Overview

Because of the shortcomings of chemical pesticides, which include the destruction of biodiversity and the harm to human beings, we should use biopesticides instead. Biopesticides are generally safer and provide benefits for both people and the environment, but current biopesticides are not good enough. So, we decided to improve a fungal biopesticide. To evaluate the viability of our project, we communicated with stakeholders and collected feedback. As a result, we decided to improve the virulence and safety of Metarhizium anisopliae by introducing an insect-specific neurotoxin LqhIT2, and a phototoxic suicide switch Pmcl1(short)-SuperNova. Our experiments showed technical success. We then created our business plan. We planned to establish a company selling our engineered Metarhizium biopesticide. The following analyzed different aspects of our business.

1. Company positioning

Our company is an innovative and leading biopesticide company in China. We provide safer and more efficient pesticide solutions for modern agriculture.

2. Core product

Engineered M. anisopliae: a safe, effective, long-lasting biopesticide, non-toxic for humans.

Application kits: Provide manuals, tools (containers, sprayers), and packages of M. anisopliae spores (dry powder, granulated, oil suspension) for different types of crops.

3. Technical characteristics of the product

Feature 1: Introduction of a toxin to enhance the virulence against pests

LqhIT2 is a 61 amino acid-long scorpion depressant toxin from Leiurus quinquestriatus hebraeus. LqhIT2 shows a high preference for insect voltage-gated sodium channels and is harmless to mammals (Zhu et al., 2023). This property makes it a good choice for pesticides.

We successfully introduced the insect-specific toxin, LqhIT2, to Metarhizium anisopliae ACCC30104. When the fungus invades the pest body, LqhIT2 is secreted and accelerates the death of the pest. The introduction of LqhIT2 significantly improved the virulence of the fungus towards pests. Our engineered strain showed a 25.26-fold increment in pathogenicity against Galleria mellonella.

Feature 2: Introduction of a suicide switch to increase safety

The biosafety concerns have hindered the commercialization and public acceptance of engineered biopesticides. Our engineered biopesticide will be used in agriculture. So, it will enter the environment and may affect native species and the local ecosystem. To minimize the influence of our fungal biopesticide on the ecosystem, we would like the fungus to kill itself after use.

We introduced Pmcl1(short)-SuperNova as the suicide switch. Tests showed that this suicide switch did not impact the virulence of M. anisopliae, and led to a 56.9% decrease in spore formation.

4. SWOT analysis

1. Strengths:

1) High insecticidal effect: Compared with other biopesticides, this engineered M. anisopliae pesticide has higher insecticidal ability.

2) Eco-friendly: As a biopesticide, it will not cause long-term damage to the environment. Through suicide switch design, it can ensure that this modified microorganism will not continue to exist in the environment after completing its task, thus reducing the potential impact on the ecosystem.

3) Reduce consumer concerns: The setting of suicide switch may reduce consumers' worries and doubts about genetically modified products.

2. Weaknesses:

1) Research and development cost: Synthetic biology and gene editing technology usually require high R&D investment.

2) Market acceptance: Despite the suicide switch, it is still a genetically modified product, which may face opposition from some consumers.

3) Production and scale-up: This product may face the challenge of large-scale production.

3. Opportunities :

1) The growth of the biological pesticide market: With the improvement of environmental protection awareness, the biopesticide market is gradually replacing the traditional chemical pesticide market.

2) Policy support: Many countries and regions provide policy and financial support to encourage green agriculture.

3) Technical cooperation and authorization: If the product is verified to be effective, technical cooperation or authorization can be carried out with other pesticide companies.

4. Threats :

1) Regulatory and legal risks: Genetically modified products face rigorous regulatory limitations in many parts of the world.

2) Public misunderstanding: Genetically modified technology is still misunderstood or worried by some members of the public, which may affect the market acceptance of the product.

3) Competitors: Other biotechnology companies may also be developing similar or more advanced solutions.

