Rizobacter and Marrone Bio Innovations Expand Strategic Alliance to Supply Novel Seed Treatment in Brazil

Rhea-AI Summary

Marrone Bio (NASDAQ: MBII) has expanded its partnership with Rizobacter to distribute Rizonema™, a biological seed treatment for nematodes and soil insects, in Brazil. Following multiple successful regulatory trials, MBI plans to enhance the product label for broader pest control, targeting cotton and additional nematodes. The Brazilian seed treatment market is projected to reach $1.27 billion by 2024, with biological options expected to grow at a 10.4% CAGR. This collaboration is strategically important as Brazil leads in soybean production and presents significant market opportunities for sustainable agricultural solutions.

Positive

• Expanded distribution agreement for Rizonema™ in Brazil, targeting a significant market.
• Successful regulatory trials demonstrate effectiveness on key nematode species.
• Potential for commercial availability in the 2023 planting season, enhancing market presence.

Negative

• Dependence on pending regulatory approvals for commercial launch.
• Market competition for pest management products may pose challenges.

PERGAMINO, Argentina and DAVIS, Calif., July 12, 2021 (GLOBE NEWSWIRE) -- Rizobacter -- a subsidiary of Bioceres Crop Solutions Corp. (NYSE: BIOX) and a global leader in sustainable solutions for agriculture -- and Marrone Bio (NASDAQ: MBII) (MBI) -- an international leader in sustainable bioprotection and plant health solutions -- today announced that Rizonema™, a biological seed treatment for nematodes and soil dwelling insects, will be offered for use in row crops in Brazil through an expanded distribution agreement.

Multiple regulatory trials in Brazil have proven the efficacy of Rizonema on key nematode species in soybeans and corn. MBI will continue conducting field trials in the 2021 growing season to expand the product label for use in cotton and to include additional nematodes and soil dwelling insects. During the regulatory submission and review process, MBI and Rizobacter agronomists will continue to educate Brazilian growers on the benefits of biological seed treatments to sustainably control yield-robbing pests.

Pending regulatory approvals, Rizonema could be commercially available as early as the 2023 planting season.

“Rizobacter has made a long-term commitment to bring more sustainable crop solutions to South American farmers, with no compromise on performance,” said Ricardo Yapur, Rizobacter’s chief executive officer. “Working with a biological leader such as MBI is a great way two companies with common goals and complementary expertise can make a lasting impact on farming practices. With this alliance, growers will be able to improve yield and return on investment while taking even greater care of the earth that sustains us all.”

"Brazil is a key market for expansion as we grow globally with our seed treatment solutions,” said MBI Chief Executive Officer Kevin Helash. “In 2023, we are targeting to have 45% of our sales from seed and soil treatments, and 20% of our sales in Latin America. Rizobacter has decades of experience in the Latin American market and is well established in the seed protection market. Their reputation and infrastructure, combined with MBI’s biological expertise and in-market presence, will provide growers and distributors greater value by converting to a more sustainable alternative.”

The estimated market size of seed treatments in Brazil is expected to reach USD $1.27 billion by 2024. According to Mordor Intelligence, seed treatments overall are projected to grow at an 8.5% compound annual growth rate (CAGR) between 2019 and 2024, with biological options increasing at a faster pace with a projected CAGR of 10.4%. Brazil is the world’s largest producer of soybeans, and a leading producer of corn and cotton.

About Rizobacter
Rizobacter, a subsidiary of Bioceres Crop Solutions Corp. (NYSE: BIOX) is a leading company in the development, manufacturing and commercialization of biological solutions applied to agriculture. Rizobacter is delivering state-of-the-art technologies in 31 countries through its eight subsidiaries and highly-skilled distribution network. Rizobacter’s main product lines are biologicals, adjuvants and specialty fertilizers. Rizoliq TOP^®, Osmium^®, Signum^®, Rizoliq LLI^®, Rizospray Extremo^®, Rizospray Integrum^® and Rizostar^® are flagship brands of Rizobacter.
For additional information, visit the company’s website at www.rizobacter.com or follow on social media: Twitter, LinkedIn and Instagram.

Rizobacter Contact:
Pedro Mac Mullen, Marketing Director
pmacmullen@rizobacter.com.ar
+54-2477-409400

About Marrone Bio Innovations
Marrone Bio Innovations Inc. (NASDAQ: MBII) is a growth-oriented agricultural company leading the movement to environmentally sustainable farming practices through the discovery, development and sale of innovative biological products for crop protection, crop health and crop nutrition. Our portfolio of more than 15 products helps customers operate more sustainably while increasing their return on investment. The company’s commercial products are sold globally and supported by a robust portfolio of more than 500 issued and pending patents.  Our end markets include row crops; fruits and vegetables; trees, nuts and vines; and greenhouse production. The Company’s research and development program uses proprietary technologies to isolate and screen naturally occurring microorganisms and plant extracts to create new, environmentally sound solutions in agriculture. For more information, please visit the Company’s website at marronebio.com. 

Learn more about Marrone Bio Innovations at www.marronebio.com. We also use our investor relations website, https://investors.marronebio.com, as well as our corporate Twitter account, @Marronebio, as means of disclosing material non-public information, and encourage our investors and others to monitor and review the information we make public in these locations. Follow us on social media: Twitter, LinkedIn and Instagram.

Marrone Bio Innovations Forward Looking Statements
This press release 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 MBI’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 release 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, the sales potential in South America, weather, the novel coronavirus COVID-19 and supply chain interruptions due to COVID-19, regulatory and other factors affecting demand for the MBI’s products, any difficulty in marketing MBI’s products in its target markets, competition in the market for pest management products, lack of understanding of bio-based pest management products by customers and growers. Additional information that could lead to material changes in MBI’s performance is contained in its filings with the SEC. MBI is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of current information, future events or otherwise.

Marrone Bio Innovations Contact:
Clyde Montevirgen, Vice President of New Business Development & Investor Relations
info@marronebio.com 
1-530-750-2800

FAQ

What product is Marrone Bio expanding in Brazil?

Marrone Bio is expanding the distribution of Rizonema™, a biological seed treatment for nematodes and soil insects.

When is Rizonema™ expected to be available in Brazil?

Rizonema™ could be commercially available as early as the 2023 planting season, pending regulatory approvals.

What market size is projected for seed treatments in Brazil?

The market size for seed treatments in Brazil is expected to reach $1.27 billion by 2024.

What growth rate is expected for biological seed treatments?

Biological seed treatments in Brazil are projected to grow at a compound annual growth rate (CAGR) of 10.4%.

How will the partnership with Rizobacter benefit growers?

The partnership aims to provide Brazilian growers with sustainable alternatives to control pests, potentially improving yield and ROI.