Bioceres Crop Solutions Announces Brazil's Approval of New Generation Bio-Insecticide
Bioceres Crop Solutions Corp. (NASDAQ:BIOX), announced today the approval by Brazil's Ministry of Agriculture and Livestock (MAPA- Ministério da Agricultura e Pecuária) of three new bio-insecticidal/bio-nematicidal solutions derived from inactivated cells of the company's proprietary Burkholderia platform.
The approval represents a significant regulatory milestone in the Brazilian market, marking the first endorsement of biological products formulated from fully inactivated microorganisms. Bioceres' most advanced bio-control solutions leverage the metabolites of inactivated microorganisms, resulting in products that demonstrate heightened effectiveness, precision, shelf-life, and formulation stability, as well as greater consistency in their mode of action compared to live microbes. Moreover, non-living bacteria-based products can be formulated with increased potency and at much lower costs, nearing cost parity to less favorable present-day chemical alternatives.
Bioceres products based on Burkholderia-derived metabolites were first registered in the United States in 2014 and have since been commercialized in Mexico, Peru, Chile, Turkey, and parts of Africa. In the United States alone, they are used as nematicidal and insecticidal seed treatment on more than 4 million hectares (>10 million acres) of corn, cotton and soybeans, effectively replacing abamectin in seed treatments, while also boosting the control of soil-dwelling insect pests that are typically controlled by neonicotinoids, pyrethroids, and organophosphates.
Brazil is the first bio-control market in the world with significant use in row crops and poised to become the largest individual bio-control market by 2030. Bio-insecticides and bio-nematicides currently represent approximately 11% of the country's total insecticide and nematicide market, estimated at $5.5 billion, and have been growing at an annual average rate of 44% for the past five years. This approval enables the commercialization of Burkholderia-derived products in the country and opens the door for future related product launches. Bioceres' bio-control solutions are commercialized in Brazil under the Rizobacter brand, as well as other brands used by third party licensees.
"This approval is a much-awaited milestone for our near-term growth plans in Brazil and, because of the global relevance of this market, for our company in general. Our 2022 acquisition of Marrone Bio Innovations — now ProFarm — was predicated mostly on two of its platforms: lignosulfonate-based bio-stimulants and inactivated-microbes (metabolites) for bio-control purposes. On bio-stimulants, we have grown ten-fold in Brazil since our acquisition. On the bio-control opportunity, we were on hold until today. This initial approval will allow us to move forward with in-furrow and foliar applications, in a first stage, and with seed treatment solutions, in a second stage. To put things into perspective, soybean seeds in Brazil are treated today with insecticidal solutions that cost around $15 per bag ($22.5 per hectare), that could be replaced very competitively with this new family of biologicals," said Federico Trucco, CEO of Bioceres Crop Solutions.
About Bioceres Crop Solutions Corp.
Bioceres Crop Solutions Corp. (NASDAQ:BIOX) is a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change. To do this, Bioceres' solutions create economic incentives for farmers and other stakeholders to adopt environmentally friendlier production practices. The Company has a unique biotech platform with high-impact, patented technologies for seeds and microbial ag-inputs, as well as next generation crop nutrition and protection solutions. Through its HB4 program, the Company is bringing digital solutions to support growers' decisions and provide end-to-end traceability for production outputs. For more information, visit here.
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