Idemitsu plans global development for agrobiotechnology products

Idemitsu Kosan is aiming to shift to a globally oriented business model for its agricultural biotechnology products, which include microbial pesticides and livestock feed supplements, from its previous model that is focused on the domestic market. It plans to increase the overseas of this business to over 24bn yen ($295mn) in fiscal 2015, making up more than 50% of the business’ overall sales.

A major growth driver will be its new rumen function improver, which is made from plant oil derived from cashew-nut shells and output from its special yeast. The addition of the agent to the feed of cattle has been shown to suppress by more than 70% the production of methane gas in the cattle’s rumen, which is the first stomach chamber of ruminants and comprised 80% of the total stomach, and to raise by more than 20% the production of organic acids like propionic acid, an energy source for the cattle. The improver is also available for other ruminants, including sheep and camels.

Methane that remain in ruminants can cause conditions such as blot, which can sometimes be fatal for cattle, and the release of methane by ruminants is a major cause of global warming. Herbs and antibiotics are currently used to tackle the problem, but demand is expected to grow for Idemitsu’s rumen function improver because it is derived from plant materials and highly effective. The company is planning a market debut in Japan in fiscal 2011, with sales in Europe, the main market, to start in fiscal 2012.

Idemitsu reaped 2 bn yen in sales in fiscal 2009 from its biological pesticides, chiefly in the domestic market. It intends to raise the sales figure to 5 bn yen by fiscal 2012 by initiating the overseas promotion of its existing product lineup.

It had earlier commercialized, through a joint venture, its Kurapia, a new variety of Lippia nodiflora that is a superior ground-covering plant, selling Kurapia seedling for afforestation through nursery-plant distributors in Japan. Galvanized by the favorable results of field-testing in the dry conditions of the Middle East, it is preparing for an overseas launch.