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Pulses

HB4 trait now has regulatory approval in more than 80 percent of the global soybean market

Verdeca, a joint venture between Arcadia Biosciences, Inc. and Bioceres Crop Solutions Corp. have announced that it has successfully completed the regulatory review process and received approval from the U.S. Department of Agriculture (USDA) for its HB4® drought tolerant soybeans, which will allow for commercialization in the U.S. market. The approval comes two years after the U.S. Food and Drug Administration’s (FDA’s) approval of Verdeca’s HB4 trait in 2017.

The HB4 stack is Verdeca’s newest product release from its pipeline of traits developed to benefit soybean producers through quality improvement, stress mitigation and management practices.

“HB4 is a novel soybean trait that enhances the traditional herbicide tolerance package to provide yield stability across diverse environments,” said Martin Mariani Ventura, general manager of Verdeca. “Approval of this technology in the United States is a significant step for the successful commercialization of HB4 technology in the global soybean market.”

With USDA approval, the HB4 trait now has regulatory approval in more than 80 percent of the global soybean market. The HB4 trait has already been approved in Argentina and Brazil, with regulatory submissions currently under consideration by China, Paraguay, Bolivia and Uruguay. Import approval from China is needed for commercial launch in Argentina, and is now expected in 2020.

More than 30 million of the world’s soybean hectares are grown in the United States. While the 2019 growing season has challenged many U.S. soybean growers with too much water, key soybean production areas – including some areas within the United States – just last year suffered reduced yields due to water and heat stress.

“Trials in Argentina have shown a positive impact of the HB4 trait stack on soybeans there,” said Raj Ketkar, president and CEO of Arcadia Biosciences. “The USDA and FDA approvals are important steps in our continued drive to commercialize this trait in key markets.”

“This approval in the U.S. is an important step for Verdeca. The HB4 trait was recently approved by Brazil as well, and we now expect approval in China in 2020 to launch our commercial efforts in Argentina,” said Federico Trucco, CEO of Bioceres Crop Solutions.

Arcadia Biosciences and Bioceres Crop Solutions formed Verdeca in 2012 to deploy next-generation soybean traits in all key production regions, beginning in South America and North America, which together represent nearly 80 percent of the harvested soybean hectares globally.

HB4 trait now has regulatory approval in

Agro chems – Fertilizers

The acquisition enables Bioenergy DevCo to increase BTS Biogas’ technology footprint in North America

Bioenergy DevCo, a leading global developer of anaerobic digestion facilities that create renewable energy and healthy soil products has acquired BTS Biogas, which will operate as an affiliate and enable new operation and expansion of anaerobic digestion in North America. 

Headquartered in Bruneck, Italy, BTS Biogas is a European pioneer in the field of anaerobic digestion with a 20-year history in the industry and 200 plants located around the world. By transforming organic waste into natural gas and an organic soil amendment, anaerobic digestion reduces landfill waste, as well as carbon and greenhouse gas emissions.

The acquisition enables Bioenergy DevCo to increase BTS Biogas’ technology footprint in North America, working closely with municipalities and companies to help them efficiently, cleanly and affordably dispose of organic waste while producing clean, renewable natural gas that can be used by utilities.

“Almost three years ago, our team began working with BTS Biogas to expand the use of large-scale, modular anaerobic biodigesters. By building relationships with cities and towns throughout the United States, we are confident that this proven technology will become an essential tool in reducing pollution from waste and fighting climate change as the world aims to transition to a low-carbon economy,” said Shawn Kreloff, founder and CEO of Bioenergy DevCo. “While operating as affiliated entities, we aim to shift mindsets by demonstrating how this proven technology can change organic waste from being a pollution problem to a renewable energy solution.” 

Organic waste is traditionally either incinerated and emitted as an environmental pollutant or left in a landfill where it rots and releases methane, a harmful greenhouse gas that contributes to climate change. Through the use of anaerobic digester technology, Bioenergy DevCo offers an environmentally smart, proven technology to break down biodegradable waste materials naturally, using microorganisms.

This natural chemical process creates two important products at an industrial scale. First is renewable natural gas, which can be burned cleanly and turned into a versatile source of renewable energy by being injected into a national electric grid or used as a transportation fuel as compressed natural gas.  Second, is a product called digestate, an organic soil amendment with the same organic and storm water management capability as compost.

