Global industry

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The seeds industry is expected to reach nearly $50 billion in 2015. A

growing population, improving farming activities and increased use of
biotechnology in seed research and development is driving the
demand in the seed industry. Within the growing market, there is an
increasing demand for pest resistant seeds and hybrid seeds.

The world seed industry has grown rapidly in the last few years with
the introduction of biotechnology. Genetically modified seeds provide
benefits and, compared to conventional seeds, are sold at a much
higher price. Farmers prefer the use of certified seeds and varieties
that produce high yields. The total acreage that uses biotech crops has
risen to approximately 330 million, with over 15 million farmers
adopting genetically modified crops.

The largest seed market is the US, with demand expected to show
continued growth, driven by transgenic and hybrid seeds. The fastest
growing market for seeds is Asia Pacific, forecast to post 5% annual
growth in the next ten years. Grain seeds is the largest sector of the
seeds industry, with horticulture seeds being the second largest global
sector. Vegetable seeds, the fastest growing sector in the market, is
expected to drive demand in future years.

Leading companies in the global seeds industry include Bayer

CropScience AG, Limagrain, Monsanto Company, Mycogen Seeds,
Pioneer Hi-Bred International, Inc., Sakata Seed Corporation, Svalof
Weibull AB, Syngenta Crop Protection and Golden Harvest Seeds Inc.

The global seeds market is forecast to reach US$47 billion by the year
2015. Increasing demand for food in tandem with the growing global
population, rising standards in global farming, and extensive use of
biotechnology in seed development are propelling the agriculture
sector and in turn driving the demand for seeds. Other factors driving
seeds market include rising demand for pest-resistant seeds,
increasing use of hybrid seeds, and introduction of high-end varieties
in biotech crops.

The global seed market has undergone rapid transformation in recent

years with the advent of biotechnology in agriculture. Genetically
Modified (GM) seeds offer economic advantages to farmers, and are
sold at a premium in relation to conventional seeds. Despite resistance
from several sectors, this market has fiercely penetrated the
agriculture sector. The global seed market is projected to grow driven
by rising standards in global farming. Farmers in various countries are
showing increased preference for certified seeds and innovative high-
yielding varieties. Extensive use of biotechnology in seed development
is resulting in new and high-end varieties, which is driving the global
seed market in value terms. Genetically modified crops, first cultivated
in 1996, has rapidly increased penetration in terms of total acreage
grown over the past decade. Genetically modified seeds is expected to
grow from the fringes of crop protection into newer potential
applications, thus increasing the presence of biotechnology in the
industry. The acreage under biotech crops increased to about 333
million in 2009, with about 14 million farmers spread across 25
countries having adopted biotech crops. Currently, the industry is
witnessing new lines of genetically modified crops with improved pest
protection and nutritional value being added by several producers.

The US represents the single largest market for seeds, as stated by the
new market research report on Seeds. Demand for seeds in the United
States is expected to maintain steady growth in the coming years,
spurred by the development and launch of a wide range of high-end
transgenic and hybrid seeds. The market is also likely to be shaped by
a number of favorable factors, such as growing garden and lawn
expenditures of consumers, a general shift towards narrow planting of
rows, and expanding new uses of crops. Europe and Asia-Pacific are
the other important seeds markets. Demand for seeds is forecast to be
the fastest in Asia-Pacific, which is expected to increase at a
compounded annual growth rate of more than 5.0% through 2015.

Segment wise, Grain Seeds represents the largest segment.

Horticulture seeds constitute the second largest segment in the seeds
market. However, demand is expected to mainly emanate from
Vegetable Seeds, which represents the fastest growing segment during
the analysis period. The vegetable seeds market is primarily a
fragmented and complex sector within the seed industry. The
homeowner segment of the vegetable seed market is directly related
to personal preferences and values.

Major players profiled in the report include Bayer CropScience AG,

Limagrain, Monsanto Company, Mycogen Seeds, Pioneer Hi-Bred
International, Inc., Sakata Seed Corporation, Svalof Weibull AB,
Syngenta Crop Protection, Golden Harvest Seeds Inc., among others.

The research report titled “Seeds: A Global Strategic Business Report”

announced by Global Industry Analysts Inc., provides a comprehensive
review of the Seeds market, current market trends, key growth drivers,
use of biotechnology in agriculture, review of genetically modified (GM)
seeds, recent product introductions, recent industry activity, and
profiles of major/niche global as well as regional market players. The
study analyzes market data and analytics in terms of value sales for
the global seeds market for the following geographic markets - US,
Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World.
Key segments analyzed include Grain Seeds, Vegetable Seeds,
Oilseeds, Horticulture Seeds (Flower Seeds and Lawn/Grass Seeds),
Fruit Seeds, and Miscellaneous Seeds. A seven-year (2000-2006)
historic analysis is provided for additional perspective.

GM crops were commercially produced beginning in the mid-1990s.

From 1996-2008, production of GM crops grew from 4.2 million acres in
six countries to 309 million acres in 25 countries (James, 2008). GM
production is primarily concentrated in six countries (United States,
Argentina, Brazil, India, Canada, and China) that planted about 95% of
the global GM cropland (James, 2008). Before 2000, early development
of commercially viable GM seeds incorporated only a single genetic
trait, specifically an insect-resistance trait for cotton and corn, and a
herbicide-tolerance trait for soybeans. The development and rapid
adoption of double, triple, and quadruple stacked GM seeds with
multiple genetic traits primarily occurred since 2000.

In a study conducted during kharif 1996 in Coimbatore, Tamil Nadu, India, attempts were
made to produce large quantities of hybrid seeds by hand emasculation (performed
between 15.00 and 18.00 h) and pollination method (performed between 6.00 and 9.00 h),
with VRI.1 and Si.3214 as ovule and pollen parents, respectively. Hybrid seed production
in sesame is very costly and highly labour-intensive. The total cost of hybrid seed
production was estimated to be Rs. 247 876.00/ha and the total labour use was estimated
to be 6930 man-days/ha (one man-day is equivalent to 8 h of work per day) from sowing
to harvest. It was found that 98.64% of the total cost of hydrid seed production and a total
of 6836 man-days/ha were spent towards emasculation and crossing. On average, one
trained labourer could attend 450 and 275 flower buds per h for emasculation and
crossing, respectively. In the present study, only 54% capsule set was recorded and only
33 seeds were obtained per crossed capsule. The cost of hybrid seed production was
worked out to be Rs. 534.00/kg.