Plant Impact Share Discussion Threads

[wan] 27/10/2016 07:44

We know Brazil has been a tough market, but what I have been watching, as far as Bayer is concerned,is that the decreases seen in Latin America has been specifically down to insecticides and herbicides. This has again been confirmed in the detailed Quarterly Report -

Excerpt -

Sales in the Latin America / Africa / Middle East region declined by 5.3% (Fx adj.) to €859 million. We again registered a substantial decrease in sales in Brazil, due to the difficult market and liquidity situation. Business contracted at both Insecticides and Herbicides. By contrast, there was an increase in sales at Fungicides, primarily with products for use in soybeans and corn. Business with soybean seeds developed very encouragingly.



Most readers will already know that PI's Veritas is sold as part of Bayers fungicide offering. So, hopefully this bodes well. It will also be interesting to see how initial sales of Fortalis have gone.

In the meantime, another article from PI's Amajit Basra, Research & Development Programme Manager, Cereals -

Roots are the key for next-generation crop yield improvements
Oct 24, 2016

[bigglesbingham] 26/10/2016 08:12

Baumann head of Bayer on discussing geographical results said Brazil is tough but still added to bottom line. Problem is we don't know what proportion of that business is linked to products relating to PI. Results out shortly, let's wait and see.

[wan] 20/10/2016 08:30

New PI infographic styled animation -

[wan] 20/10/2016 08:06

Another excellent article from Amarjit -

Can we fight plant abiotic stress and enhance crop efficiency together?
Oct 17, 2016

We appear to be on the cusp of major advances in the development of “crop enhancement” or “crop efficiency” products, the market for which is largely unrealized. These products are not fertilizers, pesticides or herbicides. They contain special combinations of thoroughly researched, tested and regulated synthetic and naturally occurring biostimulants applied typically as foliar sprays or seed coatings that help farmers to close the yield gap so that they can harvest and sell more, and better quality produce.

[bigglesbingham] 17/10/2016 10:38

Less than £3000 in sells and £800000 off the market cap! This annoys me about market makers

[wan] 14/10/2016 10:20

latest PI October article -

Amarjit S Basra

AgBioTech R & D Leader - Trait Improvement Solutions in Crop & Seed Performance, Yield Potential & Stress Tolerance

The next innovation in agricultural technology: Can we realize the potential of every seed?
Oct 10, 2016

[cerrito] 12/10/2016 22:15

You are right bb to have more interest in crop trials than I have and thanks for making me focus on this. They did of course announce with some fanfare in April their Scientific Advisory Panel as well as the March 16 RNS on wheat research. There was also a panel session on Research at the Investor Day and I had a bad case of Information Overload. The only time research came up in the General Q and A Brubaker shut down all discussion. I have no idea of when we can expect to get results.

I am more focusing in on Brazil sales.
The USDA issued the following report today which to me is reassuring as far as it goes.
quote
In southern Brazil,
periods of dry weather supported wheat harvesting and
the early stages of corn and soybean planting. In central
Brazil, sporadic showers encouraged some corn and
soybean planting in Mato Grosso, which increased
following an intensification of seasonal rainfall during the
early part of October.
unquote

[bigglesbingham] 11/10/2016 07:17

Cheers cerrito they have done a lot of recruiting of what appears to be quality people, but their strategy is not to issue rns's unless important to the company. I'd like to see more rns's reflecting trial performances as this keeps everyone interested.

[cerrito] 10/10/2016 21:32

bigglesbingham
We should be getting the prelims for the year ending July 31 around October 25; interesting that unlike 2014/5 we did not get a Trading Statement this year in September.
The shares should be up reflecting the weakness of £ against the $; Perhaps one reason they are weak is that others like me have no way of getting a good feel for the orders that they are receiving as of now in Brazil. I guess the strength of the Real is a downer- remember this time last year it was just under R4=US$1 and now it is R3.2=$1 although the price of soya is a bit higher than a year ago; there seems to be a lot of drought in Brazil-especially in the North East which is a small growing area but as far as I can detect not in the main area of Matto Grosso.
Given these doubts I am not taking advantage of the weakness to buy-indeed I have the feeling that those with a more hands on knowledge of conditions in Brazil are not buying and hence the price weakness.
I am concentrating my remarks on Brazil rather than Argentina as my understanding is that it is a bit too early for Argentine buyers to define themselves.

[bigglesbingham] 10/10/2016 15:44

When is next news expected here the silence is deafening

[wan] 06/10/2016 07:42

Recently a new employee arrived at PI, Amarjit Basra, his proven ability, specialities and experience are indeed impressive -


Interesting read -

Today Dr Amarjit Basra takes over the Plant Impact LinkedIn page as guest editor for October.

Amarjit joined us recently from Monsanto as our Research & Development Programme Manager, Cereals and he will be sharing his thoughts on the agtech industry as well as the latest agricultural innovations in plant science and yield improvement worldwide.

