Biocontrols: Natural Defenses
3 August 2009 While biopesticides still only make up around 2% of the global pesticide market, the segment’s market share is growing faster than conventional chemicals. The biopesticide market is projected to be about US $1 billion in 2010, says Pam Marrone, founder and CEO of Marrone Bio Innovations (MBI), which expects to double its growth every year for the next three to five years. Growth for the sector is estimated at 10% to 20% annually.
Global Biopesticides
Growth opportunities exist in different markets for different reasons, says Marcus Meadows-Smith, CEO of AgraQuest. “We see the major US growth areas come from the increasing realization that modern biopesticides can deliver efficacy, yield increase and additional tools to growers,” Meadows-Smith says. “In Europe, the drivers are consumer and regulator demand for food with lower residues, and from the opportunities and needs created by the current de-listing by regulators of a substantial percentage of the synthetic actives for poor toxicology.” Biocontrols fall into many categories, from pesticides to attractants to repellents to plant growth regulators. There are also many different modes of action; a new EPA registered product by BioWorks — SuffOil-X Spray Oil Emulsion — works by suffocating the eggs, larvae, and nymphs of adult soft-bodied insects and mites for control of such insects and mites, as well as foliar fungi and powdery mildew. Others, such as Pasteuria usgae, recently registered in the US by Pasteuria Bioscience, makes use of a natural bacteria found in soil to control nematodes. More recently, researchers at US Department of Agriculture’s Agricultural Research Service (ARS) have identified a compound produced by Bacillius mojavensis strain RRC101 that can be used to control fungal disease caused by Fusarium verticillioides. Such biocontrol agents can be used in biotechnical and biopharmaceutical applications, says ARS.
Growth Of An Industry
Marrone has dedicated her 26-year career to discovery and development of biopesticides because, “We would like to see these biological products become as mainstream as chemicals have been,” she says. Marrone may get her wish, as biocontrols gain more market share every year. The US and EU play a big part in this; stricter residue requirements are coming into place and are supported by some major grocery chains and processors, says Tim Damico, executive vice president of the NAFTA region, Certis USA, a wholly-owned subsidiary of Japanese firm Mitsui & Co. Not only is regionally-grown produce required to follow new regulations, but growers who have to export into these countries are very conscientious about what they’re putting on their crops, Damico says. “Naturally, biopesticides provide that offering whereby they can help reduce some of the residues that can potentially show up in the crop.
“In Mexico, there’s greater adoption because those growers are most likely exporting to the US, some to Japan, some produce goes to Europe,” Damico says. “They’re very conscientious about what goes on that crop because they want to meet the requirements of the importer and reduce the risk of having their crop rejected.” Meadows-Smith agrees. “Latin American countries that export into the US and EU give us a lot of business, tending towards high-value crops such as asparagus, melons, etc.” AgraQuest Senior Vice President – Global Marketing, Ashish Malik, adds: “It’s not only Latin America, but also fruit from New Zealand that’s shipped to the European market. Given the size of the country, per capita, it’s a very nice market.”
Another part of the industry’s growth can be attributed to the lower cost of research and development, as well as ease of registration. Marrone says: “Biopesticides average $3 million and three years to develop compared with $200 million and 10 years for conventional pesticides.” Registration is also less expensive in most countries. In the US, says Damico: “Biopesticides are typically exempt from tolerance, which reduces the need for residue trials, which are very expensive and lengthy. The pathway then takes less time and less investment.”
Once a biological product is approved, says Damico, registration in some other nations becomes even easier. “Mexico is a good example,” he explains. “Once you have US registration, the Mexico regulatory authorities readily accept that EPA data, or accept any developed country data. It’s more of an administrative process than a regulatory testing type procedure in Mexico.”
Marrone says biologicals can have a time frame of 18 months and fewer requirements. Conventional chemicals and biopesticides both start out the same at Tier I tox and ecotox, she explains; however, biopesticides do not have to conduct more tox tests if there are no “direct toxic effects” in Tier I. Synthetic chemicals, which usually show Tier I “direct toxic effects,” are required to continue more testing.
The EU remains one of the only exceptions. While it’s one of the largest growing markets for biological products adoption, biocontrol registration is no easier or less expensive than conventional products. Damico explains: “A good example is botanical extracts or naturally occurring insect growth regulators — the European community looks at these as a pesticide. They classify it in the same category as a conventional chemical pesticide, so it has to go through all the same testing, all the same procedures as a traditional chemistry would. So, the timeline and the cost is very similar to a traditional chemical.”
Still, the EU playing field is fairly level, says Meadows-Smith: “Because everyone has very high cost of entry, people build that into their product.” He also believes that the EU will be highly profitable, due to the ability of fewer products to enter the market. Today, more than 60% of AgraQuest’s sales are in the US; however, the company is gaining registrations all over the world with its Serenade fungicide — already registered and sold in over 20 countries, including an Annex 1 listing in the EU — and Rhapsody, Sonata, and Ballad Plus fungicides, as well as the insecticide Requiem.
