CLOSING REMARKS by
Dean Cavey

The Changing Faces of the Seed Industry

SeedQuest has conducted a roundtable interview of highly successful executives who have applied their career experiences in other industries to senior management positions in the global seed industry.  Given their varied backgrounds, it is interesting to learn of their impressions of the seed industry and their observations and recommendations for the future.  While each brings their own unique perspective to the seed industry, there are a few observations that are common to many of these executives and that are consistent with my own thoughts about the industry after calling it home for nearly 25 years.   These observations touch upon the following points:

·          The seed industry must develop and sell products that meet customer demand

·          Executives must cope with an industry that is increasingly complex

·          There is a critical need for long term strategic planning in the seed industry

·          The seed industry must become more marketing oriented

The above noted observations are not mutually exclusive.  They are in fact quite interconnected.  Technology is revolutionizing the seed industry and we are closer to the beginning of this phase than we are to the end.  Genetics, traits and seed treatment packages are changing and improving faster than ever.  These packages are responding to grower needs not only in the U.S. but also on a global level.  As these packages are introduced for commercial use, inventory planning becomes more risky and substantially more complex.  Freedom-to-operate and intellectual property matters are on everyone’s mind.  The more complex and more risky the industry becomes, the greater the need for creative thinking and long-term strategic planning.  Participants in the industry can no longer just sell what is available but rather must market expensive, highly sophisticated products to meet specific needs of growers based on their geography and farming objectives.  This trend is likely to accelerate as more technology driven products are introduced and markets become more segmented, so the need for sophisticated business planning and execution must keep pace.  The need for creative thinkers will also continue to increase.

It is not coincidental that, as the global seed industry is undergoing radical change, we are seeing an increasing number of high-level managers come to the seed industry from other industries and disciplines.  These new faces are not only responding to change in the seed industry, but in many cases, they are leading the change to a more sophisticated business environment.  They are recognizing the impact of technology and are bringing with them a new mindset and a more sophisticated approach to managing a highly complex business.  As the seed industry turns to the next generation of executives, we must recognize that seed industry experience is extremely important and cannot be overlooked.  It must, however, be matched with the open-mindedness and the ability to change to meet the needs of the global consumer. 

Dean Cavey can be reached at deancavey@verdantpartners.com

October 2006

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