Bion Tech Inc.：The pioneer of biopesticide industry in Taiwan

AgroPages recently had an interview with the Founder and CEO of Bion Tech Inc., Bruce Chen, who first shared his original intention to devote himself to biopesticides, and then shared his viewpoints on the market positioning and strategy, business model and competitive advantages, etc.

Q1: Could you please introduce Bion Tech’s development history, market positioning and main business?

Bion Tech Inc. was born and inspired because of the tears of my daughter.  One day, when my daughter was in primary school, the teacher asked all the children about their parents’ professions. On saying that her parents were in the business of manufacture of pesticides, and realizing the perception from her class-fellows about the connotation and misconceived image about pesticides as poisons used to commit suicides, made her very sad and tearful about what her parents did !  When I returned home from work that evening, her tears and sadness deeply affected me.  This was way back in 1990, andI was intensely inspired and driven to dedicate and devote my efforts, resources and time towards a company focused on biopesticides and non-chemical products.

Bion Tech Inc. was incorporated in 2002, and in the preceding years, we had already developed Bacillus subtilis proprietary strain Y1336 and Streptomyces Candidus proprietary strain Y21007 in collaboration with Development Center for Biotechnology (DCB), which is one of the top Research Institutes in Taiwan supported by government.  Bion Tech Inc. was established as, and still is, an R&D based and R&D driven company, and has focus and specialization on research and development, manufacture (lab scale to industrial production), registrations, distribution, marketing and sales of biological products (proprietary strains) and non-chemical products that have use in multiple segments in agricultural industry, such as Crop Protection (Biopesticides), Crop Health (Biofertilizer and Fertilizer Enhancer projects), and also Animal Nutrition (Probiotics Animal Feed Additive for Animal Livestock, Aquaculture, Poultry, etc.).  Our flagship international product for crop protection is Bacillus subtilis proprietary strain Y1336.  And, we also expect our Probiotic Animal Feed Additive product to score big.

Q2: What is Bion Tech’s market strategy and business model?

Our proprietary strain Y1336 of Bacillus subtilis is very aggressive, and with good acceptance in Taiwan, I wanted to take it to international markets.  Our first step in international market started with registration in Japan.  With having set our international standard with the registration in Japan, we have now successfully secured registrations in 10 countries (3 OECD countries), and registrations in another 5 countries are expected next.  We are well positioned in South East Asia market.  While we do note the high adoption rate and favourable growth market of biopesticides in USA and Europe, however, agriculture in Asia is now very big and exciting, and agriculture is developing very rapidly with strong trends and regulatory shifts towards bio-products.  We have been working in South East Asia Pacific region since we started Bion Tech, hence the shift in trends towards bio-products in this region, proves that our direction was, and has been the right one, and also ahead of times, particularly for this South East Asia Pacific region.  We already have a niche position, and with our good understanding and strong contacts in this region, we would like to further consolidate and strengthen our position in this region.

Regarding business model, Bion Tech has direct distribution in Taiwan.  In 2015, our mother company completed 50 years of service to farmers in Taiwan, and we have a strong network of passionate distributors with whom we have been working for past so many years over their family generations like ours.  For international markets, we select and join with the best partner in each country, who are also equally and passionately bio-minded like us, and who join us in a collaboration to identify the niche target markets for registration and commercialization, and also work on product stewardship to educate farmers about our product and correct positioning and usage.  Educating the farmers is the key.  At international level, our model is as a supplier directly to National Companies of each country, who are our partners and national distributors.  In some cases, we also associate with trusted agents or consultants to help us bring our products to certain countries, where they have better access and knowledge about the market and also strong links with good and strong distribution companies.  In some countries, we also have our own Bion Tech offices to own and hold our registrations.

Q3: Could you talk about Bion Tech’s product portfolio and special advantages?

Our flagship product is our proprietary strain Y1336 of Bacillus subtilis, which is a highly aggressive strain and performs effectively as a good foliar biofungicide and biobactericide.  It also has equally good performance against soil diseases like other Bacillus subtilis products are normally used.  We have segmented our Y1336 usage as a foliar and soil biofungicide and biobactericide in WP and AS formulations.  Also as a biofertilizer in WP and Liquid formulations.  And, additionally as Fertilizer Enhancer projects, whereby we provide both our product and technical know-how to fertilizer producers. We also have Streptomyces candidus proprietary strain Y21007, which is a biofungicide having strong performance on Phytophthora.  Beyond biopesticide and biofertilizer market segments, we have a unique and well-researched double bacteria proprietary strains product for use as a Probiotic Animal Feed Additive.  With restrictions on antibiotics in animal husbandry industry, probiotics are sure to be in demand, and our unique double bacteria probiotic will gain further market share.

In Taiwan, we have strong contacts and continuously work in various projects liaising with top researchers and professors in Research Institutes, Organizations and Universities to improve our product position of existing strains, and also to collaborate for new strains.

Q4: Could you introduce Bion Tech’scooperation model and plans to launch new products?

We are constantly approached by Multi-National and Trans-National Companies, who are investing with our R&D for screening our proprietary strain bank for identification of bioinsecticide and bioacaricide functions.  We are also collaborating with some non-agriculture industry partners for using their special and unique non-agriculture technologies into developing unique products for agriculture.

Regarding the plans to launch new products, we expect to have around 20 new strains by the next 3 years that are fit and ready for commercialization starting with Taiwan.We will launch some new proprietary products in 2016.  A new special and proprietary strain of Bacillus amyloliquifaciens, which has been isolated from mud magma i.e. volcanic type soil, which works as a biofungicide and biobactericide.  We are also launching a new patented nano technology product for plant health.  We have also received registration of our Bacillus subtilis proprietary strain Y1336 liquid formulation in China, and are being approached by MNCs and Chinese companies for distribution in China, which we are currently evaluating.

Bion Tech would be happy to hear from like-minded and bio-minded interested companies via subhendu@biontech.com.tw or marketing@biontech.com.tw