Butte, MT-based LAM International. 
 
Jun. Biobest acquired a 100% equity stake in Mexican distributor IMEX.
 
Oct. Mitsui & Co. acquired 4.9% stake in the Chinese biopesticide manufacturer Wuhan Kernel Bio-Tech.
 
 
Distribution Cooperation
 
Jan. Monsanto and Novozymes’ BioAg Alliance granted exclusive distribution rights in the US and Canada for its biofungicide, Taegro 2 (Bacillus subtilis var. amyloliquefaciens strain FZB24) to Isagro USA.
 
Jan. Nufarm and Marrone Bio Innovations agreed to develop MBI’s bioinsecticide Grandevo (Chromobacterium subtsugae strain PRAA4-1) for Australia and New Zealand.
 
Feb. Symborg agreed a deal with CBC Europe’s bioproducts compay, Biogard, for distribution rights in Italy for Symborg’s biofungicide MycoUp (Glomus iranicum var. tenuihypharum).
 
Feb. US greenhouse and nursery specialist OHP entered into a marketing agreement with Vestaron for Vestaron’s bioinsecticide Spear-O for use on greenhouse ornamentals.
 
Feb. Stockton agreed a long-term non-exclusive distribution agreement for its flagship biofungicide Timorex Gold (Melaleuca alternifolia extract) with Chongqing Shurong Crop Science Ltd. in the field of professional crop protection uses in edible crops in China.
 
Mar. Stockton entered into an agreement with New Zealand distributor Grosafe Chemicals to sell STK’s biofungicide Timorex Gold (Melaleuca alternifolia extract) in New Zealand.
 
Mar. Koppert Biological Systems forged a partnership with ISCA Technologies and TEC-IB to offer a system of complete control of the red palm weevil (Rhynchophorus ferrugineus).
 
Apr. KNE Certis (owned 70% K & N Efthymiadis and 30% Certis Europe) entered into an exclusive agreement to distribute certain Nufarm products in Greece, Bulgaria, Cyprus and Albania for a five year term.
 
May. Marrone Bio Innovations granted exclusive distribution rights in Mexico for its bioinsecticides GRANDEVO and VENERATE to Mexican distributor Agri-Star.
 
May. Marrone Bio Innovations, Inc. and Jet Harvest Solutions entered into a master distribution agreement to market Jet Harvest’s Jet-Ag in USA.
 
Jun. Stockton signed a distribution agreement with Duwest Dominicana in the Dominican Republic for Timorex Gold.
 
Jun. Isagro USA entered into a marketing agreement with Vestaron for Vestaron’s bioinsecticide Spear-T for use on greenhouse vegetables.
 
Jul. Eden Research signed multiple new commercial and development agreements with Sipcam.
 
Jul. Stockton and Seipasa entered a long-term partnership in the United States for exclusive distribution and co-development on Seipasa’s patented strain of Bacillus subtilis, a rhizosphere bacterium that quickly establishes beneficial colonies on the plant's roots and leaves. 
 
Aug. Stockton granted Syngenta exclusive right to distribute its Timorex Gold biofungicide for application in edible crops in Australia and New Zealand.
 
Sep. ÉLÉPHANT VERT and Marrone Bio Innovations signed distribution agreement to develop and market Marrone Bio Innovations’ biopesticide in Morocco, Tunisia and Algeria.
 
Sep. Koppert Biological Systems and the King Saud University in Saudi Arabia collaborated to find biological solutions against pests and diseases in date palms.
 
Sep. Marrone Bio Innovations signed an exclusive distribution agreement with Kenya Biologics to bring MBI's biopesticides to Kenya and Tanzania.
 
 
Investment Expansion
 
Jan. Koppert Biological Systems opened a new branch in Greece. 
 
Mar. Stoller do Brasil investmented R$ 30 million to inaugurate its new factory for biopesticides in Cosmópolis in the Brazilian state of São Paulo. 
 
Jul. Andermatt Biocontrol established its subsidiary in the United Kingdom.
 
Sep. BASF expanded its manufacturing facilities in Saskatoon for biological inoculants production. 
 
Oct. Stockton and Lidorr Chemicals built a new biological manufacturing unit at Liad Agro facility at Jerusalem area in Israel for the production of STK’s new products.
 
