advances in organic insect, disease and nematode …...advances in organic insect, disease and...
TRANSCRIPT
Advances in Organic Insect,
Disease and Nematode
Management
Best Use Practices of Biopesticides in
IPM Programs and New Products from
MBI
Tim Johnson
VP Field Development and Technical Services
Safe Harbor Statement
This presentation contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations and plans, including assumptions underlying such statements, are forward-looking statements, and should not be relied upon as representing the Company’s views as of any subsequent date. Such forward-looking statements are based on information available to the Company as of the date of this presentation and involve a number of risks and uncertainties, some beyond the Company's control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including any difficulty in developing, manufacturing, marketing or selling the Company’s products, any failure to maintain and further establish relationships with distributors, competition in the market for pest management products, lack of understanding of bio-based pest management products by customers and growers, adverse decisions by regulatory agencies, and the impact of negative publicity and perceptions around the company’s financial restatement. Additional information that could lead to material changes in the Company’s performance is contained in its filings with the SEC. The Company is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise.
This presentation references product shipments, a measure used by the Company that is not defined by, or presented in accordance with, generally accepted accounting principles ("GAAP"), to evaluate various aspects of its business. Product shipments is a non-GAAP financial measure and should be considered in addition to, not as a substitute for, product revenues reported in accordance with GAAP. Product shipments as used in this presentation is defined as product revenues, plus related party product revenues, plus the incremental amount of deferred revenues accrued during the applicable period from product shipments. This calculation specifically excludes changes in deferred revenue related to license revenues and customer deposits, and is intended to approximate the total value of products sold and under contract for sale in a given period. Please refer to the Company’s filings with the SEC, including its earnings releases, for a reconciliation of product shipments to product shipments and further discussion of this metric.
© 2017 Marrone Bio Innovations, Inc.
Bio What?
Biopesticides Crop Protection
Biofertilizers Crop Nutrition
Biostimulants Crop Enhancement
• Many companies offer biostimulants, but fewer venture into biopesticides because of the higher technical and regulatory barriers to entry.
Biopesticide Categories
A 70 year history of safe use of biopesticides
Faster and less expensive EPA registration than synthetic chemicals
Microbials Biochemicals
Fungi, Bacteria, Viruses, and Protozoa Plant Extracts, Pheromones, Soaps, and Fatty Acids
What are Biopesticides? Some Examples Microbials Biochemicals
Agree®, Dipel®, Javelin®, Deliver®, Biobit®, Crymax®, XenTari®
Serenade®, Sonata®, Ballad®, Double Nickel®, Taegro®, LifeGard®, Stargus®
Grandevo®, Venerate®, Majestene®
Bio-Tam® 2.0, Soilgard®, RootShield®, Actinovate® AG
BotaniGard®, PFR-97TM,
CYD-X®, Gemstar® LC, CYD-X HP® Madex® HP
VOTiVO®, MeloCon®, CLARIVA®
Des-X®, M-Pede®
Final-San-O®
Azatin®, Neemix®, Trilogy®
Regalia®
Insect Pheromones for Mating Disruption
0
20
40
60
80
100
120
140
1995 1998 2001 2004 2007 2010
New Leads Launches
0
50
100
150
1990 1995 2000 2009
# of Chemicals Screened to Find One
Product (‘000) # of New Chemical Leads vs. Product
Launches
(Source: CropLife)
Source: Ag Chem New Compound Review (Vol 28) 2010
Why Microbes? Fewer New Chemicals – Higher Cost
Page 6
1.2 4.1 20 45
85 105
185
256
280
0
50
100
150
200
250
300
19
56
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84
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00
20
03
20
10
20
16
$Millions
Cost to Discover & Develop a Synthetic
Chemical ($Mil)
(1) Source: Crop Life America.
