|
|
|
Wynand J. VAN DER
WALT -
SANSOR, South Africa |
March 2002 |
|
|
 |
What does the South African seed industry look like today
from your vantage point? |
 |
The formal and semi-formal South African
seed trade industry is over 100 years old. It is mature and
well-experienced in producing good quality seed meeting
international standards. Due to agricultural market
deregulation, removal of all farming subsidies and low import
tariff protection, the agricultural sector became much more
exposed directly to global forces (in most cases heavily
subsidized products). This further reduced corn acreage by 10
- 12%, and wheat by almost 50%, thereby impacting negatively
on the seed markets for these crops. Seed itself had never
enjoyed Government subsidies or protection and always operated
in a relatively free market environment. Most seed companies
can be described as lean and mean, having survived these
changes. The seed market at
present is relatively stable, apart from sideways fluctuations
due to climatic factors or international market influences.
Importers of high-tech vegetable seed, however, are exposed to
effects of a free floating currency. Therefore, future growth
will come from value-added traits and high quality seed, and
export markets, especially into African countries. |
| |
 |
|
|
|
