b'Maybe their investment in technology and innovation will come from govern- Chinas Share of Global Crop Productionment funding and from money from the IPO, Durkin said. This is an example ofWith a bigger population than any other single country, China takes a big piece the consolidation [we expect to see]. Theof the pie when it comes to agricultural production. USDA predicted this would government is trying to invest in pickingbe the countrys share (in percent) of global production in these eight key crops.winners they can invest in.Governments Dedication to Innovation Pears Apples Peanuts RiceThe Chinese government is investing in74% 54% 37% 29%more than just seed companies. Theyre encouraging more innovation in seed.We have a new crop gene bank with the storage capacity of 1.5 million acces-sionsthats nearly four times as big as the current one under construction, said Alison Tian, secretary general of theCotton Corn Wheat SoyChina National Seed Trade Association.23% 22% 18% 5%Its government encouraged because the protection and utilization of germplasm resources are the material basis for having breakthroughs in original technologiesSource: USDAand self-reliant innovation in Chinas [growing] seed industry.While foreign investment and acquisi-tions might help increase research andInstead of requiring two licenses forpanies increases, they make more invest-development capabilities, China needsseed companies to operateone for seedment in seed research.seed catered to its unique environment.production and one for business opera- Its important to note that Chinas seed That means its almost like starting fromtiontheyve been combined.industry is more fragmented than the U.S. scratch when it comes to research andThe biggest company in terms of market development because the countrys pestThrottle Down to Increase R&D share, is Longping High-Tech, who controls pressure, weather and consumer accept- Whether through mergers and acquisi- just 4% of the market. Syngenta Group ance of certain technologies is all unique. tions or increased investment in compa- comes in at second place, holding over 3% The Chinese government is makingnies already formed, it appears China isof the market.technological breakthroughs more attain- scaling efforts in seed research. To further accentuate the countrys able. Relatively recent changes to policiesThis is a good thing, Glauber said.dedication to new technologies and inno-and regulations have helped reform theWhile there has been a decline [invation in the ag sector, the government is Chinese seed industry to enable moreresearch spending] over the past 15 yearsencouraging university researchers, gradu-innovation in the private sector. [in certain countries], we have seen theating students and anyone qualified to join In addition, the Supreme Peoplesgrowth is emerging economies like Brazilthe private sector to pursue agricultural Court issued a new judicial interpretationand China. Thankfully, were seeing realresearch and create new products.on the right to Plant Variety Protectioninvestment in agriculture. Theyre incentivizing achievement, (PVP) and the Seed Law is also beingThe number of seed companies inTian added. If someone creates a new revised. Specifically, the Seed Law isChina is growing to meet the needs forvariety or something that can be used focused on establishing an essentiallynot only large-scale row crops but veg- and sold, they share in some of that value. derived variety (EDV) system andetable seeds as well. As of recent reports,[Therefore] the market mechanize for the expanding the scope of PVP rights. vegetable seeds are the No. 1 seed importtransformation of scientific and technolog-It means it is significant improvementin the country. ical achievements is further improved.in the innovation and developmental envi- We saw the number of seed compa- While the country has a long road ronment of the seed industry, Tian said.nies increase from around 4,300 in 2016ahead in terms of research and actually And in 2016 a new seed law came intoto more than 5,800 in 2018, Tian said.getting new products in fields, theforce to simplify the procedures to obtainIts more than 6,000 now and rising. Asmessage is clear: China is in the seed business licenses. the competitiveness of the private com- game and here to stay.SW32/ SEEDWORLD.COMOCTOBER 2021'