Sino-report
Home Sign in Research report Data Center Industry News Custom Research About us
Research report:                          Automotive  |  Electronics  |  Mechanical&Automation  |  New Energy  |  Medical  |  Advanced Materials  |  Building Products  |  Transportation  |  Communication  |  Chemical  |  Finance  |  IT Industry  |  Food  |  Home Appliances  |  Forestry  |  Agriculture  |  Textile  |  Culture Industry  |  Consumer goods  |  Others  |
 Home > Industry News > Agriculture > Text
China considers opening of seed market
Author:Sino-report    Source:China Daily    Number of clicks :     Update time:2011-08-25 15:12
Sino-report News Center Aug 2011

BEIJING - China might further open up its seed market to foreign companies, with the Ministry of Commerce and the Ministry of Agriculture studying the market shares and development of these companies, said an official close to the matter.
The possible opening means that foreign seed companies may be allowed to hold controlling interests in joint ventures, compared with the current 49 percent ceiling, a commerce ministry official said on condition of anonymity.
The evaluation is still in progress and there is no target date for its conclusion, the source said.
"Further opening up of the seed industry to foreign companies will bring more competition, which can spur the development of the whole industry and provide farmers and consumers with more choices," the official said.
The current policy is holding back the development of China's seed industry, the source added.
Under current regulations, foreign participants in the business for field-crop seeds, such as soybeans and rice, must establish joint ventures with domestic companies. The foreign partner is limited to 49 percent of a joint venture, according to the Ministry of Commerce.
Many Chinese agribusiness experts say the limits are intended to prevent foreign companies from controlling the country's seed industry. China's seed market, which is estimated at 50 billion yuan ($7.7 billion) annually, is the world's second-largest behind the United States.
But the industry is highly fragmented, with more than 8,000 small and medium-sized companies vying for market share.
These small companies are weak in terms of research and technological abilities, experts said. Fewer than 100 have patent rights, for example.
To improve the situation, the State Council issued new industry guidelines in April that call for industrial consolidation and development.
Analysts said that a larger presence of the foreign companies will contribute more to the development of the industry.
"Fierce competition with multinationals will lead to an industrial consolidation and push large domestic seed companies to develop further," said Ma Wenfeng, a senior analyst at Beijing Orient Agribusiness Consultant Ltd, a major agricultural consulting company.
But a freer market does not mean the government should ease up on its supervision, Ma cautioned.
But some experts say it is too early to remove the limits on foreign participation.
"There is still a huge gap between domestic and foreign companies in research and development capabilities. Chinese companies are vulnerable to their foreign rivals," said Jing Fei, a seed expert at Bohai University in northeastern China's Liaoning province.
Some large companies, taking an optimistic view of the industry's prospects, also prefer an open market.
"We have our own technological advantages. We have already been competing with multinationals in the international market," said Jin Yi, deputy general manager of Winall Hi-tech Seed Co Ltd, China's third-largest producer of rice seeds by capacity.
Based in Hefei, the capital of eastern China's Anhui province, Jin's company exports rice seeds to many countries including Bangladesh, Vietnam, Pakistan and Indonesia.
"Competition is not always a bad thing. Through competition, we have learned a lot from foreign companies, particularly in terms of management, research and development," Jin said.
"We are ready to face them in our domestic market."

Order Online
Contact Us
Tel: 400-988-9999
Fax:010-82889999
Phone :+8615313587056
Email:Sale@sino-report.com
Email:Cousult@sino-report.com
Online Consultation
MSN :Sino-report@hotmail.com
MSN :Sino-report@foxmail.com
Skype: Please Please
Latest Reports
  More>>
[Agriculture] Soybean farmers store crops amid hopes of higher prices
[Agriculture] Northwest A&F University establishes agriculture partnerships
[Agriculture] China to make agriculture sector greener
[Agriculture] China smart agricultural technology grows in UAE
[Agriculture] Seawater hybrid rice expected to be planted around China by 2020
Popular reports
  More>>
Soybean farmers store crops amid hopes of higher prices
China smart agricultural technology grows in UAE
Industry Data
  More>>
China opens market to Kenya's agricultural products
China's publishing industry booming over past 40 years
Industrial Production Operation in July 2018
Total Retail Sales of Consumer Goods in July 2018
National Real Estate Development and Sales in the First Seven Months of 2018
NSDP/SDDS for the People's Republic of China
Market Price of Important Means of Production in Circulation, July 01-10, 2018
In the first five months of 2018, the profits made by industrial enterprises above the designated siz
Purchasing Managers Index for June 2018
Market Price of Important Means of Production in Circulation, June 21-30, 2018
In global EV battery shipments during Jan - Apr 2018, LG Chem and Samsung SDI ranked 4th and 6th
Based on Jan - Apr shipment record, Kia Motors Remain on Top 10 in Global PHEV Power Brands Ranking
Consumer Prices for May 2018
Producer Prices for the Industrial Sector for May 2018
Industrial Production Operation in May 2018
Investment in Fixed Assets for the First Five Months of 2018
National Real Estate Development and Sales in the First Five months of 2018
Producer Prices for the Industrial Sector for April 2018
Stable Performance for the National Economy in April
Total Retail Sales of Consumer Goods in April 2018
Industrial Production Operation in April 2018
National Real Estate Development and Sales in the First four months of 2018
Sales Prices of Residential Buildings in 70 Medium and Large-sized Cities in April 2018
Industrial Profits Increased in the First Four Months of 2018
Industry News
  More>>
Iron and steel sector gains strength
China’s wines take center stage
Machinery manufacturing fair boosts Sino-Russian ties
Medical device manufacturers display their latest technology
Soybean farmers store crops amid hopes of higher prices
Tourism industry opening on agenda
Tech competition eases startups' access to China market
China's excavator sales grow 44.9% in October
China's solid waste imports continue to slump on tightened ban
Delivery orders jump 25.12% to 1.35b on Singles Day
Related Links

Sitemap       |       Join Us      |       Customer Service       |       About Sino-report
Copyright © 2011-2025 Sino-report Consult Inc.
Sino-report@hotmail.com    Postmaster@sino-report.com
No.18 Zhichun Road, Haidian District. Beijing 100089.China
Information and data contained in this site is for reference only pursuant to operate your own risk
Sino-report