Biopesticides, a global Biopesticides, a global perspectiveperspective

Andy Cherry,Andy Cherry,Natural Resources Institute,Natural Resources Institute,University of Greenwich, UKUniversity of Greenwich, UK

Ghana, 27 Ghana, 27 –– 30 June 2005.30 June 2005.

AgendaAgenda

DefinitionsDefinitionsThe 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 outlook

BiopesticidesBiopesticides(= biologically based control agents)(= biologically based control agents)

Biopesticides Biopesticides ((sensusensu strictostricto):):

MicroMicro--organisms: organisms: fungi, bacteria, viruses, protozoafungi, bacteria, viruses, protozoa

May also include:May also include:Entomopathogenic nematodesEntomopathogenic nematodesParasites and predatorsParasites and predatorsPlant derived productsPlant derived productsSemioSemio--chemicals chemicals –– pheromonespheromones

And maybe even:And maybe even:Secondary metabolites Secondary metabolites Genes, gene products …….Genes, gene products …….

World agrochemical market 2005World agrochemical market 2005

East Europe5%

North America30%

East Asia22%

Latin America16%

Rest of World5%

West Europe22%

$35 billion

Biopesticide market shareBiopesticide market share

BCA $300-600 million

Agrochemicals - $35 billion

World biopesticide market 2004World biopesticide market 2004

Oceania11%

Asia13%

Europe20%

NAFTA44%

Latin America

9%

Africa3%

Source: Agrow 2001Source: Agrow 2001

The Business of BiopesticidesThe Business of BiopesticidesGlobal Biopesticide* Market - Approx. 1 %

($ 300 MM approx.)

160

60

40

40

Microbial Pheromone Biochem Predatory

* Excludes GMO plants

Credit: Prem Warrior, VBC

The Business of Biopesticides is …..The Business of Biopesticides is …..

Unique – not a typical Agchem business

Expensive - requires infrastructure

Needs “uncommon” competencies & skills

Requires continuous innovation in Technology, Marketing and Logistics

Focus on “specialized” customer needs

Often niche opportunities

Credit: Prem Warrior, VBC

Key Biopesticide Industry DriversKey Biopesticide Industry Drivers

Food safety and qualityFood safety and qualityRegulatory requirements including Regulatory requirements including MRLsMRLs

OrganicOrganic FarmingFarming

IPM / ICMIPM / ICM

Resistance managementResistance management

Key Technology DriversKey Technology Drivers

““Success stories” Success stories” Newer genetic resourcesNewer genetic resourcesBiotechnology ToolsBiotechnology ToolsBioinformaticsBioinformaticsProduction and Formulations Production and Formulations Application TechnologyApplication Technology

Biopesticide Biopesticide DevelopmentDevelopment

Operationallogistics

Regulatory and Quality Control

Manufacturing and Packaging Technology

FermentationTechnology

ApplicationTechnology Microbiology

FormulationTechnology

Customer needsFocused Marketing

BiopesticideDevelopment

Credit: Prem Warrior, VBC

Ideal Biopesticide (commercial)?Ideal Biopesticide (commercial)?

Efficacy Efficacy Fast actingFast actingConsistencyConsistency

Specificity vs. 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, VBC

Biopesticides 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 requirementsrequirements

Compliance with legislationCompliance with legislation

Retailer codes of practiceRetailer codes of practice

Domestic marketDomestic market–– Public (Public (and private sectorand private sector))

–– Includes low value and Includes low value and subsistence cropssubsistence crops

–– No effective legislationNo effective legislation

–– No codes of practiceNo codes of practice

Export market BCAExport market BCA

CryptophlebiaCryptophlebia leucotretaleucotreta granulovirus for control of false granulovirus for control of false codling moth larvae in citrus in S. Africacodling moth larvae in citrus in S. Africa

CydiaCydia pomonellapomonella pheromone for codling moth control in pheromone for codling moth control in

apple orchards S. Africaapple orchards S. Africa

Plutella xylostella Plutella xylostella granulovirus against diamondback moth granulovirus against diamondback moth larvae in Kenyalarvae in Kenya

