b'B U S I N E S S U P D A T E SBiofungicides Become Big Business in MexicoI ncreasing world population and economic development will raise global food demand in 2050to approximately 1.7 times the demand in 2010. Crop protection products protect agricultural products from diseases and pests that seriously affect food production. Today, the most prominent products are those that use biologically active ingredients.With their minimal environmental impact, making them especially popular in Europe and the US, these substances are experiencing tremendous market growth, which is expected to continually increase and expand. Among Mexican farmers who grow fruits and vegetables for export, the demand for biological products, with low environmental impact, harmless to the consumer and highly effective, is increasing.To that end, Summit Agro Mxico SA de CV (SAM), as SC Group Company, has acquired the exclusive rights of development and global distribution of new biofungicides from Qumica Agronmica de Mxico (QAM), a Mexican manufacturer of biotechnology R&D. These bioproducts are very effective in preventing and treating damage from diseases of fungal and bacterial origin, specifically in fruits and vegetables.QAMs new bioproducts will significantly strengthen our current offer of bactericides and fungicides in Mexico and the world. It is a disruptive innovation in agriculture, developed in Mexico by Mexican talent, and the fact of having obtained its patent in the United States manifests in advance the degree of innovation that we are ready to offer to farmers who need for high-tech products to protect his crops safely, taking care of the environment, but with levels of control that exceed conventional products on the market said Jorge Fernndez President & CEO of SAM.We look forward to product sales in 2022 in Mexico, with development and registration in other countries concurrently. This move considerably strengthens our product portfolio, and points to a bright future for our expansion in this industry, capturing the market demand increases. These new bioproducts contribute to a sustainable agriculture and a stable food supply, which is consistent with SCs long-term targets to support sustainable growth with society said Takuya Tsujigaki, Senior Vice President & General Manager of Chemicals & Electronics Group in SCOA.SAM and QAM have established a total synergy relationship to develop a series of ex- clusive products from QAMs new bioproducts that will be offered first to the Mexican market, a market that is specialized in the production of export fruits and vegetables to the worlds most demanding consumers and these products will subsequently be distributed in the global crop protection market.SCs exports of agrochemicals started with products from Jap- anese agrochemical manufacturers in the 1970s, which helped boost agricultural productivity and efficiency for more than 40 years. Currently the SC group is committed to a deeper participa-tion strategy in the intermediate sectors of the value chain, and to dedicate import sales operations in more than 35 countries in Europe, America and other places, accelerating its efforts world-wide to expand and strengthen your sales networks. By stepping up its handling of bioproducts, the Company seeks to meet the diversified demand for crop protection products that help meet the food security needs that have increased in recent years.Sumitomo Corporation of Americas 7'