Are 'biologicals" all fizz or worth the fuss?

For agriculture and - more specifically - farmers, one of the forms where this trend is playing-out is in the evolution of biological products.

This is an emerging technology that uses microbes to provide nutrients to crops and control weeds and pests.

Biologically-based products are not new, but investment in these has skyrocketed in recent years.

According to news and analysis group Bloomberg, US$3.81 billion in funding was raised by advanced biological start-ups from 2012 to 2020.

Of this, US$2.5 billion has been invested in the past three years alone.

Advances in computers and genetic engineering have enabled this technology to evolve rapidly.

Before we assess the application of biologicals for Australian growers, let's cover some basics.

Biologicals can be classified into three types of products.

The first two are crop-improvement products, such as biofertilisers that enhance a plant's ability to uptake nutrients, and biostimulants that stimulate naturally-existing biology.

The third group are biological control products, or biopesticides.

We estimate the global biologicals market is now worth about US$9.6 billion - based on 2020 figures.

It has had a very impressive growth rate of 10 per cent compound annual growth rate (CAGR ) during the past 10 years.

For growers looking to use biologically-based products, it is important to understand that these will not necessarily compete with existing practices - some will actually be complementary.

One of the biggest advantages in the field of biologically-based products is that these provide an additional "mode of action" (MOA).

This means some bioherbicides or bioinsecticides may be added to existing agrichemical rotations to combat weeds that are evolving resistance to existing chemical suites.

Secondarily, especially in high-rainfall environments where fertiliser application rates are higher, biostimulants may be able to improve the use of applied fertiliser by the plant and reduce nitrous oxide emissions and leaching.

And for the albeit comparatively small number of growers considering a transition to organic or - perhaps - regenerative agriculture, more biological product options will make that move easier.

The relatively unique environment in which Australian growers operate brings its own set of challenges when it comes to using biologicals.

The intensity of production in Australia is much lower on a global scale.

Based on today's prices and average crop yields, the Australia wheat farmer generates about 17 per cent of the revenue of the US corn farmer per hectare.

This means their budget for spending on inputs is smaller.

Also, the local farmer has a major production limitation in terms of low and/or variable plant available water.

In other parts of the globe, such as Europe and North America, where uptake of biologicals has been higher, the challenges for growers can be different.

This makes some products that are developed offshore less compelling for use in Australia.

Some biological products can perform differently according to the chemical and physical environment.

This adds another layer of complexity to their use in local soil types, which are highly variable.

For example, some biological reactions will only take place within a certain soil pH range.

So are these products going to fizz, or are they worth the fuss?

There are some strong pros and cons for use of biologicals in Australia.

In the short-term, we expect adoption will remain low in Australia.

Future growth in use will likely be driven by increased incentives and the development of products specific to Australian conditions.