Koppert closes acquisition of Argentine Nitrasoil

Koppert Biological Systems, a Dutch company that makes biological agents for agriculture, has completed the acquisition of the Argentine company Nitrasoil. In addition to physical expansion in South America, this purchase also takes the company into a new segment of the agricultural market, that of inoculants.

With the acquisition of the industrial unit in Argentina and the portfolio of inoculants and bioprotectors, Koppert intends to expand the range of products offered and also serve farmers in the Southern Cone – Argentina, Uruguay, Paraguay and Bolivia. “We are taking a very important step in the inoculants market, where until now Koppert had no activity. Nitrasoil has a lot of experience in this segment, which fits perfectly with Koppert's microbiological product portfolio, says Mr. Paul Koppert, CEO of Koppert Biological Systems.

For the commercial director of Koppert do Brasil, Gustavo Herrmann, this is a strategic acquisition, as it expands the business of the Brazilian operation in South America. “We estimate that the inoculant market for large crops in the Southern Cone will reach 120 million doses/ year and we expect to gain a 10% share of this market in 5 years”, he explains.

According to Carlos Gaziglia, president of Nitrasoil, the importance of this merger is not only for his company, which will be present in the countries served by Koppert. “The local market will benefit from a wider range of biological products for controlling pests and diseases”, he considers.

This is the company's second acquisition in less than two years. At the end of 2017, Koppert acquired the macrobiological company Bug, becoming the largest biological control company in the country.

Biologicals and inoculants market

The production of biological products to control agricultural pests and diseases grew by more than 70% last year in Brazil, generating R$464,5 million compared to R$262,4 million in 2017. The Brazilian result is considered the most significant in history sector and exceeds the percentage presented by the international market. In global terms, the sector grew by 17% in the same period, according to data from the Brazilian Association of Biological Control Companies (ABCBio).

Regarding inoculants, in the 2017/18 Brazilian harvest, approximately 53 million doses of inoculant were sold, equivalent to US$44 million, and the adoption of the use of inoculants in the Brazilian market, on average, was almost 80%, according to research by Spark Smarter Decisions, in partnership with the National Association of Inoculant Producers and Importers (ANPII).