Tong
Pingya, researcher from the Chinese Academy of Agricultural Sciences, has
engaged in the scientific study on corn and agricultural development strategies
for decades. With rich experience, Mr. Tong acts as a senior consultant for
both government departments and non-government organizations, according to CCM’s latest issue, Seed China News 1312.
In 2011
the State Council of the People's Republic of China issued the Suggestions for
Accelerating Development of Modern Crop Seed Industry (the Suggestions), which
clearly laid emphasis on "leading and actively mobilizing research
institutes and colleges to gradually withdraw from commercialized breeding, and
to establish the dominant status of technological innovation in seed
enterprises". However, the results have been unsatisfactory.
Since the
birth of China's seed industry, the breeding, production and promotion of seeds
have been totally out of joint in China. In order to establish the dominant
status of technological innovation in seed enterprises, commercialized breeding
should be gradually removed from research institutes. Since the issuance of the
Suggestions two years ago, there have been huge difficulties in the reform of
agricultural research systems, along with strong resistance and few
contributions.
On the one
hand, relevant departments have not attempted to promote reform and to rationally
allocate resources to remove commercialized breeding from research institutes
from the macro policy perspective; instead they advocate the collaboration
between seed enterprises and institutes, or the R&D alliance between the
two sides. On the other hand, officials and scholars conduct investigations on
the collaboration between seed enterprises and institutes, and the cooperation
is also a hot topic on magazines. Authoritative experts observe that "the
reform goes from bad to worse under the guidance of misconception".
It is
feasible for those seed enterprises that are qualified for the research system
"breeding, production and promotion" to voluntarily cooperate with
institutes on seed researches, to buy varieties from the latter, or to
temporarily transfer researchers from the latter.
However,
the cooperation is not what the development of a seed enterprise relies on. To
place the cooperation in a dual-track system with double benefits means that
research institutes sell their varieties to enterprises, and that seed
enterprises buy varieties from institutes. But the contrasting rules and
intentions of the two sides cause seed enterprises to give up technological
innovation, and to become a permanent "seed supermarket" instead.
Disagreement
on time for cooperation
Scientific
research is an incremental process, and the breeding of a variety takes 7-8
years, along with unpredictability, while seed enterprises hope to get the
results as soon as possible, usually without a clear understanding of the time
required for breeding. As a result, they may quit the cooperation at any time
when getting no positive short-term outcome.
Conflicting
cooperation purposes
For
research institutes, the breeding of varieties is aimed at publications and
academic titles, while product conversion is often considered secondary.
Scientific evaluation of a newly developed variety usually takes five years,
but seed enterprises buy existing varieties for the purpose of instant profits.
Thus, both sides have conflicting aims and conflicting purposes for entering
into a cooperation.
Enterprises
signs contracts with varying ranks of research units, such as institutes,
chambers, research groups, and even individuals, which hints at the
inefficiency of legally binding agreements. Therefore, the alteration or the
adjustment of leaders and research of the institute also influences the
cooperation. Furthermore, cooperation between seed enterprises and research
institutes is all about unconstrained contracts and purchases. Because of that,
a long-term stable partnership cannot get established between both sides. Seed
enterprises expect instant success, and they may break up the partnership if
they cannot obtain expected profits.
Disagreement
on variety rights
Seed
enterprises pay institutes for R&D on seeds in the hope of obtaining
exclusive rights on a seed variety and to obtain exclusive rights to explore
the market, which help the company elevate its reputation. However, institutes
are not willing to make their resources and breeding information open to
society. Institutes are willing to transfer variety distribution rights to
multiple enterprises in order to expand the promotion of the seed variety, and
to possibly increase their eligibility for State Science and Technology Prizes
and other awards. Thus, cooperations between seed enterprises and research
institutes prioritise the institute's interests over the seed enterprises'
interests, which creates conflict.
Divergence
in economic foundations
Nowadays
agricultural research institutes still follow the planned economic system,
while seed enterprises have just entered the market economy. Cooperation
between the two parties belonging to totally contrasting economic systems makes
it difficult to maintain a balance between competition and profit distribution.
Thus, the so-called "industry-university-research cooperation"
between the industry and researchers based upon a market orientation and
sharing interests and risks are unattainable.
The market
economy has so far been the most efficient economic system, and enterprises
boost its development by way of science and technology. The developmental
experience of the world's developed countries proves that enterprises are the
mainstay of the development of the market economy, of technology innovation,
and of the formation of independent intellectual property rights. Also, the
establishment of an innovation-oriented country and the improvement of
independent innovation rely on the support from thousands of
innovation-oriented enterprises. For every country, under the current situation
of rapid global economic development, the decline of enterprises will
inevitably lead to the downfall of the national economy; similarly, the rise of
enterprises will certainly boost the national economy.
Policy on grain purchasing and subsidy
implemented again
Cooperation between seed enterprises and
research institutes: undesirable
GM foods rejected by most Chinese
Beidahuang Kenfeng terminates cooperation
with SOPO on backdoor listing
Winall Hi-tech to establish three
subsidiaries
Oversupply in China's corn seed market and
revelations from it
Brief introduction of Guangdong corn seed
market
Analysis on corn variety Demeiya
Analysis on China's cotton seed market from
industrial chain perspective
Inner Mongolia's grass industry confronted
with challenges
Seed China
News, a
monthly publication issued by CCM at the end of every month, mainly covers a
diversity of topics, including market dynamic, company dynamic, crops, seed
market, etc. With the latest news in seed industry and in-depth analysis on
government direction and market competition, Seed China News can provide you
with valid information which would help you make rational decisions in
investment, production, marketing, etc.
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