World Grain - November 2022 - 24

SOSLAND PUBLISHING
years
Bioceres said the conclusion of the voluntary consultation
program with the FDA is a key step toward
commercial enablement in the United States, which
is awaiting approval from the US Department of
Agriculture (USDA). The United States is the fifth
largest wheat producer, with an average of 15 million
hectares planted every year, and the third largest exporter,
holding a key position in the global wheat trade.
Trucco called the United States " probably the
most attractive market. "
Arrows pointing up for Bioceres
Bioceres' fourth-quarter and full-year earnings report,
released on Sept. 8, contained plenty of good news for
the Argentina-based company.
Comparable gross profit for the quarter increased
32% compared with the year-ago quarter, reaching
$41.4 million. Comparable gross profit for the full fiscal
year reached a record of $136.9 million, up 45% compared
with fiscal year 2021. Fourth-quarter revenues
were up 44% to $104 million and full-year revenue was
up 62% compared with 2021 to a record $319 million.
Notably, HB4 wheat revenues were $12.4 million, a
94% increase compared with the year-ago contributed
goods number.
Frederico Trucco, chief executive officer of Bioceres,
said key feed and food clearances obtained during 2022
were a factor in the improved results, including China's
Ministry of Agriculture approval for HB4 Soy and the US
Food and Drug Administration (FDA) favorable conclusion
on HB4 wheat safety assessment. Other feed and
food approvals for HB4 wheat include Brazil, Colombia,
Australia, New Zealand and Nigeria for HB4 wheat.
" This is an amazing closing to an amazing year, not
only reflected in our record-setting financials but also
in terms of achieving gatekeeping regulatory clearances,
namely feed and food approvals for HB4 wheat in
Brazil and for HB4 soy in China, " Trucco said. " We are,
for the first time, reporting revenues associated to the
HB4 technology, resulting from the one crop where we
faced the most skepticism: HB4 wheat. This technology
is now not only green-lighted by a growing number of
regulators, including the US FDA, but also increasingly
accepted growers, industry participants and consumers
at the end.
" Today we have more than 20 processors incorporating
HB4 wheat in their products with a similar number
being onboarded in the next few months. We have
consumer brands actively addressing HB4 wheat merits,
and we have successfully executed the first export
operation for HB4 wheat flour to Brazil. "
24
" So many markets depend on US wheat, " he said.
" We have a strategy and idea of where the technology
can be more relevant, and we're starting to seek collaborators
(in the US) that can make this happen sooner
rather than later. "
Trucco said Bioceres is actively seeking US universities
or companies that it can work with to do breeding
work and testing.
While Henry said it was impossible to say if HB4
would ultimately be approved for commercialization in
the United States, he was confident that it wouldn't occur
anytime soon.
" (Trucco) has been aggressive every time he's asked
about a timeline, and those timelines have had a tendency
to slip, " he said.
While most individual millers from around the world
declined comment on HB4 for this article, the North
American Millers' Association (NAMA) issued a statement
following the FDA's decision.
" The availability of high-quality, affordable wheat
is essential for millers, and ultimately, consumers, "
NAMA said. " There is growing demand for sustainably
produced wheat that uses less water, fertilizer, fuel, and
other inputs and at the same time drought has reduced
wheat yields in the US and around the world. Droughttolerant
wheats like HB4 could help with global supply
challenges. "
However, NAMA also noted that it " supports consumers
being able to make food purchases based on
their personal preferences and supported legislation requiring
labeling of products that contain bioengineered
food ingredients. "
Jane DeMarchi, president of NAMA, told World
Grain one of the big questions that millers have about
the new variety is its milling quality.
" We urge Bioceres and any company developing
new varieties of wheat to do quality testing for those
new varieties for milling and baking characteristics and
to go through the Wheat Quality Council's review process, "
she said.
She also echoed Henry's opinion that the introduction
of HB4 into the United States " is a long way away. "
A reason for pessimism regarding the prospect of
widespread commercialization of HB4 wheat is that
several of the United States' and Australia's most
loyal customers, such as Japan, have strict policies
against importing unapproved varieties. A GM
wheat variety inadvertently getting mixed in with a
US shipment of conventional wheat to Japan in 2013
temporarily strained trade relations between the two
countries.
Bioceres has stated that it will maintain its preserved
identity plan and delay the commercialization of the
November 2022 / World Grain / World-Grain.com
http://www.World-Grain.com
World Grain - November 2022

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