Industry Giants Comment: 2013, The Year of the Biological?
22 January 2013 In one of the most answered polls in Farm Chemicals International’s recent history, 58% of respondents told us they believed that 2013 would be the proverbial “Year of the Biological.” True or not, one thing is clear: The traditional chemical industry is embracing more sustainable technology with serious financial upsides.
■ Bayer CropScience
Bayer CropScience’s acquisition of AgraQuest last year speaks volumes about the potential of the sector. Bayer paid almost $500 million for the global supplier of biological pest management solutions, thereby broadcasting their belief in the products. Bayer’s Director of Communications, Utz Klages, says that he firmly believes that the biologicals market will become increasingly important in years to come.
Referencing the success the company has had with its Poncho/Votivo seed treatment, which employs a unique bacterial strain that lives and grows with young roots, creating a living barrier that prevents nematodes from causing damage, Klages says the main advantage to biologicals is their high selectivity. “They can be cornerstones for sustainable IPM programs and additional tools to fight and prevent development of resistance,” he says.
Klages says with biologicals in their portfolio, Bayer plans to expand into new markets over the course of the year such as organic farming.
■ BASF
BASF is investing heavily in biologicals as well. Having acquired Becker Underwood, BASF is prepared to address major issues in the ag industry, including resistance.
Peter Innes, chairman and chief executive officer of Becker Underwood, who accepted the position of Global Senior Advisor to the Crop Protection division at BASF after the acquisition, says the niche provides options for farmers that could help stem food insecurity in key markets.
“We strongly believe biologicals represent a great way to address the rising food crisis,” Innes says. “We’ve been trying to harness biologicals and polymers, which are our main focus, so we’re thrilled to be partnering with BASF. These two areas will provide the markets with all-in-one solutions for agricultural plant health, nutrition, and horticulture as well as special technologies and land use.”
“Our long-term vision is that biologicals will play a key role in offering an additional tool to help growers boost their yields,” explains Juergen Huff, senior vice president, Functional Crop Care. “Biologicals will be an important complement to existing and developing crop protection offerings.”
■ Arysta LifeSciences
Arysta LifeSciences is also making moves in the biological market. Benoit Genot, head of marketing for global biostimulants and value-added nutrients, defines biostimulants and biocontrol agents as two key branches of the same biologicals tree.
Biostimulants, he explains, are for consumers that are looking to supplement their fertilizer inputs in order to get better yields. In addition, these products could be used to improve crop quality and manage crop stress.
Biocontrol agents Genot defines as “natural pesticides” that are attractive to growers due to their low residues toxicity and re-entry period. Arysta views these products as a major component of their portfolio.
“Biostimulants are key because the demand for food and feed is increasing significantly as the populations increase, as Asia’s demand increases, and as the competition with biofuels stiffens,” Genot says.
In addition, biocontrol agents are becoming more profitable due to the uptick in interest from consumers because of their light ecological footprint and residue profile. “Although the demand for these no/low residue, no/low environmental impact products are mainly in the EU and U.S., where organic products have more and more success, it also concerns all the countries that export to the EU and U.S.,” he says.
As for how these trends affect the chemical companies, Genot says green portfolios at the distribution level indicate that the industry should be taking a proactive position to be present in the biologicals market.
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