Study proves economic viability of biofactory of beneficial bacteria Bt

Date:11-21-2024

• The business plan prepared by Embrapa shows that the production of Bacillus thuringiensis is economically and financially viable.  

• An investment of around R$2.1 million could generate annual revenue of R$18 million.

• Microorganisms are the basis for bioinsecticides to control important pests, such as caterpillars that attack various crops.

• The plan assessed viability by calculating Net Present Value, Return on Investment, Internal Rate of Return, and Payback.

• Production depends on strict quality control.

The aim of this study was to evaluate the effectiveness and costs of installing biofactories for the multiplication and commercialization of B. thuringiensis (Bt) in an innovative way. Photo: Sinval Lopes

 

A detailed business plan prepared by Embrapa assessed the economic and financial viability of implementing a Bacillus thuringiensis (Bt) biofactory. The production capacity was considered to be one thousand liters per day. The study aimed to assess the effectiveness and costs of installing biofactories for the multiplication and commercialization of B. thuringiensis (Bt) in an innovative way. The study reveals that it is feasible to bring biofactories closer to the production sector. With an investment of approximately R$2.1 million, the annual revenue is R$18 million.

The study shows that, with competitive intelligence and technical advice from Embrapa for quality control, it is possible to execute the project and provide bioinsecticides for the control of pests of the order Lepidoptera in different crops. Lepidoptera are popularly known as moths and butterflies and attack crops in their young phase as caterpillars.

″We are considering the cost of a 120 m² biofactory for the production of inputs to be applied in different crops, from commodities, such as corn, soybeans, and cotton, to the fruit and vegetable sector,″ said Sinval Resende Lopes, an agricultural engineer in the Technology Transfer sector at Embrapa Milho e Sorgo (MG).

″We divided the information into revenues, costs, investments, taxes, fees, and depreciation to build the cash flow,″ Lopes explained. The technical and financial data used in the research were provided by companies in the biological inputs sector and by the work of researcher Fernando Hercos Valicente, also from Embrapa.

The costs assessed for the production of one thousand liters per day took into account the fermentation time of the bacteria, which is 48 hours. This results in the production of 15 thousand liters of bioinsecticide per month. The average sales price of the B. thuringiensis -based bioinsecticide on the market is R$120.00 per liter. ″In this business model, we suggest distribution through regional representatives to offer the product at R$100.00 per liter. Thus, the 15 monthly fermentation processes will result in 180 thousand liters of production per year, and the annual revenue of the biofactory will be R$18 million,″ Lopes pointed out.

Biofactory structure and project feasibility

The 120 m² structure of the biofactory includes a utility area, a quality and process laboratory, a fermentation room, a storage room for inputs, and a finished product storage room. The reception and administration spaces are also part of the project.

The method used to analyze economic viability consists of a cash flow containing the Net Present Value (NPV), the Internal Rate of Return (IRR), the Payback, and the Return on Investment (ROI) (see table at the end of the article). A project is considered viable when it presents a positive revenue between revenues and costs, updated for a certain discount rate. In the project, the Bt biofactory presented an NPV of just over R$5 million, considering a real discount rate of 5.78% per year. The IRR was 18%, meaning that the project is viable and has a return on the initial investment. The payback, the time for return on investment, will be six months. The return on investment (ROI) was 1.64,″ Lopes said.

Collection of Baculovirus and Bacillus thuringiensis

In the study, researchers reported that Brazil has an estimated planted area of around 67 million hectares of corn and soybeans. The first and second-crop corn areas alone total 22.2 million hectares, according to data published by Conab in 2023.

Several insects constantly attack Brazilian crops. However, lepidopterans appear more frequently and often cause severe damage to crops. According to Valicente, one of the most widely used bacteria to control these pests is Bacillus thuringiensis. ″It is a rod-shaped bacterium. It forms spores and, during sporulation, produces highly specific crystalline inclusions. These inclusions are responsible for the toxic activity of the bacteria in insects. Controlling these insects is extremely important to avoid significant economic losses,″ the researcher warned.

Embrapa Milho e Sorgo has a Collection of Multifunctional and Phytopathogenic Microorganisms (CMMF), with around 11 thousand accessions of different species of microorganisms isolated from soils collected since 1990 in various regions of Brazil.

″These accessions of microorganisms, mainly Baculovirus and Bacillus thuringiensis, have been extensively characterized for their potential use in the development of new bioinsecticides that are efficient in controlling insect pests in agricultural crops, such as corn, soybeans, and cotton. The use of bioinsecticides is a more sustainable alternative for controlling insect pests since it does not pose risks to the environment or human and animal health,″ explained Maria Marta Pastina, Deputy Head of Research and Development at Embrapa Corn and Sorghum.

Biofactory of Bacillus thuringiensis (Bt)

Embrapa seeks to assist in the development and expansion of the use of bioinputs, aiming to strengthen the bioeconomy and the sustainability of Brazilian agriculture. To this end, Embrapa Corn and Sorghum, in Sete Lagoas (MG), initiated the Biofactory Network project.

Pastina commented that this initiative has specific objectives, which include the development of bioinsecticides using production and quality control protocols developed and validated by Embrapa. The training of professionals for the development, production, and use of biological inputs and the recruitment of new partners with an entrepreneurial profile who are interested in installing new biofactories in the country complement the purposes of the work.

″Thus, through this project, Embrapa Corn and Sorghum seeks to contribute to the development of high-quality biological inputs, free from any contamination with microorganisms that are harmful to the environment or human and animal health. In addition, the project also seeks to contribute to the generation of new job and entrepreneurship opportunities for the regional and national development of more sustainable agriculture,″ Pastina said.