Changing times for AgTech and an exciting move for me
Oct 3, 2016

Having worked with massive corporations like Monsanto and Syngenta for the past 14 years, it’s exciting to join a company engaged in R & D efforts to complement and enhance the effects of modern crop improvement programs. For me, these are two totally different experiences. Since joining Plant Impact, it’s a more personal environment, where I’ve interacted with my co-workers, from the most junior to the CEO. Decision making has been a far easier process. I’m part of a dynamic global team focused on plant science innovation that is backed by solid science in the discovery pipeline and robust field testing.
Full article -

[rlivsey] 04/10/2016 15:44

Down to 46p soon. Hopefully bounce at the bottom who knows with my luck. I bought at 60p, good times

[wan] 28/9/2016 07:40

It may be that I have not been that observant, but the following PI page looks relatively new (to me) with seven different products for a range of crops -


Apples, pears, cherries

Brassica

Root veg

Leafy salad

Soft fruit

Potatoes

Brassica, babyleaf/lettuce, celery, carrots/parsnips, leeks, potatoes

[timbo003] 19/9/2016 09:19

They seem to be progressing the IP on Bug Oil too, judging from recent event notifications at the EPO.

I note that David Marks hasn't put in any comments objecting to the grant of this one yet (come DM, keep up, you're slacking) and also he is not the named inventor


EP Bug Oil Patent application:


Bug Oil EP event notifications:

[visionon] 19/9/2016 08:28

Thanks Wan. I note on page 1 that intention is to register from 8th October 2016. So provided there are no spoilers then it may occupy some lines in the PIM finals in late October - if not before. It will be interesting to hear what the strategy will be for market now that PIM have the cash-flow to re-invigorate this product.

[wan] 19/9/2016 07:44

Recall from last years Results -

The Group has invested considerable historical development expense and maintains intellectual property rights over a number of patents for TGT-101, an effective low-residue insecticide used for the treatment of mites, whitefly and aphids on commercially important crops such as vegetables, almonds and apples. This technology was de-prioritised relative to other products and technologies in 2012, however some development and pre-commercial work has been ongoing for the past three years. Following regulatory approval of the product by the US Environmental Protection Agency in 2012, the Group began work to secure a Californian registration. The process, started in September 2014, is continuing to generate inquiries from the Californian Department of Pesticide Registration, the latest of which were received in August 2015. The Group is moving forward with evidence to support the responses, and looks forward to commercial planning once the registration is received.
(end)

For readers not familiar with TGT-101, the trade name is Bug Oil. I have been monitoring the progress of Bug Oil and I was pleased to note the following -

Notice of Proposed and Final Decisions
and Public Reports

Volume 2016-36
September 9, 2016

Page 5-

Description of the Action – New Pesticide Products Containing
New Active Ingredients

Description of the Action – New Pesticide Products Containing
New Active Ingredients
Tracking Number – (EPA Registration Number)
Applicant / Brand Name
264935 - (85937 - 2)
PLANT IMPACT PLC
BUG OIL FOOD USE (ML)
USE: INSECTICIDE, MITICIDE - FOR THE CONTROL OF VARIOUS PESTS SUCH AS
MITES, APHIDS, AND PSYLLA ON CROPS SUCH AS CARROT, SPINACH, AND APPLE
TYPE: SECTION 3 REGISTRATION - CONDITIONAL
ACTIVE INGREDIENT(S):
CANOLA OIL
TAGETES OIL
THYME OIL
WINTERGREEN OIL
CAS NUMBER(S): 120962-03-0, 8016-84-0, 8007-46-3, 68917-75-9

Page 6 -

264922 - (85937 - 1)
PLANT IMPACT PLC
BUG OIL ORNAMENTAL MASTER LABEL
USE: INSECTICIDE, MITICIDE - FOR THE CONTROL OF VARIOUS INSECTS SUCH AS
MITES, APHIDS, AND MEALYBUGS ON ORNAMENTAL PLANTS AND TURF
TYPE: SECTION 3 REGISTRATION - CONDITIONAL
ACTIVE INGREDIENT(S):
CANOLA OIL
TAGETES OIL
THYME OIL
WINTERGREEN OIL
CAS NUMBER(S): 120962-03-0, 8016-84-0, 8007-46-3, 68917-75-9



Subsequently I think we can at last indeed look forward to commercial planning for TGT-101!

[visionon] 09/9/2016 10:43

Wan thanks for that.

Interesting to see that Plant Healthcare share price is now flying. They had a discounted fund raise in late July at 10p including institutions and are today trading at 37p (up 19% today)i.e. about £53m but still loss-making. Makes me wonder whether PIM might start to break out of its 47-57p trading zone before too long.

