3 Challenges Biologicals Must Overcome to Seal the Deal on Market Penetration
July 18, 2023 At the end of June, I had the opportunity to join a focused discussion on biologicals in Salinas, CA, that convened a group of growers, investors, regulators, researchers, start-ups and large agribusinesses. Much of the discussion centered on a “systems-based” approach to drive broad market penetration on biologicals, an acknowledgement of the opportunities for all stakeholders across agriculture.
Investments continue to support the biologicals sector. The market is now worth $9 billion and projected to nearly triple to $25 billion by the end of the decade, according to Dunham Trimmer.
Consumer-driven metrics like reduced pesticide residues on fruits and vegetables continue to shift buying trends and push regulations that favor biologicals. European Union growers have a mandated 50% reduction of chemical pesticides by 2030. In California, work on a new Sustainable Pest Management Roadmap is focused on ‘accelerating the transition away from high-risk pesticides toward adoption of safer, sustainable pest control practices.’
While the biologicals market is rapidly moving past early-stage barriers, maturity comes with growing pains that must be addressed so we can reach the full potential across the food value chain.
1. Education Crucial to a Big, Confusing Sector
The Mixing Bowl recently published the first Global Biological Ecosystem Map with 1,200 biological companies pared down to approximately 400 sorted into eight sub-segments.
With that many products in the market, many lacking differentiation or straddling segment lines (e.g. a biopesticide that is also a biostimulant), growers are confused and overwhelmed, struggling to understand the complexity of biological solutions and what’s the right choice for them. Natural consolidation and attrition that comes with a maturing marketplace will help solve some of this quagmire, but the real solution is education.
We need an industry-wide commitment, including engagement from distribution and channel partners, to educate growers about what biologicals are, how to use them and their value.
2. The Data Dilemma
Data continues to be one of the largest stumbling blocks for biologicals. After spending more than 20 years in agricultural R&D, including the very early stages of biological product development, I was pleased to share my experience managing the commercial challenges of biological research.
The fact is academic and commercial entities are under-the-gun to provide more and better data on biologicals. Again this year, DPH Biologicals will invest a significant portion of our sales into research and development with over 90 trials on 15 different crops as part of our commitment to providing data farmers can confidently make decisions on.
The right combination of speed-to-market, product fine-tuning and field-testing is needed to meet grower demands while not delaying the release of key innovations. New product releases need to be data-verified, but we also must recognize that continual improvements are the nature of product development.
3. Avoid the Temptation of Specialization
While technologies must be validated at the local level, broadly adaptable technologies will be those that win at the commercial level.
Novel solutions have been the calling card of the biological movement from day one. But to ensure long-term market availability, technology companies must achieve commercial viability.
Outside of a few large-scale crops, narrowly focused solutions simply won’t scale. Minor crops, especially, will lose if we carry forward too narrow of a focus and reduce the impact of available resources.
Well-formulated products with broad applicability offer a holistic package of soil and crop health benefits across soil-types, regions and crops. Biologicals, like DPH Biological’s SP-1 Classic biofertilizer, are proving to be as useful in Florida and California specialty crops as they are in broad-acre row crops across the Corn Belt.
Combining Biologicals and Chemistry to Accelerate Adoption
It’s exciting to see the industry coming together around technologies that a decade ago were largely dismissed as ineffective and unscalable for commercial agriculture.
I predict we’ll see greater adoption following the acknowledgement that biologicals and traditional solutions such as synthetic fertilizer and crop protection chemistry products are ‘better together.’ This is a common-sense, grower-first strategy that is key to accelerating adoption.
Biologicals are well on the way to becoming a commonplace addition to retailer shelves and grower practices. Broad market penetration will ensure biological innovations are an indispensable tool for a safe and sustainable food supply.
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