5. Market size

Figure 1. Pesticide use by each country in 2020 from Our World in Data.

Global organic agriculture is developing rapidly due to the increasing environmental awareness of the public. Policies have also vigorously supported the development of the biopesticide industry. According to IHS Markit's prediction, from 2020 to 2025, the global biopesticide industry market size will grow at a compound annual growth rate of about 10%, and by 2025, the global biopesticide industry market size will reach more than 8 billion US dollars. In major agricultural countries around the world, the proportion of M. anisopliae-related products in the biopesticide industry ranges from 10-15% (Iwanicki et al., 2020). So, taking every factor into account, we predicted that M. anisopliae products will have a 1 billion US dollar market in 2025 around the world. According to FAO, China is the fourth-largest pesticide-using country (245 kilotons/year), accounting for 6.9% of the pesticide market. So, M. anisopliae products should have a 69 million US dollar market, which is about 500 million Chinese yuan.

Country	Pesticide use (kilotons)	Percentage	Estimated M. anisopliae market size (million US$)
World	3540	100%	1000
Brazil	720	20.3%	203
US	457	12.9%	129
Indonesia	283	8.0%	80
China	245	6.9%	69
Argentina	242	6.8%	68
Others	1593	45.0%	450

Table 1. Shares of pesticide use and estimated M. anisopliae market size (FAO. “Pesticides use and trade. 1990-2021.”)

6. Price Analysis

Prices of current M. anisopliae products in China range from 3.98 to 97.5 Chinese yuan/trillion spores. The price differences are due to manufacturer, strain, and type. Greenation cooperates with Chongqing University and sells a selected strain of M. anisopliae CQMa421. This strain is reported as superior to other strains in terms of killing agricultural pests (Tang et al., 2019). Granulated spores and oil suspensions are more stable than powder spores, which influence the price of products. However, granulation doubles the price, which may not be an economically good choice for farmers.

Through the analysis, we determined the appropriate prices for our products. The price of oil suspension is set to 50 Chinese yuan per trillion spores, and the price of powder spores is set to 10 Chinese yuan.

Manufacturer	Type	Price per trillion spores (Chinese yuan)
Greenation	Oil suspension	59.4
Greenation	Granulated	97.5
Shui Guxin	Powder	3.98
Nongbao Bio	Powder	8
Guiyan	Oil suspension	48
Guiyan	Powder	23.2

Table 2. List of current M. anisopliae products in China.

7. Regulations

We plan to produce a genetically engineered fungal product, which is strictly regulated in China. Therefore, we wanted to make sure that our product at least has theoretical possibilities of entering the market. And we wanted to know what regulations we needed to comply with. After literature research, we discovered that the genetically modified fungus has to undergo complicated tests before entering the market, but it is possible. In 2023, 113 genetically modified organisms received the Safety Certificate, and our M. anisopliae could be one in the future.

1. According to the Measures for the Administration of the Safety Evaluation of Agricultural Genetically Modified Organisms (2016 Revision, Article 13), our engineered fungus must go through three stages of trials: intermediate test, environmental release test, and production test.

2. During each stage, factors including genetic stability, potential toxicity, spreading capacity, impacts on non-target organisms, etc. will be evaluated (Appendix III. 1).

3. We should submit the Application for the Safety Evaluation of Agricultural Genetically Modified Organisms to the State Commission for the Safety of Agricultural Genetically Modified Organisms and the Office for the Safety Management of Agricultural Genetically Modified Organisms to start the evaluation process.

4. If approved, the Ministry of Agriculture and Rural Affairs of China will issue the Agricultural Genetically Modified Organisms Safety Certificate.

8. The project’s timeline and the goals

1. Technical verification: Complete fungus transformation in the first year, and verify its insecticidal effect through experiments.

2. Product approval: Follow the instructions by the regulations, and get approved by the authority for follow-up tests in the next two years.

3. Field trials: Select representative crops in the fourth year and conduct small-scale field trials to verify the actual effect of the product.

