Chr. Hansen is known globally for its fermentation expertise – whether it’s producing consumer products (such as probiotics) or raw materials for other industries (such as rennet the enzyme used in cheese production), or bacterial cultures (with world’s largest culture factory). So, how did the company chart a path towards biocontrol?
Chr. Hansen’s fermentation knowledge dates back more than a century and our microbial and fermentation technology is based on that knowledge combined with more than 40,000 relevant microbial strains. We have vast experience working with microbials. Plant Health is part of the Health and Nutrition division, which includes the application of microbials for animal and human health, and as such it was natural to pursue a strategic ambition that could take advantage of the same innovative platform.
Can you briefly describe how Chr. Hansen’s products work – in particular the bionematicide QUARTZO?
We have a range of biostimulants and biocontrol products that make use of the bacillus bacteria. As a natural part of the plant and soil microbiome, bacillus are ideal for agriculture as they can colonize plant roots to create a physical and biochemical barrier that protect them against disease and pests. Because of our legacy in bioscience, we are one of few companies in the industry that can identify, improve and select the most powerful strains based on solid science. With our bionematicide QUARTZO for example, which is developed and commercialized together with the FMC Corporation, microbes work in synergy with the plant and feed on plant exudates to produce active metabolites; these organic molecules distract nematodes from feeding on the roots, resulting in a significant reduction in eggs and therefore less infiltration of nematodes. QUARTZO has proven to be successful in markets such as Brazil, particularly in reducing nematode populations in soy, sugarcane and a number of other crops, as well as improving crop yield and significantly increasing water use efficiency.
Where are Chr. Hansen’s biocontrol products manufactured? What about formulation?
We have a number of manufacturing and formulation facilities in Europe and the Americas. Not only does this allow us to fully control all aspects of the production process, it also means that we have the flexibility to provide customers with tailor-made or contract manufacturing options. Our in-house formulation expertise allows us to produce stable microbial products that are safe to handle and tailored to application. We produce both liquid and solid formulations which gives our customers a lot of flexibility when it comes to application.
In 2018, Chr. Hansen started operations in Denmark of a new plant, the world's largest fermentation site. Please talk us through the numbers (cubic volume, etc). What are the products made here?
The Copenhagen site is the world’s largest culture factory with more than 3,500 tons of cultures (both frozen and freeze dried) produced and shipped every year. It produces Streptococcus thermophilus, Lactococcus Lactis, and Lactobacillus among others. The site operates 24/7, employs 650 people and has the largest minus 55 degrees freezer capacity in the world, with room for over 1,000 tons of frozen products. Twenty-five robots are used in production, and the facilities cover an area of just over 157,000 m2.
How are your products applied - on-site or close to the field? Why a seed treatment – what additional considerations are there for seed treatment formulation?
Our products are designed for both seed treatment (PRESENCE for example) and in-furrow application (such as QUARTZO). Seed treatment is one important way of providing protection early on in the growing process for certain crops, and for certain growers who have a preference. When formulating seed treatments, adhesive (or polymer binder) and dye are typically added. However, those are typically selected by the customers.
Tell us a little bit about Chr. Hansen’s collaboration with FMC. Into which markets do you collaborate, and is this for both QUARTZO and PRESENCE?
We work with various business partners, including FMC for products such as PRESENCE and QUARTZO, to match our unique technology platform and production capabilities with their strong commercial expertise. We believe this works well for us, our partner and most importantly for farmers. Some of our major markets presently include Brazil, the U.S. and certain key countries in Asia.
Are you working on any new products? What’s in the pipeline?
We are a company based on science and we are always aiming to increase the range of innovation. We develop products within the categories of biostimulants, biofungicides, bioinsecticides and bionematicides. We are launching our first biofungicide in 2021. We believe that we are well placed to meet the demands of a growing market for microbials in the agriculture sector, particularly as consumers increasingly demand more natural products and regulators demand fewer chemical pesticides. It’s an exciting time to be in this business.
What is the ownership structure of Chr. Hansen?
Chr. Hansen is a publicly listed company on Nasdaq Copenhagen with over 31,000 institutional and private shareholders. The company earned more than 1 billion EUR revenue in the last financial year and currently employ around 3,700 employees in over 30 countries. ●
