Spinosad and Spinetoram products are naturally derived solutions that serve as effective and natural insect-control options to the farmers
Corteva will expand the production capacity of insect-control products at the US facility (Credit: Pixabay)
Global pure-play agriculture company Corteva is set to invest $145m at its US facility to expand global capacity of its insect management technology for the natural products market.
Corteva will use the investment to expand Midland facility in Michigan to meet the growing demand from the customers for its Spinosyns products, including Spinetoram and Spinosad.
Produced via natural fermentation process, Spinosad and Spinetoram products will provide farmers with effective and natural insect-control options.
The new production, which will start over the next few years, will allow Corteva to increase its existing Spinosyns capacity by 30%.
The investment will help Corteva to meet the requirements of customers in more than 100 countries
The move will help Corteva to meet the requirements of customers in over 100 countries. Spinosyns products are marketed across the world for use on more than 100 different crops.
Corteva is also expecting that the investment will help generate over $100m of annual EBITDA, upon the commencement of new production.
According to the company, the global insecticide market is estimated at $14.5bn and is expected to grow at a 3% compound annual growth rate (CAGR).
Corteva crop protection business president Susanne Wasson said: “Today’s announcement underscores our commitment to taking targeted actions that are good for our customers and help to drive sustainable results for business.
“This investment enables Corteva to better serve our customers around the world by expanding access to much-needed insect management solutions.”
In August this year, Corteva has entered into an agreement with Evogene under which the former will invest in Evogene’s agriculture biological subsidiary Lavie Bio
Taxon’s assets including a large microbial collection and product candidate pipeline, will be integrated into Lavie’s pipeline, to accelerate Lavie’s ‘biology driven design’ approach and product development.
Corteva’s portfolio is comprised of seed, crop protection and digital solutions, which will help maximise productivity to enhance yield and profitability.