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New initiatives necessary


There is little doubt that more support is needed to nurture the development of new biopesticide products at the small companies that are developing them. This was also evident from some of the comments made last month at the AFPP Tours Conference (December CPM). The will is certainly there in the UK, but whether this can be translated into real progress is uncertain. The registration fees that PSD will apply from April 2004 indicate a new element of flexibility for biopesticides, which is a step in the right direction.

Imminent changes at HRI


The conference host, Horticulture Research International, is the principal UK organisation carrying out horticultural R&D and transferring the results to UK industry. Over the last year it has been the subject of a government review and has suffered some staff and resource cutbacks. HRI claims to have the single largest team of horticultural research and development scientists in the world. Its customers include several UK research councils, government departments, the European Commission, overseas agencies, growers, grower-funded levy bodies, as well as private and public companies.
Particular scientific emphasis is given to a few key horticultural crop species of international significance, including brassicas, strawberries, tomatoes, chrysanthemums, potatoes, onions (and other alliums), mushrooms, hops, apples and farm woodland species. Knowledge and advances made with these crops enables HRI to work on the full range of commercial crops worldwide. It has many renowned scientific experts such as Dr Stan Finch and Rosemary Collier (CPM, May 2001).
HRI is currently a non-departmental public body, responsible to DEFRA, formerly known as the Ministry of Agriculture, Fisheries and Food (MAFF). HRI will change status on 1 April when it becomes part of the University of Warwick and is renamed Warwick HRI. Professor Brian Thomas, currently HRI’s research director for crop improvement and biotechnology, will become the acting director of Warwick HRI.


Global Status of Transgenic Crops




Global area of GM crops up 15%


For the seventh consecutive year, farmers around the world have continued to grow more transgenic crops, according to a report released this month by the International Service for the Acquisition of Agri-biotech Applications (www.isaaa.org). In 2003 the global area of GM crops increased by 15% to 67.7 million hectares. This includes a provisional estimate of three million hectares of GM soybeans in Brazil, which approved their planting for the first time in 2003, although a large area had been grown illegally for some years (CPM March 2002).

Transgenic crops in 18 countries


The report states that seven million farmers in 18 countries planted GM crops in 2003, up from six million in 16 countries in 2002. Almost a third of the global GM crop area was grown in developing countries, up from a quarter last year. "Farmers have made up their minds," commented Clive James, chairman and founder of ISAAA. "They continue to rapidly adopt biotech crops because of significant agronomic, economic, environmental and social advantages.”

Marked growth in China and South Africa


The number of countries accounting for 99% of the global biotech crop area has expanded to six with Brazil and South Africa joining the United States, Argentina, Canada and China as the leading growers. China and South Africa experienced the greatest annual increase in 2003, with both countries planting a third more biotech hectares than in 2002. The increase in South Africa comes from growth in white and yellow maize, cotton and soybeans.


GM Crop Areas in 2003 (Source: ISAAA)





Country

Area grown

(million ha)

% increase

over 2002

% global

GM area

USA

42.8

+10

63

Argentina

13.9

+3

21

Canada

4.4

+26

6

Brazil

3.0




4

China

2.8

+33

4

S Africa

0.4

+33

1

The other countries making up the top ten, each with over 50,000 hectares, were Australia, India, Romania and Uruguay. A further eight countries each planted up to 50,000 hectares of GM crops in 2003. The Philippines grew biotech crops for the first time in 2003 with nearly 20,000 hectares of Bt maize, the first biotech feed crop to be grown in Asia.



Varying country perspectives


While the biotech crop areas decreased slightly in Australia due to drought, farmers still planted approximately 100,000 hectares of GM cotton. In its second year of GM crop production, India doubled the Bt cotton area to about 100,000 hectares in 2003.
Both Uruguay and Romania reported significant growth, with Romania increasing the biotech soybean area by 50% to 70,000 hectares. Uruguay tripled its GM soybean area to 148,200 hectares and Bt maize crops were grown there for the first time.
Spain remained the only country in the European Union to plant a significant area of biotech crops with some 30,000 hectares of Bt maize, an increase of 33% over 2002. Elsewhere in Europe, Germany continued to grow a very small area of Bt maize and Bulgaria planted some herbicide-tolerant maize.
In the United States, the biotech crop area grew 10% as a result of significant gains in the GM maize area and continued growth in herbicide-tolerant soybeans (CPM November 2003). A total of 42.8 million hectares of GM soybeans, corn and cotton were grown there in 2003.

Soybeans dominate GM crop area


In 2003 soybeans dominated the area of GM crops grown globally with an increase of nearly 13% to 41.4 million hectares, 55% of the global soybean area. New varieties and country approvals spurred the growth in the area planted with GM maize, with an increase of 25% to reach a total of 15.5 million hectares worldwide, 11% of the global maize area. Canola followed with 20% growth and a total of 3.6 million hectares, 16% of the canola area globally. Biotech cotton was up approximately 6% to a total of 3.9 million hectares, 21% of the global cotton area.

