Bioceres Crop Solutions Corp. has announced that HB4 Wheat, a crop productivity solution, has received full approval for commercialization and cultivation in Brazil from CTNBio, the National Biosafety Commission. This approval comes after Brazil approved HB4 Wheat flour for food and feed use in November 2021. The approval of HB4 Wheat for cultivation in Brazil is significant as it offers the potential for double cropping in regions with limited water availability by rotating wheat with a summer legume. In addition, this technology is vital for adapting farming systems to an extreme climate and has already delivered over 40% yield increases in environments under severe water stress, based on results from Argentina’s recent drought-affected crop.
The approval of HB4 Wheat in Brazil marks the second country where regulatory agencies have cleared the crop productivity solution for cultivation, after Argentina. With this approval, Bioceres Crop Solutions Corp. completes the approval processes for the company’s wheat target markets in Latin America. As previously communicated, the company anticipates that this approval will pave the way for the technology to deliver between $15-$20 million in incremental EBITDA by FY24. Bioceres Crop Solutions Corp. is a fully integrated global provider of crop productivity solutions that enables the transition of agriculture toward carbon neutrality. The company’s mission is to provide sustainable solutions to agriculture that preserve soil health, reduce the carbon footprint of farming, and increase yields to meet the world’s growing demand for food.
The Race To Find Drought-Tolerant Cereals
The impact of the war in Ukraine and the global droughts on the cereal market has been profound. With two of the largest cereal producers in the world withdrawing their stock from the market, there has been a significant decrease in cereal supply. This has resulted in a rise in prices that have affected consumers globally. Many countries have had to look for alternative sources of cereal, with some opting to invest in genetics research to develop drought-tolerant crops. This has led to an increased demand for sorghum, which has garnered the attention of many growers (Read this article from Agritecture on the rise of Sorghum). With the expectation that more countries will experience severe droughts, there is a growing sense of urgency to find solutions to mitigate the impact on the cereal market.
The rise in cereal prices has pressured stakeholders to find ways to address the supply shortage. Governments have been seeking ways to increase the production of cereals, with some providing incentives for farmers to grow more crops. Consumers have also been seeking alternatives to traditional cereal products, with many opting for alternatives like oats and other grains. The situation has also led to an increase in the use of cereal substitutes, such as quinoa and millet. Despite these efforts, the impact of the war in Ukraine and the global droughts is likely to be felt for some time, with cereal prices remaining high and the supply of cereal remaining limited. As such, there is a need for continued investment in research and development of drought-tolerant crops to mitigate the impact of future droughts on the cereal market.
Photo by Stephen Radford on Unsplash
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