Expansion continues in the global proprietary seed industry. In its analysis just released, the Context Network notes the value of the global seed industry at $37 billion. The industry's global annual growth rate slowed to less than 10 percent, following six years of double digit yearly growth.
Over the past decade, Context has recorded economic change and monitored seed dynamics along with the forces pressing on grower seed purchasing decisions. These results are published in Context's Global Seed Market Database 2011 (GSMD).
Notable in this year's edition is the increasing role emerging economies have had in global agriculture and in strengthening the demand for commodity prices worldwide. Context Partner Mark Nelson leads the study. "Agriculture is leading the world out of global recession. The fundamentals of agriculture are strong as ever and the possibility for farmers to invest in technologies to enhance their productivity continues at a strong clip."
Nelson said GSMD 2011 shows the global proprietary seed market advancing in new and emerging markets. "In 2009, growers in Brazil indicated that if corn technology can deliver what it promises, their switch to GM corn would be very rapid. That is exactly what has occurred. In 2010, roughly 50 percent of Brazil's corn crop was traited," Nelson said. "For most farmers worldwide, awareness of technologies is high. Emerging markets experience pent-up demand in anticipation of technology, advancing a rapid adoption of those technologies."
Nelson continues, "GSMD is an important tool that helps monitor the global confluence of events that impart and affect outcomes central to our seed and agricultural industry. It puts the seed market in context - providing a defined global perspective on strategic trends and the impact and degree of change occurring within markets -- emerging through mature."
The report also highlights the first wave of GM traits maturing in the U.S. corn trait market. Nelson added, "Technology packages for insect protection have begun to segment and seed providers are balancing their seed product lineups accordingly. In addition, new technologies including water and nutrient utilization products are coming to market amidst very dynamic times and strong economic fundamentals."
The Context Network provides business management and strategy consulting services to the world's leading agriculture, biotechnology and food companies and government agencies and institutions. Major areas of expertise include strategy, merger and acquisition support, valuation of new technologies, formation of alliances, and market research. The West Des Moines, Iowa-based firm is composed of a core of professional consultants that is complemented by a network of hundreds of industry and subject-area experts worldwide.