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8 I EUROPEAN SEED I EUROPEAN-SEED.COM These biological seed treatments usually replace or supplement conventional chemical crop protection products and fertilisers and just like in chemical seed treatments the seed is soaked covered coated or inoculated with substances which have an impact on the plant or its micro-environment in later stages. Some of the products work as pest and disease control or suppression while other products increase the yield potential or reduce the need for fertiliser and water input resulting in plant growth promotion. Among the active ingredients in biological seed treatments are microbes like fungi bacteria viruses or plant and algae extracts. In general this technology facilitates very specific inter-species relationships. In terms of geography there are different levels of market penetration in the various regions with Europe being the second-largest market for biological seed treatment Maes adds. Also regions have different main product classes depending on the crops that are grown in the region. One example is in those areas where a lot of soybeans are grown. Farmers use a lot of products with nitrogen-fixing rhizobia. Both types of seed treatment are part of a much larger biopesticides market. The global biopesticides market in 2013 was just slightly more than US1.9 billion and is expected to exceed US3 billion by 2016. BENEFITS AND CHALLENGES For growers there are several benefits to the use of biological seed treatment. The application of biological seed treatment can reduce the need for nitrogen phosphorus and water which are all facing shortages in many regions of the world making this type of treatment highly attractive for farmers. At the same time there is a reduction in the health risks for farmers and applicators. There is also the added benefit of no need for resistance management of the pathogen. For a seed company this type of seed treatment offers the benefit that it provides access to the organic agriculture market. Several changes would be needed to increase the use of biological seed treatment. For one it would be good to implement a special registration process for biological products in a low risk class. In addition the establishment of quality standards would create trust in the efficacy of biologicals among growers. In general there is a need for more understanding of the crop-specific inter-species interactions among farmers. Lastly the development of a more sophisticated seed treatment infrastructure and the improvement of planting windows of biological products would enhance the distribution of these technologies. OPPORTUNITIES There are different estimates circulating about how big the market for biological seed treatment actually is ranging from US260 million to US304 million in 2015. Although it is relatively early to say what the market will look like in the years to come companies agree that there are interesting business opportunities in the field of biological seed treatments because the technology is highly economical ecological and offers opportunities in terms of public health. The fact that biological actives need high precision of delivery to the plant for optimal efficacy also offers opportunities of growth for certain companies. At the same time it has been discovered that biological products have shown high efficacy under unfavourable growing conditions which are often the prevailing conditions in developing countries. While ag biologicals have been used in agriculture for many years the product offerings have been limited to only a few organisms. Only recently have the RD tools and cost of those tools made it possible to more effectively screen and evaluate the vast diversity of microbes present in soil to obtain a much better understanding of the interaction between plants and microbes and of the potential to improve and protect yields in plants. With the advances in RD reduced costs as well as the advancement in producing microbials on an industrial scale the BioAg Alliance believes it is now possible to bring substantial new microbial- based innovation to the ag industry underlines Blestky. There are several drivers for companies to invest in biological seed treatment. According to Maes at the moment the biological seed treatment market is the fastest growing market in agricultural inputs. This type of biological seed treatment is even more interesting because of the increasing legislative constraints against chemical products especially in Europe and the orientation toward environmental protection in many key agricultural economies. The technology also offers another tool toward increased yield potential to pave the way to meet the rising demands for agricultural produce in the decades to come. At the same time there are minimal health hazards for growers and applicators as there may be in chemical products. Also among consumers there is a new orientation towards a more natural mode of production and organic farming. That there are certainly business opportunities in this sector is underlined by the fact that the BioAg Alliance is testing microbial strains on an unprecedented scale. In 2014 the Alliance tested hundreds of microbial strains in 170000 field plots across 70 U.S. locations. In 2015 the Alliance plans to more than double that number of field plots in the U.S. When considering the food security challenges the need for more efficient agronomic practices more sustainable agriculture resource management reduction of the environmental impact then it is clear that these factors will drive the growers to keep looking for innovative biological seed treatments that improve performance and value says Cognet. Scientist working at Novozymes research facility. PhotocourtesyofNovozymes.