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Ready to take over Brazil
https://www.linkedin.com/posts/plant-health-care-brasil_rompendoasbarreirasdaprodutividade-congressodenematologia-activity-7097997466700001280-ZtPz?utm_source=share&utm_medium=member_android
Spent sometime reading up on various topics, came across this article which might have some relevance i.e climate changes.
“Problems such as abiotic stress caused by lack of water or excessive temperatures are now a reality, so biostimulants are not just an option now, they are a necessity,” said David Iglesias, Managing Director for Biorizon Biotech.
“As a result, there has been a driven demand for our products.
Last year, our sales in this line experienced growth of more than 150% and we expect similar growth in 2023.”
https://www.agribusinessglobal.com/special-sections/emerging-markets-for-biostimulants/
You would never think of Spain as a rice exporter but it does, to Japan with Okura!
One of the other varieties they have under testing is Provisia, which maybe offered as an alternative product to BSAF's herbicide Clearfield.
https://agriculture.basf.us/crop-protection/products/herbicides/provisia.html
Brazil, lots of potential with 68949, just need second round of approvals
https://youtu.be/cPRy2EEzjYw
Did another 34k at the close today some great stuff coming through linkedin
Paella 1pencil you star
This article on rice in Spain raised an eyebrow as unaware Spain was a producer, but also because of the recent Indian rice export ban - link below highlights this but also touches on USA problems encountered with rice production and drought conditions.
India’s recent rice ban sent people into a panic. Here’s what’s going on now
By Danielle Wiener-Bronner, CNN
Updated 2:17 PM EDT, Thu August 3, 2023
https://edition.cnn.com/2023/08/03/business/india-rice-export-ban/index.html
After spending some time researching companies in this sector my conclusion is two fold, firstly you obviously need tried and tested product which PHC has, the other major factor is a global foot print to mitigate an unpredictable climate.
The latter point is where PHC are maturing with further registrations spread out across the globe, still think Spain might be a bit flat but with other regions doing well, similar to 2022.
Certis is one such company adding to its portfolio with a recent acquisition in Ireland, it also covers both conventional and biological stimulants/herbicides.
Could easily see Harpin squeezed in alongside
https://www.certisbio.com/products/biological-plant-activators/lifegard-wg
Anyone researching this topic can see how large players achieve their market position quickly from a standing start, its just far easier and quicker to purchase smaller companies specialising in this field, Plant Health Care is an obvious contender in this respect - 2phevs excellent article highlights this well.
I see Plant Health Care as more of an R & D platform than anything else, this would fit well within many of the companies already mentioned.
Pressure for change is mounting daily, ESG is becoming a dominant force for invest adding bio stimulants to an existing chemical portfolio helps mitigate in this regard.
Yes I saw that iPencil.
CR mentioned many times about the need for consolidation in the AgroTech space and that PHC was in a good position to participate in this. Interesting that JT has been far less vocal about it.
What I’ve not been able to work out is whether PHC is a predator or prey.
As predator it’s too early; profitability must be the target first. We have no war chest. As prey, PHC are vulnerable; but profitability a barrier here too. Who would buy a company before the business model is proven? So I tad early on both counts. Give this two years and the situation will be different.
Must be getting the slide rule over them great read on the industry as well
https://news.agropages.com/News/NewsDetail---47353.htm
Glyphosate in the media again today, Daily Mail reporting on differences between countries as to acceptance and or restrictions - no consensus despite accumulated research, much disparity still exists between nations which includes the UK and US.
There is also a follow-up article to the one below which suggests EU license renewal might be a foregone conclusion, just a formality.
Either way the trend away from chemical herbicides appears firmly set, its the pace at which change happens that remains.
There exists the possibility of Glyphosate being phased out altogether or restricted further, I can only see this as a positive for human health in general but also helping the emerging bio stimulants market.
Bayer is also coming under pressure but for more complex reasons, recent press release:
"Bayer, which has paid billions for litigation over its glyphosate weedkillers, replaced its previous CEO Werner Baumann early amid demands from some investors that the German industrial giant simplify its diversified structure and split into separate groups."
_____________________________________________________________________
March 9, 2023 - 09:00
This year the EU will decide on the re-approval of glyphosate[1], the active ingredient of the most popular and controversial weed killer around the world. Exposure to the herbicide not only poses a risk to human health and a variety of living organisms but it also threatens biodiversity and the future of agriculture.
https://www.pan-europe.info/press-releases/2023/03/no-obstacles-ban-glyphosate-new-report-shows-alternatives-exist-all-uses#:~:text=Exposure%20to%20the%20herbicide%20not,demanded%20its%20ban%5B2%5D.
Agree bots, I think overall its in PHC's favour although there are some extremes where farming just stops.
Related article
French Winemakers Test Different Grape Varieties To Adapt To Climate Change
By Adeline RAYNAL
July 30, 2023
https://www.barrons.com/news/french-winemakers-test-different-grape-varieties-to-adapt-to-climate-change-8d8adb43
More great news potentially boosting sales in H2 but defo next year. Good steady growth into the huge EU market, well done Angel and the Europe team!
In drought conditions the difference between ProAct use vs. No ProAct use is even more marked towards greater yield.
ProAct also affective in cold conditions.
Does anyone have an opinion on how climate change with associated higher temperatures will play out for companies like PHC, we know last years heat wave in Europe held back purchase orders but this is balanced somewhat with a move to more sustainable agriculture methods and inputs.
The recent links from various sites is very encouraging but still not unsure overall, mindful of Origin's recent update which showed solid underlying growth but also mentioned volatility in this sector.
I would also be interested if anyone has views on Origin too, both PHC (already have a holding) and Origin are on my short list for further investment.
Not sure we will get a TU as one included with fund raising recently.
Indeed, that's a nice accreditation to have from ZERYA , all takes time (and money).
"Zerya® is a private quality trademark that belongs to ‘Zerya Producciones sin Residuos S.L.’, and it represents the effort of many years of research dedicated to define fruit & vegetable production systems that can guarantee a residue free (*) final product."
https://www.zerya.org/en/what-is-zerya/
Great news coming out of South Africa
https://www.linkedin.com/posts/plant-health-care-uk_el-bioestimulante-messenger-de-plant-health-activity-7090392107151949826-XHeb?utm_source=share&utm_medium=member_android
California is important, but more important is Africa (via Dux Agri) following the Russia/UN grain deal collapse. Sadly I can see famine of biblical proportions there next year, they need to act now.
As for the competition, testing and registration are just the start of the journey; they need to convince farmers who have used tradition fertilisers for decades, to change their practises. LinkedIn shows PHC promoting ProAct and PreTec globally and the new injection of cash from investors will accelerate this process.
Farmers profiting from the new technology will gloat about it to others and word will spread via the farming community - the best form of promotion. Snowball effect.
It all depends o who gets the snowball turning first, and PHC have been quick off the blocks - and on a global scale.
Hold on to your shares and ride out those bear market blues.
Climate change is happening faster than most anticipated with many countries set to miss their agreed reduction targets.
This sense of urgency is starting to gather pace, states such as California which have excessive registration times may expedite future applications, we can but hope.
Same applies to companies considering entering the field of bio stimulants/biologicals, by the time they have something discovered and registered it will be too late , hence the need for scaling and consolidation in equal measure.
Interesting, are they drawing attention to the technology which they embarked on 30 years ago, or bit of a flyer to remind investors that Plant Healthcare is here too ?
Consolidation in this space is almost a certainty, whilst the Ai discovery by Evogene is good arguably a bigger hurdle is field testing and regulatory acceptance, this is going to be the main driver in acquiring companies like PHC with so much this work already completed.