“With this investment, we are pleased to support expansion into North America as we continue to work independently in Europe to advance the adoption of this technology, expand anaerobic digestion know-how and strengthen the financial soundness of waste-to-energy projects,” said Jeff Henslin, CEO of BTS Biogas. “This affiliation between the two companies is an evolution that allows us to offer the North American market not only the most advanced technological solutions for bioenergy and renewable natural gas production from organic waste, but also enables us to support projects of great strategic and economic value with developers throughout the world.”

The acquisition enables Bioenergy DevCo to increase

IT

Ag Leader will issue a limited beta release of CartACE™ for InCommand® displays

Ag Leader, the leader in year-round precision farming technology widely known for the first commercially successful yield monitor has announced a limited beta release of a new grain cart connectivity feature, CartACE. Powered by Ag Leader’s InCommand display, CartACE gives the grain cart operator assistance while unloading on-the-go.

“We know that the grain cart seat cannot be filled by just anyone, and it is getting harder to find experienced operators to fill critical roles in farming operations. It takes a certain level of expertise to fill this role, which we’re approaching in a practical and economical way that we believe many of our customers could easily adopt and benefit from,” explained Joe Holoubek, Ag Leader Product Manager. “We aim to turn what might be an average vehicle driver into a skilled grain cart operator through providing the right tools and assistance during high stress and high error prone harvest tasks.”

CartACE simplifies the grain cart operator’s job by sharing a live map of the combine’s progress and location through InCommand displays, helping the operator know when and where the combine needs to unload and which part of the field to drive on. The InCommand display in the grain cart automatically generates a guidance line alongside the combine and the operator simply presses a button to engage autosteer. While the operator is still responsible for safe operation of the vehicle, they can now focus their attention on unloading on-the-go. 

“Connecting the operation and automating some critical tasks, enables operators and machines to work better together and provides a huge productivity and confidence boost. We can do it using current technology already in the cab,” added Holoubek. “We believe this is a needed step toward the future of farming that most operations can take advantage of today without a huge investment or stepping too far outside their comfort zone.”

Ag Leader will issue a limited beta

R&D

The facility provides turnkey solutions and a simple pathway to enter the multi-billion dollar cannabis and organic foods markets

Micro Lab Farms, the premier provider of automated indoor micro-farms for rapid production of legal cannabis and other crops, announced it is opening a new Research and Development Center, showroom, and sales center in Tulsa, Oklahoma. The 2.5 acre facility will provide local support for farmers, business owners and entrepreneurs throughout the Midwest, and turnkey solutions to those seeking to enter rapidly growing cannabis and organic food markets.

In states such as Oklahoma, which have a relatively easy pathway to entry, Micro Lab Farms’ proprietary GrowPod platforms can allow almost anyone to become a licensed, legal grower of cannabis, and participate in the fastest growing sector in America.

Micro Lab Farms has licensed GrowPod technology from GP Solutions (OTC:GWPD). GrowPods are finely tuned, automated, transportable and scalable micro farms that have been shown to grow cannabis and other crops at a faster rate than conventional means of agriculture.

GrowPods allow cultivation to take place year-round, which maximizes ROI. The systems are sealed from outside pathogens, contaminants, pesticides and chemicals, and produce clean and robust crops.

Micro Lab Farms’ new facility will also stock a full selection of GP Solutions proprietary soil mixtures, which contain no animal products. This is critical in the cannabis industry because many other soils and additives can contain harmful pathogens and bacteria that have the potential to contaminate crops and cause testing failures.

The Micro Lab Farms R&D Complex will also host tours and information seminars on cannabis and organic farming.

The facility provides turnkey solutions and a

Agro chems – Fertilizers

Consistent Operational Performance with Improvements in Food and Fuel Segments

Darling Ingredients Inc. a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries,has announced financial results for the 2019 second quarter ended June 29, 2019.

Second Quarter 2019 Overview

  • Revenue of $827.3 million
  • Net income of $26.3 million, or $0.16 per GAAP diluted share
  • Adjusted EBITDA of $115.5 million
  • Diamond Green Diesel (DGD) delivers $1.25 EBITDA per gallon
  • Consolidated adjusted pro forma EBITDA $159.4 million
  • DGD issued partner dividend of $17.7 million in April 2019, with a subsequent dividend of $37.8 million in July 2019
  • US bond refinanced, lowering borrowing cost and extending maturity with extinguishment costs incurred in quarter

For the second quarter of 2019, the Company reported net sales of $827.3 million, as compared with net sales of $846.6 million for the second quarter of 2018. The reduction in net sales of $(19.3) million is mainly the result of lower global protein prices and the divestiture of the Company’s industrial residuals business in May 2018 which was partially offset by the increase in sales volumes of the specialty pet food business and increased collagen sales values.

