Sumitomo Corporation Invests in Chilean Biocontrol Manufacturing Company
SC Hopes to Serve the Biocontrol Market from Upstream to Downstream through Bio Insumos Nativa
As the global population continues to rise, the need to boost crop yields has led to increased use of agrochemicals and fertilizers. This has, in turn, heightened environmental concerns, prompting a surge in demand for biocontrol solutions. In 2023, the biocontrol market was valued at approximately USD 8 billion, a dramatic increase from USD 500 million in 2005. Projections suggest this market could grow to USD 15 billion by 2029, representing about 20% of the total agrochemicals market.
To lead the way, Sumitomo Corporation (SC) has announced a strategic investment in Bio Insumos Nativa (BIN), a leading Chilean biocontrol manufacturing company. This move, executed through Summit Agro South America, an agrochemical distribution subsidiary, marks SC’s commitment to advancing sustainable agricultural practices in South America.
Latin America is at the forefront of this growth, with an anticipated annual expansion rate of 15% through 2029. This is driven by regulatory systems that promote biocontrol usage and the adoption of these solutions by large-scale dry-field farmers, particularly soybean growers.
Established in 2002, BIN has become the largest player in Chile’s microbial biocontrol sector, commanding a 30% market share. BIN’s success is evident through its significant market presence in Chile and Peru and its role as a primary supplier to Summit Agro South America. The company is also developing several new biocontrol products poised to drive future sales growth.
Above: spraying of biocontrol product
The investment by Sumitomo Corporation will enable BIN to enhance its research and development (R&D) and manufacturing capabilities, focusing on market-oriented strategies. Given the milder environmental impact and control effects of biocontrols compared to traditional agrochemicals, BIN plans to promote broader adoption of these products. The company aims to support farmers by providing farm management and technical guidance, ensuring the effective use of biocontrols across the agricultural value chain.
Sumitomo Corporation’s investment is part of a broader strategy to accelerate BIN’s global expansion. By selling part of its shares to Summit Agro South America, BIN aims to leverage Sumitomo’s extensive distribution channels and market presence. This partnership will allow BIN to enter new markets and expand its sales footprint, while Sumitomo Corporation will benefit from an expanded product portfolio and a stronger presence in the biocontrol sector.
“This partnership will allow our company to accelerate the expansion process in large global markets. We are excited to welcome Sumitomo Corporation and its subsidiary, Summit Agro South America as our new partner. Together, we will achieve significant new achievements for the development of our businesses,” said Bio Insumos Nativa CEO, Paulo Escobar. The CEO emphasized the importance of this alliance in utilizing Sumitomo’s experience and distribution channels to enhance BIN’s global presence.
With over 40 years of experience in agrochemical-related businesses, Sumitomo Corporation operates in about 40 countries worldwide. Through the sale and distribution of agrochemicals, specialty fertilizers, and other agricultural materials, SC continues to contribute to global agricultural production, working alongside producers to meet growing food demands sustainably.
Company Profile: Bio Insumos Nativa
– Company Name: Bio Insumos Nativa
– Head Office Location: Maule, Chile
– Business Description: Biocontrol manufacturing company
– Net Sales: Approx. USD 5.6 million
– Year Established: 2002
– Number of Employees: 50
– Website: https://bionativa.cl/
Bio Insumos Nativa is dedicated to the development, research, production, and sale of biological products, including biopesticides and biostimulants. With a presence in 11 markets, the company aims to address phytosanitary issues in crops, contributing to the production of healthy foods free from synthetic chemical pesticides. This investment underscores Sumitomo Corporation’s strategic vision to lead in sustainable agricultural solutions, addressing both the needs of a growing population and the imperative to protect our environment.