Better Agronomy (and Business) Through Biostimulants
Manufacturers and distributors take advantage of the explosive growth of these plant health products
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BY DAN JACOBS
SENIOR EDITOR
Biostimulants not only help deliver healthier crops, they also produce profits for the manufacturers and distributors developing and delivering them across the globe. Though countries vary in their rate of adoption and ability to bring products to market, just about every region has seen this segment grow.
Reasons for growth include the increase in global population, the decrease in land available for agriculture, and the desire for more sustainable and environmentally friendly crop inputs.
“We will need more food. We will need more fertilizer,” says Jorge Aguilar, Marketing Director, Tradecorp International. “We will need more solutions to supply this food in a sustainable way. And in this context, biostimulants are playing a key role.”
WHERE IN THE WORLD
For Stoller USA, Brazil, Argentina, and neighboring countries have been key customers. “South America has always been a strong player in this space with us as they were early adopters to our technology offerings,” says Stella Consorte Cato, Vice President of Global Technology for Stoller USA “However, the biostimulant market is important around the world, especially as growers look to find the next yield booster to get to increase their ability to produce high-quality food.”
Futureco Bioscience has seen upticks in other regions. “Asia-Pacific and Latin America are outpacing the rest of the world in biostimulant growth, increasing 12.5% and 12.7%, respectively, driven by the regions’ relatively late adoption and room for growth, consumers’ increasing willingness to pay for higher-quality agricultural products, and the need for more efficient use of resources,” says M. Jose Lis, Global Director of Strategic Marketing and Business Development for Futereco Bioscience. “Brazil, China, and India also present significant market opportunities together with Indonesia and sub-Saharan African countries such as Nigeria.”
THE REGULATORY ENVIRONMENT
For many regulatory agencies the challenge is how to classify biostimulant products. They’re not fertilizers, and they’re not pesticides. The agencies, often, have no alternative and force companies to follow one of those tracts for approval.
“In many countries, biostimulants have been marked without a specific regulation framework for years,” Botta says, “This has produced a set of relevant challenges to farmers in order to clearly understand how to use these types of products and what specific benefits to expect from them regarding the multiple market options. In the European Union (EU), the new regulation (EU) No 2019/1009, biostimulant regulatory framework is claim-based, meaning that it is the function of the product, not its composition, that defines it as a plant biostimulant.”
Botta continues, “The new EU regulation, and the same case for a specific biostimulant United States (U.S.) regulation that is currently being developed, will bring several advantages to both manufacturers and farmers. For the industry, it standardizes the criteria for authorizing biostimulants among all European countries, and it will bring more recognition to biostimulants products worldwide. For the farmer, it is beneficial the authorized product has been proven to have the effect that is claimed in the label.”
The EU’s new regulation starts to answer a problem many regulatory organizations have yet to figure out – how to categorize these products.
“This new regulatory framework will undoubtedly be a step forward in the European regulation and recognition of the biostimulants industry and will favor companies like Futureco Bioscience, which innovate, research, and develop biostimulants based on market needs, but guarantee at the same time effectiveness, reliability, and environmental safety,” she says.
SHOW ME THE SCIENCE
No matter where they are in the world, growers are notoriously skeptical. Not only do new solutions need to be effective, they must also be fiscally efficient.
“Biostimulants’ effects should be translated into claims that have value for farmers to optimize their investments of ag inputs to get the most of their crops in a sustainable way,” Botta says.
Proof of efficacy has been key to help these products gain wider acceptance. Companies are now taking the research to a deeper level.
“While most research has focused on the broad effects of biostimulants in crops, recent studies at the molecular level have started to unravel the pathways triggered by certain products at the cellular and gene level,” Lis says. “Understanding the molecular influences involved in the mechanism of action, could not only lead to further refinement of these treatments but also to scientifically demonstrate their effect on crops and therefore to professionalize the sector, avoiding unprofessional intrusions.”
A CHANGE IN ATTITUDES
The scientific support highlighting the efficacy of biostimulants runs in lockstep with the growth of the segment.
“It depends on the country, but globally it is true that biostimulants are very profitable in standardized farmer programs and are essential in coping with variable stress factors, regulatory limitations, as well as environmental concerns,” Botta says.
