Monday, October 17, 2011

China Issued New Regulations for Crop Seed

The October Issue of Seed China News published by CCM shows that China issues new Management Regulations for Crop Seed Production and Operation, with major modifications on registered capital and GM crop seed.

The new formal Management Regulations for Crop Seed Production and Operation (New Regulations) was released on 25 August 2011. Compared with regulations in 2010, the New Regulations raise the access threshold of seed industry by increasing the registered capital of seed enterprises. Both the production license and operation license for hybrid rice seed or hybrid corn seed require a registered capital of at least USD4.66 million (RMB30 million), much higher than the original amount of USD775,891 (RMB5 million). For producing or operating other major crop seeds, the registered capital of enterprises increased from the original USD155, 178 (RMB1 million) to USD775,891 (RMB5 million).

New Regulations also put forward stricter requirements of breeding ability to dominant seed enterprises. For example, those seed enterprises with integration of "breeding, propagation and promotion" shall have their own breeding departments, with over 300 m2 of research laboratories, 6,666.67 m2 of stable breeding land and over five professional breeders, etc. Moreover, their annual research funds shall be no less than 10% of the annual profit, and annual revenue from proprietary varieties shall account for more than 10% of their total revenue.

Moreover, relevant provision of production and operation of GM crop seed will be deleted in the New Regulation. It is reported that the regulations on GM crop seed production and operation will be separately formulated by China's Ministry of Agriculture (MOA). The cancellation of GM provisions in New Regulations reflects the cautious attitude of the State towards GM crop seed.

Above is extracted from CCM’s October Issue of Seed China News. More news please check:
-China issues new Management Regulations for Crop Seed Production and Operation, with major modifications in related provisions about registered capital and GM crop seed.
-Influenced by water shortages, China has attached great importance to water-saving agriculture.
-The corn seed business of Longping High-tech suffers sales decline, though it reaches significant growth in both revenue and net profit during H1 2011.
-Winall Hi-tech acquires a corn seed company in Northeast China, aiming to march into the important corn seed market.
-Grand Agriseeds sees slight growth in both the revenue and net profit in H1 2011, with its core business of three-line hybrid rice seed.
-Chongqing Jinsui will introduce new capital from a local investment corporation, leading the business restructuring in the seed industry of Chongqing.
-Origin sets up a join venture in Northwest China with a prominent local partner, and a premier corn processing plant is under construction.
-Heilongjiang Kenfeng intends to set up a joint venture with KWS for the key corn seed market in Northeast China.
-Beijing Doneed launches a corn breeding and processing base, which shall create a positive impact on WanXiang Doneed.
-The genome sequencing of Chinese cabbage has been completed, which shall promote the breeding process of excellent varieties.

For more information about CCM’s October Issue of Seed China News, please feel free to contact us at
 (Guangzhou China, October 12, 2011)

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
Please visit for more information or contact

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China


No comments: