Shandong Denghai breaks corn yield record and sees booming business amid increasing demand 09-24-2021

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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