West Des Moines, Iowa
June 12, 2008
In the deeply intertwined world of
agricultural seed production and sales, new technologies
implemented in Asia or increased acreage in Latin America can
create market ripples oceans away. Interpreting and projecting
those market movements is a science—one understood by
The Context Network,
which deciphers industry change and forecasts its future in the
just-released Global Seed Market Database 2008.
“We observed continued expansion of overall valuation in the
global seed market during 2007,” said Context Consultant Mark
Nelson, who guided and conducted the study’s analyses. “The
global proprietary seed marketplace exceeded $22B USD in 2007,
and by Context’s estimates, delivered 10% growth over 2006.”
Numerous interrelated factors combined to drive expansion in the
seed marketplace, Context found. Hybrid seed use in Asia,
stacked trait use in the U.S., and high commodity prices are
among drivers identified and expounded upon in the report. As in
other market sectors, a weakening U.S. dollar also is identified
as an important driver. Context forecasts continued commodity
price gains early this year which, along with expanded Latin
American corn acreage, will support significant seed price
increases through 2008.
With data and information collected from over 200 sources and
reviewed by crop experts from each continent, the GSMD provides
the comprehensive global data progressive companies need,
without the weeks of delay associated with doing independent
research.
“We have designed and implemented GSMD to provide an insightful
inspection of past market activity, and have applied that as a
window into mega-trends and critical upcoming market activity,”
explained Context Network Partner Tray Thomas. “With each year’s
report, our analysis describes dynamics by illustrating changes
within key aspects affecting the sector’s evolution.”
Context Network launched the GSMD in 2006. Altogether, the
database includes 48 crops in 230 countries categorized by six
different regions. GSMD takes a country-level by crop approach
in its modeling, offering the opportunity to describe major
directional changes in fundamental “levers” of country level
seed sector value. Modeling these levers in aggregate provides
characterization of industry mega-trends.
All seed industry stakeholders and policy makers are encouraged
to learn more about this meaningful analysis. For more
information, contact
www.contextnet.com.
The Context Network provides business management and strategy
consulting services to the world’s leading agriculture,
biotechnology and food companies and government agencies and
institutions. Major areas of expertise include strategy, merger
and acquisition support, valuation of new technologies,
formation of alliances, and market research. The West Des
Moines-based firm is composed of a core of professional
consultants that is complemented by a network of more than 100
industry and subject-area experts. |
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