Tuesday, April 24, 2012

Corn Seed Production Flourishing in Xinjiang

Xinjiang Uyghur Autonomous Region (Xinjiang), lies in the northwestern corner of China, with unique natural environment for corn planting and corn seed production. In recent years, the status of Xinjiang has been highlighted in domestic corn seed production, with the more intensive competition of corn seed production in Zhangye City (Zhangye), Gansu Province, the largest corn seed production base in China, according to CCM International’s March Issue of Seed China News.

With the continuous influx of corn seed companies, the competition for land resources in Zhangye has become more and more intensive. The absorptive capacity for corn seed manufacturers in Zhangye has almost reached its limit. Revealed by some industrial insiders, the corn seed market in Zhangye has been in a certain chaotic situation, with widespread behaviors like disordered competition and infringements. 

It seems to be a trend that a growing number of seed manufacturers have established their seed production bases in Xinjiang. Apart from some local prominent companies such as Xinjiang Condy Agri-Genetics Co., Ltd., Xinjiang Huaxi Seed Co., Ltd. and Xinjiang Xinshi Seed Co., Ltd., a number of large seed companies from outside have also developed corn seed production bases in Xinjiang, like Shandong Denghai Seeds Co., Ltd. (Shandong Denghai), Liaoning Dongya Seed Co., Ltd. (Liaoning Dongya), Shanxi Tunyu Seed Industry Co., Ltd., Origin Agritech Limited (Origin), etc. Moreover, some multinational companies also have collaborative business of corn seed production in Xinjiang. 
Shandong Denghai has a large base for corn seed production in Ili Kazak Autonomous Prefecture (Ili), located in western Xinjiang. The corn seed production base in Ili is able to provide around 40,000 tonnes of corn seeds each year, mainly for the company's leading corn varieties promoted in the major corn planting areas. In 2009, the company collaborated with a subordinate unit of Xinjiang Production and Construction Corps to buil a corn seed processing plant in Bole City, northwest of Xinjiang. Aiming to compete for local corn seed producing bases, Shandong Denghai made capital injection to its subsidiary in Changji Hui Autonomous Prefecture (Changji) at the end of 2011.
Origin, a technology-focused corn seed company listed in NASDAQ, has also enhanced its corn seed production capacity in Xinjiang. After founding a joint venture with a local prominent seed player which is affiliated to Fifth Agricultural Division, Xinjiang Production and Construction Corps, a corn seed production base with premier corn processing equipment was under construction which is expected to be initially launched in Sept. 2012, with the investment of totally over USD46.55 million (RMB300 million). Revealed by Niu Jinsheng, President of the joint venture, the total planting area for corn seed production should be over 6,666.67 ha. (100,000 mu) by then.
Nanjing Shenzhou Seed Co., Ltd. (Nanjing Shenzhou), a Sino-Japanese joint venture, established a joint venture in Xinjiang with a local state-owned partner, Tenth Agricultural Division affiliated to Xinjiang Production and Construction Corps in May 2011. The new founded subsidiary is going to build a 2000 ha. hybrid corn seed production base in 3 years.
Seed companies in local and outside generally produce corn seed by signing contracts with local corn growers or cooperate with subordinate units of Xinjiang Production and Construction Corps, a special organization integrating military and enterprise which has large areas of farm lands and intensive agricultural production system. 

Source: Seed China News 1203

Content of Seed China News 1203:
Modified vegetable seed standards take effect in China
Agricultural research units would not quit commercial breeding in short time
Corn seed production flourishing in Xinjiang
State-owned enterprises expanding seed business
Hybrid millet being promoted in China
China releases super rice varieties 2012
Second generation transgennic cotton wins great progress in China
Gansu Dunhuang witnesses unsatisfactory performance 2011
Hefei Fengle sets a branch in northern Anhui
Henan Goldoctor resubmits the IPO application

Seed China News, a monthly publication issued by CCM International on 30th of every month, offers timely update and close follow-up of China’s seed industry dynamics, analyzes market data and finds out factors influencing market development

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