Difference between revisions of "Team:NCTU Formosa/Entrepreneurship"

Overview

Entrepreneurship has traditionally been defined as the process of designing, launching and running a new business, which typically begins as a small business, such as a startup company, offering a product, process or service for sale or hire.^[1]

Today, our project, PANTIDE, has a complete idea and experience to prove its effect. First, we introduced the business model, which is designed for giving concise information of our project to the agricultural corporations or other potential customers. It consists of three parts including the problem, the solution, and the schedule, to explain why we want to choose this problem, how we solve them, and when we will launch our product. Second, we analyzed the future marketing to discuss three issues including the use of pesticide, organic agriculture, and technological agriculture. Next, we grasped the regulation of the manufacturing and using it in the real world to get a certificate from the government. Last but not least, we have listed the sponsors who added us financially.

Business Model

The Problem

As we mentioned in our wiki, more and more people nowadays start to pay attention to the influence of the chemical pesticide in our daily life. The trends of eating organic food is gradually increasing. However, the management cost and low yield are two major barricades that hinder the development of organic agriculture. Here are the two goals :

• Accurate Agriculture
        Traditionally, the cost of the human labor and time is high that requires precise field monitor.
• Reduce the Use of Chemical Pesticide
        Chemical pesticide causes lots of problems:
• Environment Pollution
        According to the studies, there are over four million tons of chemical pesticide being sprayed in the world. It not only polluted 40% of river, but also contaminated soil. The pollution destroys the original environment.
• Health
        The excessive use of chemical pesticide is harmful to our bodies such as lung failure, respiratory abnormality, quivering, cardiopalmus, and poor appetite.
• Social Costs for Food Safety Scandal
        According to the Ministry of Economic Affairs, R.O.C., food safety problem has caused the loss of 17 billion New Taiwan Dollars.

Solution

This year, we wanted to combine the synthetic biology with the state-of-the-art technology. We hope to draw people’s attention to the accurate agriculture which backs up the development of modern agriculture.

• Biopesticide－Pantide
• Database
• Nowadays, the informations of many proteins have been well researched.
• By integrating the information of protein structure and its property, we may design a protein with the desired function.
• By comparing the different domains of protein, we may build up a database for the desired proteins.
• Synthetic Biology
• Through the synthetic biology, we transform E. coli with recombinant gene, which is chosen from our database.
• Leaves Protection
• Using Pantide, it can cause the specific pests to loss of their appetite with different kinds of functional peptide, and it is eco-friendly and non-toxic to other animals.
• Environmental Sustainability and Health
• For the river and soil, Pantide comes from the mother nature and is biodegradable. Therefore, there is no pesticide residue problems.
• For other animals, Pantide is species-specific which means it is non-toxic to benefitial insects and doesn’t damage the human body.
• Market Costs and Social Costs
• Not only does Pantide protect corps but is biodegradable and non-toxic to human body. We believe that this new kind of pesticide would solve the problems of food safety to cut the market costs and social costs.
• Smart Detector
• The device combines the microcontroller single chip, Arduino, with detection of many situations such as the number of specific pests, temperature, and humidity level.
• To achieve the two-way communication between the device and the application, we use the Internet of thing (IoT talk) to connect both of them and transfer the instant information to the users anytime and anywhere.
• According to information and the forecast of degradation rate, users can decide when to spray Pantide or just spray the water.

Schedule

• Preparatory Period & Execution Period
• Market Survey
• Public Questionnaire
• Farm Visit and Questionnaire
        To ask about the opinions about our Project from the potential users in the future, we went to Organic Green Market in NTHU to have interviews with organic farm owners and did public questionnaire. We first made a brief introduction of our product, and then asked them for advice. The main opinions we want to know from farmer were what we can develop organic agriculture. For the public, we aim to discover their views of Pantide. We would continue doing the questionnaire and visit farmer for new idea.
• Lab Experiment and Device Design－View more in project
• The goal of experiment in the laboratory was to use E.coli to manufacture Pantide. Then, we carry out yield analysis and determination of peptide degradation rate. Also, we use tobacco cutworm’s larvae to experiment Pantide’s function.
• Device Design Included Three Part
• Insect-catching Apparatus
       With the combination with 2014 NCTU_FORMOSA product PBAN. We created insect-catching apparatus, which could attract specific pests. Moreover, our device device could count the number of pests by infrared sensors.
• Analyzing Spraying
        When Arduino microprocessor receives signals from the infrared sensors. It would determine when to start spraying by intersection checking.
• Remote Monitoring
        Using IoT to connect the device and APP in user's smartphone. Farmers can get hold of the information of their farmland remotely
• Execution Period
• Small-scale Pesticide Test
        After we have tested the function of Pantide in the laboratory. Pantide and device would be tested in the greenhouse.
• Equipment Test
• Equipment Test
        In order to correct the predicted values of device, it would be put in the field for long-term observation and record.
• Effectiveness Evaluation
• Farm Test
        At last, we would contact with the farmers, which were willing to participate in the non-toxic agricultural-PANTIDE test for four-month field trials.

