Koppert to increase revenue by more than 100%

Date:03-27-2023

Koppert Biological Systems expanded its operations in Brazil by announcing investments worth BRL700 million over the next three years.

During the 2022 fiscal year, the company’s revenue was predicted to reach the BRL800 million mark, representing a growth of just over 100% from the previous year.

The investment will be used to increase Koppert Brasil's production capacity, which began with the inauguration of its microbiological formulations factory in the city of Charqueada in the state of São Paulo.

Danilo Pedrazzoli, Industrial Director of Koppert Brasil

According to Danilo Pedrazzoli (Industrial Director of Koppert Brasil), the company plans to invest in three new production units in Brazil, guaranteeing its leading status in the Brazilian and world market in biological inputs for agriculture.

″The new formulation unit is located in an area of more than 8,000 m² and will produce the entire line of microbiologicals, which includes products based on viruses, fungi and bacteria in liquid or solid formulations,″ he said.

For this unit alone, BRL70 million was invested last year, generating 70 direct jobs in 2022.

″The formulations unit can produce 15 times higher outputs, as it can operate in three shifts. It has a high degree of process automation and robotization, ensuring more safety and a consequent rise in product quality,″ Pedrazzoli said.

The expansions are a consequence of Koppert's growth in Brazil and the ″Southern Cone″ of Argentina, Paraguay and Uruguay, and the expansion of the biologics market in these regions.

″We believe that with these expansions, we will increase our market share to around 25%, considering the total industrial potential plus the total on-farm potential of 33%, and considering only the industrial one,″ said Gustavo Herrmann (Commercial Director of Koppert Brasil).

The adoption of biodefensives by producers has been growing, advancing in an ever-increasing portion of the chemical market.

″In search of greater productivity, high technology producers saw, in biological solutions, the economic and financial sustainability to take them to another level. What was previously restricted to niche crops, such as HFs, such as vegetables and fruits, and large-scale crops, potatoes, tomatoes, onions, carrots, peppers and garlic, evolved into large crops, such as soybeans and corn. In addition, to combat some pests and diseases, biological products have been recognized by rural producers as superior to their chemical competitors,″ Herrmann said.

According to data from CropLife Brasil, the Brazilian market for biological pesticides is growing at around 30% per year, and in 2021, it recorded sales of R$1.79 billion. In terms of long-term expectations, the entity said that the biologics market can grow another 107% till 2030 to BRL3.69 billion.

On the other hand, the Southern Cone is still a market with more timid growth than Brazil, nut this year, it should reach a potential value of approximately BRL500 million, Herrmann said in conclusion.

(Editing by Leonardo Gottems, reporter for AgroPages)