Cautious optimism from ISAAA


"Despite the ongoing debate in the European Union, there is cause for cautious optimism that the global area of biotech crops and the number of farmers planting them will continue to grow in 2004 and beyond," commented Dr James. ISAAA predicts that within the next five years 10 million farmers in 25 or more countries will plant 100 million hectares of biotech crops. According to the report, the global market value of biotech crops rose from US$4 billion in 2002 to US$4.50-US$4.75 billion in 2003, based on the sales value of the GM seed and any technology fees charged. ISAAA predicts that the market will be worth some US$5 billion or more by 2005.


American News and Markets




SOYBEAN FUNGICIDE LAUNCH


Syngenta has launched a new fungicide, Priori Xtra (azoxystrobin + cyproconazole), in Brazil for control of soybean rust. This disease has migrated to South America from Africa where it has affected several million hectares during the last two years. To support its customers in controlling this important disease, Syngenta has set up a monitoring and alert system operating through a network of 140 agronomists.

SYNGENTA IN SMARTBOX AGREEMENT


American Vanguard Corporation’s subsidiary, Amvac Chemical Corporation, has entered into an agreement with Syngenta Crop Protection to supply the maize soil insecticide Force 3G (tefluthrin) for use through its SmartBox system from the 2004 season. Amvac’s SmartBox is a closed handling system that combines precision insecticide application with reduced applicator exposure. Amvac originally acquired the system from DuPont. Its 50-pound (22kg) returnable containers eliminate the need to open, pour and dispose of bags, which reduces the risk of skin contact and inhalation. It features in-cab, push-button insecticide control, monitoring and data record keeping capabilities. The SmartBox is a low-maintenance system that can be easily fitted on all major brands of planters. Force 3G is a leading maize soil insecticide manufactured and marketed by Syngenta for the control of corn rootworm, wireworm, cutworm and white grub in maize crops.

ATHENIX IN FUND RAISING


Athenix Corporation, Research Triangle Park, North Carolina, has raised US$12.5 million in an oversubscribed round of series B private equity financing. Athenix is a biotechnology company developing products for the agricultural and chemical sectors using genetic traits from microbes. Athenix is focusing on the discovery of genes and proteins for novel input traits such as insect and nematode resistance and herbicide tolerance and the discovery of genes and proteins for improved bioconversion in the chemical, energy and animal feed sectors (www.athenixcorp.com).

TERRA NOSTRA DEAL WITH MCCAIN


The Nevada-based corporation, Terra Nostra Technology Ltd (www.tnrgroup.com), is to conduct trials with McCain Foods Limited on its Beauveria bassiana bio-insecticide for control of the Colorado potato beetle (CPB) at McCain's experimental farm in Florenceville, New Brunswick, Canada. Producing more than 400 tonnes of potato products per hour at its 30 processing plants around the world, McCain is the largest potato processor in the world. The trials will include control of CPB adults, eggs and small larvae. Data gathered by Terra Nostra during these trials will also be useful for its registration in the USA and Canada for Beauveria bassiana, which it plans to commercialise in 2004.
Terra Nostra is aiming to become a leading supplier of viral and fungal bio-insecticides for agricultural, forestry and disease control applications in North American and international markets. The company plans to spend up to $1.8 million on the new product’s development, together with development of a viral bio-insecticide for control of gypsy moth in forestry and a viral mosquito control product.

PARADIGM AGREEMENT WITH PIONEER


Paradigm Genetics Inc, Research Triangle Park, North Carolina, signed a collaboration agreement with Pioneer Hi-Bred International Inc last month to identify plant genes that influence important crop traits for use in Pioneer's crop variety development programme. Paradigm will use its GeneFunction Factory platform to analyse genes in Arabidopsis thaliana.

GREEN BOOK CHANGES HANDS


Vance Publishing Corporation, Lincolnshire, Illinois, has bought the agricultural and horticultural product reference and information publications of C&P Press Inc, New York, for an undisclosed amount this month. Vance’s Lenexa offices will direct management and sales of the acquired publications. It will maintain the C&P Press facilities and other assets in New York and keep the nine employees. The acquisition includes the Crop Protection Reference, also known as the Greenbook, a massive tome of technical and regulatory crop protection resources, including detailed product labels, as well as some other reference and electronic databases.

SIPCAM DEFENDS STALWART


Syngenta Crop Protection Inc filed a lawsuit last month in Wilmington, Delaware, challenging the accuracy of Sipcam’s US advertising of its metolachlor herbicides Stalwart C (metolachlor + safener) and Stalwart Xtra (metolachlor + atrazine + safener).
Sipcam Agro USA has responded to the charges by asserting that it will “vigorously defend” its advertising. Lynn Brookhauer, president of Sipcam, said that the company’s own tests and independent field trials confirmed that its Stalwart products were as effective as current s-metolachlor products on the US market and that it would be expanding the Stalwart range.

