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.
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.
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