San Jose, California
March 6, 2008
Source:
Global Industry Analysts,
Inc.
The seed industry is undergoing
a significant change towards providing farmers with high-yield
seeds and reduced production cost. GM seeds are expected to grow
up from the fringes of crop protection into newer potential
applications, thus increasing the presence of biotechnology in
the industry.
World seed market is projected to exhibit a CAGR of 4.27% over
2001-2010 and settle at about US$42.2 billion by 2010. Europe,
win an estimated share of 32.57% in 2006, is the largest market
for seed worldwide. In terms of growth, however, Asia-Pacific is
forecast to surpass all other regions with a forecast CAGR of
4.85% over the 2001-2010 period.
Grain seed, with an estimated 2006 share of 35.70%, forms the
largest product category in the global seed market. In terms of
growth, however, Vegetable Seeds, with a CAGR forecast at 4.99%,
are expected to outpace all other categories of seed.
The seed industry evolves more as an agricultural inputs
industry by supporting the development, production and marketing
of seeds worldwide. Several companies are offering plant
breeding with increased yield potential, improved resistance to
pests, diseases and herbicides, and improved quality. The
industry primarily deals with two kinds of seeds: those for
hybrid crops and those for varietal crops. Commercially, hybrid
crops offer more return on investment in proportion to the area
planted. However, it is estimated that only one-third of global
seed consumption is actually traded, while the rest is either
farm-saved seed or controlled and distributed by national
governments.
Currently, the industry is witnessing new lines of genetically
modified crops with improved pest protection and nutritional
value being added by several producers. This could set the trend
of commercialization of biotechnological innovations for
increased agricultural output.
The seed market has undergone rapid transformation in the recent
years with the advent of biotechnology in agriculture.
Genetically Modified (GM) seeds offer economic advantages to the
farmer and are sold at large premiums - averaging around 40% -
to conventional seeds, besides additional technology fees.
Despite resistance from several sectors, this market has
fiercely penetrated the agricultural industry, especially in
soybeans and cotton in the Americas.
Global seeds market is largely influenced by several factors,
such as total crop surpluses or shortages, weather conditions
and demand for specific disease and/or pest resistant traits. It
usually takes seven to ten years to develop a new hybrid and a
few additional years to produce enough seed for marketing.
Generally, seeds account for 5-7% of the total production costs
for vegetable cultivators. Growth in the seed industry mainly
depends on the acreage of the land used for agriculture.
Major companies covered include Bayer CropScience AG, ConAgra
Foods Agricultural Products Company, Delta and Pine Land,
Emergent Genetics, Garst Seed Company, Goldsmith Seeds, KWS SAAT
AG, Landec Ag, Inc., Limagrain, Monsanto, Mycogen, Pickseed
Companies Group, Pioneer Hi-Bred, Research Seeds Inc., Sakata
Seed Corporation, SAPEC, Scotts, Svalof Weibull AB, Syngenta
Crop Protection. |
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