Restraints include: increase in market share of cheaper off-patent products; and environmental concerns over the neonicotinoids.

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1 Agrow Seed Treatments 2015 Edition Chapter 1 Introduction to seed treatments The global commercial seed market is dominated by the US and China, with around a 27% and 20% share, respectively. By crop, maize is the major seed market, followed by soybeans, rice, wheat and cotton. The market for proprietary seed is dominated by three companies that also have strong agrochemical interests Monsanto, DuPont and Syngenta. Two other agrochemical companies also have large seed interests Dow AgroSciences and Bayer. The introduction of systemic fungicides and insecticides led to more-effective seed treatments, not only protecting the germinating seeds, but also the young plants. The ground-breaking fungicide was Bayer s triadimenol, introduced as Baytan in Bayer went on to launch its neonicotinoid insecticide, imidacloprid, in 1991, as Gaucho. This is translocated to the shoots where it controls a large number of sucking and chewing pests. Seed treatment is one of the fastest growing segments of the global crop protection market. Estimates put the market size at $2.7 million in 2011, and growing at around 8-9% a year. The market is dominated by North America. Seed treatments give value to the grower. For example, they helped to contribute nearly $80 billion to US maize growers in 2011, according to the US CropLife Foundation. There are advantages to each layer of the supply chain, as well as environmental benefits. The market is driven by numerous factors, including: farming methods, such as no-till; commodity prices; government interventions; increasing awareness; higher-value seed; and improved seed treatments and seed treatment technology. Restraints include: increase in market share of cheaper off-patent products; and environmental concerns over the neonicotinoids. Chapter 2 Seed treatment by crop Traditionally, cereals were by far the main consumers of seed treatments. However, in recent years, maize and soybeans have increased in importance, aided by the rise in GM crops. Small-grain cereals More than 219 million ha of wheat were harvested in India and China together accounted for almost a quarter. Barley was the second most widely grown small-grain cereal, with a harvested area of 49 million ha; the EU accounted for 25%, and the Russian Federation a further 16.3%. European multinationals Bayer, Syngenta and BASF are the main suppliers. Difenoconazole is a leading product in extensive cereals, and is used mostly with 12 Commodity Analysis 2015 Informa UK

2 Agrow Seed Treatments 2015 Edition Syngenta s other fungicides, fludioxonil and mefenoxam (metalaxyl-m), and/or insecticide, thiamethoxam. BASF s triticonazole and Bayer s tebuconazole are used mainly in combination products. Neonicotinoids are the main insecticides, although under increasing restrictions. Maize this ranked second, with a global harvested area of 185 million ha in 2013, up from around 145 million ha in Almost 39% of the global harvested area of maize was grown in China and the US in The rise in area and growth in the use of high-value GM seeds have combined to boost seed treatment sales. Syngenta is a major supplier of fungicide seed treatments, including Apron XL (mefenoxam), Dividend Extreme (difenoconazole + mefenoxam), Maxim 4FS (fludioxonil), Dynasty (azoxystrobin) and newer introduction Vibrance (sedaxane). BASF s triticonazole is also significant. Other active ingredients include thiram, tebuconazole, captan and metalaxyl. For insecticides, neonicotinoids again dominate. Recent introductions include DuPont s cyantraniliprole. Soybeans these were harvested from over 110 million ha in 2013, with the US, Brazil and Argentina together accounting for 70%. Fungicide seed treatments include long established ones, such as metalaxyl, carboxin, carbendazim and thiram, also fludioxonil. Strobilurins, such as Syngenta s azoxystrobin, BASF s pyraclostrobin and Bayer s trifloxystrobin, are also used. Recent introductions include Syngenta s Vibrance (sedaxane) and Bayer s Ilevo (fluopyram). Bayer describes it as the first such product to control soil-borne sudden death syndrome. Insecticidal seed treatments are again typically the neonicotinoids: Syngenta s thiamethoxam (Cruiser 5FS); Bayer/Valent s clothianidin; and imidacloprid. Nematode pests include the soybean cyst nematodes (Heterodera glycines). Syngenta s Avicta (abamectin) is popular. Bionematicides are now on the market, including Bayer s Votivo (Bacillus firmus) and Syngenta s Clariva (Pasteuria nishizawae). Bacterial inoculants are applied as seed treatments mainly to enhance nitrogen fixation. Cotton this was harvested from around 32 million ha in 2013, and was again dominated by GM varieties. India accounted for 36%, China 14% and the US 10%. Seed treatment usage in China is low, and India tends to rely on older products. Many fungicides are available, including older generics such as triadimenol, thiram, metalaxyl, fludioxonil and myclobutanil, as well as captan and carboxin. Syngenta sells a range of fungicides, including products based on azoxystrobin, difenoconazole and mefenoxam (metalaxyl-m). Bayer has recently introduced penflufen, alongside established products based on trifloxystrobin, metalaxyl and thiram. Other products include Sumitomo Chemical s Metlock (metconazole) and BASF s pyraclostrobin, sold in mixtures. Insecticidal seed treatments are again typically the neonicotinoids. Others By contrast, although paddy rice was harvested from more than 165 million ha in 2013, much of the crop is grown in developing countries, where seed treatments are less significant. Chapter 3 Formulation and application Seed treatment formulations are specifically designed for direct application to seeds or for minimal dilution. Often they may not need any further additives such as stickers to improve adhesion. Traditionally, seed treatments were formulated as powders that were: dry-mixed with seed (DS formulations); or first mixed with water, then sprayed as a slurry (WS) onto the seed. Other formulations were later used, including those based on organic solvents. Commodity Analysis 2015 Informa UK 13