Net income attributable to Darling for the three months ended June 29, 2019 was $26.3 million, or $0.16 per diluted share, compared to a net loss of $(30.4) million, or $(0.18) per diluted share, for the second quarter of 2018.  The increase in net income over the same period in fiscal 2018 reflects the absence of the following one-time costs realized last year: debt extinguishment costs of $23.5 million related to Euro bond refinancing; the loss of $15.5 million from the sale of Terra Renewal Services subsidiary; and $15.0 million of restructuring and impairment charges incurred as a result of the Hurlingham, Argentina, gelatin plant closure.

Consistent Operational Performance with Improvements in Food

Oilseeds

USDA deregulation of proprietary canola gives aqua farmers and feed manufacturers access to sustainable aquafeed source

Aquaculture farmers will have access to a sustainable, plant-based source of long-chain omega-3 fatty acids for aquafeed, now that the USDA has deregulated Cargill’s proprietary canola for cultivation in the United States. Currently, aquafeed for farm-raised salmon contains fish oil to help fish reach desired EPA and DHA omega-3 fatty acid levels.

By combining technology from BASF with its canola innovation capabilities and aquaculture expertise, Cargill is able to provide farmers access to Latitude™, a plant-based alternative that relieves harvesting pressure on wild fish populations, while meeting the market need for a reliable supply of long-chain omega-3s at a predictable price.

“This approval means we are on target to deliver Latitude™, our sustainable, fish oil alternative made from canola oilseeds to aquaculture farmers and feed manufacturers. It represents another key step in creating a global supply chain that can meet a critical environmental challenge,” said Mark Christiansen, managing director for Cargill’s specialty oils business.

Cargill has been testing omega-3 canola varieties under permit in multiple locations in Montana since 2015, and with USDA deregulation, Cargill plans to advance the commercialization of its long-chain omega-3 canola trait in a tightly-managed closed loop supply chain. The USDA deregulation is an important step in the regulatory approval strategy for Cargill’s new omega-3 canola.

BASF generated the data package and submitted the application for USDA regulatory approval of Cargill’s proprietary long-chain omega-3 canola.

“We are committed to excellence in meeting the extensive regulatory and stewardship requirements that accompany a new, genetically-optimized crop, and to assuring strict adherence to all applicable regulations,” said Ralph Paulini, vice president of regulatory & stewardship for seeds & traits at BASF. “Our efforts are validated with the USDA deregulation of Cargill’s omega-3 canola.”

USDA deregulation of proprietary canola gives aqua

AgroPolicy

Integration of farmer database by 2020 to weed out cases of multiple insurance on same plots

‘National Conference on Risk Mitigation through Tech Innovations in Agri Insurance’ was recently organised by FICCI.

Dr Ashish Kumar Bhutani, CEO, Pradhan Mantri Fasal Bima Yojana (PMFBY) and Joint Secretary (Credit), Ministry of Agriculture and Farmers’ Welfare present at the conference said that the country needs a technological breakthrough to make crop insurance scheme a success in India.

Dr Bhutani said that despite spending Rs 30,000 crore on PMFBY, it was getting negative publicity as large numbers of farmers have complained about non-payment of claims due to the use of a primitive technology.

“I have always maintained that PMFBY is a good scheme riding on primitive technology of crop cutting experiments (CCEs). This is a system which has been in vogue in the country since long,” he said, adding that there was a need for a technological breakthrough which can be an alternative to CCEs.

CCE, which forms the basis of calculation of yields, computation of losses and finally computation of claims, is vulnerable to manipulations, seen in many states, and also the process of random sampling of farming plots, at times, results in benefits not reaching the farmers hit with calamity, Dr Bhutani said.

“Farm level assessment of the yields without a technology breakthrough is a logistic nightmare and the cost of implementing a farm level insurance in the country would be more than the subsidy government is providing today,” he added. 

For better implementation, the government is experimenting with weather based crop insurance scheme (WBCIS) which has its own challenges mainly because of the way the term sheets have been designed. Dr Bhutani, mentioned that, Maharashtra government has corrected the term sheets bringing down the premium rates and the scheme was doing better.

As for the lack of density of automatic weather stations in the country for executing WBCIS, satellite based data at lower level can supplement in its implementation, he said.

Further, he said that the government is doing pilots for smart sampling and crop cutting rationalization. It will roll out in more states. Smart sampling does away with random generation of the plot number and the government selects the point where the crop cutting has to happen as a centralized based assessment.