Business Model Summary

Our value:

• Previously detecting the pest appearance and species. Internet of things (IoT) transfers the data to users’ application. Remove spraying the species-specific Pantide.
• With the system, we tackle the problem and solve it directly.
• Ecofriendly, non-toxic to benefitial insects and human body

Marketing & Future

In this part, we are going to discuss the market analysis, publicity and future works.

Marketing

Our target customers focus on the organic farmers and large-scale agriculture. Therefore, we want to learn about the organic food marketing, pesticide and biological pesticide marketing , and the situation of technological agriculture. Therefore, we investigated the researchers about the markets including thee parts－the usage of pesticide, organic agriculture, and technological agriculture. All of the market are increasing. It shows that PANTIDE has the great potential to develop.

• The Organic Food Market
• The demand of the organic food rises rapidly in the world. The marketing value was 72 billion USDs in 2013, which was five times larger than in 1999. Moreover, for the supply part, the production area in 170 countries was 43 million hectares in 2013.^[2]

• The pesticide Market
• According the lastest market research, the pesticide market is growing in North America and Asia-Pacific. The value of pesticide will increase from $13 billion to $16 billion in five years and its CAGR is 4.7%.^[3]
• The Biopesticide Market
• According to the research from BCC(2014), the global biopesticide markets will rise to 390 million USDs by 2019 and its CAGR will be 13.9%. ^[4]
• In the BCC Reserch(2014), the proportions of biopesticide in global markets is 5.8%. Compared with pesticides, it will grow to 8.2%.^[4]

• The Accurate Agriculture by Technology Market
• According to the report from the near market research, 4.80 billion is expected for the precise farming market by 2020.^[5]
• In 2015, AgTech Investing Report shows that $4.6 billion is funded in food and agriculture technology startups, which contains venture capital accurate agriculture. ^[6]

Publicity

In addition to analyzing the market, we also did some survey.

• We visited the target customer segments and the organic farmers to clarify the organic market trend and customer needs.
• Questionnaire investigation of organic agriculture and biological pestcide help us understand what kinds of product that the public want to use.
• Participation in the 2016 International Genetically Engineered Machine (iGEM) competition help us raise our public profile.

Future

This summer, we have done the preliminary laboratory assessment and developed a embryonic stage of gathering funds. However, practices in testing the product in the real farmland is a prerequisite for large-scale commercialization

• Find the maximum lethal concentration of Pantide
• Through the sonicating bacteria, we want to find the best condition for pest control.
• Manufacturing the Pantide
• Efficiently and Highly Production of Pantide
• Standard Series of The Production
• New Use from Old Proteins
• We may find the new functional device of proteins by using our databases.
• Other Applications
• With the same idea, we may use the detector to immediately monitor the mosquito to take precautions against the dengue.

For the future commercializations, we have consulted the patent engineer for applying for patent of Pantide including the DNA sequence, DNA design and the protocols for preparing the effective Pantide products. We hope that the patent may help us develop well for the ongoing entrepreneurship.

Law & Regulation

Q1. Whether the Pantide using in farmlands is a kind of organic agriculture?

Though different institutes have different definitions of the organic agriculture, the main idea is the same. Organic agriculture is based on minimizing the use of external inputs, avoiding the use of synthetic fertilizers and pesticides. The primary goal is to optimize the health and productivity of interdependent communities of soil life, plants, animals and people.

The International Federation of Organic Agriculture Movement (IFOAM) defines four principles of the organic agriculture and our Pantide conform with all of them:

Health: To sustain and enhance the health of ecosystems and organisms. It should avoid the use of synthetic fertilizers and pesticides that may have adverse health effects.

Our Pantide is a kind of biorepellent, which is natural and eco-friendly. Compare to the chemical pesticide, Pantide can minimize the harm to the environment and can make a healthier ecosystem.

Ecology: Be based on living ecological systems and cycles, work with them, emulate them and help sustain them.

The main idea of our Pantide is the food chain from spiders to insects. We want to choose an ecological way to help the farming but not to harm the environment so we learn from the Mother Nature to ensure our Pantide is sustainable and safe.

