Posted on September, 10, 2024 at 11:59 pm
Total revenues at Bioceres Crop Solutions, maker of genetically modified HB4 wheat and other crop production technologies, grew 11% to $464.8 million in fiscal year 2024, largely driven by HB4 sales, adjuvants and biostimulants amid improved weather in the Southern Hemisphere, though operating profit and net income declined.
In its Sept. 9 earnings report for the fiscal year ended June 30, Bioceres said its operating profit was $44.8 million, down from $54.2 million the previous year, with net income at $6.2 million, down 69% from $20.2 million. Adjusted EBITDA for the full fiscal year was $81.4 million, steady compared to $81.2 million in fiscal year 2023.
“Wherever wheat is grown in the world, drought takes its toll on yields and quality, so an innovation like HB4 holds a lot of interest for growers like me,” said Mike Peters, Okarche, Oklahoma, who is past chairman of USW. “With global demand for wheat hitting new records almost every year, there is concern about variable production. A drought-tolerant trait offers more stable, sustainable production. At the same time, it is important that customers who have specific purchase preferences understand the industry supports their ability to purchase the type of wheat they want. That remains our policy after more than 16 years.”
USW said it will continue monitoring Bioceres’ commercialization plans to ensure careful stewardship and alignment with the “Wheat Industry Principles for Biotechnology Commercialization” developed jointly with the National Association of Wheat Growers (NAWG). In line with the principles for commercialization, USW and NAWG said their support for HB4, and any transgenic wheat commercialization, is linked to the technology company “receiving regulatory approval in major importing countries that represent at least 5% of average US wheat export volume.”
Argentina-based Bioceres noted in a press release on its website that the United States is the fourth largest wheat producer in the world ― the largest in the Americas ― and is the fourth country in the world to greenlight production of HB4 wheat, following Argentina, Brazil and Paraguay. Australia, New Zealand, South Africa, Nigeria, Thailand, Indonesia, Colombia and Chile have all approved the technology for food and feed use.
“In Australia, an important wheat-producing geography that is increasingly prone to water deficits, the company has recently received a license to undertake field trials to gather the necessary data for an eventual production application as well,” Bioceres said.
Peter Laudman, USW’s director of trade policy, said Bioceres has established productive dialogue with the USW.
“We appreciate that the company understands the importance of our joint wheat industry principles,” said Peter Laudeman, USW’s director of trade policy. “I have traveled with growers to Argentina to see HB4 wheat in the field and they were impressed by its performance. We believe the trait represents good science with positive potential to improve food security in a more sustainable way.”
North American Millers’ Association (NAMA) President Jane DeMarchi said having drought-tolerant wheat using the HB4 trait could help with global supply challenges. With millers being a vital link in the food chain between growers and consumers, DeMarchi said that as HB4 or any other biotech wheat technology moves forward, it is imperative that companies consult with NAMA and its members during the development process “to discuss plans for stewardship, regulatory approvals, and details of any additional changes that alter the nutritional or functional characteristics of the grain compared to conventional varieties.”
“Millers and others in the wheat supply chain will need commercially available testing technologies for the HB4 trait to ensure transparency for consumers,” DeMarchi said.
It’s still unclear how receptive the public is to consuming products made from genetically engineered wheat. Because wheat is a food grain consumed directly by humans, unlike corn and soybeans, which mainly are used in animal feed, some consumers are firmly entrenched in their anti-genetically engineered wheat position.
However, a survey conducted several years ago by ABIMAPI, an association that represents biscuit, pasta, bread and cake makers in Brazil, yielded a surprising result, with close to 70% of Brazilian consumers saying they had no concerns regarding genetically engineered wheat.
Federico Trucco, chief executive officer of Bioceres, told World Grain in a 2022 interview that the results of that survey “helped change the position of key groups that historically rejected transgenics in the crop. With this we are not saying that the job is done; it is far from being done. But we are obviously thrilled to see this progress and very proud of our global leadership in this front.”
DeMarchi said NAMA has steadfastly backed the consumer’s ability to purchase food based on their personal preferences.
“NAMA supported consumers being able to make food purchases based on their personal preferences and supports legislation that was signed into law requiring labeling of products that contain bioengineered foods,” she said.
Source: World Grain