Dr Bhutani highlighted that the ministry is making a comprehensive database of farmers. “There are cases of one plot being insured 5-8 times. Aadhaar helps only up to a point but beyond that you will have to link it to land records. By 2020, we should have a robust system through integration of farmer database.”

Rajiv Chaudhary, CMD, Agriculture Insurance Company of India Ltd said that the State Agricultural Universities (SAU) and Krishi Vigyan Kendras (KVK), which are present in every district, can be engaged to design more appropriate term sheets for the weather based crop insurance products for specific crops in specific regions.

Siraj Hussain, Adviser, FICCI and Senior Visiting Fellow (ICRIER) and former Secretary, Ministry of Food Processing said, “If we can address the problems relating to WBCIS then perhaps the farmers can get their insurance claim in a much speedy manner than what has happened through crop cutting experiments.”

Jatin Singh, Member, FICCI National Agriculture Committee and Founder and Managing Director, Skymet Weather Services Pvt Ltd said, “Ravaged by the twin threats of floods and droughts, India’s water woes are of a paradoxical nature. The only way we can mitigate the risk to agriculture is through modern, accessible models of agri insurance.”

Dhyanesh Bhatt, CEO, Gramcover Insurance Brokers Pvt Ltd said, “Access to high-quality information empowers the buyers. Information, at its best, reduces data clutter and focuses on essential facts, thereby helping the buyer, in this case, the farmers make informed decisions.”

Yogesh Patil, CEO, Skymet Weather Services said, “In the present scenario, efficient partnership models which can bring collective power of all stakeholders will be the game changer for agri insurance sector.”

 

Integration of farmer database by 2020 to

Agrotech

Key Competitors are Aerovironment, Agribotix, DJI, Dronedeploy, Eagle UAV Services, Parrot, Precisionhawk, Trimble Navigation, Yamaha Motor

Agriculture Drones market worldwide is projected to grow by US$8.9 Million, guided by a compounded growth of 30.3%

Staying on top of trends is essential for decision makers to leverage this emerging opportunity. The report addresses this very need and provides the latest scoop on all major market segments. Hardware, one of the segments analyzed and sized in this study, displays the potential to grow at over 29.3%.

The shifting dynamics supporting this growth makes it critical for businesses in this space to keep abreast of the changing pulse of the market. Poised to reach over US$8.1 Million by the year 2025, Hardware will bring in healthy gains adding significant momentum to global growth.

While global megatrends sweeping through the market influence the primary direction of growth, regional markets are swayed by more granular locally unique business drivers.

Representing the developed world, the United States will maintain a 36.5% growth momentum. Within Europe, which continues to remain an important element in the world economy, Germany will add over US$779.4 Thousand to the region’s size and clout in the next 5 to 6 years. Over US$437.8 Thousand worth of projected demand in the region will come from other emerging Eastern European markets.

In Japan, Hardware will reach a market size of US$502.6 Thousand by the close of the analysis period. As the world’s second largest economy and the new game changer in global markets, China exhibits the potential to grow at 28.5% over the next couple of years and add approximately US$1.4 Million in terms of addressable opportunity for the picking by aspiring businesses and their astute leaders.

Competitors identified in this market:

Aerovironment, Agribotix Llc,DJI,Dronedeploy,Eagle UAV Services,Parrot SA,Precisionhawk Inc.,Trimble Navigation,Yamaha Motor

Key Topics Covered: 

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

  • Global Competitor Market Shares
  • Agriculture Drones Competitor Market Share Scenario Worldwide (in %): 2019 & 2025
  • Global Competitor Market Shares by Segment
  • Software (Type) Global Competitor Market Share Positioning for 2019 & 2025
  • Hardware (Type) Market Share Breakdown of Key Players: 2019 & 2025
  • Application of Drones in Agriculture
  • Review of the Increasing Imbalance between Population Growth and Food Supply
  • Agriculture as a Percentage of GDP by Region (2017)
  • Global Agricultural Area Breakdown by Country (2016)
  • Global Population Growth Rate: 2000-2100
  • Global Agricultural Production 1970-2015
  • Innovations
  1. FOCUS ON SELECT PLAYERS