While the best markets for biologicals have trended towards eco-sensitive nations such as the US, EU, and Japan, and exporting regions such as Latin America, adoption in the Middle and Far East is beginning to increase.
BASF is looking to launch AgraQuest’s Serenade into several different countries in Asia, including India. “We’re registered in Asia-Pacific in New Zealand, Japan, and Korea, as well as a couple of other countries,” says Meadows-Smith. “This is one reason we’re so excited about our deal with BASF — because they are looking to take us into countries where we didn’t have registration.”
Emerging Demand
Biologicals can fill a lot of the agriculture industry’s unmet needs, such as resistance management, says Damico. “If you’re trying to avoid resistance to conventional chemicals, biologicals are good to break that sequence of events,” he explains. “Not just by providing a different mode of action, but the level at which biologicals develop resistance is much less.”
Damico mentions other market needs. “Re-entry levels, PHI requirements, residue regulations, worker safety and handling. Workers are free to go into a field that has been treated with a biological because most likely, it’s not going to cause any harm. The requirements of re-entry are traditionally less for a biopesticide.”
More specifically, Damico gives nematicides as a good example. “There’s an emerging need,” he says. “Nematicides and soil fumigants are being further restricted in terms of their rates and where they can be used. A weak link in nematode control has been created.”
Certis USA is in the midst of introducing Melocon, a bionematicide, to fill that void. “The trade is pleasantly surprised with the effectiveness of the product,” Damico says.
Marrone adds a few more reasons for adoption. “When conventional growers use biopesticides in IPM programs, they see better yields and quality than chemical-only programs,” she says, adding that “low impact to beneficials and other non target organisms” is yet another plus for biologicals.
Complimentary Chemistries
The world is changing as nations trend toward natural alternatives for crop protection, and manufacturers, dealers, and distributors need to keep up. Most biopesticide manufacturers view their products as part of the crop protection industry, not as competitors with it. “Most biopesticides are used in conventional ag integrated into IPM programs and as tank mixes or rotations,” says Marrone.
For growers more hesitant to change, these combination or rotational products can help bridge the gap between conventionals and biologicals. “Biologicals are now being used in combination with synthetics in a tank mix or a spray program,” explains Meadows-Smith. “We’ve identified true synergies with synthetic chemicals and Serenade. We have a synergystic effect with strobilurin, the triazoles, etc., with people using them in combination now to reduce the load on the environment.”
Growers may feel they get better efficacy, broader disease control and better yields — plus the advantage of residue management — if they use two products instead of just one. One such method is through rotational programs, says Malik. “One day, they’ll spray our fungicide; the next day, they’ll spray a different fungicide.”
AgraQuest takes this into consideration when planning new products, says Meadows-Smith. “We do work around compatibility and suitability for tank mixing,” he says, explaining that the company makes recommendations for tank-mixes. “That’s part of what we talk about when designing future products — making sure that our products can be easily tank mixed.” MBI is also following that trend, with growth opportunities in: “products integrated into programs as alternations and tank mixes for resistance management and residue management and better performance and plant health.”
Mihir Virji of India’s Nicosulf says the company’s best selling products are bionematicides and biofungicides, with some biofertilizers and biopesticides in the pipeline. With revenues growing by 70% during the last three years, Nicosulf is positive about the industry’s future.
Marrone sees opportunities “in all segments. High value specialty crops — fruits, nuts, veg, vines, flowers will still be the best areas for biopesticides, but we will see more entries into row crops as well for soybean rust, seed treatments, nematode control. Regalia Biofungicide is our lead product,” she explains. “Our next product is a microbial biopesticide for controlling invasive zebra and quagga mussels. We expect to have it on the market mid-2010 or possibly in 2009 under a Section 18 emergency use. We have a rice herbicide (2011), two insecticides (late 2010 non crop and 2011 crop), and a systemic herbicide (2011).”
The financial aspect of including biologicals is promising, but it’s the philosophy behind supporting a range of conventional and biological products that keeps many of these manufacturers in the business. “[Nicosulf] has always been committed to ecofriendly agricultural practice,” explains Virji.
It’s a common theme. “We do very much focus on the efficacy and the yield part of our service, but the bottom line is that we’re still very passionate about the environment, about having better quality food and a safer world,” explains Meadows-Smith. “Rather than be evangelical about that organic niche market where we might sell $5 or 10 million, we much prefer to talk to the masses and sell $200 million, because that means we have improved the environment ten times, twenty times greater by being used on more acres. So we take a very pragmatic approach to actually benefitting the environment. It’s like the difference between giving people the option of buying a Prius and driving something environmentally less impactful, rather than saying the only option is to walk.”
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