Shandong Denghai Seeds Co., Ltd (Denghai) is a
company founded in 2000 that is engaged in the selection and breeding of new
varieties of crops and the production of crop seeds. Products of Denghai mainly
include corn hybrids, vegetable hybrids, flower seedlings, wheat seeds, and
rice seeds.
Denghai has become a leading enterprise in
hybrid corn seeds and is at the leading level in China's corn seed production
scale. Denghai's hybrid corn has repeatedly set records in China for the
greatest corn yield per hectare. The hybrid corn species Denghai 618 is also
the corn variety with the largest number of certifications and the largest
planting area in China, and in 2020, the China Seed Association gave formal
awards to several varieties of Denghai corn.
In 2020, two corn varieties, Denghai 605 and
Denghai 618, were selected as the 1st and 3rd in the "2019 Corn High-Yield
Variety Test," which took place in a summer corn planting area near the
Huang-huai-hai river basin. In the first half of 2021, Denghai's main corn seed
business saw further improvement, with increased corn seed sales and a
substantial increase in profitability. Corn seed sales this year and next year
are expected to continue to increase. The company has strongly selling corn
varieties, including Denghai 605, as well as emerging varieties such as Denghai
533, Denghai 111, and Denghai 1717. Denghai is expected to gain a higher market
share by virtue of strong product competitiveness.
Genetically modified grains expected to continue gaining popularity
The average yield of corn in China and the
United States has doubled since the popularization of genetically modified
products. Relying on traditional hybrid breeding to increase corn yield has
entered a bottleneck period, and thus transgenic technology can help increase
grain yield. Transgenic seeds are significantly better than ordinary hybrids in
terms of yield and resistance to weather and pests, and with the increasing
importance of food security, experts expect rapid acceleration in the
implementation of transgenics.
In 2019, the planted areas of genetically
modified soybeans, corn, and cotton reached 92 million hectares, 61 million
hectares, and 26 million hectares, respectively. Among these three crops,
genetically modified products made up 74%, 32%, and 76%, respectively, of the
total volume of planted crops.
Corn seed prices rise with genetic modification
The price of genetically modified seeds is
significantly higher than that of conventional seeds due to the large
investment in research and development and due to the higher planting
efficiency. In 2018, the cost of corn seed per hectare in the United States was
RMB 1600, while in China, the price was RMB 850. In 2018, the cost of seeds per
acre of corn planting costs in China was only about 14% of total operating
costs, while that of the United States was as high as 28%. Furthermore, in
general, data from developed countries shows that the widespread promotion of
genetically modified seeds is conducive to the increase of seed prices. For
example, in the United States, since the commercial application of genetically
modified technology in 1996, the average annual increase in corn seed prices
has been more than 20%. Prior to this, the annual increase was less than 5%.
For more information, please check our
resources on Corn
Products China News.
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