Entomopathogenic nematodes against thrips in KenyaEntomopathogenic nematodes against thrips in Kenya

BCA developed in public BCA developed in public research sectorresearch sector

BeauveriaBeauveria & & MetarhiziumMetarhizium against: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, Sesamia–– Cowpea weevil Cowpea weevil -- Callosobruchus maculatusCallosobruchus maculatus

VirusViruseses

NucleopolyhedrovirusesNucleopolyhedroviruses–– Cotton bollworm Cotton bollworm -- HHelicoverpaelicoverpa armigeraarmigera–– Armyworm Armyworm -- SpodopterSpodopter exemptaexempta

GranulovirusesGranuloviruses–– Potato tuber moth Potato tuber moth -- PPhthorimaeahthorimaea operculellaoperculella–– Diamondback mothDiamondback moth-- Plutella xylostellaPlutella xylostella

CypovirusesCypoviruses–– Pink borerPink borer -- Sesamia calamistisSesamia calamistis–– Cowpea pod borer Cowpea pod borer -- Maruca testulalisMaruca testulalis–– Rice stem borer Rice stem borer -- MaliarphaMaliarpha separatellaseparatella

No 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 control……microbial pathogens for insect control……

…….but, in Africa, there appears to be a gap .but, in Africa, there appears to be a gap between R&D and implementationbetween R&D and implementation

Market sizeMarket size

Low value Low value Global biocontrol salesGlobal biocontrol sales $600 m$600 mAfrica has 3% shareAfrica has 3% share $18 m$18 mLess Less btbt sales (80%), leavingsales (80%), leaving $3.6 m$3.6 mGross margin (40%) on sales Gross margin (40%) on sales $1.4 m$1.4 m

FragmentedFragmentedDiversity of crops and cropping systemsDiversity of crops and cropping systemsMany countriesMany countries

BCA production capacityBCA production capacity

BCA production is very lowBCA production is very low

High risk venture with low returns on investmentHigh risk venture with low returns on investment

Industry characterised by Industry characterised by SMEsSMEs that tend to be that tend to be resource poorresource poor

But in Africa capacity has arisen where there is But in Africa capacity has arisen where there is demanddemand

S. AfricaS. Africa

KenyaKenya

Knowledge / awareness gapKnowledge / awareness gap

Lack of user / Lack of user / consumer consumer awarenessawareness Weak pressure on Weak pressure on

authorities, retailers and authorities, retailers and growersgrowers

Lack of Lack of demanddemand

Policy environmentPolicy environment

Food safety Food safety LegislationLegislationRetailer codes of practiceRetailer codes of practiceIPMIPM

Registration / regulationRegistration / regulationExotic isolatesExotic isolatesConvention on biodiversityConvention on biodiversityIPRIPR

Food safetyFood safetyLegislation and retailer codes of practice Legislation and retailer codes of practice are rare or poorly enforcedare rare or poorly enforced

IPM adopted by many IPM adopted by many govtsgovts. as national . as national pest control strategy.pest control strategy.–– E.g. Tanzania, E.g. Tanzania, SpodopteraSpodoptera exemptaexempta

Registration regulationsRegistration regulations

–– Chemical pesticide regulations unsuitableChemical pesticide regulations unsuitable

–– Ecotox. and Ecotox. and toxtox. data requirements expensive. data requirements expensive

–– GLP labs unavailableGLP labs unavailable

–– Need for harmonisationNeed for harmonisation

Reduce bureaucratic burden for BCA producers Reduce bureaucratic burden for BCA producers

e.g. CILSSe.g. CILSS

Lack of in depth knowledge of BCALack of in depth knowledge of BCA

–– TrainingTraining

BCA registrationBCA registration

NonNon--indigenous/indigenous/exotocexotoc BCABCA

Import BCA to overcome lack of production capacity Import BCA to overcome lack of production capacity

NonNon--indigenous/exotic organisms require quarantine indigenous/exotic organisms require quarantine facilitiesfacilities

Meaning of “exotic”?Meaning of “exotic”?

What is the significance of genetic variation between What is the significance of genetic variation between isolates?isolates?

