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Wynand J. VAN DER
WALT -
SANSOR, South Africa |
March 2002 |
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How do recent developments in the global seed industry impact
seed companies and the seed trade in South Africa? |
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Traditionally, the South African seed
industry was run by local companies. The first foreign entry
was Pacific Oilseeds in the mid 1950s, followed by Asgrow in
1966. Only in the last 5 - 10 years did multinationals arrive
in increasing numbers : Pioneer, Seminis, Advanta, Novartis
(Syngenta), CHMT (Clause-Harris-Tezier), Cargill, Delta Pine,
Sakata, and Ball. Monsanto entered by acquiring first the
local Cargill operation and then Sensako, the R&D arm of
agricultural co-ops. Entry of
global players has brought several benefits. These include
easier access to technology, more strict quality assurance
systems, global seed expertise, advanced germplasm.
Furthermore, most of these companies use South Africa as
springboard into Africa, due to the well-developed
infrastructure, not only of the country, but also the seed
industry.
The risk of one or two major global
companies carpetbagging the industry is very small due to
anti-monopoly legislation. Fact is that South African
ownership of the industry is shifting to multinationals.
Emotions may be divided on this socio-political issue.
Nevertheless, more small local players are actually entering
the industry. Also, Pannar, probably the biggest seed company
in Africa, is still a locally owned, locally based
multinational in its own right.
One negative consequence might be the
multinational focus on larger volume, more profitable crops,
at the expense of minor open-pollinated, self-pollinated
species. Public research and breeding is declining and will
not address this deficiency. The changed face of the local
industry has also expedited the trend of relegation of
agricultural co-ops to the role of seed distributors and
warehousing. |
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