    3. MARKET TRENDS & DRIVERS
  • Growing Focus on Precision Agriculture Spurs Demand for Drones
  • Drones to Play an Important Role in Maintaining Food Security
  • Drones with Multispectral Camera Remote Sensing Drive Gains
  • Advanced Sensors Augment the Efficiency of Drone Technology
  • Growing Role of Drones in Field Mapping
  • Integration of Computer Vision Technology and Artificial Intelligence Aid in Better Yields
  1. GLOBAL MARKET PERSPECTIVE

    III. MARKET ANALYSIS

    GEOGRAPHIC MARKET ANALYSIS

    UNITED STATES
  • Market Facts & Figures
  • US Agriculture Drones Market Share (in %) by Company: 2019 & 2025
  • Software (Type) Market Share Analysis (in %) of Leading Players in the US for 2019 & 2025
  • Hardware (Type) Competitor Revenue Share (in %) in the US: 2019 & 2025
  • Usage of Computer Technology in US Farms
  • US Commercial Drones Market: Percentage Share Breakdown by Application (2019)

CANADA

JAPAN

CHINA

  • China – A Global Leader in Drones Technology Space
  • Competition in Chinese Drones Market

EUROPE

  • Market Facts & Figures
  • European Agriculture Drones Market: Competitor Market Share Scenario (in %) for 2019 & 2025
  • Software (Type) Market Share (in %) by Company in Europe: 2019 & 2025
  • Hardware (Type) Market Share (in %) of Major Players in Europe: 2019 & 2025

FRANCE

GERMANY

ITALY

UNITED KINGDOM

REST OF EUROPE

ASIA-PACIFIC

The “Agriculture Drones – Market Analysis, Trends, and Forecasts” report has been added to ResearchAndMarkets.com’s offering.

Key Competitors are Aerovironment, Agribotix, DJI, Dronedeploy,

Agrotech

Investment Includes Equity and Corteva’s Shares in Taxon Biosciences for Shares in Lavie Bio

Corteva, Inc. a leading pure-play agriculture company, and Evogene Ltd., a leading biotechnology company developing novel products for life science markets, have announced that Corteva will make an investment in Evogene’s agriculture biologicals subsidiary, Lavie Bio (Lavie).

The transaction includes the exchange of all shares of Corteva’s wholly owned subsidiary Taxon Biosciences along with an equity investment by Corteva in Lavie. As consideration for the Taxon Biosciences shares and equity investment, Corteva will be issued approximately 30 percent of Lavie’s equity while Evogene will hold approximately 70 percent of Lavie’s equity.

Taxon Biosciences’ capabilities are expected to provide significant synergetic value to Lavie and accelerate the development of Lavie’s products. Taxon Biosciences’ assets, including a large microbial collection and product candidate pipeline, will be integrated into Lavie’s pipeline, accelerating Lavie’s ’biology driven design’ approach and its product development.

Corteva’s investment in Lavie will also provide to Corteva certain rights with respect to Lavie’s corn and soy pipelines, allowing Lavie to benefit from Corteva’s world-leading corn and soybean market access.

Susanne Wasson, Crop Protection Business Platform President for Corteva Agriscience said, “This transaction demonstrates Corteva’s ongoing commitment to bringing to market new and differentiated technologies for our customers.” Wasson continued, “We are pleased to collaborate with Lavie Bio – a leader in the field of  agriculture biologicals – as we continue to focus on accelerating commercialization of customer-centered innovation in this high-growth sector.”

Ofer Haviv, President & CEO of Evogene and Chairman of the Board of Lavie Bio stated, “We are extremely pleased with the combined Taxon acquisition and equity investment by Corteva, a world leader in the agricultural market, following close to two years of a co-development collaboration. By providing both additional complementary technologies along with potential go-to-market pathways, we believe this transaction will significantly enhance Lavie’s capabilities for the development and commercialization of next generation agriculture biological products.”

Ido Dor, Lavie Bio’s CEO, stated, “We are very pleased that Corteva, a world leading agricultural company, continues to partner with Lavie. I am confident that with Corteva’s leadership in agriculture innovation, and the complementary capabilities which we will add through the acquisition of Taxon Biosciences, Lavie is well positioned to achieve its mission of improving food quality, agricultural sustainability and productivity through the introduction of next generation microbiome-based agriculture biological products.”

Agriculture biologicals include externally-applied products derived from natural, biological sources such as microbials, macrobials, biochemicals and minerals to optimize overall plant health. Agriculture biological products include bio-stimulants, for maximizing plant yield and durability, as well as bio-pesticides for insect management. The agriculture biologicals sector is a growing segment of the agriculture inputs market.