E.g. E.g. PlutellaPlutella xylostellaxylostella granulovirusgranulovirus in Kenyain Kenya

No functional or harmonised equivalent to phytosanitary No functional or harmonised equivalent to phytosanitary legislationlegislation

FAO guide to import and release of BCAFAO guide to import and release of BCA

Exploitation of biodiversityExploitation of biodiversity

Convention on biological diversity (CBD)Convention on biological diversity (CBD)–– Fair and equitable benefit sharingFair and equitable benefit sharing

Few countries have the institutional capacity to Few countries have the institutional capacity to address biodiversity exploitationaddress biodiversity exploitationGovt need mechanisms to deal with rights under Govt need mechanisms to deal with rights under the CBDthe CBDSome see it as a mechanism to generate incomeSome see it as a mechanism to generate incomeProfits unlikely to generate significant revenueProfits unlikely to generate significant revenue

IPRIPR

Little IP protection of isolatesLittle IP protection of isolates

Protection on processes, formulationsProtection on processes, formulations

Not a significant source of revenueNot a significant source of revenue

Registration offers some limited protectionRegistration offers some limited protection–– But South African companies producing copycat But South African companies producing copycat

productsproducts

Role of research?Role of research?Research should meet market requirementsResearch should meet market requirementsAddress opportunities for new productsAddress opportunities for new products

Conducted in universities, govt. research institutes, Conducted in universities, govt. research institutes, industry (private companies and growers associations), industry (private companies and growers associations), and through partnerships.and through partnerships.

In Africa In Africa IARCsIARCs also play important rolealso play important role

Export sectorExport sector

Focussed research responding to market Focussed research responding to market needsneeds

Profit drivenProfit driven

Small companies source “knowSmall companies source “know--how” from how” from partnerships, consultants partnerships, consultants

Domestic sectorDomestic sector

Research in public (and private) sectorResearch in public (and private) sector

Demand driven within donor prioritiesDemand driven within donor prioritiesPoverty alleviationPoverty alleviation

Improvement of livelihoodsImprovement of livelihoods

Environmental protectionEnvironmental protection

Less market focusLess market focus

OpportunitiesOpportunities

Export marketsExport marketsHigh value and niche marketsHigh value and niche marketsIPM / ICM IPM / ICM Resistance management Resistance management Organic agricultureOrganic agriculturePublic health Public health Environmental protectionEnvironmental protection

Conclusions for AfricaConclusions for Africa

Socially desirable but constrained by a Socially desirable but constrained by a number of factorsnumber of factorsExport sector products well driven and Export sector products well driven and effectiveeffectiveDomestic sector R&D and products appear to Domestic sector R&D and products appear to suffer from several constraintssuffer from several constraints

RecommendationsRecommendations

Capacity building and assistanceCapacity building and assistance–– Consumer awareness Consumer awareness

–– Enabling policy environmentEnabling policy environmentHarmonised regulations Harmonised regulations

–– Closer publicCloser public--private cooperation & support for private cooperation & support for SMEsSMEs

–– Alternative “notAlternative “not--forfor--profit” models for public sector BCAprofit” models for public sector BCAEgEg Cuba / IndiaCuba / India

RecommendationsRecommendations

–– Environmental impact studies of nonEnvironmental impact studies of non--native isolatesnative isolates

–– IntraIntra--specific variation and the significance of “exotic” specific variation and the significance of “exotic” isolatesisolates

–– BCA risk assessment studiesBCA risk assessment studies

–– Market researchMarket research

–– Funding for generic registration dataFunding for generic registration data

–– Avoid supply driven research Avoid supply driven research

Looking forward Looking forward –– a global a global perspectiveperspective

Continued regulatory pressures will drive the need for safer, cost-effective measuresNewer chemistries & GMOs will continue to emergeIncreased acceptance for biopesticides due to increased understanding of customer value equationIntegration of cost-effective alternatives essentialNeed a paradigm shift in mindset (vs. Chemicals)

Biopesticides are here to stay and they work when used properly

Credit: Prem Warrior, VBC