Bringing Biopesticides to Market
Discovery US Launch Develop
EPA
Years: 5 Cost $4–8mm (USD)
Shorter statutory timeline for EPA approval of biopesticides
Reduced toxicology requirements if no direct toxic effects
Shorter development time
Add additional $10-20 million for global development
Discovery Development EPA Release Launch
Average Chemical Pesticide
Development Time & Cost(1) – Years: ~10 Cost $300mm (USD)
Release
Microorganisms Isolated From Unique Habitats and Geographies
Samples from around the world from habitats of high biodiversity are cultured on specific media - Internal isolations and external collections
Individual fungal, bacterial, and actinomycete colonies picked from primary plate
Purity is confirmed on separate plates
Water extracts of fermentation broths are used for bioassays
Insecticide Fungicide Herbicide Nematicide Algaecide Bactericide Biostimulants
Lygus
Beet armyworm
Corn rootworm
Botrytis cinerea
Phytophthora
capsici
Crabgrass
Lettuce
Meloidogyne spp.
Chlamydomonas reinhardtii
Xanthomonas campestris
Pseudomonas
syringae
Tomatoes, Corn, Radish, Soy &
Others
Primary Screens
Product and Process Development
Develop user-friendly
formulations (lab & pilot facilities)
Develop and scale manufacturing processes
(lab, pilot & mfg. facilities)
Conduct field trials
Develop data for the regulatory submission
How to Maximize Your Product’s Effectiveness –
Some Abiotic and Biotic Variables
• Water pH
• Water hardness
• Water volume/dilution
• Spray droplet size
• Adjuvant effect
• Impact on beneficials
• Impact on pollinators
• Tank-mix partners
• Application timing
• Application interval
We have to read the labels!
12
Compatibility
The state of being compatible; in which two or more things
are able to exist or perform together in combination
without problems or conflict.
Is your biopesticide compatible with your water?
pH matters, near neutral is almost always best
Water hardness matters, too many ppm has negative
effect. >1000 ppm decreases the efficacy of Grandevo DF
Chlorination matters
13
Compatibility
The state of being compatible; in which two or more
things are able to exist or perform together in
combination without problems or conflict.
Is the product you are going to use compatible with
all those other products you are thinking of adding
to the tank?
Compatibility
14
Hint: this is bad
15
Actual Tank-mix – Apple Pre-bloom in Michigan
1. Water conditioning agent 2. Captan® 80WG @ 2 lbs.
3. Prevam® @ 1 pint
4. KoverAll® @ 3 lbs.
5. Rally® 40WSB @ 4 oz.
6. Warrior® @ 5.1 oz.
7. VitaZyme® @ 1 pint
8. BoronXtra® @ 4 oz.
9. ZincRush® @ 1 pint
10. Imidacloprid® 4F @ 3.2 fl. oz.
11. CS2005® @ 1 pint
What could possibly go wrong?
5 lb. 11 oz. dry products, 40 fl. oz. liquid products in 30 GPA
16
Remember Your Mixing Order
Water Conditioners, WP, DF, WDG, Flowables, Micro-
emulsions, EC, Soluble liquid concentrates, Crop Oils,
Adjuvants
No hot mixes! Water goes into the tank first.
Making a slurry with WP and DFs prior to adding to
the water tank can be beneficial.
17
What Type of Biopesticide Are You Applying? Is the A.I. “Dead or Alive”?
• Insect viruses are sensitive to high temperatures (>86
F). Keep refrigerated or frozen until use. Use non-
chlorinated water near pH 7.
• Fungal-based products may be sensitive to tank-
mixing with fungicides. PFR-97TMcan be applied with
copper fungicides but not within 5 days of other
chemical fungicides (tank-mixing is not allowed).
Trichoderma products have mixing limitations.
Putting Together a Game Plan
• Put together your game plan before the crop is
planted or breaks dormancy
• Sustainable versus Certified Organic
• Research product labels
• What are the key pests?
• Research trial data, both university and company
provided
Putting Together a Game Plan
• Ask questions. Company reps are there to
help you. Use company help lines (internet).
• Beware of tripping hazards – water quality,
improper tank mixes
• Do not wait until it is too late
20
MBI also distributes these biological products in the U.S.
