As positioned in the Suggestions for Accelerating Development of Modern Crop Seed Industry
and National Development Plan
2012-2020 for Modern Crop Seed Industry released by the State
Council in 2011 and 2012 respectively, seed industry in China
With solid capital support and the pursuit of expansion, state-owned seed companies are predicted to continue M&A in order to grab more market shares even regardless of costs in 2013. In contrast, private capitals are more connected with the features of marketization and speculation, whose investment in seed industry will be less consistent compared with state-owned capitals. But the own responsibility to long undertake seed business and to strengthen seed industry is still just a slogan for both state-owned and private enterprises.
On one hand, social capitals support seed enterprises that were short of capitals to upgrade their technologies and equipment while those enterprises' deficient understanding about industrial structure and technology restrains investments' efficiency. On the other hand, the entry of large social capitals will encourage the appearance of short-or-medium-term Valuation Adjustment Mechanism. There is still a strong executive-led atmosphere of planned economy in current seed market. Overall, the investment tide will last for a period, with almost equal benefit and impact to seed industry inChina
Seed enterprises seem somewhat impetuous, with the emergence of speculation for "big varieties" and themselves. Many seed players attempt to make windfall profits and achieve capital accumulation by increasing the bet on some "big varieties" rather than taking pragmatic operation and enhancing R&D. Nearly all owners of seed companies dream of getting listed which is actually not so practical.
Compared with the expect from the industry, the upgrading of Approval Measures for Major Crop Varieties and Seed Law is still nowhere in sight, which is estimated to hardly be finished within 2013.
With solid capital support and the pursuit of expansion, state-owned seed companies are predicted to continue M&A in order to grab more market shares even regardless of costs in 2013. In contrast, private capitals are more connected with the features of marketization and speculation, whose investment in seed industry will be less consistent compared with state-owned capitals. But the own responsibility to long undertake seed business and to strengthen seed industry is still just a slogan for both state-owned and private enterprises.
On one hand, social capitals support seed enterprises that were short of capitals to upgrade their technologies and equipment while those enterprises' deficient understanding about industrial structure and technology restrains investments' efficiency. On the other hand, the entry of large social capitals will encourage the appearance of short-or-medium-term Valuation Adjustment Mechanism. There is still a strong executive-led atmosphere of planned economy in current seed market. Overall, the investment tide will last for a period, with almost equal benefit and impact to seed industry in
Seed enterprises seem somewhat impetuous, with the emergence of speculation for "big varieties" and themselves. Many seed players attempt to make windfall profits and achieve capital accumulation by increasing the bet on some "big varieties" rather than taking pragmatic operation and enhancing R&D. Nearly all owners of seed companies dream of getting listed which is actually not so practical.
Compared with the expect from the industry, the upgrading of Approval Measures for Major Crop Varieties and Seed Law is still nowhere in sight, which is estimated to hardly be finished within 2013.
Seed
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