— Varieties Based on New Traits Aim to Increase Yields and Grower Value —
DAVIS, California, ROSARIO, Argentina and CAMBÉ, Brazil (July 7, 2015) – Stress-tolerant soybeans that have the potential to create greater yields for farmers will be further advanced through a new agricultural industry collaboration announced today.
Bioceres S.A., Arcadia Biosciences, Inc. (NASDAQ: RKDA), and Tropical Melhoramento e Genética Ltda. (TMG) have reached an agreement to develop new soybean varieties based on the HB4 stress tolerance trait. The HB4 trait – developed by Verdeca LLC, a soybean technology joint venture between Bioceres and Arcadia – enables plants to adapt to multiple environmental stresses and achieve higher yields.
Verdeca’s HB4 stress tolerance trait has undergone extensive field-testing in soybeans, including six seasons of multi-location field trials in Argentina and the United States and two years of regulatory field trials. The results of these trials demonstrate that the HB4 trait provides up to 14 percent greater yield under multiple stress conditions typically found in soybean production areas, including drought.
“This collaboration agreement is an important milestone in ensuring that soybean farmers, particularly in Brazil, have access to the HB4 stress tolerance platform while continuing to use the outstanding soybean varieties of TMG in their farms,” said Federico Trucco, CEO of Bioceres. “With this new agreement, breeding programs representing more than 35 percent of the varietal preference in Latin America have initiated HB4 breeding programs.”
“This collaboration leverages Verdeca’s trait technology and regulatory expertise with TMG’s world-class soybean germplasm, breeding capabilities and significant market share in the South American soybean seed market,” said Eric Rey, president and CEO of Arcadia Biosciences. “Our combined efforts aim to create significant value for soybean growers and end-markets by increasing the productivity and sustainability of the world’s most important protein crop.”
In April of this year, Verdeca announced that Argentinian authorities had granted regulatory approval to the HB4 stress tolerance trait in soybeans. This was the first approval for HB4 and the world’s first regulatory approval of an abiotic stress tolerance trait in soybeans. These drought tolerant soybeans are in Phase 4 of development.
“This partnership is an important step because Verdeca is an innovative company and complementary to TMG,” said Francisco Soares, CEO of TMG. “We expect that the union of both companies will bring meaningful results to agriculture. The HB4 gene holds great promise for bringing better yield stability to agriculture in areas that show water stress problems. It’s an alternative beyond the solutions offered on the market today,” he said.
Soybeans are the world’s fourth-largest crop, grown on 110 million hectares worldwide. Global demand is projected to increase over the next decade as a result of population growth and the expanding middle class in highly populated countries such as India and China. South America is the world’s largest exporter of soybeans to both developed and developing countries, and more than 45 percent of the world’s soybeans are grown in Argentina and Brazil. Verdeca is developing HB4 soybeans to give farmers a new option to help increase productivity and meet increasing soybean demand.
The TMG (Tropical Melhoramento & Genética) is a Brazilian soybean and cotton breeding company based in Cambé – Paraná. TMG is focused on developing productive cultivars with technologies that improve plant health and profitability to the farmer. TMG was the first company to launch cultivars with the Inox Technology®, that incorporates genetic resistance to Asian Soybean Rust, addressing a larger number of benefits in the field and helping to lower production costs. TMG is the market leader in the Brazilian “Cerrado” region, with state of the art facilities in Brazil that enable rapid development of new cultivars. To learn more about the company and its cultivars, access <tmg.agr.br>.
Bioceres is a fully integrated agricultural biotechnology company utilizing multiple technology platforms to develop and commercialize products that enhance crop productivity and expand feedstock applications. The company is owned by more than 250 of South America’s largest growers. Bioceres is a major shareholder of INDEAR (Institute of Agricultural Biotechnology of Rosario) and Bioceres Semillas. For more information visit <www.bioceres.com.ar>.
About Arcadia Biosciences
Based in Davis, Calif., with additional facilities in Seattle, Wash. and Phoenix, Ariz., Arcadia Biosciences (NASDAQ: RKDA) develops agricultural products that create added value for farmers while benefitting the environment and enhancing human health. Arcadia’s agronomic performance traits, including Nitrogen Use Efficiency, Water Use Efficiency, Salinity Tolerance, Heat Tolerance and Herbicide Tolerance, are all aimed at making agricultural production more economically efficient and environmentally sound. Arcadia’s nutrition traits and products are aimed at creating healthier ingredients and whole foods with lower production costs. For more information, visit <www.arcadiabio.com>.
Verdeca, a U.S.-based joint venture between Bioceres and Arcadia Biosciences, develops and deregulates soybean varieties with next-generation agricultural technologies. Working in partnership with South American growers, Verdeca provides technologies that help increase crop productivity, making more efficient and sustainable use of land and water resources. For more information visit <www.verdeca.com>.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to the company’s new collaboration project for soybeans. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: our ability to identify and isolate desired soybean seed traits; the company and its partners’ ability to develop commercial products incorporating such traits and complete the regulatory review process for such products; the company’s compliance with laws and regulations that impact the company’s business, and changes to such laws and regulations; the company’s future capital requirements and ability to satisfy its capital needs; and the other risks set forth in the company’s filings with the Securities and Exchange Commission from time to time, including the risks set forth in the Arcadia’s Registration Statement on Form S-1 (including the final prospectus dated May 14, 2015) and other filings. These forward-looking statements speak only as of the date hereof, and Arcadia disclaims any obligation to update these forward-looking statements, except as required by law.