Fairness: Should build on relationships that ensure fairness with regard to the common environment and life opportunities.

Pantide is oral-active so that it is only against the insects eating the crops. Also, because of the distinctive mechanism, it only works on the specific species that have adverse effect on the crops. As a result, the Pantide will not harm other organisms to make sure that we maintain the fairness among the ecosystem.

Care: Practitioners of Organic Agriculture can enhance efficiency and increase productivity, but this should not be at the risk of jeopardizing health and well-being.

Consequently, new technologies need to be assessed and existing methods reviewed. Our device can enhance efficiency due to the remote monitor. It can not only decrease the burden of the farmers but also increase productivity. Before using in the practical farmlands, we have tested many times.

Q2. What should we do to get the pesticide permit?

Most countries share the similar application process to permit the new pesticide.

Pantide is a new biorepellent so it might be determine whether it is a biopesticide or not. If it belongs to pesticide, we first need to confirm what kind of pesticide we made. In most countries like Taiwan and the USA, Pantide belongs to the category of the biopesticide, while some countries, EU and Japan included, consider that there are no viable bacteria in the Pantide, so it applies to the regulation of the chemical pesticide.

Second, the pesticide and the production plant must be tested to be safe. Finally, the pesticide must be registered with the related government institution before they can be distributed commercially. A registration application must include information regarding testing, the identity of the product, draft labeling, information on tolerance of residues, and other safety-related information.

Figure 2. Logo of Bureau of Animal and Plant Health Inspection
and Quarantine, Council of Agriculture (BAPHIQ)

Q3. Is there any related application to the biopesticide?

In Taiwan, to get the government permit, the laboratory need to get the Good Laboratory Practice Application (GLP) first. GLP regulates the safety and the quality of the laboratory in a manufacturing company.

Besides to the permit from the government, there is an application called MIT Smile application, which means the product is made in Taiwan during the whole process.

In the US, the most important application to food and drugs is FDA application given by the Food and Drug Administration. This application shows the product confirms the regulations and meets the safety level.

Figure 3. Logo of MIT Smile application and FDA application.

Business Competition

• Participating the youth business plan competition hold by Taiwan Semiconductor Manufacturing Co., Ltd.
• Participating the youth business plan competition held by Fubon Cultural & Educational Foundation.
• Through youth business plan competition, we get financial aid from Fubon Group.
• Participating Smart Agriculture Innovation business plan to attract consulting firms. We won the second place and also got the funding.

Sponsor

• Thanks for NCTU alumni association, they not only give us the financial aid but help us seek other sponsors and firms.
• Through the NCTU alumni association, they introduce us to Phison Electronics Corporation, which is founded by outstanding NCTU alumni.
• Thanks for Phison Electronics Corporation giving us the financial aid.
• Moreover, they introduce us to the TanoSecure, which is a company from China, which is interested in precise agriculture. They will invest our product and promise that they would like to provide us a large field to test the product efficiency. This will be the milestone for us to become a company.
• Agrotech Company, which is an agricultural company, supported our project and helped us set up a patent.
• Taiwan Ministry of Eduction supported us some funding to join iGEM competition.
• Thanks for IDT provided us free 20 KB DNA sequencing for our experiment.
• Thanks for National Chiao Tung University and Department of Biological Science and Technology gave us funds to support our program.

Reference

• AK Yetisen; LR Volpatti; AF Coskun; S Cho; E Kamrani; H Butt; A Khademhosseini; SH Yun (2015). "Entrepreneurship"
• FiBL; "The World of Organic Agriculture 2016, The World of Organic Agriculture 2016", 2016
• MarketsandMarkets; “Insecticides Market by Type [Organophosphorus Compounds, Pyrethroids, Neonicotinoidsn Methyl Carbamate, and Others (Macrocyclic Lactones, Phenylpyrazoles, and Benzoylureas)], by Crop Type (Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables, and Others), & Geography - Global Trends and Forecasts to 2019”, AGI 2527, July 2014
• BCC Research (2014), Global Markets for Biopesticides
• marketsandmarkets.com, “Precision Farming Market by Technology (Guidance Systems, Remote Sensing, and Variable Rate Technology), by Hardware (Display, GPS/GNSS Devices, Yield Monitor, and Sensor) and Software & Services, Application, and Geography - Global Forecast to 2020”, SE 2831, January 2016
• Louisa Burwood-Taylor, “Agriculture Technology Investment Storms to $4.6bn in 2015 as Global Investors Take Note”, AgTech Investing Report, YEAR IN REVIEW 2015, February 16