Mississauga, ON Canada and Sacramento, CA USA
June 26, 2024
Bee Vectoring Technologies International Inc. (the “Company” or “BVT”) (CSE: BEE) (OTCQB: BEVVF) (CVE:BEE) is pleased to announce an R&D agreement with Syensqo (2NF.F) (SYENS.BR) to develop its proprietary biological control agent Clonostachys rosea strain CR-7 (CR-7) into a seed treatment formulation for the multi-billion soybean market.
Syensqo, a newly formed €8 billion company is a science and innovation pioneer in specialty chemicals and materials. Syensqo was formed following the spinoff of Solvay’s (SOLB.BR) specialty materials and chemicals businesses into an independent publicly-traded company at the end of 2023.
“Collaborating with Syensqo is a huge extension of our R&D efforts,” said Ashish Malik, CEO of BVT. “Their large team of formulation chemists and microbiologists will enable us to get to market with a strong seed treatment formulation much faster.”
“Fast-tracking BVT into soybean crops through the well-established seed coating market will expand the Company’s addressable market beyond bee vectoring, bringing CR-7 to more growers by tapping into approaches they are already familiar with. BVT’s go-to market strategy is to commercialize this new CR-7 seed treatment product for sale through large agriculture suppliers, partners and distributors,” continued Mr. Malik.
Seed treatment helps germinating plants by protecting them against soil pests and diseases while boosting early-stage emergence and vigor, allowing the crop to establish quickly and reach its yield potential. The advantage of this approach is early protection: seed treatments protect the vulnerable growth stage of emerging seedlings from diseases caused by soil borne fungi. It also aligns with BVT’s core function of precision; seed treatments use a very small amount of product, often mere ounces per hundred pounds of seed. It is also popular with growers since it is a relatively easy application and they often receive seeds from distributors with the product already applied.
BVT’s CR-7 is also a proven entity in improving soybean yield and quality. Recent US trials showed wherever CR-7 was applied, the results outperformed the base seed treatment 81% of the time. On average, a three-bushel yield per acre increase was reported with CR-7 added, which is about 4% higher than the base seed treatment. This is in addition to previous successful trials in 2021, which also showed CR-7 to be an effective treatment against Sudden Death Syndrome (SDS), a huge challenge for soybean growers. In these trials, soybean seeds were treated with CR-7 along with other seed treatment products before planting.
“Syensqo has proven expertise and proprietary IP on the formulation of seed treatments,” said Dr. Mason Newark, Field Technical Manager at BVT. “They are experts with a deep understanding of the complex chemistry needed for effective seed treatment. Syensqo has already started working on the CR-7 formulation, and our goal is to next work together to test its performance through germination.”
“In essence, this partnership is taking a proven, standard approach, and combining it with an innovative product – to get CR-7 as a seed treatment,” said Mr. Malik. “Through a future licensing agreement, BVT could potentially reap significant annual royalties from this application.”
Soybeans represent a significant market opportunity for BVT. There are 320 million acres planted worldwide, with 86 million in the US, 98 million in Brazil and 40 million in Argentina.(1) BVT estimates about 80% of the soybeans in the US get a seed treatment before planting, including about 50%, which also receive a biological inoculant treatment. US soybean exports are an important part of the economy. In 2022, the US exported 67.6 million metric tons of soybeans, soybean meal, and soybean oil, adding US$39.8 billion to the economy.(2)
(1) Source: USDA, World Agricultural Production, 2022
(2) Source: US Census Bureau, Value of Exports, Marketing Year 2022/2023 Final Report
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