3 Agrow Seed Treatments 2015 Edition The trend has been away from these powders and solvent-based formulations (DS, WS and LS) and towards flowable suspension concentrates (FS) and emulsions (ES) to reduce dust hazards, improve formulation stability and increase adhesion on the seed. For fungicides, one trend is to mix active ingredients for different modes of action, as well as different disease control spectrums, to aid the fight against resistance. The terms seed enhancement or functional seed treatment are sometimes used to refer to all the technologies applied to seeds to improve seed quality for: easy and accurate sowing; optimal germination; and improved crop establishment. Seed enhancements include dressing, coating, pelleting, priming and conditioning of seeds. Seed treatment equipment must: deliver and meter the seed; apply the treatment; mix and blend the two; and contain dust. Application equipment used by seed retailers and distributors falls into two basic types: batch treaters and continuous flow treaters. With the advent of improved equipment, it is now easier to offer a range of different, customised, seed treatments. This is increasing, particularly in the US. For seed dealers, this can enable them to differentiate their products from their competitors, and so gain advantage. A major concern with seed treatments is that dust containing active ingredients may spread the pesticide. This has been highlighted with the concern over the neonicotinoid insecticides and fipronil, and their effects on bee populations. Bayer SeedGrowth, with its experience in formulation development, and its neonicotinoid insecticides, imidacloprid and clothianidin, has been one of the companies at the forefront of developments to limit dust-off, and has developed its Fluency Agent. Chapter 4 Control of diseases Seed treatments may control pathogens, and thereby protect: crops before and during germination; and seedlings during their early growth stages. Pathogens are mainly fungi (but also cover bacteria and viruses). Fungal diseases can be grouped into: damping-off, which results in poor emergence; seedling blights, where young plants die off; root and foot rots; and smuts and bunts, which appear with a soot-like mass of spores, often in the seed head. The fungi can be seed-borne or soil-borne. The introduction of systemic fungicides has also allowed the control of fungi that affect the foliage of the emerged seedling. Diseases can be controlled by chemicals that act systemically where the active ingredient moves through the plant or through contact action. It may prevent the establishment of pathogens, having a protective or preventative effect. It may cure the infection that is not yet showing symptoms, or it may act as an eradicant, interrupting further development of an infection that is showing symptoms. Chapter 5 Control of insects and other pests Seed treatments are aimed at various pests, including: soil-dwelling insects and other soil-dwelling pests, such as plant-parasitic nematodes; and foliar feeding insects. The introduction of the systemic neonicotinoid insecticides began the move to control early infestations of leaf-feeding and sucking insects Commodity Analysis 2015 Informa UK

4 Agrow Seed Treatments 2015 Edition The neonicotinoids and fipronil allowed replacement of older products, such as lindane, carbamates and organophosphates, which had caused concern over their toxicity and environmental issues. Imidacloprid, thiamethoxam and to a lesser extent fipronil also expanded the market by offering control of early foliar insects such as aphids, thrips, flea beetles and fleahoppers. However, in recent years, these actives have themselves been a cause for concern, over their effects on bee populations. Restrictions have been put in place, notably in the EU. The European Commission imposed a two-year restriction on the use of certain seed treatments based on fipronil, from 1 March It also suspended certain uses of clothianidin, imidacloprid and thiamethoxam from 1 December 2013, to be reviewed within two years. Research is on-going. Chapter 6 Other types of seed treatment Besides fungicides and insecticides, a variety of other compounds can be applied as seed treatments. These include: Plant growth regulators (or plant hormones) these regulate the growth of plants, and include gibberellic acid. As it occurs naturally, the product is certified for use in organic production systems. Animal repellents some insecticides and fungicides also act as repellents. These include thiram. Herbicides this is a niche area. One example is the bioherbicide, D7 (Pseudomonas fluorescens strain D7). Northwest Agricultural Products (now part of Verdesian Life Sciences) received US EPA approval in 2014, for use as a seed treatment or as a ground or aerial spray. Herbicide safeners (antidotes) these render crops selective to a particular herbicide, without reducing weed control. They are applied either as a mixture with the herbicide, or as a seed dressing. Biologicals key barriers have been: loading the seed with enough microorganisms to protect under a range of conditions; and stability and viability on the seed during storage and after planting. In addition, combining biopesticides with chemical seed treatments has been a challenge. However, advances in formulation mean that these have now been developed examples include Syngenta s Clariva and Bayer s Votivo. Rhizobia inoculants these are rhizobia bacteria introduced into the soil to improve the growth of legumes. Biostimulants these are a diverse group of substances and microorganisms that modify plant physiology to improve efficiency and resilience, which can lead to higher crop yield and quality. While most are used as foliar or soil treatments, some are used as seed treatments. These include plant extracts, humic acids and inoculants. Some agrochemicals also have biostimulant activity; these include Bayer s insecticide, imidacloprid, and Syngenta s insecticide, thiamethoxam and fungicide Vibrance (sedaxane). Micronutrients the seed can be a useful vehicle for delivery for phosphorus and micronutrients (such as boron, copper, manganese, molybdenum and zinc), Commodity Analysis 2015 Informa UK 15