Lavie focuses on improving food quality, agricultural sustainability and productivity through the development of novel microbiome based agriculture biological products. Lavie’s unique approach utilizes a proprietary Computational Predictive Biology (CPB) platform, developed by Evogene, leveraging big data and advanced informatics through discovery, optimization and development stages in order to create next generation microbiome-based products. Lavie’s product candidate pipeline addresses major needs in row crops such as corn and wheat as well as specialty crops such as grapes.

 

Investment Includes Equity and Corteva’s Shares in

Agrotech

Through modern-day technology, CropIn intends to support SRP’s mission to promote resource efficiency and sustainability in production operations and supply chains in the global rice sector

CropIn Technology, a global provider of AI/ML-based agtech solutions, gains recognition as a member of the Sustainable Rice Platform (SRP). The SRP was co-convened by the United Nations Environmental Programme (UNEP) and the International Rice Research Institute (IRRI) as a multi-stakeholder platform to promote resource efficiency and sustainable trade flows, production and consumption operations, and supply chains in the global rice sector.

This new partnership with SRP reflects on CropIn’s endeavour to digitise farms and deliver value to rice-producing farmers of developing nations, and stands as a testament to CropIn’s collective efforts towards sustainable agriculture, to ensure safe and nutrient-rich produce for people around the world.

Kunal Prasad, COO & Co-founder of CropIn said, “This partnership with SRP will solidify the impact we created in the Agtech industry and furthermore extend our efforts to bring about a formidable change in the socio-economic development of the nation.”

Through modern-day technology, CropIn intends to support SRP’s mission to promote resource efficiency and sustainability in production operations and supply chains in the global rice sector. This alliance with SRP will empower one million smallholder farmers to adopt sustainable farming practices in rice production, and boost farmers’ income while also protecting the environment from degradation due to harmful chemicals.

 

 

  

 

Through modern-day technology, CropIn intends to support

Finance

Standalone profit before tax was Rs.102 crore which was lower as compared to the previous year by 7.0%

For the first quarter ended June 30, 2019, company reported standalone total income of Rs.1,262 crore which reflects growth of 13.3%. Standalone profit before tax was Rs.102 crore which was lower as compared to the previous year by 7.0%.

Commenting on the performance of the 1QFY20, Mr. B. S. Yadav, Managing Director, Godrej Agrovet Limited, said, “I am pleased to share the financials of Godrej Agrovet for quarter ended June 30, 2019. Godrej Agrovet Limited’s consolidated total income registered growth of 15.1% and consolidated profit before tax was Rs.113 crore.”

“The animal feed segment registered a year-on-year volume growth of 6.5% in this quarter with a strong growth of 17.2% in segment results. Crop protection segment consolidated revenue grew by 11.6% over 1QFY19. However, segment results were flat on account of poor realization. The performance of the vegetable oil segment was adversely impacted by sharp decline in end product prices and lower oil content due to extended summer and extreme heat. Consequently, segment revenue and profits were lower by 13.6% and 64.5% respectively. In the dairy segment, profitability levels improved in the current quarter as there was no butter provisioning/losses which registered a strong growth in EBITDA of 124.3%.”

“Currently, the Indian agricultural value chain offers immense business opportunities to enhance productivity as practices are largely unorganized. We believe that at Godrej Agrovet we are well placed to capitalize on these opportunities given our presence across underpenetrated & unorganized segments of the agri value chain and our strong focus on research and development. The primary elements of our business strategy are to continue to grow our existing market share, leverage synergies between our businesses and opportunistically evaluate inorganic opportunities.”

Segment-wise business highlights

Animal Feed

  • Volume growth of 6.5% in 1QFY20, mainly driven by layer and fish feed segments.
  • Price increase taken for end products resulted in strong improvement in segment profitability which has increased by 17.2%.

Vegetable Oil

During the current quarter, segment revenue was lower by 13.6% year-on-year due to sharp decline in crude palm oil and palm kernel oil prices and lower oil content due to delayed monsoon resulting in an extended summer. Consequently, segment results were lower by 64.5% year-on-year.

Crop Protection

  • Consolidated segment revenue recorded growth of 11.6% year-on-year during the current quarter whereas segment profit remained flat at Rs.77 crore.
  • Recent launches of new products across categories is expected to contribute to revenue and profit growth in the near-term.

Dairy

  • For 1QFY20, segment revenue remained flat at Rs.320 crore. However, EBITDA has improved by 124.3% year-on-year as no butter provisioning/losses were recorded in the current quarter.
  • New product launches in FY19 were – 2 new variants in flavoured milk category and 1 variant in ice-cream.