Other News and Markets




NEW IMIDACLOPRID PLANT IN INDIA


Bayer CropScience has officially opened a new production facility for its insecticide imidacloprid in Vapi, India, with an annual capacity of 500 tonnes active ingredient. The new plant at Bayer’s Indian joint venture, Bilag Industries, will be used to supply both the Indian market as well as many others. “The inauguration of this plant underlines our strong partnership with Bilag Industries, which is one of the cornerstones of our global manufacturing strategy” commented Bayer CropScience’s current chairman Dr Jochen Wülff. He is due to be succeeded on 1 April by Dr Friedrich Berschauer.
Bayer CropScience is the biggest crop protection company in India with a strong position in all sectors of the market. The integration of the Aventis CropScience and Bayer elements of the company was recently completed. Helped by good weather conditions, Bayer achieved a higher growth rate than the overall Indian market in 2003. Mid-term growth strategy in India reflects its overall focus on innovation, as the head of Bayer CropScience India, Pierre-Louis Dupont, explained: “In 2003, four new products were introduced into the market and for 2004 Bayer CropScience India expects to launch another four new products as well.”

SUMITOMO MERGES SUBSIDIARIES


Sumitomo Chemical has announced that Sumika-Takeda Agro Manufacturing, an agrochemical formulating subsidiary of Sumitomo Chemical Takeda Agro (SCT), will merge with agrochemical manufacturer Seibu Kasei, another subsidiary of Sumitomo Chemicals to form Sumika Agro Manufacturing. Sumitomo Chemical has been expanding and strengthening its businesses through acquisitions and alliances with other companies. SCT took over the agrochemical business of Takeda Chemical Industries Ltd in 2002 (CPM August and October 2002) and has been steadily developing and strengthening its operations. Sumitomo Chemical plans to completely merge its pesticide business with SCT in 2007 and is consolidating marketing channels and manufacturing subsidiaries in Japan. Sumitomo Chemical and SCT are also establishing systems for optimal performance in the areas of sales, research and manufacturing.
The two companies have located their domestic sales offices in close proximity and are carrying out personnel exchanges for their overseas businesses. SCT's agricultural research laboratory in Tsukuba, Ibaraki prefecture, will relocate to Sumitomo Chemical's agricultural chemicals research laboratory in Takarazuka, Hyogo prefecture, in October 2004. The companies are also considering the gradual transfer of production of active ingredients from SCT's Hikari Plant to Sumitomo Chemical's Oita Works.

Acquisition of Buihunter biopesticides


Sumitomo Chemical has acquired the Buihunter biopesticide business of Kubota Corporation this month, including global development and marketing rights. The business includes Bt flowable and granular insecticide formulations which are approved in Japan. The flowable formulation, very effective for control of chafer larvae, was launched last year and is being distributed by Sankei Chemicals in the major potato growing areas of Japan. The acquisition includes intellectual property rights in Japan, the USA and other countries. Sumitomo plans to extend the applications of Buihunter to tea, turf and strawberries.

MAI SHARES SOLD TO UBS


The holding company, Koor Industries, Israel, has sold 27 million shares in the world’s leading generic pesticide company, Makhteshim-Agan Industries (MAI), to the Swiss bank UBS for some US$95 million. The move will reduce Koor’s holding stake in MAI to 41.3% of the voting capital of the company. The sale is in line with Koor’s previous announcement that it would sell 5%-6% of MAI. As part of the transaction, Koor has committed not to sell any additional shares of MAI in the 120 days after the transaction.

CROP PROTECTION

____________________________Monthly__________
Publisher: Market Scope Europe Ltd ISSN 1366-5634

Website: http://www.crop-protection-monthly.co.uk

Editor: Brian R. Hicks E-mail: brianralphhicks@aol.com

Deputy Editor: Martin Redbond E-mail: MRedbond@aol.com

Contributors: Duncan Allison, Judy Hicks, Brian Hopper, Bruce Knight & Elaine Warrell

Editorial and Subscription Enquiries to:-

Crop Protection Monthly

6 Torcross Grove Calcot

Reading Berkshire RG31 7AT England



Tel: +44 (0) 118 941 7539 Fax: +44 (0) 118 942 0014

E-mail: CPMsubscriptions@aol.com
Published 12 times a year. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of the copyright owner. Any prices indicated in this publication represent only an approximate evaluation based upon such dealings (if any) in those materials as may have been disclosed to CPM prior to publication. Whilst every effort is made to ensure that prices are representative, and that the analysis, comment and opinion in the text is accurate, Market Scope Europe Ltd (MSEL) cannot accept any liability whatsoever to any person choosing to rely upon the prices evaluated or views expressed by MSEL, including liability for negligence.


31 January 2004 © Market Scope Europe Ltd www.crop-protection-monthly.co.uk
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