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“Eyes on Latin America market: Koppert invests in inoculants” - Interview with Gustavo Herrmann
Aug. 19, 2019
Koppert
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NetherlandsRelated News
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By Leonardo Gottems, Reporter for AgroPages
The inoculant market is estimated at 120 million doses per year in Mercosur. As it is interested in this potential, Koppert has recently acquired the Argentine company Nitrasoil, a leader in inoculants in the country neighboring Brazil. In the 2017/18 Brazilian crop season, approximately 53 million doses of inoculant were sold, equivalent to US$ 44 million.
The adoption of inoculant use in the Brazilian market, on average, was almost 80%, according to a survey by Spark Smarter Decisions, in partnership with Brazil National Association of Inoculant Producers and Importers (ANPII). According to data from Emater / PR, in the 2017/2018 crop season, soybean inoculation accounted for an average yield increase of 1.8 bags per hectare.
For Koppert do Brasil commercial director Gustavo Herrmann, the acquisition of Nitrasoil is strategic, as it expands the business of the Brazilian operation in South America and puts the company in a new segment. This is the company's second acquisition in less than two years. In late 2017, Koppert acquired the macrobiological company BUG, becoming the largest biological control company in the country. Below is the conversation AgroPages had with Herrmann:
What opportunities does Koppert seek with the acquisition of Argentina Nitrasoil?
With the acquisition of its industrial unit in Argentina, and its portfolio of inoculants and bioprotectants, Koppert intends to expand the range of products offered worldwide, and also to serve Southern Cone farmers - Argentina, Uruguay, Paraguay and Bolivia. We are taking a very important step in the inoculant market, where until now Koppert had no activity, and we will also take the biodefensives produced in Brazil to other countries in South America.
How do you see the inoculant market in the Southern Cone? What projections do you make for this sector?
It is a very promising market, which has grown a lot in Brazil and also in neighboring countries. We estimate that the Southern Cone inoculant market for large crops will reach 120 million doses per year. In the Brazilian market, the adoption of the use of inoculants reached 80% in the last crop season. We intend to gain a 10% share of the Southern Cone inoculant market in the next 5 years, and also to enter with force with these products in Brazil.
Will other acquisitions or mergers come? What position does Koppert want to reach?
Koppert is an innovative company that is always looking for new opportunities, always focusing on agriculture and organic products. We are already world leaders in biological control and we are seeking the same for Brazil. Projections for this crop season already point us towards becoming the largest in the Brazilian market.
Source: AgroNews
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