Leading Seed Companies in South and Southeast Asia 04.17.2018 The Landscaping study for the ...

28 Pages·2017·5.22 MB·English

Identifying Leading Seed
Companies in South and
Southeast Asia
Landscaping study for the
Regional Access to Seeds Index
for South & Southeast Asia
Compiled by Mordor Intelligence,
Hyderabad, India
Commissioned by the
Access to Seeds Foundation
February, 2018
Table of Contents
Introduction 3
1. Landscaping the Seed Sector
in South and Southeast Asia 4
1.1 Background 4
1.2 The Seed Sector in South and Southeast Asia 4
1.3 Leading Seed Companies in the Region 6
1.4 Main Crops in South and Southeast Asia 9
1.5 Methodology 9
2. Country Profiles 11
2.1 Afghanistan 12
2.2 Pakistan 13
2.3 India 15
2.4 Nepal 17
2.5 Sri Lanka 18
2.6 Bangladesh 19
2.7 Myanmar 20
2.8 Thailand 21
2.9 Laos 22
2.10 Cambodia 23
2.11 Vietnam 24
2.12 Indonesia 25
2.13 Philippines 26
Endnotes 28
The report is intended to be for information purposes
only. While based on information believed to be
reliable, no guarantee can be given that it is accurate
or complete. Any views expressed here are those of
Mordor Intelligence and can therefore in no way be
taken to reflect the positions of the Access to Seeds
Foundation.
P.2 Landscaping study for the Regional Access to Seeds Index for South & Southeast Asia
Introduction
The Regional Access to Seeds Index for South & Companies selected for the
Southeast Asia will evaluate the efforts of 24 leading seed
Regional Access to Seeds Index
companies in the region, aimed at improving access to
seeds for smallholder farmers. Improving smallholder for South & Southeast Asia
farmer productivity is one of the main targets on the
United Nations’ Sustainable Development Goals agenda.
By providing clarity on leadership and good practices in Company Country
the industry, the Access to Seeds Index aims to contribute
to achieving these goals.
1 Acsen HyVeg IND
This list of 24 companies is the result of a process of 2 Advanta ARE
research, consultations and validation, which started 3 Bayer DEU
with studies of the seed industry in 13 countries in the
4 Bioseed IND
region by Mordor Intelligence: Afghanistan, Bangladesh,
Cambodia, India, Indonesia, Laos, Myanmar, Nepal, 5 BRAC BGD
Pakistan, the Philippines, Sri Lanka, Thailand and 6 Charoen Pokphand THA
Vietnam.
7 DowDuPont USA
8 East-West Seed THA
The final selection of companies was based on the
following set of criteria: (1) having an integrated seed 9 Groupe Limagrain FRA
business model; (2) regional presence or at least a regional
10 Kalash Seeds IND
influence; (3) physical presence and business activities in
11 Known-You Seed TWN
the region and (4) peer recognition as a leading company.
Seed volumes and revenues were considered where 12 Lal Teer Seed BGD
possible to determine size and dominance in each 13 Mahyco IND
country or multiple countries. The studies and company
14 Monsanto USA
selection was discussed and approved by a regional
expert review committee, which convened in Hyderabad 15 Namdhari Seeds IND
on 24 October 2017. 16 National Seeds Corporation IND
17 Nongwoo Bio KOR
This landscaping report provides an overview of the
18 Nuziveedu Seeds IND
outcomes of the country studies. In addition, the report
summarizes the main seed industry players; main crops 19 Punjab Seed Corporation PAK
of the region covering staple, vegetable, local and non-
20 Rallis/Metahelix IND
food crops; the enabling environment; certain challenges
21 Sakata JPN
that smallholder farmers contend with in the region; and
opportunities for future development of the seed sector. 22 Syngenta (ChemChina) CHE
23 Takii JPN
24 Vinaseed VNM
P.3 Landscaping study for the Regional Access to Seeds Index for South & Southeast Asia
1. Landscaping the Seed Sector in
South and Southeast Asia
1.1 Background
This seed industry landscaping study for South and The main staples in the region are rice and maize; the
Southeast Asia assesses the feasibility of a special main vegetables are chilies, onion and tomato. Oilseeds
regional Access to Seeds Index. The study covers 13 South for cooking oil and pulses are important local crops, with
and Southeast Asian countries, namely, Afghanistan, cassava – more for feed than for food – being especially
Bangladesh, Cambodia, India, Indonesia, Laos, important in Southeast Asia. Cotton, tobacco and jute are
Myanmar, Nepal, Pakistan, the Philippines, Sri Lanka, the most important non-food crops in the region.