MBI Products
The industry’s 1st effective plant-extracted fungicide; Increases
yields/quality on multiple crops
First broad spectrum microbial insecticide since Bt (50+ yrs);
Novel chemistry & mode of action
Industry’s only biological solution for invasive mussels;
highly effective & selective
New species of insecticidal bacteria with novel compounds as potent as the best chemicals
Reduces a broad spectrum of root-feeding nematodes to increase
yields/quality
Reduces sun & water stress, increasing yields & quality
MBI’s Portfolio Approach to
Existing & Unmet Market Needs
Breakthrough efficacy against downy mildews, white molds & Botrytis
21
The Challenge of Nematode Management
Nearly invisible pest complex Damage is not always visible Difficult and expensive to sample
Plant Parasitic Nematodes are Often Described by Their Shape
Spiral Nematode
Human Activity Often Spreads Nematodes
© 2017 Marrone Bio Innovations - Proprietary & Confidential
Page 25
Burkholderia rinojensis strain A396
• New species of Burkholderia isolated from soil by MBI scientists
– Active by exposure and by ingestion
– Product contains heat-killed cells and spent fermentation media
Broad spectrum—sucking and chewing insects, mites, certain weevils and most soil-dwelling nematodes
Same organism is used to manufacture Venerate XC
Photos courtesy of: Pepper weevil Alton N Sparks, Univ of GA, Boxwood.org; Beet armyworm Clemson Univ. USDA Cooperative Extension Slide Series Bugwood.org; Western flower thrip Frank Peairs, CO St. Univ. Bugwood.org; Cabbage Looper RJ Reynolds Tobacco Company, Bugwood.org; Twospotted spider mite Clemson EDU
Page 26
Burkholderia rinojensis strain A396
• Key crops in California are cucurbits, fruiting vegetables and strawberries with others in development – nut trees, grapes
• Activity on:
– Reduces egg mass formation
– Prevents juvenile to adult molting
– Direct mortality of free living stages, J2s
– Typical use rate of 2 gallons/acre via drip irrigation followed by 1 or 2 more applications at 1-2 gallons during the season
Photos courtesy of: Pepper weevil Alton N Sparks, Univ of GA, Boxwood.org; Beet armyworm Clemson Univ. USDA Cooperative Extension Slide Series Bugwood.org; Western flower thrip Frank Peairs, CO St. Univ. Bugwood.org; Cabbage Looper RJ Reynolds Tobacco Company, Bugwood.org; Twospotted spider mite Clemson EDU
Effects of Concentration on Majestene
Performance
27
Flexibility, can be applied multiple times in-season
or at planting
No posting requirements, short REI and PHI
Good worker safety
Residues exempt from tolerances for export crops
Broad spectrum
Excellent shelf-life formulation, tank-mix
compatible
28
Strawberry Demo, Plant City, FL
29
Untreated following
fumigation
Majestene @ 2GPA
following fumigation
Root-knot Nematode Control on Squash – 2016
30
0
200
400
600
800
1000
1200
1400
UTC Melocon @ 3 LB AB Majestene @ 1 galAB
Majestene @ 2 galAB
# Nematodes/sample 79DAA
A= at planting, B=28 days after planting Biological Applied Research, 16-028TBJ
Root-knot Nematode Control on Squash – 2016
31
0
1
2
3
4
5
UTC Melocon @ 3 LB AB Majestene @ 1 galAB
Majestene @ 2 galAB
Galling Index (0-5)
A= at planting, B=28 days after planting Biological Applied Research, 16-028TBJ
Best Use Recommendations
Sub-surface drip, in-furrow and drench applications
are most effective
Apply at the end of a drip irrigation cycle