Godrej Tyson Foods Limited 

Revenue grew by 9.8% year-on-year during the current quarter. However, EBITDA was lower by 34.4% as compared to previous period mainly on account of increase in cost of live birds.

ACI Godrej Agrovet Private Limited, Bangladesh

The joint venture reported revenues of Rs.222.21 crore for the current quarter compared to revenues of Rs.161.1 crore for the previous period registering a strong growth of 38%.

 

 

  

 

Standalone profit before tax was Rs.102 crore

Start ups

The residential workshop was attended by 26 participants from across the country

Bankers Institute of Rural Development (BIRD), in partnership with iCreate recently hosted an ‘Interface Workshop with Agri Startups’ – a knowledge exchange programme among key sector stakeholders, aimed at stimulating discussions towards conducive policy support for an effective agri-startup ecosystem in India.

The residential workshop was attended by 26 participants from across the country. It was aimed at deliberating upon and addressing prevailing challenges within the agriculture sector such as declining groundwater levels, poor quality of seeds, lack of mechanization, inadequate facilities for transportation and storage, scarcity of credit, limited access to superior technology and better farmer to market connect. Such gaps serve as opportunities for agritech startups in India, which, with conducive policy support, could effectively strategize towards addressing the issue of doubling farmers’ income.

The workshop further deep dived upon some of the challenges that agri startups face, such as growth plan viz. policy hurdles, difficult access to capital, limited investors and funding arrangements. Towards these challenges, the dialogue touched upon significant aspects for startups in the sector such as understanding startups, innovation and IPR, business models for startups – formation and legal requirements, potential areas for startups in the sector, role of business incubators and accelerators, funding arrangements – bootstrapping, seed funding, angel funding, venture capital, bank finance-issues affecting startup growth, support from Government of India.

The workshop was inaugurated by A.C.Sarmah, FM, BIRD, and Anupam Jalote, CEO, iCreate, who complemented BIRD and NABARD for having considered iCreate for its association for such capacity building workshop in an area for which iCreate is fully dedicated.

The workshop saw key delegates representing the entire spectrum of the agriculture sector, right from the government to incubators to NGOs. Resource persons from various premier institutes dealing with agri startups viz., ICRISAT, NABVENTURES; Dept. of Science & Technology, Govt. of Gujarat; Yes Bank Ltd; Digi-Agri; SVIPF and iCreate took part in deliberations on different subjects besides A. C. Sarmah from BIRD who initially dealt upon the issue of Understanding  innovation and Start-up – initiatives and Road Ahead for Agristartups.

Sarmah highlighted how over years, govt. has created a conducive ecosystem for startup growth by increasing the number of years for startup recognition, reconstituting IMB, reforming norms for angel investment, self-certification and tax rebate etc. and above all by launching the interactive Startup India portal. He also highlighted the future potential areas for promotion of agristartups in the light of agriculture grand challenge and impressed that use of IOT, AI can play a key role in bringing revolution in the area of farming as a service.

iCreate is among India’s leading business incubators promoting startups and innovations in diverse sectors. Supported by the Government of Gujarat, iCreate has been consistently aligning its initiatives with the goals of the State and Central Governments, viz. programmes for budding entrepreneurs in sectors like agri-tech, water-tech, renewables, etc.

For this workshop, iCreate partnered with BIRD, a premier training institute and autonomous society promoted by NABARD, that offers training, research and consultancy and other related activities in the field of Agriculture and Rural Development. Through this workshop, iCreate and BIRD aim to facilitate more conversations around agri startups and innovations in the country and bridge the gaps of communication and innovation by various bodies within the sector.

The residential workshop was attended by 26

Agrotech

To Serve Farmers Better with the Newest Innovation in Seed and Crop Protection Technologies

Pure-play global agriculture leader headquartered in the US, Corteva Agriscience, has officially launched its brand in Myanmar. In conjunction with the brand launch, the company also introduced Zorvec® Encantia® fungicide – a new international award-winning disease control product with a favourable environmental profile – to Myanmar’s vegetable farmers.

Corteva represents the combined strengths of DuPont Crop Protection, Pioneer and Dow AgroSciences, which listed on the New York Stock Exchange on June 1, 2019, creating a market-shaping, standalone, pure-play agriculture company with leading positions in Seed Technologies, Crop Protection and Digital Agriculture.

