Mark WONG - Managing Director - Emergent Genetics - USA

April 2002

What are the major forces that drive the seed industry and its evolution today?
Unit growth in developing markets is flat.

There have been several technologies that have reduced the amount of seed planted. Seed companies raise the price of seeds to reflect their genetic yield enhancement and must show the farmer how to be more efficient in his planting rate. The genetics of the seed is improved, but the farmer must control his seed cost in order to harvest the economic benefit. Precision planting, substitution of hybrids for open pollinated varieties, and planting of plugs have been technologies used by field, vegetable and ornamental growers to reduce seed usage.

Unit growth in emerging markets is up.

Many farmers in these markets believe that purchased high quality seed is economically superior to saved seed. Even though they must pay more for the quality seed, economically their seed emergence and yield improvements net them a higher profit per hectare. However, while offering opportunities, these markets are a difficult operating environment. Governments can be unstable politically and financially, seasoned management is hard to find and infrastructure issues are difficult. Getting phone service can take months and high speed internet service is only a dream.

Product development is worldwide.

Large and medium seed companies have operations in the Northern and Southern Hemispheres. Their breeding, trialing and seed increase functions are worldwide. They have the advantage of cycling breeding, trialing and seed increase to the maximum during each calendar year.

 

 

 

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