Thailand and Vietnam. While South Asia and Southeast Most of the countries in the region are beginning
Asia are sometimes considered different geographical cultivation of GM crop varieties. Transgenic varieties of
regions, the analyses of crops and seed companies did non-food crops such as cotton are cultivated in India,
show some, but not major, differences. Myanmar and Pakistan, while transgenic varieties of food
plants such as maize, tomato and/or eggplant are grown
Among the various issues that smallholder farmers face, in Bangladesh, the Philippines and Vietnam. Most of the
access to quality seeds is a major issue in these regions other countries in the region, except for Cambodia,
due to limited access to markets, knowledge, and limited Thailand and Indonesia, have legislation that permits
financial capital, among other things. The main experimental cultivation of GM crop materials. However,
drawbacks for a vibrant private seed sector for many these countries may not be cultivating GM crops yet, or
countries in South and Southeast Asia are outdated seed are faced with opposition from the general public, as is
laws and strict regulatory bureaucracy. The laws are the case in Nepal.
variable for the countries within the study.
All countries are moving toward being compliant with
State and publicly-owned seed companies have a TRIPS (Trade-Related Aspects of Intellectual Property
significant presence in this region, while the private seed Rights), and some have joined or are joining the
sector is increasing its market share. However, subsidized International Union for the Protection of New Varieties of
cost structures offered by the state and publicly-owned Plants (UPOV) as part of their commitment to plant
firms are difficult to compete with, hindering private breeders’ rights. At present, among the 13 countries
seed sector growth and investment in private seed covered in this study, Vietnam is the only member of
production and marketing. Nevertheless, for the UPOV. India and the Philippines have initiated
development of agricultural production, favorable procedures for becoming UPOV members. Cambodia,
policies are needed to ensure the growth of the private Myanmar, Pakistan and Thailand are in contact with
seed sector. UPOV for assistance in the development of similar laws.
1.2 The Seed Sector in South and Southeast Asia
The countries studied in the South Asian seed industry (Taiwan), were found throughout the region to be
include Afghanistan, Bangladesh, Cambodia, India, important as well. A range of companies from within the
Indonesia, Laos, Myanmar, Nepal, Pakistan, Philippines, region, in particular from countries with a well-
Sri Lanka, Thailand and Vietnam and are presented developed enabling environment for the seed sector, such
below from west to east. as India (Advanta, Bioseed) and Thailand (Charoen
Pokphand, East-West Seed) also operate across the
Global multinational companies, such as Monsanto, region. Even some of the companies that are state-owned
Syngenta (ChemChina), and DowDuPont, play an – and still play a major role in the region – export seed,
important role in the seed sector across the region. such as the National Seeds Corporation (India) and the
Several companies from Asia but not from the region, Punjab Seed Corporation (Pakistan).
