The agricultural industry has evolved from a traditional, commodity-driven ecosystem to a more sophisticated, value-added model. The main factors behind this change are the growing emphasis on consumer-centricity, planet-friendly initiatives, and connected ecosystems. As a result, the industry now needs a more resilient supply chain. In addition, traditional agriculture should leverage the latest technologies to improve food production and promote sustainable farming methods.
Adapting to the change remains a work in progress, as most farmers perceive these new techniques to be extremely technology- and equipment-centric, complex, and incapable of addressing their true agronomic challenges.
This is where AMVAC
® Chemical Corporation, a subsidiary of American Vanguard Corporation (NYSE: AVD), is making a world of difference.
A global agtech solutions provider, AMVAC is an undisputed leader in proven chemistries, green solutions, and precision application systems. Its cutting-edge solutions, such as SIMPAS
® (Smart Integrated Multi- Product Prescription Application System), SmartBox
®, and other sustainability solutions for plant and soil health, are leading farmers toward better crop and economic yield.
“Having over five decades of legacy, we offer a growing portfolio of technology solutions, including soil insecticides, nematicides, nutritional biologicals, and precision application systems through owned and operated manufacturing plants in the U.S.,” says Bob Trogele, COO and EVP, AMVAC. “These unique capabilities make us an emerging leader in soil health, preservation, and productivity to drive growth and sustainability.”
The Birth of a True Agrichemical Pioneer
Since its genesis in 1969, AMVAC has evolved significantly from a formulator for third parties to a global manufacturer of chemical biorational solutions. It currently has a presence across 21 countries via nine operating companies and is continuing to invest heavily in research for new agri-solutions, bringing the latest to farmers worldwide.
Having over five decades of legacy, we offer a growing portfolio of technology solutions, including soil insecticides, nematicides, nutritional biologicals, and precision application systems through owned and operated manufacturing plants in the U.S.
AMVAC’s substantial growth has facilitated the expansion of its product portfolio by repositioning the acquired trusted brands in the market through product redevelopment, manufacturing, packaging, and marketing. Currently, AMVAC offers a wide range of targeted products for diverse crops, including corn, soybeans, cotton, potatoes, and specialty crops. American Vanguard has a significant position in the global food production industry, with operating companies selling direct in the U.S., Canada, Mexico, Central America, Brazil, Europe, China, India, and Australia. As of 2021, 61 percent of AMVAC’s geographic footprint is in the U.S., 27 percent is in Latin America, and 12 percent is in countries worldwide. It also sells through distribution in major companies, including South America, Europe, and Africa. As a result, American Vanguard is projected to grow its revenue from $597M in 2023 to $694M by 2025.
In recent years, AMVAC has gone beyond its niche business of agrichemicals to include biologicals and precision agriculture. The company has made significant breakthroughs in its three core strategic platforms—Proven Chemistries, Green Solutions, and precision agriculture technology.
Staying in tune with the next generation of precision farming, AMVAC devised the SIMPAS system— the next evolution in prescriptive application—to address the unique agronomic needs of farmers. The game-changing SIMPAS ecosystem consists of various key components. SIMPAS is a prescriptive application system for applying crop inputs prescriptively, in-furrow, at planting. SIMPAS-applied SolutionsTM (SaS)TM are at-plant inputs formulated and packaged so they can be prescriptively applied in-furrow, at planting, with patented SmartCartridgecontainer technology that improves conservation practices and agricultural operations. These tried and tested products and brands are trusted by farmers and can be leveraged to optimize returns.
A Smart Solution for Agricultural Demands of Today and Tomorrow
AMVAC’s SIMPAS system has proven to be a game-changer in effectively meeting farmers’ needs. The system is designed for applying SaS to agronomist-identified problem areas in each field. Applying the product more prescriptively instead of treating the entire farmland can deliver improved productivity and yield. Issues that are geo-specific can also be addressed, enhancing crop and economic yields.
“The phrase we like to use for SIMPAS is ‘only what’s prescribed, precisely where it’s needed.’ What’s prescribed can be anything from insecticides, nematicides, and fungicides to micronutrients, biologicals, and solutions for soil health and fertilizer efficiency. By using problem-specific solutions in targeted areas of each field, SIMPAS can play a key role in solving zone-specific agronomic challenges that limit yield,” states Trogele.
SIMPAS applies products that AMVAC has branded as SaS. SIMPAS equipment is distributed through a strategic collaboration with Trimble, a U.S.-based geospatial technology company. Each SmartCartridge container is equipped with an RFID-enabled Smart Tag that links it to a SaS Retail Agent and the farmer who uses it. SaS addresses unique agronomic needs by simultaneous prescriptive application of multiple in-furrow products while planting. This limits the farmer’s product expense by allowing only the affected areas to benefit from the prescriptive application. It also reduces the amount of SaS introduced into the environment.
