{"id":134382,"date":"2024-11-01T10:53:30","date_gmt":"2024-11-01T14:53:30","guid":{"rendered":"https:\/\/www.agribusinessglobal.com\/?p=134382"},"modified":"2026-03-26T10:54:23","modified_gmt":"2026-03-26T14:54:23","slug":"the-eus-7-challenges-for-biological-companies-and-how-to-overcome-them","status":"publish","type":"post","link":"https:\/\/www.agribusinessglobal.com\/es\/biologicals\/the-eus-7-challenges-for-biological-companies-and-how-to-overcome-them\/","title":{"rendered":"Siete retos de la UE para empresas biol\u00f3gicas y c\u00f3mo superarlos"},"content":{"rendered":"

When thinking about launching a biological product in the European Union, one roadblock immediately comes to mind\u2014the region\u2019s regulatory system.<\/p>\n

In February of this year, EU growers protested in the streets about many grievances\u2014including the increasing restrictions of the Green Deal and growers\u2019 shrinking toolbox to combat pests and weeds. The EU growers\u2019 limited choice of biological products is impacted by the EU\u2019s backlogged registrations application process.<\/p>\n

Mark Trimmer, President and Founding Partner of DunhamTrimmer<\/a> says, \u201cWe see a very small share for microbial products in Europe. It\u2019s mainly dominated by pheromones, plant extracts, PGRs, and other mineral-type products that are used on a broad scale. And that\u2019s really a response to the regulatory system. It just takes forever to get a microbial product on the market, especially if it\u2019s a new species not previously approved as a biocontrol agent. If it\u2019s something that has been registered in the past \u2014 a Bt, for example \u2014 that can enter the market a little bit more easily, but it still takes a very long time.\u201d<\/p>\n

A \u201clong time\u201d often translates into a slow and expensive death for most start-up biological companies trying to get into the market. While biocontrol products have a long road, EU regulations for biostimulants has improved with Regulation (EU) 2019\/1009 bringing biostimulants under the fertilizer category.<\/p>\n

Lawrence Middler, Biologicals Senior Analyst for AgbioInvestor<\/a> says the biostimulants market is showing promise as growers look for ways to deal with abiotic stress. \u201cBiostimulants could have a good opportunity over the coming years, also being boosted by sustainability targets to reduce fertilizer usage,\u201d says Middler.<\/p>\n

Biostimulants currently doing well are Corteva\u2019s BlueN (Methylobacterium symbioticum strain Sb23) and Syngenta\u2019s ISABION (Amino acids \/ C \/ N), CBC\u2019s Plantech (amino acids \/ C (Organic) \/ N (Organic) products all have a significant place in the market according to AgbioInvestor.<\/p>\n

As the EU continues to ban products like fungicides (e.g. mancozeb) and insecticides (e.g. neonicotinoids), Middler says, \u201cThere has also been a concerted effort to reign-in the use of emergency exemptions (derogations) which has further underlined the need for products to target problematic pests, a good example being the stem flea beetle.\u201d<\/p>\n

Seven Counters for Seven Challenges<\/h2>\n

In addition to the EU\u2019s regulatory challenges, launching a biological product faces several challenges. As in any good strategy, finding a counter to an obstacle is the way through. Thomas Laurent, CEO of Micropep<\/a> and Middler give the following points to consider.<\/p>\n

CHALLENGE 1: Fragmented Agricultural Market: The EU\u2019s agricultural sector is highly fragmented, and farming practices vary widely from country to country.<\/strong><\/p>\n

\u201cCompanies must develop tailored solutions to meet local needs and comply with differing agricultural standards,\u201d says Laurent. \u201cEach country may require unique product adaptations to suit their farming methods and conditions.\u201d<\/p>\n

CHALLENGE 2: Farmer Training and Education: EU growers use biologicals often in an integrated pest management (IPM) program, which can be more complicated farming practices.<\/strong><\/p>\n

\u201cIt is crucial to train farmers to use these products properly,\u201d says Laurent. \u201cBiologicals require careful attention to application timing, soil and weather conditions, dosage, and co-application with other products. Farmers need to understand the complexity of biologicals and how they differ from the simpler, highly efficient chemicals they are used to. Training must take an agronomical approach, with clear parameters and regular follow-ups on meteorological conditions.\u201d<\/p>\n

CHALLENGE 3: Sustainability and Environmental Focus: With the Green Deal, the EU government and consumers are demanding sustainable practices.<\/strong><\/p>\n

\u201cCompanies must demonstrate the environmental benefits of their biological products alongside their efficacy,\u201d says Laurent. \u201cThis makes it important to highlight how biologicals support sustainability and contribute to reducing chemical usage, which resonates well with European growers.\u201d<\/p>\n

CHALLENGE 4: Cost and Scalability: The EU\u2019s small-scale, local farmers are as cost-conscious as large-scale U.S. farmers.<\/strong><\/p>\n

\u201cThe production of biological products is typically more expensive than chemical alternatives and finding a balance between efficiency and affordability is essential for success,\u201d says Laurent.<\/p>\n

CHALLENGE 5: Formulation and Stability: Biological molecules are often created with a restrictive shelf-life.<\/strong><\/p>\n

\u201cEnsuring the product is stable and performs consistently under various conditions is a challenge that companies must address, particularly given Europe\u2019s strict requirements for product quality and sustainability,\u201d says Laurent.<\/p>\n

CHALLENGE 6: Fierce Competition: Established markets such as France, Spain, and Italy, the product and company landscape is highly competitive.<\/strong><\/p>\n

\u201cBringing a new product to those markets will rely on companies having a laser focus on filling gaps in the market, satisfying a number of factors such as lowering costs, efficacy, resistance management, product substitution and input efficiencies,\u201d says Middler. \u201c[These markets have] an appetite for wider product adoption, especially in row crops, and governmental sustainability targets should stimulate the market in the medium to longer term.\u201d<\/p>\n

CHALLENGE 7: Application Incentives: Some European countries, like France, have strict application limits for chemicals.<\/strong><\/p>\n

\u201cThis can serve as an incentive for farmers to adopt biologicals, as they are not included in these application indexes,\u201d says Laurent. \u201cHighlighting this advantage can be a valuable selling point.\u201d<\/p>\n

Putting a CAP on Biologicals<\/h2>\n

The Common Agricultural Policy (CAP) encourages the adoption of biocontrol and other biological products by offering broader support for environmentally friendly agricultural practices. EU farmers receive indirect financial support for using biologicals through CAP programs.<\/p>\n

The CAP provides various subsidies and grants to incentivize sustainable farming, which includes biological solutions as part of IPM and other eco-friendly approaches. This financial backing makes transitioning to biologicals more appealing for farmers looking to adopt greener practices.<\/p>\n

However, if the EU decides to reduce the CAP budget, this could lead to a decrease in farm income and profitability, putting additional pressure on farmers to maintain operations. In such a scenario, the value of crop output could fall, and the financial attractiveness of using biologicals might diminish unless more targeted support is introduced.<\/p>\n","protected":false},"excerpt":{"rendered":"

C\u00f3mo superar los retos que plantea el sistema regulatorio de la UE. <\/p>","protected":false},"author":2163,"featured_media":72484,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4,1786,29,5],"tags":[2004],"class_list":["post-134382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agrochemicals","category-biologicals","category-europe","category-markets","tag-abg-report-november-2024"],"yoast_head":"\nThe EU\u2019s 7 Challenges for Biological Companies and How to Overcome Them - AgriBusiness Global<\/title>\n<meta name=\"description\" content=\"How to overcome challenges presented by EU's regulatory system.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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