Summary: There is a wide gap of R&D expense in seed industry between
China and foreign countries. Monsanto spends about 11% of its net sales on
R&D every year, while in China, even Longping High-Tech, the largest
R&D investor, spends only about 5% of its revenue on R&D. Even though
in 2013 the R&D expense of Longping High-Tech reached more than USD15
million, it just accounted for 1% of that of Monsanto,
according to Seed
China News 1411 on November by CCM.
China and foreign countries. Monsanto spends about 11% of its net sales on
R&D every year, while in China, even Longping High-Tech, the largest
R&D investor, spends only about 5% of its revenue on R&D. Even though
in 2013 the R&D expense of Longping High-Tech reached more than USD15
million, it just accounted for 1% of that of Monsanto,
according to Seed
China News 1411 on November by CCM.
On 8 Oct., 2014, Monsanto released its FY2014 Report which showed that in
2014 the company's R&D expense was USD1.73 billion, accounting for 10.88%
of its net sales, higher than that of 2013. According to reports in the past
few years, Monsanto spends about 11% of its net sales on R&D every year.
2014 the company's R&D expense was USD1.73 billion, accounting for 10.88%
of its net sales, higher than that of 2013. According to reports in the past
few years, Monsanto spends about 11% of its net sales on R&D every year.
There is a wide gap of the R&D expense among China's seed industry.
Almost all of the listed seed enterprises in China are integrated
breeding-cultivation-promotion ones. They all claims in their annual reports
that they are increasing their R&D expense. However, the reality is not so
optimistic.
Almost all of the listed seed enterprises in China are integrated
breeding-cultivation-promotion ones. They all claims in their annual reports
that they are increasing their R&D expense. However, the reality is not so
optimistic.
R&D expense was not regarded as an important financial expenditure nor
listed separately in each enterprise's annual reports until 2012. In 2011, the
Opinions of the State Council on Promoting the Development of Modern Crop Seed
Industry (the Opinions) was issued by the State Council of the People's
Republic of China. The Opinions was aiming at cultivating integrated
breeding-cultivation-promotion enterprises with powerful international
competitiveness. Since the issue of the Opinions, seed enterprises have begun
to attach importance to R&D expense in seed breeding. Particularly, Hefei
Fengle Seed Co., Ltd. (Hefei Fengle) and Yuan Longping High-Tech Agriculture
Co., Ltd. (Longping High-Tech) are the largest investors in this aspect. Though
Grand Agriseeds Technology, Inc. (Grand Agriseeds) built several R&D
facilities and experimental bases in 2013, its R&D expense is still
relatively low. Anhui Wanken Seed Co., Ltd. (Anhui Wanken) released its
prospectus in Sept. 2014, planning to land on the Growth Enterprises Market.
Its R&D expense is lower than other listed enterprises in the
industry.R&D expense was not regarded as an important financial expenditure
nor listed separately in each enterprise's annual reports until 2012. In 2011,
the Opinions of the State Council on Promoting the Development of Modern Crop
Seed Industry (the Opinions) was issued by the State Council of the People's
Republic of China. The Opinions was aiming at cultivating integrated
breeding-cultivation-promotion enterprises with powerful international
competitiveness. Since the issue of the Opinions, seed enterprises have begun
to attach importance to R&D expense in seed breeding. Particularly, Hefei
Fengle Seed Co., Ltd. (Hefei Fengle) and Yuan Longping High-Tech Agriculture
Co., Ltd. (Longping High-Tech) are the largest investors in this aspect. Though
Grand Agriseeds Technology, Inc. (Grand Agriseeds) built several R&D
facilities and experimental bases in 2013, its R&D expense is still
relatively low. Anhui Wanken Seed Co., Ltd. (Anhui Wanken) released its prospectus
in Sept. 2014, planning to land on the Growth Enterprises Market. Its R&D
expense is lower than other listed enterprises in the industry.
listed separately in each enterprise's annual reports until 2012. In 2011, the
Opinions of the State Council on Promoting the Development of Modern Crop Seed
Industry (the Opinions) was issued by the State Council of the People's
Republic of China. The Opinions was aiming at cultivating integrated
breeding-cultivation-promotion enterprises with powerful international
competitiveness. Since the issue of the Opinions, seed enterprises have begun
to attach importance to R&D expense in seed breeding. Particularly, Hefei
Fengle Seed Co., Ltd. (Hefei Fengle) and Yuan Longping High-Tech Agriculture
Co., Ltd. (Longping High-Tech) are the largest investors in this aspect. Though
Grand Agriseeds Technology, Inc. (Grand Agriseeds) built several R&D
facilities and experimental bases in 2013, its R&D expense is still
relatively low. Anhui Wanken Seed Co., Ltd. (Anhui Wanken) released its
prospectus in Sept. 2014, planning to land on the Growth Enterprises Market.
Its R&D expense is lower than other listed enterprises in the
industry.R&D expense was not regarded as an important financial expenditure
nor listed separately in each enterprise's annual reports until 2012. In 2011,
the Opinions of the State Council on Promoting the Development of Modern Crop
Seed Industry (the Opinions) was issued by the State Council of the People's
Republic of China. The Opinions was aiming at cultivating integrated
breeding-cultivation-promotion enterprises with powerful international
competitiveness. Since the issue of the Opinions, seed enterprises have begun
to attach importance to R&D expense in seed breeding. Particularly, Hefei
Fengle Seed Co., Ltd. (Hefei Fengle) and Yuan Longping High-Tech Agriculture
Co., Ltd. (Longping High-Tech) are the largest investors in this aspect. Though
Grand Agriseeds Technology, Inc. (Grand Agriseeds) built several R&D
facilities and experimental bases in 2013, its R&D expense is still
relatively low. Anhui Wanken Seed Co., Ltd. (Anhui Wanken) released its prospectus
in Sept. 2014, planning to land on the Growth Enterprises Market. Its R&D
expense is lower than other listed enterprises in the industry.
