Sumitomo invests in Chilean biological manufacturing company Bio Insumos Nativa

Sumitomo Corporation has agreed to invest in Chilean biocontrol manufacturing company Bio Insumos Nativa (BIN) through South American agrochemical distribution company Summit Agro South America. Once the various procedures required by law are completed, the investment will be considered official.

As the global population grows, increasing crop yields becomes critical, and the use of agrochemicals and fertilizers increases every year. The resulting surge in environmental impacts has become a major concern for the agricultural industry, resulting in an increasing need for biological control.

The biological control market size was approximately US$8 billion in 2023, an increase of 16 times from US$500 million in 2005, and is expected to grow to US$15 billion by 2029, accounting for approximately 20% of the total agrochemical market of US$75 billion.

The biocontrol market in Latin America is expected to grow at an average annual rate of 15% through 2029, as registration systems encourage the use of biocontrol and its increased use among soybean growers and other large dryland farmers.

BIN is a biocontrol manufacturing company established in Chile in 2002. In the field of microbial biocontrol, its main business, BIN is the largest player in the Chilean market, with a 30% share.

The company is currently the main supplier of biocontrol products to Summit Agro South America, having proven its market competitiveness through existing transactions and developments in Latin American countries, particularly Chile and Peru. In addition to the products currently on the market, there are several new biocontrol products in development that are expected to expand the company's sales in the future.

The Sumitomo Corporation Group has been engaged in agrochemical-related business for more than 40 years. It is currently engaged in the sales and distribution of agrochemicals, special fertilizers and other agricultural inputs in about 40 countries around the world, and contributes to global agricultural production together with producers.

In 2017, the Group invested in Futureco Bioscience SA, a Spanish biocontrol manufacturer, thereby gaining access to the company's expertise in biocontrol R&D, manufacturing/formulation processing and sales network.

The group will address the needs of the entire value chain of the biocontrol market, from upstream to downstream, and will leverage the strengths of its global network to address sustainable agricultural production issues with an eye toward addressing megatrends such as environmental regulations and biodiversity efforts.

With this latest investment, the Group intends to acquire a broader product portfolio in the areas of biocontrol R&D, manufacturing and formulation processing, and further expand the range of products and sales customer network it operates to achieve the growth required for biocontrol.