Use of an adjuvant to enhance soil penetration will
improve performance
Maintain a lethal concentration of 0.05 – 0.2% v/v
in drip irrigation or 1-2% v/v in drench applications
(transplanting berries and trees)
32
• New species of bacteria, Chromobacterium subtsugae isolated from US forest soil by the USDA-ARS
– Dead bacteria plus cell-associated compounds
• Rapid cessation of feeding & reproduction of many insects and mites, also active against soil-dwelling nematodes
• First EPA registration and product launch as an insecticide in 2014 – GRANDEVO DF
• Now available as a WDG
Grandevo WDG - Chromobacterium subtsugae strain PRAA-T1
Photo courtesy of: Bugwood.org; twospotted spider mite
Page 35
VENERATE® XC – Burkholderia rinojensis strain A396
– Discovered in MBI’s discovery screen; isolated from soil; not related to pathogenic species
– Active by exposure and by ingestion
– Product contains heat-killed cells and spent fermentation media
Broad spectrum—sucking and chewing insects, mites, and certain weevils and flies
• Easy on pollinators and beneficials;
• EPA registered; U.S. launch in 2014
Photos courtesy of: Pepper weevil Alton N Sparks, Univ of GA, Boxwood.org; Beet armyworm Clemson Univ. USDA Cooperative Extension Slide Series Bugwood.org; Western flower thrip Frank Peairs, CO St. Univ. Bugwood.org; Cabbage Looper RJ Reynolds Tobacco Company, Bugwood.org; Twospotted spider mite Clemson EDU
Radiant® Rotations for Control of Western Flower Thrips on Strawberry
36
0
10
20
30
40
50
60
70
80
3DA-A 7DA-A 3DA-B 9DA-B 3DA-C 7DA-C 3DA-D 8DA-D
UTC
Radiant @ 10 fl. oz.
GVO DF @ 1 LB
RAD/GVO
Better Crops LLC, Dr. John Curtis – Florida, 2016
Application dates: 3/26, 4/2, 4/11, 4/18 in 570 L/HA.
# ad
ult
s/2
5 f
low
ers
Radiant® Rotations for Control of Western Flower Thrips on Strawberry
37
0
5
10
15
20
25
30
35
40
3DA-A 7DA-A 3DA-B 9DA-B 3DA-C 7DA-C 3DA-D 8DA-D
UTC
Radiant @ 10 fl. oz.
GVO DF @ 1 LB
RAD/GVO @ 1 LB
Better Crops LLC, Dr. John Curtis – Florida 2016
Application dates: 3/26, 4/2, 4/11, 4/18 in 570 L/HA.
# la
rvae
/25
flo
wer
s
Radiant® Rotations for Control of Western Flower Thrips on Strawberry
38
0
10
20
30
40
50
60
70
80
3DA-A 7DA-A 3DA-B 9DA-B 3DA-C 7DA-C 3DA-D 8DA-D
UTC
Radiant @ 10 fl. oz.
VEN XC @ 2 QT
RAD/VEN XC @ 2 QT
Better Crops LLC, Dr. John Curtis – Florida, 2016
Application dates: 3/26, 4/2, 4/11, 4/18 in 570 L/HA.
# ad
ult
s/2
5 f
low
ers
Radiant® Rotations for Control of Western Flower Thrips on Strawberry-2016
39
0
5
10
15
20
25
30
35
40
3DA-A 7DA-A 3DA-B 9DA-B 3DA-C 7DA-C 3DA-D 8DA-D
UTC
Radiant @ 10 fl. oz.
VEN XC @ 2 QT
RAD/VEN XC @ 2 QT
Better Crops LLC, Dr. John Curtis – Florida 2016
Application dates: 3/26, 4/2, 4/11, 4/18 in 570 L/HA.
# la
rvae
/25
flo
wer
s
36.5 46.2 39.2 47.5 102.0 113.2 38.8 259.2
4 4 4 4 4 4 4 4
0
100
200
300
400
2 3 4 5 6 7 8
Unt
reat
ed
Thrips/4
pla
nts
CHK16011
Thrips Larvae (FRANOC) - 3 DAA-CNA16A5B013 - Radiant-Marrone
DOW RESTRICTED
Grandevo@3
Radiant@10
Grandevo@3
Venerate@2
Radiant@10
Venerate@2
Radiant@10
Radiant@10
Radiant@10
Radiant@10
Radiant@10
A
B
C
0
2
4
6
8
10
12
UTC Delegate 25WG 6oz/A A-C
Assail 30SG 4 floz/A A-C
Grandevo WDG 3lb/A A-C
Venerate XC 4qt/A A-C
Me
an T
ota
l % In
fest
ed
Nu
ts
Venerate XC Against Walnut Husk Fly (Rhagoletis completa) on Walnut
Robert Van Steenwyk, UC Berkeley. 2016. Hollister, Ca.
