Koppert opens formulations unit and announces investments of R$700 million

In constant expansion, Koppert Biological Systems, leader in Brazil and the world in biological control, expands its operations in the country by announcing investments of R$700 million over the next three years. The amount is being used to increase the production capacity of Koppert Brasil, which began with the inauguration of the microbiological formulations factory this Wednesday, 28th, in Charqueada (SP).

According to the industrial director of Koppert Brasil, Danilo Pedrazzoli, the company is planning a manufacturing investment in three new production units in Brazil, guaranteeing the forefront in the Brazilian and global market in biological inputs for agriculture. “The new formulation unit is located in an area of ​​more than 8.000 m² and will produce the entire line of microbiologicals, which includes products based on viruses, fungi and bacteria in liquid or solid formulations”, he explains.

For this unit alone, investment last year was R$70 million, generating 70 direct jobs in 2022.

“The formulations unit has the capacity to produce 15 times more, and can operate in three shifts. It has a high level of automation and robotization of processes, ensuring greater safety and a consequent increase in product quality”, says Pedrazzoli.

Growth

The expansions are a consequence of Koppert's growth in Brazil and the Southern Cone (Argentina, Paraguay and Uruguay) and the expansion of the biological market in these regions. In 2022, the company expects to reach the R$800 million mark in revenue, which represents growth of just over 100% over last year.

“We believe that with the expansions we will increase our market share to around 25%, considering the total industrial potential plus the total potential on farm, or 33%, considering only the industrial sector”, explains the commercial director of Koppert Brasil, Gustavo Herrmann.

The adoption of biodefensive products by producers has been growing, gaining an increasingly larger share of the chemical market.

“High technology producers, in search of greater productivity, saw biological solutions as economic and financial sustainability to take them to another level. What was previously restricted only to niche crops such as HFs (vegetables and fruits) and large-scale crops (potatoes, tomatoes, onions, carrots, peppers and garlic), has evolved into large crops such as soybeans and corn. Furthermore, in the fight against some pests and diseases, organic products have been recognized by rural producers as superior to their chemical competitors”, advises Herrmann.

According to data from CropLife Brasil, the Brazilian market for organic pesticides grows by around 30% annually and in 2021 recorded sales of R$1,79 billion. In a long-term expectation, the entity indicates that the biological market could grow another 107% by 2030, to R$3,69 billion.

The Southern Cone, on the other hand, is still a market with slower growth than Brazil, but which should reach, this year, a potential of approximately R$500 million, according to Herrmann.