Land circulation is espected to benefit
domestic seed industry, as seed manufacturers are able to achieve independent
seed production in farmlands leased from farmers, according to CCM
International’s May Issue of Seed China News.
In the past, most domestic seed manufacturers
entrusted farmers to produce crop seeds, by providing the latter with planting
materials and corresponding remuneration. After harvest, seed manufacturers
purchased seeds or fruits from farmers and conducted seed processing and
marketing. However, seed qualities covering purity, cleanliness, germination
rate and moisture content could not be effectively ensured, which has limited
the development of domestic seed industry to a large extent.
By leasing land from farmers who own the use
right of rural land, seed manufacturers could afford to independently and
reasonably use contiguous land in seed production, more efficiently ensuring
seed quality. In addition, some farmers' seed propagation and sale without
permission would be greatly prevented, which is conductive to build a better
market order in seed industry.
For farmers transferring land-use rights to
seed manufacturers, they could liberate themselves from the land contract and
receive lease charges. Moreover, these farmers' subcontract of land-use rights
could also take part in seed propagation or production in their lands and
further increase their incomes. Therefore, land circulation between farmers and
seed companies could benefit both sides.
Actually, some seed companies have actively
cooperated with farmers on land circulation. For example, Beijing Doneed Seeds
Co., Ltd., one leading corn seed company at home, has signed an agreement with
farmers in Zhangye City, China's largest corn seed
production base, to rent the farmland covering the area of 333.33 ha. (5,000 mu) in corn seed
production for the year of 2012. Origin Agritech Limited (Origin), a
technology-focused corn seed company listed in NASDAQ, has also rented large
area of lands from local farmers to conduct corn seed production.
Revealed by industrial insiders, land
circulation for corn seed production has also been rapidly developed in
Xinjiang, located in the northwest corner of China, with unique natural
environment for corn planting and corn seed production. More and more seed
companies from interior China,
such as Shandong Denghai Seeds Co., Ltd. (Shandong Denghai), Origin, Liaoning
Dongya Seed Co., Ltd., etc., have rushed to Xinjiang to rent farmland for corn
seed production.
Hubei Provincial Seed Group Co., Ltd. (HPSG),
a state-owned seed company based in Hubei
Province, signed a land circulation
agreement with a town government in Ezhou
City in July 2011, aiming
to build a large rice seed production base.
To support seed industry and boost
agricultural development, local governments of some areas have made related
policies on land circulation. For example, the municipal government in Chongqing City,
Southwest China, encourages large seed
companies to build seed production bases of rice, potato, vegetables, etc., in
way of leasing land from local farmers or rural cooperatives.
In Linze
County, Zhangye City,
local government has taken land circulation as an important task in promoting
the construction of corn seed production bases. The government recommends
farmers or rural cooperatives to transfer land-use rights to seed companies for
seed production, to provide a lump-sum incentive of USD119.05/ha. (RMB50/mu)
for the transferors who subcontract land for over 10 years.
In Oct. 2008, Chinese government issued the
rules that it allows farmers to lease their contracted farmland or transfer
their land-use rights, an important part of land reform efforts intended to
double rural income by 2020.
Chinese farmers are traditionally
family-centered in their thought and action, passionately attached to their
land. Therefore, there are still part of the farmers who do not want to
transfer their land-use rights or give up land contracts, especially
experiencing the land circulation forced by regional governments. However, all
transfers of land-use rights must be voluntary, with adequate payment.
It seems to be a trend that domestic seed
manufacturers enhance seed production through land circulation. Industrial
insiders believe that land circulation would be an effective method to boost
seed industry and improve the overall efficiency of agricultural production in China, relying
on enterprises' standardized and large-scale producing operation. With adequate
payment, more and more farmers are willing to take part in land circulation and
increase their incomes.
Source:
Seed China
News 1205
http://www.cnchemicals.com/Newsletter/NewsletterDetail_28.html
Content
of Seed China
News 1205:
Longping High-tech maintains good development
momentum
Grand Agriseeds presents significant growth
in 2011
Land circulation expected to promote seed
industry
Vegetable prices generally rise substantially
DBN to boost biological breeding
ZARD would take over Wuhan Good-Seed from
CSFAC
Rice genome breeding chip born in China
Fipronil FS to control athetis lepigone on
corn
Bayer CropScience supplies seed treatment
machinery in China
"Xianyu 335" development slowing
down
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
About
CCM International
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International is dedicated to market research in China, Asia-Pacific Rim and global
market. With a staff of more than 150 dedicated highly-educated professionals.
CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader
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17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road,
Guangzhou 510070, China
Tel: 86-20-37616606
Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1091.html
