The Future of Domestic Economic Crop Seeds

Recently, Bayer announced plans to merge with Monsanto. If the deal succeeds, Bayer-Monsanto will become the world’s leading seed and pesticide company. Earlier, Dow and DuPont completed their merger, and Sinochem Group has been actively acquiring Switzerland’s Syngenta. The world’s top five agricultural chemical companies are now consolidating into three major players. Beyond the clear intent of mutual support, these mergers will further enhance their research capabilities. Notably, Sinochem’s acquisition of Syngenta is truly a blessing for China’s agricultural chemistry sector, granting the country some degree of influence in the global agricultural inputs market.

In revitalizing the domestic seed industry, China has made significant efforts, including increasing research investment, setting strict entry thresholds, and supporting mergers and acquisitions among seed companies. This has led to progress, with the emergence of world-renowned seed scientists like Yuan Longping and Li Denghai, and listed companies such as Longping High-Tech and Dunhuang Seed, which have leveraged capital to achieve substantial growth. However, it is important to recognize that Chinese seed companies still lag behind international giants in advanced breeding technologies, such as molecular and genetically modified breeding. Most of the achievements by figures like Yuan Longping and Li Denghai are based on traditional hybrid breeding methods. Similarly, smaller breeding companies predominantly rely on conventional techniques.

Market dynamics are the best catalyst for the rapid development of an industry. For the seed industry to thrive, it must allow the demise of small, low-quality enterprises lacking technological innovation. Government guidance funds should favor truly innovative and competitive companies rather than spreading resources thinly in the name of egalitarianism.

At this year’s Zhejiang Province Melon and Vegetable Seed Industry Expo, new trends in seed industry development were evident. Seed production is increasingly concentrated in companies with strong R&D capabilities. Additionally, seed marketing is transitioning from simply selling seeds to offering integrated services, including seedlings and technical support for downstream clients. As land transfers and consolidation accelerate and specialized planting enterprises continue to grow, seed service companies providing holistic solutions are poised for better development prospects.