Brazil's Bio-Input Boom and the Dutch Innovation Mission of November 2024

Nieuwsbericht | 05-12-2024 | 16:10

The Booming Brazilian Bio-Input Market

The Brazilian market for bio-inputs has experienced explosive growth in recent years, reaching a value of USD 1 billion. This growth is projected to continue at a rate of 20% annually. The Dutch mission explored drivers behind this expansion and identified opportunities for innovation and collaboration between the Netherlands and Brazil.

Three Key Drivers of Brazil's Growth:

1. Facilitating Regulations: Brazil’s regulatory framework for bio-inputs significantly reduced the time it takes for new products to reach the market. In contrast to the lengthy approval process in Europe, Brazil has established a "fast lane" for biological products within the laws for chemicals, allowing them to be evaluated based on criteria specific to their biological and thus less risky nature. Currently, it takes between six months and two years for a new product, where it takes 7 to 10 years in Europe. The Brazilian fast lane has led to the introduction of an average of 100 new bio-input products per year over the past four years.
2. Large Market: Brazil's vast agricultural sector, encompassing over 60 million hectares of cropland, presents a massive market for bio-inputs. Farmers in Brazil, particularly medium-sized and large-scale producers, have shown a strong willingness to adopt these products, driven by factors such as the relatively young age of farmers, good education levels, and the successful use of bio-inputs to combat agricultural pests in the past years.
3. Deep Knowledge: Brazil has a growing base of research and innovation in the field of bio-inputs. Institutions such as the Instituto Biológico (gov of Sao Paulo), Embrapa, the Brazilian Agricultural Research Corporation, and USP ESALQ have played a pivotal role in driving innovation and bringing new products to market. Increasingly there are public-private partnerships developing applied solutions like the São Paulo Advanced Research Center for Biological Control (SPARCBio), which was created by Koppert, research fund FAPESP, and the agricultural part of the University of Sao Paulo, USP – ESALQ. Embrapa also developed products with private partners that are now in the market.
4. Last but not least, the resistance of pests and diseases to chemical crop control propels the development of biological crop control.

Opportunities for Dutch-Brazilian Collaboration:

The Dutch delegation comprising of Artemis, BioMosae, Bionomic, Botany Group, Hudson River Biotechnology, Koppert, Soiltech, Topsector Horticulture & Starting Materials, and Wageningen University & Research showcased the Netherlands' expertise in bio-input research, development, and application. Potential areas for collaboration with Brazil include:

• Student and policymaker exchange: Fostering exchanges between students, and policymakers in both countries can strengthen networks and facilitate knowledge-sharing through bilateral exchange programs e.g. on regulation and education system.
• Applying Dutch techniques in the citrus sector: Collaborating with Brazilian citrus producers could explore how Dutch technologies can improve pest management and crop yields. While growing the know-how of applications in the Netherlands.
• Developing bio-inputs for minor crops: Joint research programs could focus on developing bio-inputs for crops such as potatoes, carrots, flowers, and vegetables. An area that is well-developed in the Netherlands and somewhat underdeveloped in Brazil.
• Scaling up insect production for soybean crops: Joint research projects could accelerate the development of large-scale production facilities for beneficial insects to control pests in soybean crops, like the egg parasitoid Telenomus podisi for biological control of stink bugs.

In conclusion, the innovation mission to Brazil highlighted the immense potential for collaboration between the Netherlands and Brazil in bio-inputs. By leveraging their respective strengths and expertise, the two countries can drive innovation, promote sustainable agriculture, and address global challenges such as food security and environmental protection.

Mission program

To foster collaboration and explore the regulatory landscape of bio-inputs, a dialogue was organized with the Instituto Biológico, a renowned research institute under the government of São Paulo. Key stakeholders from various organizations, including Instituto Biológico, Rabobank, MAPA, AENDA, Artemis, ABBI, SINDIVEG, and CropLife, shared their valuable insights and experiences.

In Holambra, the delegation delved into the practical applications of bio-inputs in covered crops through visits to Ecoflora, a flower grower, and Horti company Terra Viva.

To gain deeper insights into cutting-edge research and innovation, the program engaged with leading institutions such as Instituto Biológico, Escola Superior de Agricultura Luiz de Queiroz (ESALQ), Embrapa Meio Ambiente, Embrapa Milho e Sorgo and Inova USP. ESALQ hosted an event attended by fourty industry professionals to discuss product development, with technical and industry cases presented by renowned experts including Prof. Dr. Fernando Valicente (Embrapa Milho e Sorgo), Prof. Dr. Fernando Andreote (ESALQ), Mr. Ronaldo Dalio (IDEELAB – Elected startup of 2024), and Mr. Clovis Daniel Borges (TOYOBO).

In collaboration with Koppert Brazil and USP/ESALQ, the delegation conducted field visits to explore the practical application of bio-inputs:

• Citrus Production: Demonstration of fungi-based solutions at Fazenda Chimbao (Terra Viva)
• Biologicals and soy Production: Meeting at Fazenda Prudente do Morro to review bological solutions.
• On-farm production: Observation of Cotesia flavipes paraitoids for the biological control of sugarcane borer, Diatreae saccharalis in sugarcane
• Biofertilizer Production for sugarcane: Preparation and field application of vinasse obtained from sugar and ethanol production enriched with biofertilizers and biologicals to enhance nutrition, pest control, and disease management.

To conclude the program, the final day featured discussions and presentations on financial opportunities in Brazil, Dutch instruments for international innovation cooperation, and innovation initiatives at Inova USP. These conversations underscore the potential for collaboration between companies and universities in product development, fostering innovation, and promote knowledge exchange.

This mission was organized on behalf of the Ministry of Agriculture, Fisheries, Food Security and Nature of the Netherlands, and implemented by the Netherlands Enterprise Agency, the LVVN team and the Innovation team in Brazil. The mission was led by Anneke van de Kamp, Topsector Horticulture & Starting Materials.