Biopesticides, a global perspective

1 biopesticides , a global biopesticides , a global perspectiveperspectiveAndy Cherry,Andy Cherry,Natural Resources Institute,Natural Resources Institute,University of Greenwich, UKUniversity of Greenwich, UKGhana, 27 Ghana, 27 30 June June world marketThe world marketGlobal trends and industry drivers global trends and industry drivers The situation in AfricaThe situation in AfricaResearch and developmentResearch and developmentCurrent needs and future outlookCurrent needs and future outlookBiopesticidesBiopesticides(= biologically based control agents)(= biologically based control agents) biopesticides biopesticides ((sensusensustrictostricto):):MicroMicro --organisms: organisms.

2 Fungi, bacteria, viruses, protozoafungi, bacteria, viruses, protozoaMay also include:May also include:Entomopathogenic nematodesEntomopathogenic nematodesParasites and predatorsParasites and predatorsPlant derived productsPlant derived productsSemioSemio--chemicals chemicals pheromonespheromonesAnd maybe even:And maybe even:Secondary metabolites Secondary metabolites Genes, gene products ..Genes, gene products ..World agrochemical market 2005 World agrochemical market 2005 East Europe5%North America30%East Asia22%Latin America16%Rest of World5%West Europe22%$35 billionBiopesticide market shareBiopesticide market shareBCA $300-600 millionAgrochemicals - $35 billionWorld biopesticide market 2004 World biopesticide market 2004 Oceania11%Asia13%Europe20%NAFTA44%Latin America9%Africa3%Source: Agrow 2001 Source.

3 Agrow 2001 The Business of BiopesticidesThe Business of BiopesticidesGlobal Biopesticide* Market - Approx. 1 % ($ 300 MM approx.)160604040 Microbial PheromoneBiochemPredatory* Excludes GMO plantsCredit: Prem Warrior, VBCThe Business of biopesticides is ..The Business of biopesticides is ..Unique not a typical Agchem businessExpensive - requires infrastructure Needs uncommon competencies & skillsRequires continuous innovation in Technology, Marketing and LogisticsFocus on specialized customer needsOften niche opportunities Credit.

4 Prem Warrior, VBCKey Biopesticide Industry DriversKey Biopesticide Industry DriversFood safety and qualityFood safety and qualityRegulatory requirements including regulatory requirements including MRLsMRLsOrganicOrganicFarmingFarmingIPM / ICMIPM / ICMR esistance managementResistance managementKey Technology DriversKey Technology Drivers Success stories Success stories Newer genetic resourcesNewer genetic resourcesBiotechnology ToolsBiotechnology ToolsBioinformaticsBioinformaticsProduct ion and Formulations

5 Production and Formulations Application TechnologyApplication TechnologyBiopesticide Biopesticide DevelopmentDevelopmentOperationallogisti csRegulatory and Quality ControlManufacturing and Packaging TechnologyFermentationTechnologyApplicat ionTechnologyMicrobiologyFormulationTech nologyCustomer needsFocused MarketingBiopesticideDevelopmentCredit: Prem Warrior, VBCI deal Biopesticide (commercial)?Ideal Biopesticide (commercial)?Efficacy Efficacy Fast actingFast actingConsistencyConsistencySpecificity vs.

6 Spectrum of ActivitySpecificity vs. Spectrum of ActivityCost of Manufacturing Cost of Manufacturing Cheap Cheap Shelf life Shelf life Minimum ONE year?Minimum ONE year?Ease of UseEase of UseSafety Safety Environmental, NonEnvironmental, Non--target target Benefits to grower Benefits to grower Credit: Prem Warrior, VBCB iopesticides in Africa: biopesticides in Africa:Two major markets:Two major markets:Export marketExport market Private sectorPrivate sector High value cropsHigh value crops Driven by market Driven by market requirementsrequirementsCompliance with legislationCompliance with legislationRetailer codes of practiceRetailer codes of practiceDomestic marketDomestic market Public (Public (and private sectorand private sector))

7 Includes low value and Includes low value and subsistence cropssubsistence crops No effective legislationNo effective legislation No codes of practiceNo codes of practiceExport market BCAE xport market BCAC ryptophlebiaCryptophlebialeucotretaleuco tretagranulovirus for control of false granulovirus for control of false codling moth larvae in citrus in S. Africacodling moth larvae in citrus in S. AfricaCydiaCydiapomonellapomonellapherom one for codling moth control in pheromone for codling moth control in apple orchards S.

8 Africaapple orchards S. AfricaPlutella xylostella Plutella xylostella granulovirus against diamondback moth granulovirus against diamondback moth larvae in Kenyalarvae in KenyaEntomopathogenic nematodes against thrips in KenyaEntomopathogenic nematodes against thrips in KenyaBCA developed in public BCA developed in public research sectorresearch sectorBeauveriaBeauveria& & MetarhiziumMetarhiziumagainst:against: Banana weevil Banana weevil --Cosmopolites sordidusCosmopolites sordidus Locusts Locusts and grasshoppersand grasshoppers Larger grain borer Larger grain borer --Prostephanus truncatusProstephanus truncatus Greater grain weevilGreater grain weevil--Sitophilus Sitophilus zeamazeamaiiss Termites Termites --MacrotermesMacrotermes& & OdontotermesOdontotermes Coffee berry borerCoffee berry borer--Hypothanemus Hypothanemus hampeihampei Stem borers Stem borers --Chilo, SesamiaChilo.

9 Sesamia Cowpea weevil Cowpea weevil --Callosobruchus maculatusCallosobruchus maculatusVirusVirusesesNucleopolyhedrovi rusesNucleopolyhedroviruses Cotton bollworm Cotton bollworm --HHelicoverpaelicoverpaarmigeraarmigera Armyworm Armyworm --SpodopterSpodopterexemptaexemptaGranul ovirusesGranuloviruses Potato tuber moth Potato tuber moth --PPhthorimaeahthorimaeaoperculellaoperc ulella Diamondback mothDiamondback moth--Plutella xylostellaPlutella xylostellaCypovirusesCypoviruses Pink borerPink borer--Sesamia calamistisSesamia calamistis Cowpea pod borer Cowpea pod borer --Maruca testulalisMaruca testulalis Rice stem borer Rice stem borer --MaliarphaMaliarphaseparatellaseparatel laNo shortage of biopesticide initiatives in Africa, No shortage of biopesticide initiatives in Africa, and examples of the experimental use of and examples of the experimental use of microbial pathogens for insect pathogens for insect , in Africa, there appears to be a gap.

10 But, in Africa, there appears to be a gap between R&D and implementationbetween R&D and implementationMarket sizeMarket sizeLow value Low value global biocontrol salesGlobal biocontrol sales$600 m$600 mAfrica has 3% shareAfrica has 3% share$18 m$18 mLess Less btbtsales (80%), leavingsales (80%), leaving$ m$ mGross margin (40%) on sales Gross margin (40%) on sales $ m$ mFragmentedFragmentedDiversity of crops and cropping systemsDiversity of crops and cropping systemsMany countriesMany countriesBCA production capacityBCA production capacityBCA production is very lowBCA production is very lowHigh risk venture with low returns on investmentHigh risk venture with low returns on investmentIndustry characterised by Industry characterised by SMEsSMEsthat tend to be that tend to be resource poorresource poorBut in Africa capacity has arisen where there