challenges and opportunities in europe · agrochemicals and other bio control products remains a...

Opportunities and Challenges of

Bio Pesticides in Europe

Rob Fryatt

Xenex Associates

www.XenexAssociates.com 2016中国国际农化会议周资料，仅供参会代表学习，禁止随意传播

PRESENTATION STRUCTURE

•Market value and structure

•Key Market Drivers

•Key Commercial Trends

•Future Market Development


Market Value and Structure


GLOBAL MARKET VALUE

www.XenexAssociates.com

2008

2016中国国际农化会议周资料，仅供参会代表学习，禁止随意传播

GLOBAL MARKET VALUE


2008

Bio Pesticides and Bio Control form a small

but fast growing sector of the market


EUROPE: MARKET GROWTH


Europe is larger

Market than Asia


WHAT IS A BIOPESTICIDE?

Biopesticides

A contraction of 'biological pesticides', include several types of pest management

intervention: through predatory, parasitic, or chemical relationships.

The term has been associated historically with biological control and by

implication - the manipulation of living organisms.

Regulatory positions can be influenced by public perceptions, thus:

• EU: biopesticides have been defined as "a form of pesticide based on micro-

organisms or natural products”

• US EPA: states that theyinclude:

naturally occurring substances that control pests (biochemical pesticides),

microorganisms that control pests (microbial pesticides)

pesticidal substances produced by plants containing added genetic material

(plant-incorporated protectants) or PIPs"


Bio Pesticides: What is included ?

• Microbials – bacteria, virus, fungal

• Natural – plant extracts

• Macrobials – nematodes

• Semiochemicals – pheromones

• Predators & parasites – predatory mites, lady bugs, lacewings

• Fermentation products – abamectin, emamectin, spinosad

• Bio-rational products – methoprene, pyriproxyfen

• Plant growth regulators – can improve pest control strategies

• Bio-stimulants – can improve tolerance to disease/insect attack

• Bio-technology – genetically modified organisms .. animals or plants


MARKET SEGMENTATION


Traditional pesticides

Herbicides ($12–13Bn)

Fungicides ($5–7Bn)

Insecticides ($8–9Bn)

Macrobials ($100-200m)

Microbials ($450-550m)

Semiochemicals ($>100m)

Physical methods

Biological products

Traps

Heating/freezing

Agro Products Market

Fertilizers and Seeds

Naturals ($150-200m)

Bacteria($100-160m)

Virus($30-50m)

Fungi ($100-130m)

Sound, etc

Approximate world wide market size (US$)

Source:

Combined Phillips McDougal & ABIM


EUROPE: ORGANISATION STRUCTURE


International Bio Control Manufacturers

Association


EUROPE: ORGANISATION STRUCTURE


Bio Pesticide Industry Alliance

International Bio Control Manufacturers

Association

The Association of Natural

Biocontrol Producers

International Organization for Biological Control


Key Market Drivers


KEY MARKET DRIVERS (I)

•Consumer demand for safer foods with no chemical residues

Traceability and provenance Chemophobic consumers disengaged with food production


Why Biocontrol? = Safer Food?

Increased demand for residue-free foods

Increase in monitoring & disclosure programs

Reduced residue levels in food through

Improved testing methods

Increase in sensitivity of testing (lower Detection Limits)

Expansion of scope of testing for more compounds

Reduction in Minimum Residue Levels (MRL)

Reduction in Acceptable Daily Intake (ADI)

Reduced tolerance by consumers to pesticide residues

Increased consumer concern & government restrictions


KEY MARKET DRIVERS (II)

•Growth in Organic Food Production

Strict enforcement in Europe and North America

Impact of the supermarkets and global food companies


Why Biocontrol? Organic Food

Organic food = increased demand for non-chemical pest management


KEY MARKET DRIVERS (III)

•Consumer demand for safer foods with no chemical residues

Traceability and provenance

Chemophobic consumers disengaged with food production

•Growth in Organic Food Production

Strict enforcement in Europe and North America

Impact of the supermarkets and global food companies

•Increase in insect resistance to chemicals

Pyrethroids, Carbamates

Biopesticides have different modes of action


Why IPM?

•Compatible with integrated pest management programs Low impact on beneficials

•Minimum risk to the environment Low and non persistent residues

No impact on established ecosystems

•Acceptable profiles for regulators

Lower regulatory costs


Why Biocontrol? - Environmental Risk

• Environmental benefits: risk reduction due to safer products

• EU Harmonised Environmental Indicators for Pesticide Risk (HAIR)

• Exposure/toxicity ratios, aquatic & soil ecological risk

• Indicator species (fish, algae, aquatic invertebrates, bees, earthworms

• USEPA Integrated Risk Information System (IRIS)

• Ecological Risk Assessments

• Environmental benefits translate to Public Health benefit

•


• Meeting the high regulatory requirements:

GLP data packages, proven efficacy, substitution value

• Developing “Better” products:

product technology, quality, formulation, stability, efficacy

• Developing Competitive products:

product manufacture efficiency, economies of scale

• Providing crop production & financial benefits:

improved crop protection, production and quality


KEY MARKET CHALLENGES IN EUROPE


Key Market Trends


KEY TRENDS – COMMERCIAL

• Bio control companies tend to be smaller and more focused in

terms of technology: Single pest or crop

• The regulatory environment and cost limits the potential for new

entrants.

• This results in licensing and acquisition which is dominating

market activity

• Over the last few years major Agrochemical companies have

taken a stronger interest in bio control products to complement

existing products and create integrated product ranges

- But do they really understand the market????

• Since 2010 over US$ 2,0 Billion has been spent on acquisitions of Bio Control companies


KEY TRENDS – COMMERCIAL

•Bayer Crop Science – Agroquest & Prophyta

•Syngenta – Pasteuria Bioscience & DevGen

•BASF – Becker Underwood

•Valent Biosciences – Pace International & Biomar

This interest is driven in the same way as seed companies were

acquired as a delivery channel for bio-technology & GM


Future Market Development


LOOKING TO THE FUTURE

•SMALL BUT GROWING: Although fast growing the market for Bio

Agrochemicals and other Bio Control products remains a small

part of the market

•TECHNOLOGY & COMMERCIAL DEVELOPMENT: The key market

drivers all point to continued growth and development of the

market – both from a technology and commercial perspective

•USE EXPANSION: The majority of products are still used in fruit,

vegetables especially under controlled conditions in glasshouses.

The challenge is to move to broad acre crops.

•SEED TREATMENT & BIO STIMULANTS: Seed treatment and root bio stimulants potentially open up these broad acre markets.


TAKE AWAY MESSAGES

• Market is growing and will increasingly impact on current

Traditional Chemistry

• The Key Market Drivers are consumer driven and

sustainable

• Larger International companies are increasingly

engaging and directing the market

• Europe presents a high added value market, but market

entry is not easy or quick.

• Partnerships present the best possibility of success and there is interest from small European specialist companies


THANK YOU

Opportunities and Challenges of

Bio Pesticides in Europe

Rob Fryatt

Xenex Associates


challenges and opportunities in europe · agrochemicals and other bio control products remains a...

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