Pivot Bio to enter Brazil with genetically modified bacterial biofertilizers

Date:12-13-2024

The American startup Pivot Bio is awaiting final product registration approval to debut in the Brazilian market. 

The agtech company, considered a "unicorn" with investments exceeding US$700 million and a valuation of $1.7 billion, uses genetically modified microorganisms to reduce conventional fertilizer usage.

The startup's significant valuation stems from its products' ability to reduce synthetic nitrogen fertilizer use by approximately 20% in crops like corn, cotton, wheat, and sorghum. In just five crop seasons, Pivot Bio has already established a presence in 5% of U.S. corn fields.

Pivot Bio entered Brazil quietly last year to structure its local operation and initiate product registration. Given Brazil's agricultural potential and multiple cropping systems, the country was chosen to kick off the company's internationalization process and test its business scaling capabilities.

Márcio Farah, Pivot Bio's General Director in Brazil, has already established contacts with potential clients and partners to field-test their products. Approximately 30 large test areas (between 20 and 50 hectares) were cultivated on properties of major corn, cotton, sorghum, and wheat producers, mainly in Brazil's Central-West region.

According to the executive, product registration is entering its final phase, with the company expecting to start commercial sales in Brazil during the first months of 2025. The first product to launch will be Proven, formulated with Klebsiella variicola and Kosakonia sacchari, recommended for corn cultivation.

Shortly after, the company plans to launch Return (Klebsiella variicola), initially targeting sorghum and wheat fertilization. Both products utilize soil bacteria modified to absorb nitrogen from the air and transform it into ammonia.

Pivot Bio is currently structuring its commercial operation and has announced its first three team hires. Professionals with experience from groups like FMC, Syngenta, Monsanto, Bunge, and Du Pont have been admitted.

Initially, all products to be commercialized in Brazil will be imported from the United States. Pivot Bio has already contracted warehouses and established branches in Brazilian territory to store inputs that are to be delivered in Brazilian territory. The products are offered in powder form and are to be diluted on farms with specific oils.

(Editing by Leonardo Gottems, reporter for AgroPages)