AMVAC’s Emergent Global Presence in Biologicals and Precision Ag Technologies

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For more than 50 years, AMVAC®, an American Vanguard® Company (NYSE: AVD), has provided best-in- class agricultural crop inputs to growers in North America. As agricultural practices shifted over time, AMVAC® has expanded its strategy beyond its traditional expertise in core chemistry. Over the years, our relationships with our distribution channels, retail partners, and growers have evolved to where companies no longer simply sell a product. AMVAC strongly believes that our role as a technology solution provider is critical to the market we serve, and requires not just products but other innovative services and support offerings required by all parts of the value chain.
Beginning in 2014, AMVAC made three strategic shifts which propelled AMVAC in its transformation into a technology solution provider.


SIMPAS
First, in 2014 AMVAC began the development of a technology called SIMPAS® (Smart Integrated Multi Product Prescription Application System). SIMPAS utilizes proprietary hardware and software solutions to allow growers to prescriptively apply various crop inputs across their fields, thereby saving unnecessary input costs and providing enhanced traceability while meeting the reporting requirements of all inputs.

Geographical Diversification
The second strategic shift was to diversify the business geographically, lessening the company’s dependence on the U.S. market and its cyclical commodity prices. In 2017, AMVAC made a series of investments and acquisitions internationally.

These acquisitions included:
• Agricenter, a distribution and retail operation in Central America
• LIFE-RID Technologies, a research organization in Costa Rica
• GreenPlants, a micronutrient company in Costa Rica
• AgNova Technologies in Australia, which develops and distributes specialty crop protection and production
• Agrinos, a U.S.-based biostimulant company with global operations and fermentation facilities
• OHP (Olympia Horticultural Products), the leader in greenhouse and nursery production markets

From these investments and acquisitions, AMVAC increased its share of international business from 10% in 2014 to nearly 45% today, while also diversifying its product portfolio by adding a non-crop business presence. Leading the way internationally is our AMVAC LATAM business, which has grown to nearly $100M in annual revenue. Additionally, AMVAC’s non-crop businesses have been consolidated under its
AMGUARD™ Environmental Technologies brand, and represent a significant portion of AMVAC’s revenue and profit.

 

 

Expansion Into Biologicals — GreenSolutions
Lastly, through its acquisitions and additional licensing and distribution partnerships, AMVAC has expanded its presence into the biological products markets now under the umbrella brand GreenSolutions. Biological sales now comprise approximately 10% of total AMVAC sales, and all AMVAC operating businesses have dedicated resources targeting the sales of biological products.
In 2020, AMVAC acquired Agrinos, which provided it with proprietary assets in the biological space. As part of the acquisition, AMVAC now owns the Agrinos microbial library of thousands of strains, which provides a broad range of potential new products for the market. Combined with the fermentation capabilities in our U.S. and Mexico plants, AMVAC is now one the few companies that own microbial libraries and also controls its manufacturing and intellectual property. AMVAC also provides manufacturing services for other companies in need of microbial fermentation.
The Agrinos acquisition also provided AMVAC with other key resources. Approximately 65 people were retained by AMVAC, most of them present in Agrinos’ international entities in Mexico, India, China, Ukraine, and Brazil. AMVAC also acquired three key products that utilized Agrinos’ HYT (High Yield Technology): iNvigorate®, B Sure®, and UpLift® brands in the U.S. These products additionally are sold
through the AMVAC global network under different brand names.
Additional investments were made in:
• TyraTech – a life sciences company focused on nature-derived insect and parasite control products
• Envance Technologies – an emerging leader in safe and effective insect control solutions
As part of AMVAC’s growth strategy in the biologicals market, we have engaged with several key partners to help fill out our portfolio. Other biological companies have partnered with AMVAC to take advantage of our strong market access capabilities. These partnerships over the last few years include relationships with Brandon Biosciences, STK Ag, Biotor, Sumitomo, and Valent BioScience, to name a few.
Recently, AMVAC entered into an agreement with both NewLeaf Symbiotics and Low Mu Tech, two companies based in the U.S. Midwest. These partnerships have allowed AMVAC to launch the BioWake™ brand of products into the planter box market, initially focusing on corn and soybeans. BioWake utilizes
NewLeaf Symbiotics’ proprietary PPFM microbes along with Low Mu Tech’s Dust biological seed lubricant to create an entirely new product that can replace the talc and graphite currently sold in the market. AMVAC plans to expand the BioWake product offering into Brazil, Argentina, Ukraine, and Canada initially. We also plan to expand the crop footprint to include peanuts and cotton. We have just launched
BioWake Prime™, a corn rootworm biocontrol product. We have an active joint development pipeline with NewLeaf and look to expand our offerings in both crop and geography in the future.

AMVAC’s participation in the Global BioAg World Congress 2024 is an exciting opportunity to showcase AMVAC as a technology solutions provider, and to show our customers and partners our dedication and commitment to the biological marketplace. AMVAC’s growth initiatives in SIMPAS, international expansion of our product portfolio, and our commitment to GreenSolutions biological business will
remain cornerstones in the future.