Opportunities and Challenges of
Bio Pesticides in Europe
Rob Fryatt
Xenex Associates
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PRESENTATION STRUCTURE
•Market value and structure
•Key Market Drivers
•Key Commercial Trends
•Future Market Development
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Market Value and Structure
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GLOBAL MARKET VALUE
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2008
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GLOBAL MARKET VALUE
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2008
Bio Pesticides and Bio Control form a small
but fast growing sector of the market
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EUROPE: MARKET GROWTH
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Europe is larger
Market than Asia
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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"
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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
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MARKET SEGMENTATION
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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
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MARKET SEGMENTATION
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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
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EUROPE: ORGANISATION STRUCTURE
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International Bio Control Manufacturers
Association
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EUROPE: ORGANISATION STRUCTURE
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International Bio Control Manufacturers
Association
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EUROPE: ORGANISATION STRUCTURE
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Bio Pesticide Industry Alliance
International Bio Control Manufacturers
Association
The Association of Natural
Biocontrol Producers
International Organization for Biological Control
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Key Market Drivers
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KEY MARKET DRIVERS (I)
•Consumer demand for safer foods with no chemical residues
Traceability and provenance Chemophobic consumers disengaged with food production
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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
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KEY MARKET DRIVERS (II)
•Growth in Organic Food Production
Strict enforcement in Europe and North America
Impact of the supermarkets and global food companies
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Why Biocontrol? Organic Food
Organic food = increased demand for non-chemical pest management
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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
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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
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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
•
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• 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
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KEY MARKET CHALLENGES IN EUROPE
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Key Market Trends
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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
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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
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Future Market Development
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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.
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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
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THANK YOU
Opportunities and Challenges of
Bio Pesticides in Europe
Rob Fryatt
Xenex Associates
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