5 Agrow Seed Treatments 2015 Edition Chapter 7 Company profiles This section profiles the seed treatments of global top ten agrochemical companies (as ranked by Agrow on the basis of 2014 sales), along with an additional profile of Arysta LifeScience. Adama formerly Makhteshim-Agan Industries, it is the world s leading provider of generic agrochemicals, majority owned by ChemChina. It sells off-patent seed treatments, including tebuconazole, imidacloprid and fipronil. While the company specialises in generic pesticides, it began developing a nematicide, fluensulfone, in 2006, under the brand name, Nimitz, and this has potential as a seed treatment. Arysta LifeScience acquired along with Agriphar and Chemtura AgroSolutions, by Platform Specialty Products, all three now fall under the Arysta trade name. Chemtura had an extensive range of branded seed treatments, based mainly on: long-established generics, such as captan and carboxin fungicides; the more recently off-patent insecticide, imidacloprid; and also newer ones including Kureha s fungicide, ipconazole. BASF one of the world s leading seed treatment companies, through fungicides, boscalid, dimethomorph, fluquinconazole, iprodione, metalaxyl, prochloraz, pyraclostrobin, pyrimethanil, thiophanate-methyl and triticonazole; and insecticides fipronil and imidacloprid. It has recently introduced Fluxapyroxad (trademarked as Xemium). Bayer CropScience another leading seed treatment company, it offers a complete package, including products, coatings, services and equipment, through its SeedGrowth operations. Major products are the neonicotinoid insecticides, including imidacloprid (now off patent), clothianidin and thiacloprid. Recent introductions include the fungicides, fluopyram and penflufen Dow AgroSciences weak in seed treatments, in 2008, it reached agreement with Syngenta, to evaluate its actives for incorporation into Syngenta's seed treatment portfolio for field crops and vegetables. The first product came in 2011, when Syngenta launched Dow s insecticide, spinosad, as a vegetable seed treatment in the US. DuPont developing seed treatments under its Lumigen Seed Sense brand, which also includes other seed services. It is targeting seed treatments for soybeans, maize and canola in select global markets, including Brazil, Argentina, the US and Canada. Its seed company, Pioneer, is a world leader in developing, producing and marketing maize hybrids and soybean varieties. FMC traditionally focused on niche crops, it has been weak in seed treatments. In 2014, it acquired Cheminova, and now estimates that seed treatments and biologicals will together make up 3% of agrochemical sales. Cheminova products include Vincit (flutriafol) and Picus (imidacloprid). Monsanto known for its best-selling total herbicide, Roundup (glyphosate), the company has diversified into genetically engineered crops, including those tolerant to glyphosate and resistant to insects. In 2008, it adopted the Acceleron brand for its range of seed treatments to protect its premium GM maize, soybean and cotton seeds, based on third-party products Commodity Analysis 2015 Informa UK

6 Agrow Seed Treatments 2015 Edition Nufarm a generics specialist, it also has seeds interests. While previously heavily dependent on glyphosate, in recent years it has been broadening its portfolio. This has included developing its seed treatments. Major products include fungicides fludioxonil, metalaxyl, tebuconazole and thiram, and insecticide imidacloprid. Sumitomo Chemical (US subsidiary, Valent) with the acquisition of the insecticide, clothianidin, the company has turned to seed treatments. In fiscal 2014, the company noted that it had seen a record number of seed treatment registrations, including the fungicidal, Intego (ethaboxam), in the US. Syngenta one of the leading global seed treatment companies, it also has a significant seeds business. Syngenta s main Seedcare brands are: Avicta, Cruiser, Dividend, Celest/Maxim and the recent introduction, Vibrance. With its strong portfolio, many of Syngenta s seed treatments are mixtures of fungicides, giving a broad spectrum of disease control though contact and systemic action. Combinations of separately registered products are also offered. Chapter 8 Fungicides A directory of some commonly used fungicides, including an overview, uses, registration in the main EU and US markets, and a discussion of seed treatment uses. Chapter 9 Insecticides A directory of some commonly used insecticides, as above. Appendices The report concludes with a directory of fungicides and insecticides commonly used as seed treatments. Commodity Analysis 2015 Informa UK 17