Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
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Interesting article from the Federation of American Scientists: "Regulations, Funding, And Knowledge Gaps: Challenges And Opportunities In Bringing Agricultural Biotechnology To Market"
https://fas.org/publication/agarda-to-accelerate-biotechnology/
Folk are still selling but I sense a turning point. The spread is saying “we’ll give you peanuts for your shares you fool”
Watch for a breakout, I think this company are beyond the destocking issue now.
Need to read fully but looks positive for biostimulants industry as a whole.
https://research-and-innovation.ec.europa.eu/document/download/47554adc-dffc-411b-8cd6-b52417514cb3_en
There's a fair bit of recovery underway across the pond, FMC has just received an upgrade which is helping
https://www.cnbc.com/quotes/FMC
Novozymes (now novonesis)is doing very well, way past 12 month high
https://www.cnbc.com/quotes/NVZMY
Fed rate decision today, hopefully some good news there too.
Eric Wintemute, Chairman and CEO of American Vanguard, stated: ″We rebounded sharply in Q4 after having weathered the effect of global destocking within the distribution channel, the oversupply of Chinese generic products into multiple regions, and the unavailability of our most profitable products due to supply chain issues.
Increased demand during Q4 provided evidence that destocking activity continues to subside and that, even while showing greater discipline, procurement within the distribution channel is following more normal patterns.
https://news.agropages.com/News/NewsDetail---49527.htm
Another step towards wider adoption for biologicals , PHC target markets to - crops such as corn, soybeans, cotton, sugar cane, coffee, rice and oranges.
https://news.agropages.com/News/NewsDetail---49526.htm
Alarming article from Yale about depleting ground water thanks to solar powered pumps extracting too much ground water. Not a problem anyone wants to see but one that lends itself to PHC's PreTec
https://e360.yale.edu/features/solar-water-pumps-groundwater-crops
Hi
Briefly, the science and many endorsements say the products work. Also there are visible benefits. They have a small lab in Seattle and been working on cheaper productivity costs and margins. The destocking problem is industry wide and led to PHC suffering a lost year (I imagine), but it is widely predicted to resolve by H2 - it resulted from overstocking during Covid when supply channels were squeezed. If we’re up and running again we should reach profits early next year.
We need to get the FY results out of the way 1st. The SP is the product of a broken market. Still waiting for the promised investor return, was hoping for more than a hot beverage served at the AGM.
Joking aside there is great potential here with patience.
Thank you!
You say the products work fabulously - are you in the trade? Interesting also to hear the broker target, I hadn't realised. Wow. Also, it's clear the products are selling, but does anyone know how the all-in costs compare to others/doing nothing?? I'm no farmer or investment expert, just a scientific background a long time back, and a tendency to be a bit adventurous.
Good to have you onboard Qd22.
Yes, the macro picture is excellent and PHC products work fabulously. I await the next RNS with trepidation because 2023 ‘may’ prove to have been a right off. However eyes will be on the forward statement (my eyes at least). If the destocking problem is over, then this is a great time to buy or add at the current levels.
Hard to believe the broker target is 40p+. Hope the company remember this in case of any TO bid.
FMC Corporation expands biologicals crop protection platform in Canada
https://finance.yahoo.com/news/fmc-corporation-expands-biologicals-crop-113000728.html
Agreed, bots. I've bought in here today, had my eye on it since Moneyweek recommended it in November. [Before the fall!]. Risky, but lots to recommend it, so it's bottom drawer for when those registrations come in and hopefully volumes rise a lot.
From Moneyweek:
'Shah points to estimates that the overall global consumption of food will grow by 1.2% a year for at least the next three decades, leading to a 50% increase in demand by 2050. While this may not seem a particularly large challenge, the sector will have to meet this demand at a time when “the available land is shrinking”.
