Analysis of the Current Status and Trends of International Seed Industry Development. The international seed industry has developed into a sustainable industrial system that integrates scientific research, production, processing, sales, and technical services. A few large seed groups monopolize most of the world's seed industry market
The international seed industry has developed into a sustainable industrial system that integrates scientific research, production, processing, sales, and technical services. A few large seed groups monopolize most of the world's seed industry market. In recent years, international seed industry groups have accelerated their integration and continuously improved their concentration through mergers and acquisitions. The scale of the seed industry has shown an upward trend, and the integration of the seed industry chain is evident, such as Bayer's acquisition of Monsanto, Dow and DuPont's spin off and integration, and China National Chemical Corporation's acquisition of Syngenta. At present, the global seed industry market is concentrated in leading companies such as Bayer, Kodiawa, Syngenta, BASF, and Legrand, with the revenue scale of these five companies occupying a leading position in the international market.
The seed market in China was initially established after the founding of the People's Republic of China, and has gone through four stages: "Four Self and One Assistance" (1949-1978), "Four Modernizations and One Supply" (1979-1999), the exploration period of industrialization and marketization (2000-2010), and the deepening period of modernization reform in the seed industry (2011 present). Since the promulgation of the Seed Law in 2000, marking the beginning of a new stage, China's seed industry has grown rapidly, and the level of crop breeding, excellent varieties, and supply capacity has significantly improved.
In recent years, international grain prices have been running at a high level due to the Russia-Ukraine conflict, global extreme weather and inventory fluctuations. Strengthening
In the context of food security and the revitalization of the seed industry, the No. 1 central document of the Central Government in 2021 proposed to "fight well for the turnaround of the seed industry"; The No.1 Document of 2022 proposes the "Comprehensive Implementation of the Action Plan for Revitalizing the Seed Industry"; The No. 1 document of 2023 will focus on "strengthening agricultural technology and equipment support" as a separate key task for "deepening the implementation of the seed industry revitalization action", emphasizing the "comprehensive implementation of major biological breeding projects" and "accelerating the industrialization of corn and soybean biological breeding". The development of China's seed industry is entering a historical stage of disruptive innovation.
As the chip of agriculture and the source of grain production, in recent years, the overall market size of China's seed industry has shown a stable and upward trend, with a good development trend. The growth rate of China's seed industry market is significantly higher than other major agricultural production regions in the world, with great potential for growth. As of now, China's seed market has developed into the second largest market in the world after the United States.
Unlike developed countries, China's seed industry market is dominated by small and medium-sized enterprises, with a dispersed industrial pattern and low industry concentration.
The dispersed industrial pattern means that there are numerous companies in the industry, and no one or a few companies can occupy an absolute market share. In this case, the market is often composed of a large number of small and medium-sized enterprises, each with a relatively small market share, fierce competition, and relatively low barriers to market entry.
Low industry concentration: Concentration is an indicator that measures the distribution of market share among companies within an industry. Low concentration indicates that the total market share of the top few large enterprises is relatively small, indicating that there is no obvious monopoly or oligopoly situation in the market, and competition is more comprehensive and diversified.