4. Fundraising: Complete at least one round of fundraising in the fifth year to ensure research and market expansion needs.

5. Market promotion: In the fifth year, start promotion and sale.

6. Partners: Establish cooperative relationships with relevant agricultural enterprises, research institutions, and government departments to promote the application of biopesticides.

7. Continuous research and development: According to market feedback, continue to optimize products.

8. Sales target: Within ten years, become the core Metarhizum biopesticide supplier in China, with an income of more than 20 million US dollars and a market share of more than 10%.

Figure 2. Project’s timeline by years.

9. Marketing Plan

Product characteristics, target market, user needs, and industry trends should be taken into account when promoting a new product.

1. Fully understand the market:

Market research: understand the needs and doubts of farmers and agricultural companies.

Analysis of competitors: study competitors' products, prices, sales strategies, and market feedback.

2. Define the advantages of the product:

During the promotion, highlight the safety and environmental-friendliness of Metarhizium biopesticides compared to traditional chemical pesticides.

Through tests and field trials, sufficient data are provided to prove the insecticide effect of the product.

3. Educate the market:

Invite farmers, retailers, and agricultural experts to our seminars.

Prepare promotional materials, such as manuals, videos, case studies, etc., to explain the mechanism and advantages of the product.

4. Establish pilot programs:

Cooperate with large farms or agricultural cooperatives for field applications to obtain real-world feedback and successful cases.

5. Cooperate with key partners:

Establish partnerships with retailers, agricultural consulting companies, agricultural scientific research institutions, etc. to promote products.

6. Online promotion:

Establish online platforms for companies and products (official websites, social media accounts, etc.)

Use agriculture-related forums, communities, and online advertisements to expand product recognition.

7. Participate in exhibitions:

Set up booths at exhibitions to communicate face-to-face with potential customers and partners. Provide discounts or other bonuses for early users.

8. Establish a feedback mechanism:

Encourage users to provide feedback and suggestions on products, and continuously optimize products. Provide good technical support and after-sales service.

10. Company structure

1. Research & Development Department:

Genetic engineering and microbiology team: responsible for genetic engineering, cultivation, and optimization of microorganisms.

Applied research team: responsible for field trials of products.

Data analysis and bioinformatics team: responsible for processing and analyzing experimental data to assist decision-making.

2. Manufacture & Supply Chain Department

Manufacture team: responsible for the large-scale production of fungal biopesticide.

Quality control team: ensure product quality and safety.

Logistics and procurement team: manage the procurement of raw materials and the distribution of final products.

3. Marketing & Sales Department:

Market plan team: responsible for brand building, market research, and strategy formation.

Sales team: directly contacts farmers, agricultural companies, and retailers to promote products.

Customer support team: Provide technical support to customers.

4. Finance & Administration Department:

Finance team: manage the company's finances, including budget, accounting, and taxation.

Human resources team: responsible for recruitment, training, and employee welfare.

Administrative team: responsible for daily affairs.

5. Compliance & Legal Affairs Department:

Legal team: deals with the company's contracts, intellectual property rights, and legal issues.

Compliance team: ensures that the company complies with relevant regulations, especially in the fields of genetically engineered organisms.

6. External Affairs Department:

Government relations team: establishes relationships with government departments to understand relevant policies and regulations.

Public relations team: manages the relationship with the press, and releases company news and announcements.

11. Financing plan

1. Seed round: At this stage, the funds are mainly used for preliminary market research, technical verification, and the team's salary. At this round, we need to raise about 300,000 US dollars.

2. Angel round: At this time, the enterprise has finished preliminary technical verification and has some business plans. The funds are mainly used to expand research and conduct field trials. At this stage, we need to raise about 1.5 million US dollars.

3. Round A: At this stage, products have been verified. Small-scale manufacturing and marketing have begun. The funds are mainly used for large-scale production, marketing, expansion of sales teams, etc. The financing amount will be millions of dollars.

References