According to Tradecorp’s Aguilar, as the science has improved so has growers’ understanding and acceptance.
“We have gone through a period of education, of training, on demonstrating to them that what we were dealing with was true. And it had an impact on their business,” says Aguilar.
TRENDS
“The aim of modern agriculture is to reduce inputs and maximize crop yield and quality using sustainable and environmentally friendly products,” Botta says. “Rising products costs, climate and abiotic stresses, and limited resource availability are probably the major challenges that farmers face nowadays. Terms such as sustainable inputs, soil health, or regenerative agriculture are trending topics where biostimulants play an essential role. Absolutely, biostimulants and other biosolutions such as biofertilizers and biocontrol solutions, will benefit from it if they really solve farmers’ problems and show return of investment.”
Merger and acquisition activity in the biological world is another trend that is expected to continue and likely expand in the next few years. BioConsortia, Inc. and The Mosaic Company recently announced the two organizations have entered into a new agreement to distribute BioConsortia’s new microbial biostimulant (ZAFFRE) in Asia. The product optimizes root conditions to help the plant use available nutrients in the soil.
DRIVING THE CHANGE
Stoller’s Cato points to three factors driving those change.
1. Climate Change: “Growers have too much water, too little water, or other pest pressures they may not have had to face in the past. Biostimulants help crops reach their potential by balancing the hormone reaction they have to these external stressors and help support our food system from growers to consumes.
2. Consumer Demand: “We know biostimulants overall have favorable sustainability profiles. As more consumers want to know how agricultural inputs can impact the land and environment, the need for innovative and non-conventional solutions grows.
3. Awareness: “This part of the industry was seen as an additive and not a necessity, so pickup in some of the agricultural markets that were already high producers was slower. But growers are savvy and are always looking for ways to further their business, and as they look for different techniques, they are seeing the value biostimulants can bring in supporting their financial sustainability and production.”
Botta agrees, “The reduction of chemical inputs dependency and the reduction of carbon footprint will be the biggest opportunities for biostimulants. Reducing synthetic fertilizers or the combined applications with PPP strategies will be the near future opportunity for these types of biological solutions.”
CHALLENGES
Supporting claims of efficacy with independent proof continues to be key according to both Botta and Lis.
“Many trade players and dozens of biostimulant products are taking advantage of the market opportunities but most of them with a low scientific background or weak technical development,” Botta says. “Developing a solid intellectual property for innovative biostimulants as well as a strong technical support will be our roadmap for the next years as we have already been doing in our long-term relationship with our worldwide partners.”
While these products are considered safe, Lis expects regulatory agencies will require information beyond just efficacy.
“One of the bigger challenges facing the biostimulants industry is to scientifically prove the claimed functionality and justify the biological and functional action of the product on crop species,” Lis says. “It will be more and more important, and soon necessary, to fulfill very complete dossiers, and all substances will have to be studied and approved by accredited third-party bodies, thus guaranteeing their composition, functionality, and harmlessness for health and environmental safety. I am certain that this landscape will contribute to greater transparency and trust in the sector.”
The biostimulant market is primed for growth. The level of adoption around the world, even in more mature markets like Europe, still have opportunities for expansion.
PARTING THOUGHTS
“The EU Farm-2-Fork strategy strives to reduce the amount of synthetic chemicals and pesticides going into the environment,” Hiltz says. “So, even though it’s an established market for biostimulants, the EU region is poised for significant growth because of the legislation that’s going on there. Other markets around the world may have never heard of a biostimulant or are less familiar with them, so they present good opportunities for growth as well.”
It comes back to education. Learning how to use them in conjunction with existing crop inputs will be key.
“Biostimulants products are the third pillar of the competitive production triangle for a sustainable agriculture, which includes biofertilizers (the food), biocontrol (the medicines) and biostimulants (nutraceuticals for a better plant health),” Botta says. “Biostimulants are a strategic part of this essential triangle, where if not present, the other pillars will not run efficiently. For those more reluctant, I suggest trying and including high-quality biostimulants in their production programs. At the end of the day, it is a matter of assessing agronomical improvements and economical return on the investment.”