Serious oversupply has been commonly found in China's hybrid rice seed market in 2013

The stable or even shrank planting of hybrid rice also contributes to the serious oversupply. The rising planting costs (labor, seeds, pesticides, fertilizer, land rents, etc.) and unattractive purchase price of rice have affected rice growers' planting enthusiasm. As a result, rice growers in some southern regions like Hunan, Guangdong and Guangxi, are prone to cancel the cultivation of early season rice that offers low yield and benefits, simply replacing double-cropping rice (early season rice and late season rice) with single-cropping mid-season rice. The former paddy fields are even planted with fruit trees or other corps rather than rice in some grain planting areas of Guangxi and Guangdong, revealed by insiders engaged in rice seed business.
 
Hybrid rice generally maintains around 29.50 million ha. in recent years, occupying above 55% of China's total rice acreage (hybrid rice and open-pollinated rice) . Hybrid rice planting proportion is even higher in southern regions, where domestic rice planting is mainly concentrated.

Serious oversupply has been commonly found in China's hybrid rice seed market in 2013, compared with the balance or slight oversupply in the previous years. Statistical data from National Agro-Tech Extension and Service Center (NATESC) shows that the excess inventory of hybrid rice seeds in 2013 is 260,000 tonnes, equalling about half of the total demand. The oversupply of hybrid rice seeds are particularly serious in the major rice planting regions like Sichuan, Hunan and Jiangsu, where the supply-demand ratio reaches close to or even above 2:1. The serious oversupply caused by multiple factors impacts on China's hybrid rice seed market.

Compared with staple crops seeds like corn seeds and rice seeds, China's vegetable seed companies are universally "small, scattered and weak". Although vegetable seeds account for over 20% of the seed market share, there hasn't yet been any vegetable seed company whose business scale as large as that of listed seed companies. For example, Yuan Longping High-tech Agriculture Development Co., Ltd. and Shandong Donghai Seeds Co., Ltd., both of which engage in operating field crops seeds. Besides, the lack of core R&D competitiveness places domestic vegetable seed companies at a disadvantage when competing with transnational corporations like Syngenta and Seminis, since the latter can seize a higher market share benefiting from their high-value seed products. What’s a worse only national seed company in the mode of "breeding, production and promotion"(hereinafter national certified seed enterprises) are usually the key target of governmental support policies. Few vegetable seed companies can enjoy the policies since none of them has been approved as the national certified seed enterprises. For the reasons above, vegetable seed companies have an urgent need of government support, especially the construction of large and specialized vegetable seed group companies.

Seed China News  is a monthly publication released by CCM. It offers timely update and close follow up of China’s various kind of seed market dynamics, analyze the market data and trends. Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, consumption trend & competitiveness.

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