Ms Farra Siregar, Managing Director of ASEAN, Corteva Agriscience, said, “Corteva Agriscience brings together three businesses with deep connections and dedication to generations of farmers. With a balanced portfolio of agriculture solutions, 200 years of combined agronomic expertise and an unparalleled innovation engine, we aim to catalyze action with all stakeholders in the food system to champion inclusive agriculture and to help ensure a secure supply of healthy and sustainable food for Myanmar and the rest of this region. We are committed to contributing our agronomic expertise and technical capabilities to support Myanmar’s farmers, as well as working with all stakeholders in the food system to strengthen food security.”

“We are pleased to bring to Myanmar farmers our new multi award-winning disease control solution Zorvec® Encantia®, a fungicide which offers an outstanding new mode of action in controlling diseases that are resistant to other products in the market,” said Ms Rachel Lomibao, Country Head of Myanmar, Corteva Agriscience. “This demonstrates our continued commitment to bringing the latest and most relevant farming technologies to help farmers grow better. With Zorvec® Encantia®, Corteva intends to re-shape how farmers grow their vegetables by helping them protect their yields especially during challenging weather conditions,” she added.

Zorvec® Encantia® is based on Zorvec® active, which is the first member of a novel class of fungicides to control diseases caused by oomycete pathogens. Zorvec® offers an unmatched combination of consistency and longer-lasting disease control, helping farmers yield healthier crops. It can be used every season to attain better crop yields, even in challenging conditions.

To Serve Farmers Better with the Newest

Dairy

Out of the total milk production, 48 % milk is either consumed at the producer level or sold to non-producers in the rural area.

India is the biggest player in the league when it comes to the dairy industry. Along with being the largest producer, the Indian dairy industry has also started exporting milk now. The value of milk is more than the combined value of wheat and rice in the agriculture and food sector. The country is the world’s largest milk producer with more than 13% of the world’s total milk production.

Why the dairy industry is thriving?

With a population of more than a billion people, India consumes 100% of its own milk production. Majority of the Indian population being vegetarian, dairy products are the only source of animal protein for them. Venturing into dairy has increased as it attenuates poverty and unemployment, especially in the drought-prone areas.

Out of the total milk production, 48 % milk is either consumed at the producer level or sold to non-producers in the rural area. The balance 52 % of the milk is a surplus available for sale to consumers in urban areas. Out of the marketable surplus, it is estimated that about 40 % of the milk sold is handled by the organized sector and the remaining 60 % by the unorganized sector. (Source – Department of Animal Husbandry & Dairying)

Production and Contribution

A typical Indian phenomenon is the unorganized sector of milkmen, vendors who collect the milk from local producers and sell the milk in urban and rural areas. The produce amounted to around 65-70% of the national milk production.

According to a recent report presented at the International Dairy Federation’s World Dairy Summit, India’s milk production is at 4.8% CAGR, which is twice that of global milk production, which is growing at 1.8% CAGR. In the past five years, this has improved even more to 5.4% CAGR. Over the next decade, the sector is expected to create 2 Crore jobs annually.

Last year, India produced close to 146.31 million tonnes of milk, 50% more than the US and three times as much as China. India also produces the biggest almanack of any world dairy industry.

India’s Export of Dairy products was 1,13,721.70 MT to the world during 2018-19. Its monetary worth was Rs. 2422.85 Crores/ 345.71 USD Millions during the year 2018-19. The dairy industry is contributing around 26% to total agriculture GDP. (Source – Agricultural & Processed Food Products Export Development Authority)

A recent CRISIL report foresees a 50% faster growth in the value-added products sector in the next few years. It also suggests that such products would contribute 14-15% to an annual growth over the next three fiscal years.

Milking the trade-front

After four years of slackening, India’s dairy exports have revived to accomplish the second-best show ever in the financial year 2018-19 due to supply deficit-led global rate the increase in skimmed milk powder (SMP) and other milk derivatives including ghee and butter. (Source – Agricultural and Processed Food Products Export Development Authority)

Unexpected renewal in dairy exports has brought a major relief for Indian exporters who were waiting for several years for global markets to turn into deficit and prices to revive. During the last four years, the Indian market was also facing huge supply surplus of milk and its derivatives including SMP, ghee, and butter.

The most significant fact is, the dairy industry is expected to take over the information technology sector as the biggest employment generator. In the recent interim budget for 2019-20, proposals related to the dairy industry are going to aid in the increase in farmers’ incomes.

Indian Dairy Industry is booming and it is surely going to take the agri-economy up a notch.

 

Samarth Setia, CEO & Co-Founder, Mr Milkman

Out of the total milk production, 48