Biopesticides will provide the key to future proofing Australia’s agricultural exports according to an analyst by Tim Grogan CEO of Bio-Gene Technology Limited
Australian farm produce is among the highest quality in the world. As a result, the strong demand for our products has generated a 67% increase in value over the past three decades.
As 70% of all food grown in Australia is exported, the importance of international trade in sustaining our agricultural sector is clear. As such, it’s worth paying attention to two macro trends set to impact how we manage sustainability in agricultural production and maintain our lucrative export markets over the coming years.
The first trend is the battle to control pests like insects with an ever-diminishing pool of effective pesticides and the impact this will have on both agricultural production and our export markets. The second is evolving consumer sentiment towards products that are cleaner and greener, including organic produce.
Across both trends, I believe biopesticides will play an increasingly important role.
Growing insecticide resistance
Pesticides are critical to farming as it accounts for 75% of the 8000 pesticides used across industry – the remaining 25% is used in household products.
Without access to a broad range of effective and affordable pesticides, farmers stand to lose much of their annual production to pests and diseases – up to 78% of fruit, 54% of vegetables and 32% of cereals currently produced for consumption would not exist.
Infestations in stored grain are just as devastating – the lesser grain borer can eat through 56% of stored wheat over a two-month period if left to its own devices.
These losses will only increase as resistance to insecticides grows and there are less solutions available for farmers. Globally, the agricultural industry is at a precipice – we cannot manage our fields or grain if we cannot effectively and safely control resistant pests.
Yet, current chemistry is no longer proving effective in controlling pests, and not nearly enough has been invested by big agrochemical companies over the past decades to develop new solutions to stay ahead of the resistance threat.
As a result of growing consumer concerns regarding ‘safe’ products, global agrochemical companies with depleted product pipelines are now looking to smaller agricultural technology companies like Bio-Gene for new product options to meet these challenges.
Resistance can be reduced by offering farmers access to a range of (bio)insecticides that work through different modes of action on the insects.
One of Bio-Gene’s pipeline products, Flavocide, has confirmed its ability to provide residual control for all five major grain storage pests, including resistant strains, when used in combination with chlorpyrifos-methyl and deltamethrin.
We are on the path to commercialising Flavocide, a nature-identical compound with a new mode of action, as part of a new generation of bioinsecticides that control pests and overcome resistance with far less impact on human health and the environment.
Impact of agri pesticide bans
Over the past few years, the EU, UK, Canada and America have banned a number of pesticides, such as chlorpyrifos and neonicotinoids among many others, due to environmental and human health concerns.
While these pesticides are still allowed for use in Australia, overseas bans could mean local farmers will not be able to export produce or grain treated with such pesticides to countries where they are banned.
One example is local canola growers who have needed to stop using omethoate to control red-legged earth mites if they wish to continue selling into the lucrative European market; omethoate is banned in Europe.
It’s not just environmentalists and health officials who advocate for the use of safer pesticides. Consumers are also calling for fruit and vegetables to be grown with less use of synthetic pesticides.
And the market is responding. ALDI became the first big retailer in Europe to refuse to buy from growers that used eight toxic pesticides, including three neonicotinoids, even before these pesticides were banned by the EU regulatory authorities.
As Australia seeks to expand its global agriculture exports, failure to wind back the use of pesticides banned in other jurisdictions will ultimately hurt our farmers.
Global shift towards biopesticides
Biopesticides can come from plants, microbes, or other organic sources. They have a lower environmental impact compared to traditional synthetic pesticides, reduced risk to non-target organisms, minimal residue levels on crops and are highly compatible with integrated pest management practices.
They generally have shorter pre-harvest intervals, allowing for safer and more flexible applications.
The increasing market trend towards biopesticides reflects the global shift towards more sustainable agriculture. Valued at $3.7 billion in 2019 and expected to reach $7.7 billion by 2025, the biopesticide market is experiencing exponential growth, particularly for high-value fruit and vegetable crops.
Moreover, the regulatory framework for biopesticides in the US, Brazil and Australia enables biopesticides to enter the market faster than synthetic pesticides, as they benefit from fewer studies required, a shorter evaluation time, and reduced registration fees.
The opportunity is clear.
Australia has ambitious targets to transform our thriving agricultural sector into a $100 billion industry by 2030. Innovations like biopesticides will support local farmers to continue to grow and export high-quality produce and to sustain the growth trajectory imperative for our economic prosperity and global competitiveness.
About Bio-Gene Technology Ltd
Bio-Gene Technology (ASX:BGT) is developing insecticides derived from nature to achieve high impact globally. Its unique technology is based on compounds with a novel mode of action proven to overcome insecticide resistance with minimal impact on human health and the environment.