such as Nongwoo Bio (Korea) and Known-you Seed
P.4 Landscaping study for the Regional Access to Seeds Index for South & Southeast Asia
Afghanistan Thailand
In the seed sector of Afghanistan, the informal seed The Thai seed industry is among the most advanced and
sector dominates the market while the formal seed sector well-developed in Asia-Pacific. At present, Thailand is an
mainly focuses on wheat seed. attractive hub for seed production in Asia-Pacific due to
suitable geography and weather; availability of highly
Pakistan trained plant scientists; a wide diversity of germplasm;
The Seed (Truth-in-Labeling) Rules 1991 stimulated proper infrastructure; government support; investments
import and export of seeds, and has also attracted many from foreign governments in the seed sector; and the
national and multinational companies to operate in presence of multinational agencies and companies. Major
Pakistan. There are no restrictions on the private sector international seed companies such as East-West Seed and
selling commercially-viable crop seeds in Pakistan. Charoen Pokphand (Chia Tai) are headquartered in
Thailand.
India
The Indian seed industry is one of the most mature seed Laos
industries in the region; both the private and public The seed sector in Laos is underdeveloped. Most of the
sector play an equally important role in seed production seed production and breeding is controlled by
and distribution. The private sector has the majority government entities. For rice seed, there are farmers’
share of the seed market, and is heterogeneous in terms of multiplication groups, and one public agency called the
company size, product portfolios and research capacity. Rice Seed Multiplication Centre. Seeds are being
The private sector in India is growing due primarily to an imported from Thailand and Vietnam.
increased investment in R&D, acceleration in the use of
hybrid seeds with various technological components Cambodia
such as seed treatments and rising international trade. State-owned Cambodian Agricultural Research and
Development Institute (CARDI) and AQIP Seed Company,
Nepal and a few small-scale private producers who work
Private seed companies, village-based small seed directly under the Ministry of Agriculture, constitute the
enterprises (SSEs), agrovets, cooperatives, and groups formal seed sector of Cambodia. The major constraints
organized by the Department of Agriculture’s Crop for seed production supply in Cambodia are a limited
Development Directorate, along with the National Seed development of new varieties and their subsequent
Corporation, are important players in the Nepal seed release; lack of mechanized equipment and facilities; and
industry. lack of capital for the seed industry. Additionally, due to
the country’s hot and humid climate, seed deterioration
Sri Lanka in both field production and storage phases constitutes a
Almost 90% of farmers in Sri Lanka use rice seed major problem.
produced on-farm or obtained from neighboring farmers,
through an informal seed supply system. Very few Indonesia
smallholder farmers have access to formal seeds. Lack of Indonesia is considered a competitive seed production
knowledge about seed quality is the main problem of hub. The government encourages sharing knowledge
smallholder farmers in Sri Lanka. Very few international about the latest seed technology through partnerships,
seed companies are active in the country. while encouraging trade agreements to cover transfer of
technology in agriculture through business practices.
Bangladesh Notable is the prominent presence of Northern Asian
The public domain dominates plant breeding activities in multinational seed companies, from South Korea and
Bangladesh’s seed industry. Due to a growing demand for Japan, in the seed sector in Indonesia.
provisioning good quality seeds and varieties adapted to
local growing conditions, NGOs and private companies Vietnam
alike are getting involved in plant breeding and seed In Vietnam, almost 70-80% of the formal seed sold –
production. including hybrid rice, maize, and vegetable seed – is
imported. Hybrid rice seed is imported mostly from
Myanmar China; hybrid maize from Thailand and India; and
The Myanmar seed industry has great potential, owing to vegetable seed from Thailand, China, Japan, South-
its strategic position and proximity to major markets in Korea, and France. With the maize seed market now
the region, such as China, Bangladesh and Thailand. dominating Vietnam’s formal seed industry, the country
Vegetables constitute an important and often primary is witnessing significant developments regarding
source of income for almost 750,000 smallholder farmers. advanced breeding technologies and the introduction of
While most of the seed industry in the country is still biotech traits.
dominated by the public sector, several international and
regional companies are developing a presence in the Philippines
country. In the Philippines, the largest hybrid vegetable seed
producer is East-West Seed, which accounts for nearly
70-75% of the local market and a major portion of the total
seed market. The Philippines is one of the most prolific
users of hybrid rice seed in the region, produced by
companies such as Syngenta (ChemChina).