[wan] 09/9/2016 07:40

A recent strong and encouraging statement from Bayer -

September 07, 2016
Bayer's commitment to innovation and sustainability will help shape the future of farming

Strong innovation pipeline will help solve key agricultural challenges / Sustained high R&D investment level of about 10 percent of sales confirmed / EUR 2.5 billion capital expenditure program from 2017 to 2020 / Strong commitment to sustainability also supported by investments in Digital Farming, ForwardFarming and Smallholder Farming

Leverkusen, September 7, 2016 -
Bayer continues to invest significantly in its Crop Science division to deliver new solutions for sustainable agriculture despite the current difficult business environment. "We are very confident about the long-term growth potential of the agricultural market and are not only continuing to invest in innovation, but have also earmarked EUR 2.5 billion for capital expenditure from 2017 to 2020," said Liam Condon, member of the Bayer Board of Management and Head of the Crop Science Division today at the company's "Future of Farming Dialog 2016" in Leverkusen, Germany. "The combination of over EUR 1 billion per annum investments in R&D combined with additional infrastructure investments will help ensure a continuous innovative product pipeline that can meet the challenging needs of growers around the world."

At the Future of Farming Dialog 2016 the future of agriculture is being discussed from all angles with diverse experts covering a wide range of topics from the use of satellite technology to smallholder support to integrated solutions to solve key agricultural challenges. "Collaboration is the key - our efforts must be integrated into an entire system of innovation that supports sustainable agriculture," said Condon. In a number of different forums, experts are discussing key agricultural challenges from an agronomic, environmental, regulatory and also social point of view.

During his keynote address, Condon confirmed the current outlook for the Crop Science Division of Bayer in 2016: "In light of the continuingly weak market environment, we expect Crop Science to continue to outperform the market with sales to remain on the prior-year level on a currency- and portfolio adjusted basis. This is equivalent to reported sales of about EUR 10 billion."

R&D-Pipeline 2015 to 2020 with combined peak sales of more than EUR 5 billion

Condon also outlined the current Crop Science R&D pipeline with products to be launched from 2015 to 2020, highlighting a combined peak sales potential of more than EUR 5 billion. Beyond 2020, the R&D organization is working with more than 20 R&D targets in chemical crop protection, six targets for biological crop protection and eight targets for traits. In addition, the breeding programs include nine field crop targets in late development and research and 27 vegetable targets.

Condon also confirmed the commitment to R&D: "With about 10 percent of sales going into R&D our investment into innovation remains at an industry leading level in the agricultural industry. Irrespective of the volatility of the agricultural cycle, we need to take the long-term approach to innovation because in our highly regulated industry it takes us on average about 10 years to develop new products."

Full release -

[wan] 05/8/2016 09:05

Cerrito...Added into the mix is the new territories (Argentina and Paraguay) but in terms of the potential to materially increase sales from which none were derived previously, which I guess is what a lot of investors will also be interested in. An important point is that Veritas/Fortalis is not exactly sold in isolation, so the success is somewhat dictated by the launch and/or promotion of such and indeed how "essential" the "other" product is regarded. Perhaps more on this aspect on another occasion though.

I have been keeping an eye on PI's job vacancies, recently the available positions dropped to just one (CEO assistant) and now Pi's website is showing none, so I assume that they have all been successfully filled.

[cerrito] 04/8/2016 23:09

The FT had an article today saying that following the weakening of the S$ against the Argentine Peso an the Brazilian Real, across corn, wheat and soy the US will increase its market share vis a vis Argentina and Brazil. This struck a chord with me as I am still unclear as to how sales of Veritas are impacted by the Br Real/US$ rate.
The article then had the following
quote
There are also concerns that the current dry weather in parts of Brazil will delay planting of soyabeans, which could in turn delay the planting of the corn crop afterwards.
Unquote
Not a terribly useful comment as we do not know if the dry spell is in the North East or Mato Grosso or Parana.
For those interested I did find the following which describes what happens throughout the year in Brazil’ s crop cycles
hxxp://www.soybeansandcorn.com/Brazil-Crop-Cycles
The following is the Argentine equivalent: hxxp://www.soybeansandcorn.com/Argentina-Crop-Cycles

[wan] 27/7/2016 09:28

Excerpt from Bayers 2nd quarter Results -

Sales in the Latin America / Africa / Middle East region were level year on year at €443 million (Fx adj. −0.2%). Very gratifying performances at Fungicides and in the vegetable seeds business were more than offset by declines in sales at Herbicides and SeedGrowth and much lower sales at Insecticides in Brazil.


Interesting to see fungicides sales performing well, which is ultimately what we are interested in given Veritas is used with/in Bayers FOX fungicide.

[trotterstrading] 22/7/2016 08:43

Thanks for all your comments

[visionon] 22/7/2016 07:54

To add to this discussion. In the case of Bayer Brazil Veritas is being included in a Fox fungicide package, being capable of being mixed and applied at the same time. My understanding is that the farmers are primarily buying Fox, which has a 26% market share. Veritas improves yield but Fox is the main cost element and Bayer the strong brand behind it. Thus Fox losing market share to another fungicide might present more risk to PIM shareholders than the presence or otherwise of patents for Veritas.

[wan] 22/7/2016 07:18

TT...I didn't say it was not important per se, but I was making the point that other factors also feature in determining a products positioning and strength. Ideally you would strive to achieve all three, patent protection, secret formulation/expertise and a strong brand (backed up by good data).