Traditional chemical pesticides are associated with well-known issues, including environmental damage, pest resistance and health issues. In readiness for the inevitable market shift, chemical companies are funding natural pesticide and bio-fertiliser programme. The $70 billion global pest-control market is growing at a rate of 3% per annum of which, biological control products make up $10-12 billion.
We’ve made a EUR 75 million investment with Biobest – a global leader in this field, whose mission is to promote sustainable production of high-value crops through biological crop protection and pollination. Biobest creates tailored biological stimulants and pest control solutions which support strict environmental and regulatory requirements.
The capital injected by Catalyst, M&G’s £5 billion purpose-led flexible private assets strategy, will fund Biobest’s acquisition of Biotrop - a Brazilian biological solutions specialist in open field crop nutrition and protection. The acquisition will position Biobest as a major player in South America, expanding its range of biological solutions and complementing its existing portfolio.
Niranjan Sirdeshpande, Global Head of Investments - M&G Catalyst, comments:
“This investment to support Biobest’s transformative acquisition not only solidifies Catalyst’s determination to fund innovation that helps to solve the world’s biggest environmental and social obstacles, but further reasserts Biobest’s position as a global leader in sustainable agriculture. It is now more important than ever to accelerate the transition to sustainable solutions. Our strategy boils down to investing where it counts by seeking to deliver long term financial returns and an overall positive impact to the environment and society. This exciting venture encapsulates this unconditionally.”