Jun. 12, 2020
Exclusive Development/Distribution Rights Acquired for Biofungicides in Mexico
Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo), through its agrochemical sales company Summit Agro Mexico, S.A. de C.V. (hereinafter, “SAM”), has obtained exclusive worldwide development/distribution rights for new biofungicides (Note 1) from the Mexican agrochemical manufacturer Quimica Agronomica de Mexico. S.DER.L.MI (hereinafter, “QAM”).
Global population increases and economic development are forecast to drive up global food demand by 2050 to about 1.7 times its 2010 level. Agrochemicals that protect agricultural produce from diseases and pests will play an important role in maximizing grain production, and prominent among these are biopesticides that utilize biological active ingredients. Their minimal environmental impact has made them particularly popular across Europe and the US, and the market for these substances is expected to see continual expansion and growth. Demand for biopesticides is also on the rise in Mexico, especially among farmers who cultivate fruits and vegetables for export to the US.
The biofungicides that SAM has obtained from QAM are remarkably effective in preventing and treating bacterial disease damage in fruits and vegetables in particular. Once sales get underway in Mexico in 2022, SAM will be developing and disseminating these worldwide to strengthen its earnings base.
Sumitomo Corporation got its start in the agrochemical business when it began exporting the products of Japanese agrochemical manufacturers in the 1970s, and it has thus been helping to boost agricultural productivity and efficiency for more than 40 years. It is presently pursuing a strategy of deeper involvement in downstream sectors in the value chain, and is engaged in import sales operations in more than 35 countries in Europe, the Americas and elsewhere. It will be accelerating its efforts globally to expand and strengthen its sales networks. By stepping up its handling of biopesticides, the company is seeking to satisfy diversifying demand for agrochemicals, to help meet food safety/security needs that have risen in recent years and to resolve food issues.
*Note 1: More specifically, it has purchased safety assessment data as well as worldwide manufacturing, development and distribution rights.
■ Company profile of SAM
|Company name||:||Summit Agro Mexico S.A. de C.V.|
|Head office location||:||Mexico City, United Mexican States|
|Investment structure||:||Sumitomo Corporation: 100%|
|Principal business||:||Agrochemical sales in Mexico|
■ Sumitomo Corporation’s Material Issues
The Sumitomo Corporation Group has defined the “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, the Group will pursue sustainable growth by resolving these issues through its business activities. This acquisition should prove especially beneficial in “Achieving Harmony with the Global Environment”, “Contributing to the Development of Local Communities and Industries” and “Establishing a Foundation for Comfortable and Enriching Lifestyles.”