Related bodies

Farmers, as pesticide users, are the direct target audience for pesticide production and directly influence the market for a particular pesticide.

Traditional chemical pesticides are the main component of the current pesticide market, and their fluctuations greatly impact the overall landscape of the pesticide industry.

Biotechnology providers offer advanced technological support and provide significant impetus for the industrialization of new products.

Governments act as decision-makers for policies and leaders in guiding ideologies. They regulate the pesticide industry through macroeconomic control, thereby influencing the pesticide market.

Markets analysis

Arable land and agriculture are crucial determinants of a country's national strength and stability.

Pesticides, as an indispensable part of the agricultural market, play a vital role in agricultural cultivation. They also hold a important strategic position in the global agricultural landscape and pesticide market.

From an international perspective:

About agriculture market:

By collecting and referring to data from FAO and the World Bank, we have learned that from 2000 to present, the percentage of agricultural value added to GDP and the percentage of arable land to total land area have both shown an upward trend.

This indicates an increasing contribution of agriculture to the economy and a growing importance placed on agriculture by countries worldwide.

Feasibility for Polycobead:

As early as 1998, the phenomenon of RNA interference (RNAi) was first observed, and in 2001, RNAi technology was recognized as one of the top ten scientific breakthroughs of the year by the journal Science. In 2006, two professors were awarded the Nobel Prize in Physiology or Medicine for their work in this field. Since then, RNAi technology has undergone more than a decade of extensive research and development. Now it's the right time for RNAi technology to gain significant attention and become widely popular.

In 2020, GreenLight Biosciences, through its oversubscribed Series D funding round, raised $102 million in financing in the relevant field, becoming the second-largest funding event in the global agricultural technology sector for that year. On August 10, 2021, despite having no commercially available products based on RNAi technology, Greenlight Biosciences completed a $1.2 billion merger with SPAC Environmental Impact AcquisitionCrop and went public on Nasdaq.

The successful commercialization of RNAi technology by GreenLight has injected confidence into other researchers, and it has also provided us with valuable references and insights.

Take into account the actual national conditions:

About agriculture market:

According to data from the Chinese Ministry of Natural Resources in 2023, the arable land area in China has exceeded 12,760 square meters. Agriculture, as the cornerstone of production activities, has received increasing attention.

According to the statistical data from the Ministry of Agriculture and Rural Affairs of the People's Republic of China, we have found that the total output of the primary sector (agriculture) has been steadily increasing from 2012 to 2022, indicating that the agricultural market still holds significant potential. As an integral part of agriculture, pesticides have made substantial contributions.

Feasibility for Polycobead:

Although China has yet to produce a leading company in the field of biopesticides, the industry is in its early stages of development. However, the potential and momentum for growth should not be underestimated.

According to data from the National Bureau of Statistics, in 2017, the sales revenue of China's biopesticide industry reached 31.93 billion yuan, with a year-on-year growth rate of 5.7%. In 2020, the annual production of domestic biopesticides reached 120,000 tons, and the area of pest control reached 26.7 million hectares, accounting for approximately 5% of the pesticide market share. There are approximately 3,000 registered biopesticide products, accounting for about 11%-13% of the total registered pesticides in China. In 2021, there were approximately 200 biopesticide production companies nationwide, with an annual output of around 140,000 tons and an annual output value of approximately 30 billion yuan, showing a year-on-year growth rate of 14.6%.

The vast and promising agricultural market in China provides us with fertile ground, while the dynamic enterprises instill us with great confidence.

policies and Attitudes

Laws analysis

European Union: "From Farm to Fork"

The European Green Deal is the climate policy of the European Union, aiming to make Europe the first continent to achieve climate neutrality. The "Farm to Fork" strategy is an important component of the Green Deal, focusing on food sustainability and supporting farmers and fishermen. Specific actions include reducing the use and risks of chemical pesticides by 50% by 2030 and reducing the use of more hazardous pesticides by 50%.

The U.S.: encourage the use of biopesticides

The U.S. Environmental Protection Agency (EPA) encourages the development and use of biopesticides through various measures, aiming to promote safer pesticide management and sustainable agricultural practices. In 1994, EPA established the Biopesticides and Pollution Prevention Division to facilitate the registration of biopesticides. They promote the use of safer insecticides, including biopesticides, as part of Integrated Pest Management (IPM) programs. It also coordinates the Pesticide Environmental Stewardship Program (PESP).

China: promote the development of biopesticides

The "14th Five-Year National Plan for the Development of the Pesticide Industry" in China promotes the reduction of pesticide use, aiming to achieve the goals of pesticide reduction and Green Agriculture. China has implemented a series of important measures, including the elimination or restriction of highly toxic and low-efficiency chemical pesticides and the promotion of efficient and precise pesticide application, supporting the development of efficient and low-risk new chemical pesticides and promoting the development of biopesticides.

