Agriculture Reference
In-Depth Information
focused almost completely on biotechnology, although for 10 years it had an
alliance with the Swedish seed company Svalöf Weibull. Starting in 2007,
BASF has concluded a number of research collaboration and licensing
agreements with Monsanto and other seed companies for commercialization of
future biotechnologies that BASF may develop. As noted, Bayer's entry into
the seed business came with its acquisition of Aventis Crop Science. In
general, as large chemical companies decided to commercialize their own
biotechnology research or to buy seed company research, they needed to get
access to seed companies either through direct acquisition, joint-venture, or
licensing agreements. Through its purchase of Pioneer, DuPont gained
immediate access to seed for multiple crops in multiple regions. Other
companies had to acquire companies focusing on different crops in different
regions; Monsanto has followed this strategy most comprehensively.
Many other large multinational seed companies have also followed a
pattern of acquisitions or joint ventures. For example, Limagrain, which
acquired other European seed companies starting with Vilmorin in 1975,
acquired several more seed companies in the late 1990s and early 2000s,
including Advanta Europe in 2005. Limagrain also formed a joint venture with
KWS, AgReliant, in the North American corn and soybean markets, and also
participated in projects with small biotechnology companies. DLF-Trifolium
acquired the Dutch company Cebeco in 2002. Syngenta has held a significant
minority interest in Maisadour for years. Recently, Svalöf Weibull (now
Lantmännen SW Seed) and Florimond Desprez have initiated a research alli-
ance, as have RAGT Semences and In Vivo.
Changes in Concentration in the Global Seed Market
In 2009, the top four companies accounted for 54 percent of the global
commercial seed market (including public sector commercial seed), and the
top eight companies accounted for 63 percent of total commercial seed sales.
In 1994, these shares were 21 percent and 29 percent, respectively. Four-firm
concentration ratios as measured by seed sales are now roughly equivalent
across large agricultural input sectors. The eight-firm concentration ratio is
still lower than eight-firm concentration in the agricultural chemicals industry
(although four of the top six companies in each segment are the same), the
animal health sector, and the animal genetics sector. Furthermore, the rate of
growth of concentration in the seed market has been greater than the rate of
growth for agricultural chemicals, animal health, or farm machinery.
