A number of companies from different industries are getting into seed business, in order to benefit from the good development tendency of domestic seed industry, according to CCM's August issue of Seed China News. On one hand, the increasing access of more companies would accelerate the development of seed industry. On the other hand, it will also bring more competition to seed business.
For example, Bright Food (Group) Co., Ltd. (Bright Group), a leading food conglomerate headquartered in Shanghai City, announced the establishment of an affiliated company called "Bright Seed Industry Co., Ltd." (Bright Seed) on 18 August 2011.That means Bright Seed is a wholly-owned subsidiary of Bright Rice Industry Co., Ltd. (Bright Rice) which is a subsidiary of Bright Group.
Besides, Sichuan Leshan Fuhua Agrochemical Technology Co., Ltd.(Sichuan Fuhua), a large group centering on pesticide production, and Guangdong Tianhe Agricultural Materials Co., Ltd. (Guangdong Tianhe), a leading distributor of agrochemicals in Guangdong Province also announced to get into seed business early this year.
Overall, adequate funds, good relationship with research units and governments, and perfect sales network are all essential for new players to get into seed industry and compete with a large number of existing counterparts. With the entering of new competitors and the promotion from the government, China's seed industry is going to see more transformation in future.
The following highlights are also covered in Seed China News 1108:
-Administration of Seed Industry is expected to be set up to strengthen the management of the seed industry.
-Vegetable seedling industry witnesses swift development in Shouguang City, China's home of vegetables.
-A number of companies of different industries are getting into seed business to benefit from the good development tendency of seed industry.
-Hefei Fengle underperforms in corn seed business during H1 2011.
-Both the revenue and net profit of Shandong Denghai witness decrease in H1 2011.
-Gansu Dunhuang has a deficit in H1 2011, mainly due to the declining price of cotton oil products.
-Liaoning Dongya, one of the top seed players in China, is likely to become a domestic partner of overseas counterparts.
-China's soybean planting area has decreased year by year, mainly due to the increasing imported soybeans.
-China has made a great breakthrough in developing rice varieties resistant to brown planthopper.
-Rice seed treatment developed slowly in China, while it has a great potential for promotion.
(Guangzhou China, September 8, 2011)
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