USDA/FAS GAIN report E 47011

Report highlights

Although a net exporter of planting seeds, the EU has a trade deficit with the United States. The main planting seeds exported to the EU are vegetable seeds, and grain and oilseed seeds. U.S. grain seeds exports have been under pressure. But new opportunities could evolve, as a result of demand in the New Member States for high quality seeds and increasing interest in genetically enhances maize varieties. Other opportunities for U.S. companies exist in specialty seed markets, such as organic seeds, seeds for vegetables produced in greenhouses, seeds for ornamentals and specialty grass seeds for golf courses and sports fields.

Executive summary

The EU market size for planting seeds is estimated at USD 6.1 billion. This season, 2006/2007, EU grain seed production is anticipated to increase due to the current high grain prices. Also the production of rapeseed for sowing is expected to increase as a result of the demand for rapeseed as a feedstock for biofuels. As a consequence of the increased acreage for grain seed production, EU grass seed production is expected to decline in 2007. Currently the market for grass seeds is in an oversupply situation.

During the past five years, EU planting seeds imports increased from USD 448 million in 2001/2002 to USD 578 million in 2005/2006. During the same time span, EU exports of planting seeds increased continuously from USD 421 million to USD 876 million. Both growth in imports and exports is mainly attributable to a strong increase in the transshipment of vegetable seeds. Due to the high land and labor costs, production of horticultural seeds is increasingly moved to other continents. The seeds are shipped to the EU for treatment, sampling and quality inspection and mostly re-exported to their final destination.

Although a net exporter, the EU has a trade deficit for planting seeds with the United States, which is the EU’s leading supplier of planting seeds. During 2005/2006, EU imports of U.S. planting seeds declined significantly, mainly because of lower imports of hybrid corn seeds. Because of the possibility of adventitious presence of GMOs in planting seeds lots, European buyers are reluctant to purchase maize seeds from the United States. The main planting seeds exported by the United States to the EU are vegetable seeds, and grain and oilseed seeds, which account more than half of total U.S. planting seed exports to the EU.

Each EU Member State is required to maintain a national catalogue or list of approved varieties. The EC consolidates the national catalogues into a common catalogue. Varieties, which are not listed in a national or the common catalogue, cannot be legally marketed in the EU. Applications for plant breeders’ rights (PBRs) and listing should be filed at the National Plant Variety Offices. The Community Plant Variety Right (CPVR) and national PBRs are the exclusive intellectual property rights available in the EU for the protection of plant varieties. The Community Plant Variety Office (CPVO) in Angers (France) implements and applies the system for the protection of plant variety rights in the EU. On the basis of one application to the CPVO, a breeder may be granted a single intellectual property right that is operative throughout the EU.

The regulations for marketing planting seeds are laid down in the Seed Directives of the European Commission (EC). The EC is assisted by the EU Member States in adopting amendments through the Standing Committee on Seeds and Propagating Material for Agriculture, Horticulture and Forestry. Phytosanitary measures on imports of plant materials are laid down in Directive 2000/29/EC.

Full report: http://www.fas.usda.gov/gainfiles/200702/146280121.pdf