Biostimulants to emerge as the product of choice as sustainability defines the future of the agriculture industry

Soil infertility is one of the pressing challenges in the field of agriculture worldwide. In effect, the demand for biostimulants has increased substantially in recent years. Biostimulants are products that help in overcoming the supply chain volatility in agriculture introduced by dramatic climatic variations and most recently, the Russia-Ukraine war.

To that end, it goes without saying that the rising need for enhanced crop protection and crop nutrition will transform the biostimulants market dynamics in the coming years. Numerous studies have depicted that biostimulants can be used as an additive to fertilizers, thereby reducing their use. Building on this, enterprises are seeking to launch biostimulants that would help farmers cut down on fertilizer use without compromising crop yield.

In one of its latest moves, Evonik Industries announced working on a biostimulant that would enable agriculturists and farmers to reduce their fertilizer use in half, while maintaining 93% of the yield. This breakthrough would help EU farmers reach the European Commission’s goal of slashing fertilizer use by 20% by 2030 end. The product is targeted at non-leguminous crops like corn and wheat and may be rolled out between 2025-2027. It is imperative to note that the product launch is also influenced by the growing fertilizer prices.

Spiraling fertilizer prices: An opportunity for biostimulants market players

‘Fertilizer prices have climbed nearly more than 30% since the start of 2022, following the previous year’s 80% rise.’ – The World Bank

Increasing synthetic fertilizer prices are driven by several factors like supply snags, surging input costs, and the war, which has disrupted trade with Russia, one of the biggest suppliers of major crop nutrients. Russia accounts for approximately 16% of the global urea exports and nearly 12% of MAP and DAP exports, which are now being greatly impacted by the war.

A report by the American Farm Bureau Federation and the USDA cites that in the United States alone, fertilizer bills are likely to jump 12% by 2022 end, after recording a 17% hike in 2021.

This crunch is particularly tough for corn growers across the States. The National Corn Growers Association estimates that its members would spend about 80% more on synthetic fertilizers in 2022 than they did the last year. On average, this would represent USD 128,000 in added costs per farm.

In response to this, the Biden Administration declared a new grant program in March 2022 to support the production and commercialization of innovative American-made fertilizers to provide US farmers with more options in the marketplace. One of the productive moves in this regard is the use of biostimulants, which is supported by the growing inclination of farmers toward sustainable agriculture practices.

Analyzing 4 ways in which biostimulants could support sustainable agriculture

1. Improvement in plant tolerance to abiotic stress: Biostimulants strengthen plant vigor making them highly resilient to survive and recover in extreme climatic and weather conditions.
   

2. Enhancement in soil health: They support the proper development of beneficial soil microorganisms, thus improving soil health. This in turn decreases soil erosion, offering effective crop yield.
   

3. Boosting crop quality: Biostimulants contribute to the quality, color, and nutrient uptake of produce, presenting favorable outcomes for farmers in terms of income, food quality, and more.
   

4. Nutrient assimilation to crops: Biostimulants help crops incorporate essential nutrients to ensure a higher return on investments for farmers and reduced negative impacts on the environment.

The demand for biostimulants for sustainable agriculture is also regulated by new governmental reforms. To illustrate, the European Union Fertilizing Products Regulations opened the European market for organic and recycled materials for biostimulants. The new regulation recognizes the proven potential for biostimulants to support the yield and growth of crops and plant protection. 

Elaborating further, US Congressman Jimmy Panetta also proposed a bipartisan bill, the Plant Biostimulant Act 2022. The bill seeks to modify the US’s Federal Insecticide, Fungicide, and Rodenticide Act, and simultaneously establish a national definition and increase the utilization of plant biostimulants.

One of the most promising classes of plant biostimulants is seaweed extracts which represent the fast-growing biostimulants industry.

Seaweed-extract biostimulants: A rescue solution for abiotic stresses in agriculture

While the agriculture sector worldwide is struggling with abiotic stresses like soil degradation and drought, seaweed extracts have emerged as an ideal solution for the pressing challenge. The substances increase tissue concentrations, improve the mineral composition of plant tissues, and enhance root-to-shoot transport of micronutrients.

Under normal environmental conditions, the utilization of seaweed extracts could lead to increased crop productivity and improved growth performance. Propelled by such benefits, numerous R&D initiatives in the field are underway.

Speaking on the aforesaid, researchers from the Central Salt and Marine Chemical Research Institute, India announced working on the development of seaweed-based biostimulants. It was reported that the product would help increase crop productivity in India by nearly up to 37%. For this initiative, the organization is collaborating with several private entities to use its technology. One of the enterprises is AquAgri Processing Private Limited, which has built a plant for the manufacturing of seaweed sap biostimulants.

The Indian sub-continent is projected to be one of the highest revenue-generating regions for seaweed-extract biostimulants, given the fact that the current demand for seaweeds in the country is approximately 450,000 tons of solid biostimulants.

As modern agriculture is expanding, the need for new tools and technologies for increasing crop productivity is producing new opportunities for bio-based agriculture, including the use of biostimulants. In the years to follow, the biostimulants market is forecast to observe massive growth year-to-year subject to the product’s significant utilization for vegetable and fruit crops to suffice the underserved countries.

The African region is slated to present new avenues for the market, driven majorly by impoverished population, degraded agricultural land, and disruptions due to natural calamities like drought.