On 20 May, 2014, the Ministry of Agriculture of the People's Republic of
China announced that about USD97.63 million had been put into R&D annually
by China's top 10 seed enterprises which accounted for above 6% of revenue.
While in developed countries it usually reaches 8% to 12%. It would be even
higher in large scale seed enterprises.
China announced that about USD97.63 million had been put into R&D annually
by China's top 10 seed enterprises which accounted for above 6% of revenue.
While in developed countries it usually reaches 8% to 12%. It would be even
higher in large scale seed enterprises.
The more R&D expense spent, the more self-developed new varieties
cultivated. So the less R&D expense in China results in less self-developed
varieties and seed enterprises have to buy variety usage rights from others.
For example, Anhui Wanken has only 1 plant variety rights and 17 variety usage
rights. In other words, Anhui Wanken is only a foundry without core techniques.
cultivated. So the less R&D expense in China results in less self-developed
varieties and seed enterprises have to buy variety usage rights from others.
For example, Anhui Wanken has only 1 plant variety rights and 17 variety usage
rights. In other words, Anhui Wanken is only a foundry without core techniques.
However, depending on usage rights is not a good operating mode for
enterprises. If China's seed enterprises want to compete with multinational
enterprises, innovation must be advocated and R&D expense must be
increased.
enterprises. If China's seed enterprises want to compete with multinational
enterprises, innovation must be advocated and R&D expense must be
increased.
Table of Content:
Seed China News 1411
Seed China News 1411
Syngenta: performance of seed business in Q3 2014 not satisfactory
Monsanto's net sales of Q4 FY2014 increases by 19.44% year on year
Zhejiang Mitsuo to transfer 20% shares to Shenzhen Noposion
Winall Hi-tech witnesses deficit in Q3 2014
Total revenue of Longping High-Tech increases by 44.29% in Q3 2014 year on
year
year
Shandong Deinghai witnesses YoY increase of 158.50% in total revenue
Wide gap of R&D expense in seed industry between China and foreign
countries
countries
Performance of China's seed industry in Q3 2014
Crop variety plummets in China
Hohhot first breeds 400 tonnes of virus-free seed potatoes with high
quality
quality
Sichuan Province witnesses yield increase and quality improvement of wheat
seeds
seeds
Two new corn varieties of Shandong Denghai show excellent performance
Mianyang City succeeds in planting high-yield purple sweet potato
Sichuan to promote new variety Chuanyou6203 in 2015
New hybrid flax-corn succeeds in experimental planting
China leading the world in variety breeding of purple pepper
Vegetable seed business becomes new choice for merger and acquisition in
seed industry
seed industry
List of national credit leading vegetable seed enterprise released
China lays strict restrictions on planting GM crops
Top nine food security problems in China
Anhui Wanken expands capacity despite oversupply
Shandong Denghai to apply O2O marketing mode
Fujian Province releases list of 2014-2015 provincial leading seed
enterprises
enterprises
Henan Qiule seeking for cooperation for corn varieties
Jiangsu Hongqi lands on XINSANBAN
Longping High-Tech: Hunan Xindaxin ends preliminary non-binding proposal
with Origin
with Origin
Transaction value in 20th Harbin Seed Industry Exposition exceeds USD300
million
million
Hefei Fengle to work harder in promoting ratoon rice
BGI Shenzhen China and Hulun Buir sign cooperation agreement on millet
introduction
introduction
Guangxi Hengmao's integration business obtains state recognition
There is a saying in China: "Agriculture feeds the nation, and seeds
feed the agriculture". As a country withalarge seed production and
consumption, China showsa great vitality and potential in the seed market. Seed
China News mainly covers policy, market dynamic, company, seed treatment,
R&D crops, new varieties, etc. By catching the latest dynamics in the seed
industry and making depth analysis on government direction and market
competition,theSeed China News can provide you valid information, helping you
make rational decisions aboutinvestments, production, marketing, etc.
feed the agriculture". As a country withalarge seed production and
consumption, China showsa great vitality and potential in the seed market. Seed
China News mainly covers policy, market dynamic, company, seed treatment,
R&D crops, new varieties, etc. By catching the latest dynamics in the seed
industry and making depth analysis on government direction and market
competition,theSeed China News can provide you valid information, helping you
make rational decisions aboutinvestments, production, marketing, etc.
About CCM
CCM
is dedicated to market research in China, Asia-Pacific Rim and global market.
With staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis,
Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and
Consultancy Service.
is dedicated to market research in China, Asia-Pacific Rim and global market.
With staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis,
Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and
Consultancy Service.
For more information, please visit http://www.cnchemicals.com
Guangzhou CCM Information Science &
Technology Co., Ltd.
Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade
Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606
Email: econtact@cnchemicals.com
This article was provided by CCM, a leading
provider of data and business intelligence on China's chemicals market. Contact
us:
provider of data and business intelligence on China's chemicals market. Contact
us:
- Facebook: https://www.facebook.com/ccmkate
- Twitter: https://twitter.com/CCM_Kcomber
No comments:
Post a Comment