Thursday, June 14, 2018

Emergence Of Opv In Seed Industry Market Oulook-Ken Research


Overview: Organizations working under seed industry are often regarded as big institutions with a considerable control over the global seed market under agro-food chain. There is no doubt that in agro-food chain food processing and distribution occupies a greater position by value. However, seed sector despite being a small contributory to it still occupies a major spot as the entire mechanism of agro-food chain is highly dependent on the quality, quantity of seeds being produced. This sector is quite vital for success of food market because of agro-economic, techno-economic, environmental and nutritional impact. Holding the significance of seed sector into account Seed Industry Analysis suggests that global seed industry is expected to grow at a CAGR of roughly 7.6% and thus reaching a market size of approximately USD 99 Billion by 2022.

Outlook: After the rediscovery of Mendel’s law in the 20th century, plant breeding turned from an art to science. Even small farmers began choosing the seed type on the basis of progeny. Recent years have witnessed extreme scientific developments in order to meet the growing demand for food. Cross breeding, hybrid breeding, mutation breeding, cell culture, and recently, gene transfer, marker assisted breeding, genomic selection are some scientific techniques developed to maximize yield and growth in the agriculture. Research is now being focused to mutagenesis and open pollinated seeds. Open Pollinated seeds refer to the seeds that will “Breed True”. When the plants of an open-pollinated variety self-pollinate, or are pollinated by another representative of the same variety, the resulting seeds will produce plants roughly identical to their parents. These varieties of seeds have proven to be advantageous over hybrid type of seeds due to numerous reasons. In hybrids, offspring’s usually show diverse characteristics and some might be unwanted or harmful for the produce whereas on the other hand open pollinated seeds are born with characteristicssimilar to that of their parent enabling this industry to focus on key aspects such as yield, growth. Economical yields achieved with OPV’s or synthetics are better even under less favorable growing conditions and with lower crop inputs. OPV’s and particularly synthetics can be built by inter-mating populations or lines carrying genes of resistance to different pathogens or parasites, thus improving the disease resistance. Seed industry is currently facing a trade-off between the usage of OPVs or hybrid variety. Conducting further research could prove OPV to be the highlight of the seed industry in the coming decade.

Competition: Competition has in the recent industry has resulted in corporate consolidation of the industry amongst the big players such as Monsanto (US), DuPont (US), Syngenta (Switzerland) having approximately 22%, 16%, 10% of market share respectively.  Over the last decade well established companies have increased their market share considerably, while some medium sized firms almost disappeared due to lack of research and funds into segments of OPVs or even hybrids. Monsanto reached an agreement with ToolGen to conduct research on genetic diseases (2017). DuPont Pioneer reached an agreement with CasZyme to work together on the development of a DNA genetic research (2017).  ChemChina announced the acquisition of one of the world’s largest seed company Syngenta (2017).

Conclusion: Seed Market Research Reports suggest that the recent consolidation wave in the seed industry has provoked strong reactions and concerns. It is once again drawing the public’s attention to the seed sector, particularly to its major players. However, in the agri-food chain, the seed sector has a modest economic growth with companies conducting their research on open pollinated seeds and the potential shift it can bring from the hybrids.

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