P.5 Landscaping study for the Regional Access to Seeds Index for South & Southeast Asia
1.3 Leading Seed Companies in the Region
Four groups of leading seed companies have been Out of these companies, 24 companies have been selected
identified based on the information gathered per country. to be included in the first Regional Access to Seeds Index
for South & Southeast Asia. Companies were selected that
Global seed companies meet the following criteria (1) having an integrated seed
Eight seed companies with a global presence were business model, including, breeding, production and
identified as leading companies in some of the countries marketing and sales; (2) regional presence or at least
under study and/or were found to be present in several regional influence; (3) physical presence and business
countries in the region. activities in the region and (4) peer recognition as a
Regional seed companies leading company.
Twelve companies were identified as a lead company in at
least one country in the region, but are also commercially Although two companies, Sakata and Takii, were not
active in at least one other country in the region. found to have a leading position in any of the countries,
Local special interest seed companies the Expert Review Committee (ERC) that reviewed the
Ten companies were identified as companies or seed study and selection process advised that they should be
enterprises selling seeds exclusively in their own country, selected for the regional index based on their leading
but ‘stand out from the crowd’ for different reasons, and, position in the whole Asian region.
which may be of interest for inclusion in the Regional
Access to Seeds Index for South & Southeast Asia.
Government owned companies
The last group of leading companies is state-owned. Most
are active only in their own country, except the National
Seeds Cooperation of India, and the Punjab Seed
Corporation of Pakistan.
Global seed companies in South and Southeast Asia
Company HQ Leading in Active in Crops Business
Staple Vegetable Breeding Seed production Marketing & sales
Bayer DEU MMR PAK, IND, BGD,
THA, VNM, PHL,
IDN, MMR, LAO
DowDuPont USA IND, PAK, KHM, IND, PAK,
THA, PHL, THA, PHL, IDN,
IDN VNM
East-West Seed THA IDN, MMR, AFG, PAK, IND,
THA, VNM, NPL, BGD, MMR,
KHM, PHL THA, VNM, LAO,
KHM, IDN, PHL
Groupe Limagrain FRA IND KHM, MMR, IND,
IDN, BGD, LKA,
THA
Monsanto USA IND, IDN, BGD, IND, IDN,
PAK, THA, MMR, PAK, PHL,
PHL, VNM THA, VNM
Sakata JPN - IND, THA, MMR,
IDN
Syngenta CHE BGD, PAK, BGD, IND, IDN,
(ChemChina) PHL, THA, PAK, PHL, THA,
VNM, LAO VNM, LAO
Takii JPN - IND, IDN, THA,
PAK
P.6 Landscaping study for the Regional Access to Seeds Index for South & Southeast Asia
Regional seed companies in South and Southeast Asia
Company HQ Leading in Active in Crops Business
Staple Vegetable Breeding Seed production Marketing & sales
Acsen HyVeg IND IND PHL, LKA, VNM,
BGD, IND
Advanta ARE IND, IDN, BGD, IND, IDN,
THA, LAO NPL, PAK, LKA,
KHM, THA
Bioseed IND IND, PHL, IDN, PHL, VNM,
VNM IND
Charoen THA MMR, IND, IDN, KHM,
Pokphand THA, IDN, MMR, THA, VNM