This is partly due to urbanisation, especially in the developing world, where many formerly agricultural areas are being swallowed by towns and cities. However, another factor is the impact of climate change. As Shah points out, this isn’t just a matter of rising temperatures anymore, but also a case of “increased droughts, more pests and generally more frequent extreme weather events”. '
Biological Pesticides Market
Soybean remains the largest crop with +50% share in area and value, followed by corn and sugarcane
+70% of the market value is BioNematicides (soybean and sugarcane as key crops) and BioInsecticides (corn is the key crop)
Bionematicides in corn is considered a big growth opportunity
Biostimulants - Soybean
Soybean area treated with biostimulants has increased 17.5% from 2020 to 2023
An increase of 43% in biostimulant value between 2022-3 was mainly driven by product price
Foliar application remains the most common in soybean at 87% in value terms in 2023, with 13% of biostimulants in value terms applied as a soil treatment
https://news.agropages.com/News/NewsDetail---49474.htm
I noticed a few of the agri tech business starting to recover a bit, FMC being the one highlighted by Cavendish in their note.
https://finance.yahoo.com/news/fmc-fmc-11-7-since-163014584.html
Fertilizer prices are also starting to increase, not sure if there is much read across to PHC
Its a start, does show at least UK gov has noticed something is up.
Potato prices continue to climb, shortages reported in Netherlands:
On 27th February 2024, the Mintec Benchmark Price (MBP) for Dutch processing potatoes reached €37.5/100kg, the highest price for February since the price series began in 2014.
https://www.mintecglobal.com/top-stories/dutch-processing-potatoes-reach-their-highest-ever-february-price
Brit ISA to boost UK markets and growth stocks in particular just announced in the budget. I assume PHC would count as UK listed. Anything to increase interest and liquidity has to be a good thing.
"The market is growing for greenhouses since farmers are now noticing that biostimulants are becoming a must. In my opinion, it's quite impossible to produce high-quality, healthy, and safe food in a greenhouse without dealing with crop stress as a critical issue that needs to be managed.
In the Spanish market, we already see that biostimulants are as important for greenhouse growers as irrigation or nutrition is. The stress will always be there; nothing can change that; you have to reduce and manage it."
https://news.agropages.com/News/NewsDetail---49407.htm
ICL Accelerating Biologicals Portfolio Growth in Brazil with Strategic Acquisition
Company adding meaningful manufacturing capabilities and expanding product portfolio with acquisition of Nitro 1000
https://www.businesswire.com/news/home/20240227911936/en/ICL-Accelerating-Biologicals-Portfolio-Growth-in-Brazil-with-Strategic-Acquisition
Couple of brief articles:
According to a recently compiled report from Market.us, the biostimulant market size is forecast to exceed $5.6 billion (USD) by 2033. This reflects significant growth from its estimated value of $2.7 billion (USD) in 2023. The expected growth would equate a compound annual growth rate of 7.5% from 2024 to 2033.
https://news.agropages.com/News/NewsDetail---49145.htm
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Brazil’s surge in biopesticide use marks a sustainable agriculture shift
Over the last five years, Brazil has witnessed a 45% yearly increase in biopesticide use.
This growth far exceeds the 6% seen in traditional agricultural chemicals. Now, biopesticides cover 70 million hectares in Brazil.
https://news.agropages.com/News/NewsDetail---49362.htm
'write up'
Good right up in Ago pages for SAORI
https://www.linkedin.com/posts/plant-health-care-inc_sustainableagriculture-agriculturasostenible-activity-7167994791434076161-6GJh/
'Chr. Hansen and Novozymes have joined forces to create Novonesis, a leading biosolutions partner.'
This merger looks to be well received by the market, shares are well up since the low in Oct.
Novozymes is obviously our partner in India, great partner to have with deep pockets.
https://www.novonesis.com/en
It bodes well for TEIKKO (PHC68949) which is awaiting approval in Mexico, that leaves just California and India with outstanding registrations.
For me it’s important that PHC continues to make progress with registrations in key countries. Suggests there’s a bright future beyond the current global agrochemical headwinds.
Good spot, its slow but the regulators are gradually phasing out conventional herbicides in favour of climate friendly substitutes.
OBRONA never really got off the ground last year (pun intended), legislation (if passed) could be a great opportunity for Wilbur-Ellis to pick up on.
https://www.thedailyscoop.com/news/new-products/wilbur-ellis-offers-obrona-fungicide-2023-corn-diseases