Nov. Koppert Biological Systems opened a new subsidiary in West African republic.
 
 
Voice of enterprise
 
How do you think the growth and development potential of biopesticide in these markets? What do you think are the main challenges to bring biopesticide to these markets?
 
Pam Marrone, CEO of Marrone Bio Innovation: Both Brazil and China are significant emerging markets for biopesticides. Consumers, regulatory restrictions, pest resistance, and residues are important but Increasingly the higher yields and quality in integrated programs drive growth.

The biggest challenge is navigating the regulatory process, which is fluid, changing and often on a case by case basis. Also a big challenge is finding distribution who understands how to test and market biopesticides. 
 
Philip Kessler, International Market Development Director of Andermatt Biocontrol AG: Both China and Brazil will have a significant increased demand for biological solutions, as both countries are giants in the global agricultural market. In China, the government realized that, to produce sufficient and safe food for its population in a sustainable way, their agriculture needs to be greener, thus more biological. In Brazil, biopesticides as well as biostimulants are getting more important due to higher efficacy of these solutions, particularly under challenging soil conditions. Resistance of pest populations towards chemical pesticides triggers the use of biopesticides. Furthermore, the use of microorganisms helps to improve biological soil activity in soils, where detrimental overuse of chemical pesticides and fertilizers turned agricultural soil into non-usable agricultural deserts.


How do you think the global market of baculovirus/microbial insecticides?
 
Philip Kessler: The range of baculovirus products to be used as insecticides has significantly increased over the last years, but its volumes still have a minor share compared to bacterial or fungal insecticides. Baculoviruses are extremely host-specific, which turns them safe for the environment as well for user and consumer, but which limits its market potential. However, baculoviruses are not only used in organic production, but can be easily integrated into existing IPM programs and represents an ideal tool for resistance management and to be used in residue-free food production. We therefore expect a further demand for pest management based on baculovirus products.
 
 
Ashish Sharma, Global Business Manager of International Panaacea Ltd.: According to me, global market of microbial pesticide is really growing at a very fast pace. As per market research report, global biopesticides market is expected to rise to a value of US$9.5 bn by 2025.

The market was valued at US$3.3 bn in 2017 and is expected to exhibit a robust 13.9% CAGR therein. The growth in microbial pesticide is been driving by 4 factors - residue, resistance, awareness and demand for safe and chemical free food. I think the microbial pesticide will continue to grow rapidly.
 
In recent years, merger and reorganization has become a hot topic in global agrichemical industry. However, how do you think the merger and reorganization of enterprises in the biopesticide & biocontrol industry?
 
Tom Laurita, CEO of NewLeaf Symbiotics: The investment community has figured out that agriculture is one of the biggest opportunities for disruption because of its scale and importance.

People all over the world are clamoring for industry to become more environmentally responsible and sustainable. Farmers want the same thing. We must do more with less. This message is changing the global agricultural crop protection industry. At NewLeaf, we view this change has a huge opportunity to advance the way growers raise crops, increase productivity and feed the world. 
 
 
Change is the inherent nature of agriculture. Collaboration of enterprises and scientific breakthroughs will continue to uncover new possibilities and capabilities from the earth beneath our feet. As agribusiness continues to evolve, so will new technologies that enter the marketplace.  
 
How you think the future of hybrid products in crop protection market?  
 
Guy Elitzur, CEO of STK: Hybrid products will be instrumental in helping growers adopt to future food protection challenges. Hybrid are tank-ready biologic solutions, with excellent synergy between the chemical and biological active ingredients,
for growers looking for an easier path to adopt integrated pest management (IPM) into their spraying programs.

Hybrid solutions are as a major catalyst for enabling the future of food protection, lowering the impact of chemicals, ensuring a more abundant and healthier food supply. The hybrid approach is a practical path towards a more secure and sustainable agricultural ecosystem. 
 
One way to increase food availability is to improve the management of pests-resistance. Plant extract-based solutions are proven in fighting diseases and strengthening the efficacy of integrated Pest Management (IPM) programs for multiple crops across the globe. Incorporating biologics into conventional spraying programs is the next logical revolution in enabling food growers in all sectors and geographies to better meet market demand, reduce their ecological footprint and thrive economically.
 
 

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