April 24, 2015
DuPont has announced it is acquiring California-based microbiome company, Taxon Biosciences Inc. for an undisclosed amount. Through this acquisition, DuPont hopes to gain an edge in the emerging biological crop products segment, including biological seed treatments, and foliar and soil applications for row crop, fruits, and vegetables.
DuPont said it will begin the testing process on developmental products identified by Taxon this year, and DuPont executive vice president, Jim Borel stated in an interview that new biological products from the company should reach the commercial market within five years.
Driven by concerns from consumers and environmentalists, and more stringent regulations regarding agrochemicals and GMOs, the biological products market is growing quickly. The market today is calculated to be worth approximately $2 billion with an estimated compounded annual growth rate of between 10% and 15%, and DuPont expects high demand from the top agricultural producing regions of Europe, North America, and Latin America.
This acquisition by DuPont is the latest in a series of mergers, acquisitions and expansions carried out by the world’s top agrochemical companies attempting to secure microbes, plant extracts, and natural substances that can be used to control pests and improve agricultural production and quality. Monsanto has 500,000 plots on farms across the U.S. Midwest this spring field-testing microbes, and both Bayer AG and Syngenta AG have microbial products in their pipelines.
DuPont already has existing business units dedicated to the development of biologicals including probiotics for human health, and enzymes and proteins for use in industry and in animal feed. The purchase of Taxon is aimed at enriching the group’s standing in regard to biologicals for agricultural use which will be able to offer farmers additional options when making production decisions.
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