Moves of Local Companies, Multinationals, European and American Companies in LATAM’s Agricultural Biologicals Market

Currently, bio-inputs are important tools for IPM programs for achieve cost efficiency and sustainability. There is no doubt that biocontrol products and biofertilizers have emerged and flourished in some Latin American (LATAM) countries in recent years, which is further confirmed by the successive introduction or discussion of relevant policies regarding the development and promotion of biologicals.

Under such a context, various bio-input developers and distributors have taken turns in launching new technologies, products and applications over the past year, due to the undoubted development potential of agricultural bio-inputs in LATAM countries.

LATAM companies: Three microorganisms out of wide range of product categories are mainly used

The LATAM agricultural biologicals market is dominated by local companies, with Brazilian start-ups being the most active players. Brazil is also a pioneer in the development of biologicals in LATAM. According to Embrapa, the country is already a global leader in bio-inputs and has registered over 500 biologicals.

Over the past year, local companies have launched a wide range of biologicals in the region, including predators, bioinsecticides, biofungicides and bionematicides.

Grupo Vittia, Promip and BioIn Biotecnologia in Brazil have launched three predator products. Among them, Criso-Vit, registered in Brazil by Grupo Vitia, can control seven pests, including whiteflies, green aphids and cotton aphids. The other three products are used to control whiteflies, fall armyworms, velvetbean caterpillars and others.

Biofungicides are mostly microbial-based products, and Trichoderma harzianum and Bacillus amyloliquefaciens are the two mostly favored microorganisms. Twixx-A launched by Brazil-based Agrivalle is based on two strains of B. amyloliquefaciens, which can be widely used to control foliar diseases affecting soybean, corn, bean and cotton crops. The seed treatment, TopSeed, formulated by Brazil’s Spraytec with T. harzianum is labeled for use on wheat and barley. Bactel, a biofungicide based on B. amyloliquefaciens launched by Brazil-based Dillon Biotecnologia, is mainly used to control fungal diseases, such as anthracnose affecting strawberry, grape and vegetable crops. Argentina-based Rizobacter launched Rizoderma, a seed treatment fungicide containing T. harzianum, in Argentina, as well as Rizoderma TSI, a new product containing T. afroharzianum, in Brazil.

Biotrop has registered Bombardeiro, a multi-site biofungicide, in Brazil at the end of 2021, which contains B. velezensis, B. pumilus and B. subtilis for controlling various end-of-cycle soybean diseases. IHARA also launched a biofungicide, Romeo (Cerevisane), in Brazil for controlling Asian soybean rust, which contains the active ingredient Cerevisane^®, a specific fraction of the yeast strain LAS 117 - Saccharomyces cerevisiae.

The newly introduced bioinsecticides are mainly used for controlling fall armyworm, and representative companies include Brazil's Embrapa and Promip. Beauveria bassiana is one of the microorganisms commonly used in biofungicides, and both Promip and Dillon Biotecnologia in Brazil offer products based on this microorganism. Chile-based INIA also registered a fungus-based bioinsecticide in Chile last year.

Multinationals: focusing on nematode control in Brazil

Multinational agrochemical companies are rapidly entering the local biologicals market through the acquisition of local companies. As they gradually gain a foothold in this segment, they are likely able to maintain high future growth levels in the South American market.

Over the past year or so, multinationals, such as BASF, FMC, ADAMA and UPL, have been actively involved in the rapidly developing biologicals blue ocean market in LATAM. Sumitomo Chemical and Mitsui & Co. have also launched or registered new products. Surprisingly, most of these companies are coincidentally focusing on the segment of nematode control.

Some institutions predict that the Brazilian nematicide market is expected to grow by about 14% over the next five years, much higher than the growth rate of fungicides at 3% and insecticides at 2%. Among them, bionematicides will occupy an important position.

Products with nematode control effects launched by multinationals include Votivo Prime (B. firmus), BASF’s first product in Brazil; two products based on B. licheniformis and B. subtilis introduced by FMC; Protégé, a fungicide and nematicide containing B. thuringiensis, B. velezensis and B. amyloliquefaciens; Aveo, a B. amyloliquefaciens-based seed treatment launched by Sumitomo Chemical, and a product based on Purpureocillium lilacinum newly registered by Mitsui & Co.

This year, BASF also entered the Argentine biologicals market with Serifel, a B. amyloliquefaciens-based biofungicide.

European and American companies: Extensive presence in LATAM markets beyond Brazil

The huge growth potential of the agricultural biologicals market in LATAM has also attracted innovative companies from Spain, the US, Canada, France and other countries. Unlike multinationals that have invested heavily in the Brazilian nematode control market, most of these companies have bypassed this highly competitive market over the past year, and instead, they leveraged their proprietary specialty products to snatch profit points in other markets.

US-based Plant Health Care (PHC) is one of the most active European and American companies in LATAM, with its core product, Harpin 𝜶β, a recombinant protein that acts as a powerful biostimulant, already launched in Brazil, Argentina and Uruguay. In 2021, PHC introduced Saori™, its first product using PRE tec technology for Asian soybean rust control in Brazil, the first country to approve PREtec peptides.

Some Spanish companies have entered several LATAM countries, relying on their specialty products. Idai Nature launched PREV-AM^®, a orange oil-based phytosanitary product with insecticidal, acaricidal and fungicidal activity, in Mexico. Seipasa, which has been operating in Chile since 2020, launched a line of biostimulants in Ecuador. Futureco Bioscience successfully registered NOFLY WP, a bioinsecticide based on the entomopathogenic fungus, Cordyceps fumosorosea, for controlling whiteflies, aphids, thrips and other pests, in Guatemala. Atlántica Agrícola further strengthened its market position in LATAM with four new product registrations in Colombia, Peru and Mexico, with more new products to be registered in Chile, Ecuador and Costa Rica. Daymsa has received registration in Brazil for a biofungicide based on cinnamaldehyde to be used against strawberry powdery mildew.

Canada’s Bee Vectoring Technologies announced it will register a biofungicide based on its proprietary Clonostachys rosea CR-7 in Mexico. France’s Agtech began operating a water-saving technology based on phytosterol in Brazil to cope with water resources pressure. South African company MBFi has promised to offer ″green chemistry″ to the Argentine market.

This article was initially published in AgroPages' '2022 Latin America Focus' magazine.