Attitudes of the public

Through social surveys and data collection, we have also verified the public's attitude towards pesticide use in daily life. Based on the graph below, we can observe that the majority of people prioritize product quality over price when purchasing agricultural products. In the second image, the numbers 1-5 represent the public's perception of the necessity of organic agricultural products, with an increasing degree from 1 to 5. It is evident that most people consider green and organic food to be highly necessary.

From this, we can conclude that the public places a great emphasis on the safety of agricultural products and desires to purchase high-quality products. As RNAi is a safe and effective new pesticide, it is expected to gain recognition from consumers and the market.

In the 21st century, the field of biology is flourishing, and we have witnessed the emergence of many advanced biotechnology companies. This has provided powerful technological support for the large-scale production and continuous advancement of our new products.

But at the same time, we also find that most countries still heavily rely on the use of conventional pesticides, with chemical pesticides dominating the majority of the pesticide market. As the new products successfully penetrate the market, they will inevitably face competition from traditional chemical pesticides. Under the wave of green agriculture and the concept of sustainable development, the gradual replacement of traditional chemical pesticides is a trend. In other words, the emergence of new products will inevitably pose a threat to the traditional chemical pesticide industry.

Therefore, in order to avoid conflicts between new and old products as much as possible, we decide to balance this situation by establishing the T.O.M.A.T.O-Technical Alliance, to seek partners and industry support to unite stakeholders in the market and society, in order to help open up the market for biopesticides and gain social acceptance.

For traditional chemical pesticide companies:

• 1. Lead the transformation and upgrading of the traditional pesticide industry. RNAi biopesticides, as a new concept and new method of pest control, pose a challenge to the traditional industry. In the context of the green agriculture trend, we choose to balance our own development with the interests of the traditional industry. We will share our experiences and drive their transformation together.
  
  
• 2.Leverage the market foundation of the traditional chemical pesticide industry. They currently dominate the majority of the pesticide market in the existing agricultural industry. Instead of entering into limited market competition that might harm their interests and lead to unhealthy competition, we choose to make use of their market foundation and leverage their transformation to strengthen the industry scale of emerging biopesticides.

• 1.Utilize their technical support. They possess strong biotechnology expertise and mature production experience. The scaled-up production of new products often requires their support and assistance to a certain extent.
  
  
• 2. Encourage them to join the research and development of the new composite RNAi biopesticides. Although biotechnology companies have reached a certain scale, only a relatively small portion of them are engaged in the research of RNAi biopesticides. If more companies join in, the research process of RNAi biopesticides will be significantly shortened.

In addition to solving technical issues, the successful entry of new products and new technologies into the market requires the correct understanding and positive recognition of our products by the entire society.

Regarding pesticide users:

• 1. We conduct field surveys and closely observe the practical feasibility of the products in agricultural fields. Starting from the reality and practical aspects, we take concrete actions to enhance farmers' confidence in the new products.
  
  
• 2. We provide instructional guidance on the use of the products, teaching users about the application methods and the mechanisms of action. Through educational efforts, we aim to eliminate any misconceptions and barriers that may hinder the promotion and widespread adoption of the products.
  
  
• 3. We create product user manuals to assist farmers in using the products correctly, thereby maximizing the effectiveness of the products. These manuals serve as valuable resources to guide farmers on proper product application, dosage, timing, and other relevant information.
  
  
• 4. We also communicate with cultivation bases and explain to them the mechanisms of action and expected effects of the products. We strive to reach a consensus with them and plan to conduct extensive promotion after verifying the product's effectiveness through field trials.
  
  

Regarding agricultural product consumers:

• 1. We conduct lectures to educate people of different age groups about the principles of RNAi-based biological crop protection.
  
  
• 2. We organize offline events to explain the safety and effectiveness of new products through activities such as parent-child activities and knowledge popularization.
  
  
• 3. We produce promotional comics and videos to disseminate our product design concepts and functional principles through media and online channels. This approach helps to present the information in a more engaging and interesting way, reducing uncertainty and reluctance towards new products and technologies.

• 1. We seek expert consultations to understand the market trends and seek advice from experts on the process and feasibility of introducing new products to the market. We also engage with experts at the forefront of scientific research to discuss the safety and efficacy of the new products.
• 2. We organize and participate in relevant roundtable conferences, where we can engage with experts and scholars to collectively explore the future development direction and progress of biopesticides. Through these discussions, we aim to raise awareness and drive industry transformation in the pesticide sector.
  
  
• 3. We proactively p ropose suggestions, conduct research on laws and regulations, and develop industry standards. By utilizing our own experience, we bridge the gap between advanced products and lagging regulations before the emergence of a large number of new products. We contribute to the standardization of pesticide management and the improvement of the biological pesticide management system.

During the process, we continuously accept feedback, adjust our approach, and constantly convey positive and accurate understanding to all parties, bringing our new biopesticide--POLYCOBEAD industry into people's attention.