Pune, India
February 8, 2017

While the sorghum seed industry participants are exploiting the current surge in sorghum seed demand, institutional investors are similarly showing up, which is quite evident by the sorghum planting seed developer Chromatin’s mergers and licensing activities. In February 2016, Chromatin acquired sorghum seed distributor, Majestic Semillas. In June 2016, Chromatin acquired the US sorghum seed supplier, Kirkland Seed. In November 2016, Chromatin signed an exclusive license agreement for unique sorghum genetic stocks developed by Agrigenetics Inc., an affiliate of Dow AgroSciences LLC. Companies are adopting strategies such as forming joint ventures and agreements in order to exploit the current sorghum demand. Monsanto and the parent company of the US seed company, Remington Seeds, agreed to form a joint venture, Innovative Seed Solutions, with an initial focus on sorghum. S&W Seed Co., a global agricultural company with operations in the United States, Australia and Canada, has signed a licensing agreement with an unnamed US-based seed company for production and marketing of a proprietary hybrid grain sorghum variety in the United States, as well as, Mexico. 

Market Insights

The sorghum seeds for sowing market has witnessed an unprecedented vertical growth in the recent years. The market value is projected to grow from USD 2657.24 million in the year 2017 to USD XX million by 2022, at a CAGR of 4.39%. Significant demand from the pet food industries and other consumers is creating unique marketing opportunities for the sorghum seed growers. The increasing sorghum seed demand in the Chinese market has changed the entire demand and supply scenario for the sorghum market, owing to a huge difference between the import prices versus the local price. This huge demand added great value to the sorghum seed farmers and the American economy. The non-traditional markets have found sorghum seed market attractive owing to better price opportunities and the availability and knowledge of its use. Dominated by traditional markets, such as Mexico, Japan, China and Korea, increasing commitments have been observed from markets of Columbia, South Africa, Indonesia, Haiti, Pakistan, and Venezuela.

Market Dynamics

The factors that are driving the sorghum seed market are its increasing use in the feed (due to lesser costs compared to other crops), its use as a biofuel and lastly due to advantages associated with its use in alcoholic beverages with its gluten-free nature possessing extensive health benefits. Small land holding, high-cost of labor, the presence of weeds, variable rainfall in major countries and inadequate government regulations are hindering the growth of the sorghum seed market. The governments of most nations are focusing to regulate the sorghum market to bring in favorable policies for the growers. The development of hybrid sorghum varieties with excellent traits is expected to drive the future demand of the sorghum seed market.

Market Segmentation

By geography, Africa is the largest sorghum seed market, followed by North America, South America, Asia-Pacific and Europe. The United States is the net exporter of sorghum and exports half of its production. Most of the sorghum grain for sowing produced in the United States is imported from Mexico, followed by France, Italy, Korea and Brazil. Argentina and Australia also constitute the major markets for sorghum seeds.

The United States is considered to be a global leader in sorghum breeding and production. Sorghum is grown in 14 states, with Kansas and Texas, occupying the topmost producing states. Kansas is the leading producer of sorghum in the United States, followed by Texas and Colorado. The seed production was 130,429 tons in the year 2013 and increased drastically to XX tons in the year 2016. In addition, the increasing demand for sorghum from the Chinese market is driving the production of sorghum in the United States. The increasing use of sorghum in ethanol production is also one of the reasons for the increase in its production. At present, approximately XX% of the US sorghum is being consumed for ethanol production. The export volume of sorghum seeds for sowing in the United States was 28,064 tons in the year 2016, and it is expected to reach a volume of XX tons by 2022, at a CAGR of XX% during the forecast period.

Major companies in the sector include:

• Advanta
• Dupont (Pioneer)
• Nuseeds
• Dow Agrochemicals
• Pannar Seeds

Key Deliverables in the Study

Market analysis for the global sorghum seed for sowing market, with region-specific assessments and competition analysis.

Market overview and identification and analysis of the macro and micro factors that affect the global sorghum seed for sowing market and also instrumental in changing the market scenario, on both, global and regional scale.

Extensively researched competitive landscape section with profiles of major companies and their market share, along with an analysis of their current strategic interests and financial information and strategies adopted by them to sustain and grow in the studied market.

Complete report details @ https://www.wiseguyreports.com/reports/934734-sorghum-seed-market-seed-forecasts-2017-2022