a b b a b
0
0.5
1
1.5
2
2.5
3
UTC Assail 30SG 8 floz/A AB
Sivanto 200 SL 14fl oz/A AB
Venerate XC 4qt/A AB
Danitol 2.4EC 16fl oz/A AB
Me
an T
ota
l % In
fest
atio
n
Venerate XC Against Olive Fruit Fly, Bactrocera oleae
Dr. Lightle, UCCE, Corning, CA
a ab bc c bc
43
San Jose Scale Control on Apples – New York
0
1
2
3
4
5
6
7
8
9
VEN XC 1 qt2C-5C
VEN XC 2 qt2C-5C
GVO WDG 1lb. 2C-5C
GVO WDG 2lb. 2C-5C
SivantoPrime SL @14 fl. oz. PK
SivantoPrime f/b
Movento oz.PK, 1C
LorsbanAdvanced EC64 fl. oz. TC
UTC
% SJS Damage at Harvest
Dr. Art Agnello, Cornell University. Sivanto and Movento applications included LI-700.
44
San Jose Scale Control on Peaches – New Jersey
0
5
10
15
20
25
30
35
40
VEN XC 2 qtCSx2
GVO WDG 2lb. CSx2
Damoil 4gal. DD
Movento 9fl. oz. CS
Sivanto @10.5 fl. oz.
CS
Sivanto @14 fl. oz. CS
Closer 5.75oz. CS
UTC
% SJS Damage at Harvest
Dr. Anne Nielsen, Rutgers, Bridgeton, NJ. Season total of crawlers/5 cm tape in UTC = 657.
Treat now Not now
It’s all about timing - neither Grandevo or Venerate are knockdown insecticides, both work best when
applied early to sucking pests
46
MBI-110 Bacillus amyloliquifaciens strain F727
Foliar control of white molds (Sclerotinia), downy mildews, and Phytophthora plus applications for soil-borne diseases. Early in development of data on stone and pome fruit.
COMPANY CONFIDENTIAL
MB
I Co
nfi
de
nti
al I
nfo
rmat
ion
STARGUS™ is a….
Liquid fungicide used at 1-4 qt/acre
Active ingredient is a unique isolate of Bacillus amyloliquifaciens strain F727
Broad spectrum and preventive biofungicide from peptides produced during fermentation
Controls certain foliar and soil borne diseases
STARGUS™ bio-fungicide. What is it?
47
COMPANY CONFIDENTIAL
MB
I Co
nfi
de
nti
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nfo
rmat
ion
STARGUS™ is
4 hour REI
0 days to harvest PHI
Exempt from residue tolerances
NOP compliant and OMRI listed
Broad tank-mix compatibility
STARGUS™ bio-fungicide. What is it?
48
Page
49
Comparison of STARGUSTM
with two other Bacillus-based Biofungicides
RT: 0.00 - 30.00
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28
Time (min)
0
20
40
60
80
100
Re
lative
Ab
un
da
nce
0
20
40
60
80
100
Re
lative
Ab
un
da
nce
0
20
40
60
80
100
Re
lative
Ab
un
da
nce
10.64
9.93
8.53 14.188.40 15.59
8.06 10.77 18.8717.076.85
19.204.022.31 6.52 13.4619.85
26.9322.07 24.99 27.55
7.88
9.08
13.8915.439.42
15.627.023.14 11.64
4.34 6.812.26 16.66 18.85 24.0222.92 24.99 26.92
9.02
8.89
3.75
9.4216.4310.50 16.6915.43 18.413.15 26.646.29 25.0020.2212.55 26.915.15
NL:1.94E8
Base Peak F: + c ESI Full ms [100.00-1500.00] MS f727-fl-i
NL:4.41E8
Base Peak F: + c ESI Full ms [100.00-1500.00] MS serenate
NL:2.95E8
Base Peak F: + c ESI Full ms [100.00-1500.00] MS sonata
Product “B”
Stargus
Product “A”
1045
1059 1073
1030 1044
1036
255 1058
1036
1071
COMPANY CONFIDENTIAL
Stargus Against Sclerotinia sclerotiorum on Lettuce Dr. Mike Matheron, University of Arizona 2017
50
0
5
10
15
20
25
30
35
40
UTC Stargus 2 qt/ac. AStargus 2 qt/ac. CD
Endura 70 WG11 oz/ac. E
Endura 70 WG11 oz/ac. F
Endura11 oz/ac.