VNM
Kalash Seeds IND IND BGD, IND, NPL,
PAK, LKA
Known-You Seed TWN MMR, IND, IDN, MMR,
THA, LAO PHL, THA, VNM,
LAO
Lal Teer Seed BGD BGD IND, PAK, VNM
Mahyco IND IND KHM, IND, IDN,
VNM
Nongwoo Bio KOR IDN IND, IDN, PAK
Nuziveedu Seeds IND IND IND, BGD, PAK,
VNM
Rallis/Metahelix IND IND IND, IDN
Vinaseed VNM VNM, LAO VNM, KHM, LAO
Local special interest seed companies
Company HQ Crops Business
Staple Vegetable Breeding Seed production Marketing & sales
Advanced Chemical BGD
Industry (ACI)
BRAC BGD
Evogene Seed PHL
Hayleys Agriculture LKA
Jullundhar PAK
Myanma Awba MMR
Southern Seed VNM
Supreme Seed BGD
TroSeed LKA
Unique Seed NPL
P.7 Landscaping study for the Regional Access to Seeds Index for South & Southeast Asia
Government-owned seed companies
Company HQ Additional Crops Business
countries
Staple Vegetable Breeding Seed production Marketing & sales
Aqip Seed KNM -
Company
CARDI KHM -
National Seed NPL -
Company
National Seeds IND SAARC,
Corporation VNM
Punjab Seed PAK AFG, BGD,
Corporation MMR
Overview of 4. Nepal 8. Thailand 12. Indonesia
National Seed Company Monsanto Charoen Pokphand
identified leading National Seed Company Charoen Pokphandi DowDuPont
Private Limited Syngenta (ChemChina) East-West Seed
seed companies
Lumbini Seed Advanta Monsanto
per country Unique Seed DowDuPont Advanta
Annapurna Seeds East-West Seed Nongwoo Bio
Known-You Seed Bioseed
1.
Companies selected for the 2.
2019 Access to Seeds Index 4.
Companies that did not meet
the selection criteria 6.
3. 7. 11.
9.
13.
8.
10.
1. Afghanistan 5.
Helal Group
Noor Agro Group
2. Pakistan
Monsanto 12.
Jullundur Seed 5. Sri Lanka
Syngenta (ChemChina) Troseeds
Punjab Seed Corporation Best Seeds
ICI Pakistan CIC Agri Business 9. Laos
DowDuPont Hayleys Agriculture Syngenta (ChemChina)
Ali Akbar Group Lankem Ceylon Plc-Agro Known-You Seed
Four Brothers Group Advanta
Auriga Seeds 6. Bangladesh Vinaseed
BRAC Green Seeds
3. India Lal Teer Seed
Nuziveedu Seeds Advanced Chemical Industries 10. Cambodia
Kaveri Seeds (ACI) CARDI
National Seeds Corporation Supreme Seed AQIP Seed Company
DowDuPont Syngenta (ChemChina) East-West Seed 13. Philippines
Mahyco Bangladesh Agricultural DowDuPont
Monsanto Development Corporation 11. Vietnam Syngenta (ChemChina)
Bioseed (BADC) Vinaseed Monsanto
Acsen HyVeg Charoen Pokphand Bioseed
Rallis/Metahelix 7. Myanmar Southern Seed Evogene Seeds
JK Agri Genetics East-West Seed Bioseed East-West Seed
VNR Seeds Charoen Pokphand Monsanto Ramgo International
Advanta Known-You Seed Syngenta (ChemChina) Vigour Seeds
Namdhari Seeds Bayer East-West Seed Kaneko Seeds
Kalash Seeds Myanma Awba Trang Nong Seeds S L Agritech
Groupe Limagrain Dagon Agricultural Group Thai Binh Seeds Harvest Agribusiness
Disclaimer: Country borders or names do not necessarily
reflect the Access to Seeds Foundation’s official position.
Maps used are for illustrative purposes and do not imply the
expression of any opinion on the part of the Foundation,
concerning the legal status of any country or territory or
concerning the delimitation of frontiers or boundaries.
