Regional US Seed Industry
To understand the seed market in the eastern Corn Belt and Delmarva areas of the US.
- The seed industry is continuously consolidating. Now only 4 companies control around 60% of the global seed market.
- In the US, it's even more consolidated. 85% of the corn seed market is controlled by 4 companies.
- With this, US farmers are reporting they feel their bargaining power is significantly less and seed prices have increased over the past 5 years.
- World consumption of biofuels is increasing, so the seed industry needs to respond in turn.
- Farm sizes are increasing, while crop rotations are getting shorter, also leading to an overall demand increase.
- Organic and non-GMO seeds are a fast growing segment, as US consumers increase there demand of these products.
- BASF recently acquired the seed business of Bayer and is expected to quickly become a major player.
- Soybeans, especially organic, are especially increasing. Prices are going up, as well as crop yields, prompting producers to want to plant more.
- Corn also continues to rise steadily, as more corn is being used for feed and biofuels. Sorghum is also predicted to grow.
- As sustainable agriculture is growing, seed coating technologies are an important segment to the overall seed industry.
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