SaS is packaged in patented, closed-delivery, SmartCartridge containers that help prevent workers from being exposed while measuring, pouring, and mixing the product. AMVAC doesn’t sell SmartCartridge containers or the SaS inside them. Instead, farmers use SIMPAS under a license agreement that results in them being charged on a per-acre basis for the crop protection provided by the SaS they apply. They return partially filled SmartCartridge containers to their local SaS retail agent, and the agent ships the cartridges back to AMVAC for refilling. Reducing environmental pesticide loading, combined with recyclable containers, creates a win-win situation for farmers and the environment.
In addition to products from AMVAC’s line-up, the SaS portfolio includes products from BASF, Azotic North America, and Verdesian Life Sciences products. The company is also working with 3Bar Biologics to develop disposable SaS packaging for biologic products that don’t lend themselves to refillable containers because of microbe mortality concerns. Overall, the current SaS product portfolio includes AZTEC
® HC SmartCartridge Insecticide, COUNTER
® 20G SmartCartridge Insecticide/Nematicide, Envita
® N-Fixing Solution, Force
® 10G HL SmartCartridge Insecticide, iNvigorate
® Biological, MicroSync
® IRON IDC micronutrient and ZINC Micronutrient SmartCartridge, as well as SMARTCHOICE
® HC and Thimet
® 20-G insecticides, and Ridomil Gold
® GR fungicide.
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The phrase we like to use for SIMPAS is ‘only what’s prescribed, precisely where it’s needed.’ By using problem-specific solutions in targeted areas of each field, SIMPAS can play a key role in solving zone-specific agronomic challenges that limit yield
The Technology and Environmental Disruptor
AMVAC has created a unique way to track and monitor its SmartCartridge containers through each stage of the distribution channel, employing its proprietary and patented ULTIMUS
® software platform. To confirm installation on field equipment, SIMPAS reads each Smart Tag as SaS-filled cartridges are installed. During application, SIMPAS continuously updates each tag with the quantity of product remaining in the cartridge. Every time the product is dispensed in conformity with the electronic SaS prescription, ULTIMUS creates an as-applied record linked with each cartridge’s Smart Tag. This provides accurate information about the rate at which the product was dispensed, its time, location, and the person who applied it. With the ULTIMUS platform, the company can confirm the total product consumed from the cartridges and allow farmers to maintain the optimum application of SaS while treating the prescription acres. This makes the Smart Tag/SmartCartridge relationship essential for SIMPAS functionality and SaS marketing and invoicing.
Innovating the Prescriptive Applications Paradigm
AMVAC has always focused on improving and expanding its solution offerings to better serve the agricultural sector. It started investing heavily in technology, such as formulations, to improve its regulatory expertise and biological development operations. It can now successfully deliver a number of various solutions, from chemical to nutritional and biorational, for pest control and better soil health. Maintaining an agnostic approach to research, the company has in-house R&D capabilities and works with universities and other third-party providers to develop biorational products. ULTIMUS is also instrumental in dealing with farmers’ limitations to measure, validate, record, and audit (MVRA) carbon credit-eligible product applications. It solves this problem by auto-creating a time-stamped, as-applied geo-record of product application that enables forensic quality and chain-of-custody traceability for every SIMPAS-applied product. ULTIMUS verification increases the confidence of carbon credit buyers who purchase carbon credits resulting from carbon credit-eligible applications.
In addition to four synthetic chemistry manufacturing plants in the U.S., AMVAC recently acquired two bio-manufacturing plants, one in the U.S. and one in Mexico, and continues to seek partnerships. The company’s partnership with 3Bar Biologics to develop disposable packaging for liquid microbial SIMPAS-applied Solutions, announced in May 2022, is a plug-and-play offering compatible with the SIMPAS agricultural application system. This will enable the simultaneous application of SaS products from synthetic crop inputs in returnable/ refillable SmartCartridge containers alongside biological inputs in disposable packaging. The disposable packages will incorporate Smart Tags and be fully compatible with SIMPAS equipment and the ULTIMUS application.
Inducing a New Dawn of Precision Agriculture
Having garnered manufacturing and application technology expertise, AMVAC is paving the way for diversifying its global footprint. While the SIMPAS system has been introduced only to corn and soybeans in the U.S., it is currently being trialed in two countries outside the U.S. and has the potential to be used successfully on many crops and locations around the world.
In the coming years, AMVAC envisions rapid growth in its Green Solutions business division. The company will continue to focus on its licensing and distribution capabilities to meet changing consumer demands and regulatory requirements. It is also working to enhance its diverse global crop-mix that spans corn/maize, fruits and vegetables, potatoes, cotton, soybeans, and many other crops. AMVAC Chemical Corporation is building on a foundation of successful experience in traditional crop protection while launching sustainability solutions and precision ag technologies for the 21st century.