P.8 Landscaping study for the Regional Access to Seeds Index for South & Southeast Asia
1.4 Main Crops in South and Southeast Asia
Main crops in all 13 countries have been identified based
Main crops in South and
on average data of area harvested from 2010 to 2014, by
analyzing crops in four categories, i.e. staple, vegetable, Southeast Asia
local and non-food crops per country. In the table below,
the order is based on frequency of the crop being listed as
a main crop for the 13 countries in the region. For Staple Vegetable Local Non-Food
crops crops crops crops
instance, rice is cultivated in all the 13 countries, so it is
placed first in the list of staple crops. Crops that were only
Rice Chilies & Groundnut Tobacco
identified in one country as a main crop are not included peppers
in this table.
Maize Onion Sesame Cotton
Beans, dry Tomato Cassava Jute
Potatoes Watermelon Sweet potato Castor
Soybean Cabbage & Chick pea
brassicas
Wheat Pumpkin, Mustard
squash &
gourds
Millets Eggplant Sunflower
Sorghum Garlic Pigeon pea
Lentil
1.5 Methodology
The study of the seed sector has been conducted based on significance within the seed industry. The crops presented
secondary desk research from various government under staple crops are aligned with the list that is used for
websites, government publications, publications from global field crops in the first Access to Seeds Index
industry associations, research papers, publications of methodology and report. A similar procedure has been
various seed surveys, seed company websites and annual followed for the vegetable crop category.
reports.
Local crops encompass all other crops relevant for food and
In the primary research phase, various industry experts nutrition. Non-food crops are those that have no direct food
and companies were contacted as part of the data use and/or require industrial processing before use. Some
collection process. While some companies have obliged, of these crops are major sources of revenue for seed
several others have shown reluctance to provide companies.
information.
The studies and company selection was discussed and
The major companies operating in each country have been approved by a regional expert review committee which
identified using a triangular validation method. First, convened in Hyderabad on 24 October 2017.
authentic sources such as seed association publications
and government websites have been referenced. Second,
revenue information from annual reports, if available, have Regional Expert Review Committee
been used, as well as databases such as Dow Jones Factiva,
for South and Southeast Asia
to which Mordor Intelligence had access. In addition to
these two sources, various industry experts in the region
were contacted as well as experts from the country. Based 1. Vinich Chuanchai, advisor of the Thai Seed Trade
on information taken from these three sources, leading Association
companies per country have been identified, both public 2. Ram Kaundinya, former CEO and Managing Director,
and private. Advanta
3. Amirul Islam, Operations Manager with the Asian
Farmers Association for South and Central Asia
The main annual herbaceous crops in each country have
4. Ajay Vir Jakhar, Chairman of Bharat Krishak Samaj
been identified based on area harvested. The area
(Farmers’ Forum)
harvested between 2010 – 2014 was collected from FAO;1 an
5. Orachos Napasintuwong, Assistant Professor,
average of four years was taken to determine the main five
Agricultural and Resource Economics, Kasetsart
crops in each country in each category. For some countries, University in Bangkok, Thailand.
fewer than five crops for some of the categories are listed, 6. Umashankar Singh, scientist at the International Rice
further crops in that category being insignificant in Research Institute (IRRI) in India.
acreage.
In each country, the crops have been segmented into staple
crops, vegetable crops, local crops and non-food crops,
limited to annual herbaceous crops that require regular
reseeding or replanting, and hence, are of potential
P.9 Landscaping study for the Regional Access to Seeds Index for South & Southeast Asia
Seed Sector Study of South and Southeast Asian Countries
Identify data sources
Primary sources Secondary sources
• Seed & agriculture researchers • Company reports and websites
• Company sales managers • Research journals
• Company board members • Market research reports
• Industry experts • Government publications
• Government officials • Seed association publications
Data collection
Interviews and response coding Secondary data analysis
Data analysis
• Landscape national seed sectors
• Identify top crops based on area harvested
• Identify the major seed companies
• Inventory business activities of major seed companies
Validation
• Expert review committee meeting
• Additional expert input
Study outcomes
• Overview seed industry landscape South and Southeast Asia
• Country profiles with major seed companies and crops
P.10 Landscaping study for the Regional Access to Seeds Index for South & Southeast Asia