A socio-economic analysis of the North American commercial natural enemy industry and implications for augmentative biological control

This paper reports the first systematic and independent socio-economic study of the commercial biological control industry in North America, drawing from 62 interviews with industry leaders, research scientists, retail distributors, and customers, conducted 2004–06. The 22 North American insectaries produce 38 natural enemy species. Commercial natural enemies constitute less than 10% of the biologically based pest control market, with an estimated gross annual value of $25–30 million at the wholesale level. No new insectaries have been successfully established since 1996, several insectaries have declared bankruptcy, and few new arthropod species have been brought into production. Producers report that the market for commercial natural enemies generally appears to be static, with declining demand for some species. Prices for at least six species have declined since 1994, and several insectaries report having to abandon production lines due to economic losses. Industry leaders report serious difficulties in obtaining capital for investment, recruiting researchers who will address applied scientific questions in augmentative biological control, and moving commercial natural enemies across U.S. borders. Realizing the potential of augmentative biological control as a pest management strategy in North America will require new initiatives to address these challenges.