E
S. S
cler
oti
oru
m S
eve
rity
A B C D E F G H I
15-Nov 22-Nov 16-Dec 23-Dec 12-Jan 19-Jan 23-Jan 3-Feb 13-Feb
TREATMENT TIMINGS
Stargus in a program performed as good as or better
than competitors and reduced
severity by 75%
™
COMPANY CONFIDENTIAL
Stargus Against Botrytis in Strawberries Cal Poly San Luis Obispo 2017
51
A B C D E F G
3/17 3/23 3/30 4/6 4/14 4/26 5/3
TREATMENT TIMINGS
6
8
10
12
14
16
18
20
UTC Switch14 oz/ac. ACEG
Captan3 lb/ac. BDF
Stargus2 qt/ac.
A-G
Stargus2 qt/ac.ACEGSwitch
14 oz/ac. BDF
Actinovate12 oz/ac. ACEG
Captan3 lb/ac. BDF
Fontelis24 fl oz/ac.
ACEGCaptan
3 lb/ac. BDF
Elevate1.5 lb/ac. ACEG
Captan3 lb/ac. BDF
Yie
ld (
lb/p
lot)
™
Great return on investment
Page 52
0
5
10
15
20
25
30
35
40
45
50
UTC Stargus 2 qt Stargus 3 qt Sttargus 4 qt Cercobin 22 oz.
% plant
% pod
Control of White Mold on Snap Beans Dr. S. Pethybridge, Cornell U. - 2017
Two applications at 28 GPA at 10% and full bloom (7/26 and 8/1). Plots artificially inoculated.
Disease Incidence at Harvest
53
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Aproach2.08 SC 12 fl
oz/A AB
Fontelis 20fl oz/A AB
Indar 6 floz/A AB
Merivon 6 floz/A AB
Quadris Top14 fl oz/A
AB
Abound 12fl oz/A AB
Stargus 2qt/A AB
Stargus 4qt/A AB
MicrothiolDisperse 20
lb/A AB
UTC
Ave
rage
Nu
mb
er
Lesi
on
s/1
00
Nu
ts
Stargus for Control of Almond Scab - Preliminary Brent Holtz, UCCE, Parlier, CA
Muscodor albus Biofumigant – MBI-601
• Endophytic fungus (new genus) isolated from various trees by Dr. Gary Strobel at Montana State University
• EPA registered under trade name ENNOBLETM
• U.S. Commercial launch pending
• California registration pending
• Inhibits and kills a broad range of soil inhabiting fungi, bacteria, nematodes and insects
• Produces a benign mixture of >10 volatile compounds: ester, alcohols and acid derivatives
Muscodor volatiles completely kill
Fusarium
Muscodor on barley
MBI-601 Kills Plant Parasitic Nematodes
Muscodor strain grown on barley grains
Muscodor strain grown on PDA medium
Treated
Untreated
Growth inhibition of plant pathogen by MBI-601
Fusarium – untreated control
Fusarium – M. albus strain SA13
Fusarium colonies
57
The Future is Bright
The Rate of New Product Introduction is Accelerating
Innovative products are targeting new pests that have been difficult to control
Biopesticides offer flexibility, can be applied multiple times without worry about illegal residues
Short re-entry intervals
o4 hour REIE
oTolerance Exempt – No Maximum Residue Levels (MRL)
oResidues exempt from tolerances for export crops
oNo Plant-back restrictions
NOP Compliant
Require a higher level of attention but the result is worth it!
BIO WITH BITE
January 2018 • NASDAQ: MBII EcoFarming Conference