Insights on how to secure seed production in the EU.
Why It Matters: Seed production is the process of cultivating plants specifically for the purpose of harvesting seeds, which then serve as the foundation for growing crops. It is a critical component of European and global agriculture and horticulture, ensuring food security and enabling the development of high-yield, disease-resistant, and climate-adapted crops. In Europe, this process faces increasing challenges that threaten its efficiency, reliability, and profitability making it essential to address these issues for the sustainability of the agricultural sector.
Rising costs, environmental shifts, and stringent policies are converging to create an increasingly precarious situation for producers. To better understand the root causes and potential solutions, Seed World Europe turned to Serhii Komar, Seed Production and Supply Manager at Arimax Seed Technologies DOO in Serbia. Drawing from his expertise, Komar shared detailed insights using corn and sunflower seed production as examples.
Seed World Europe: Serhii, why is securing seed production becoming such a critical issue today?
Serhii Komar (SK): Seed production in Europe is becoming more expensive and less reliable every year. Despite higher production costs, the reliability of supply has not improved. Yield estimates often fall short of demand, leaving customers without promised products. This is a major challenge for producers trying to balance cost, quality, and delivery timelines.
SWE: Let’s dive into the details. What are the main factors affecting seed production reliability?
SK: There are three main categories of challenges: increasing costs, environmental pressures, and regulatory and economic issues.
Speaking of the costs, they have been rising across multiple areas, putting significant pressure on seed producers. First, some land leasing companies are fetching unreasonably high prices per hectare. This is caused by high demand from seed companies for favourable land and growers. Second, essential inputs like fertilizer, crop protection products, fuel, electricity, and gas are becoming more expensive. It means that overall production costs are increasing considerably.
Another challenge is related to growing labour costs. Fieldwork often requires physical labour, but fewer people are available for these roles. Obviously, a limited choice of candidates makes companies offer competitive salaries, putting an additional load on the budget. It should be also noted that relying on seasonal workers comes with its own challenges as safety and quality management requirements for workers continue to become more stringent. Finally, insurance outlays have skyrocketed due to frequent force majeure events like storms and hail. The cost of insuring a hectare of land can now reach up to €300.
SWE: Beyond costs, how are environmental changes impacting seed production?
SK: Environmental factors are among the most unpredictable and impactful challenges. One of the primary factors is heat stress. Hot weather during pollination can significantly reduce yields, even for healthy-looking crops. In some cases, irrigation helps, but it’s not always enough. For example, in 2024, average seed corn yields were heavily impacted by weather, especially compared to the more favorable conditions in 2023, which had regular rains and moderate temperatures.
Another problem comes with limited irrigation infrastructure. Corn requires around 400 millimetres of water to achieve optimal yields, but Europe’s irrigation infrastructure is not equipped to provide this. In many regions, irrigation can only supplement rainfall but not replace it. Additionally, there’s stiff competition for irrigated land with vegetable and other intensive crops producers. The last, but not the least factor is force majeure events. Flooding and freezing in spring, hail and storms in summer, and early frosts in autumn are becoming increasingly common. These events not only disrupt production but also make it impossible to deliver the promised products to the market. While insurance can help balance financial risks, it doesn’t solve the problem of meeting demand.
SWE: And what about the role of policies and economic pressures?
SK: This is another area where challenges are mounting. Year after year, European agriculture faces stricter regulations. Key crop protection products, like neonicotinoids and diquat, are being phased out, making it harder to protect crops effectively. Similarly, limitations on nitrogen fertilizer use prevent growers from maximizing yields.
While sustainable agriculture is a worthy goal, the lack of clear guidelines on implementation creates uncertainty for seed producers. This, coupled with rising costs, puts additional pressure on the industry.
On top of that, the ongoing geopolitical situation has reshaped key markets. Ukraine and Russia were once growth areas with good profitability, but Ukraine’s market has shrunk, and Russia is localizing seed production. As a result, European companies must now focus on saturated local markets, where competition is fierce.
SWE: Given these challenges, what steps can seed producers take to mitigate risks?
SK: To secure reliable seed production, producers need to focus on two key elements: location and action.
1. Location: Forget About Your Seed Plant and Focus on the Field
Many companies focus heavily on their seed plants, but the reality is that seed production starts in the field. The field accounts for the majority of the variables that influence quantity, quality, and cost. Growing seeds is inherently risky due to factors like weather extremes, such as drought or heavy rain; temperature fluctuations; pests, including birds, insects, and animals; equipment malfunctions; human errors etc. That is why the first step to mitigating those risks is selecting the right geographic location with favourable climate conditions. For example, Hungary used to be an ideal location for corn seed production, thanks to good soil, labour availability, and moderate weather. However, recent heat waves during pollination have made it unsuitable for corn, though it has become excellent for sunflower production. Producers must adapt to these shifts rather than hope for better weather in subsequent years. In a favourable climate, companies can optimize seed production practices and invest in improving technology, rather than constantly battling against nature.
2. Action: A Systematic Approach
A systematic approach is critical for managing field production. This includes:
a. Comprehensive Planning:
This means developing written procedures, crop protection strategies, and fertilization maps. Without proper documentation, there’s a higher risk of mistakes that are difficult to fix later.
b. Communication:
Clear and effective communication among all stakeholders — seed producers, growers, and agronomists — is crucial. If something isn’t communicated, it might as well not exist. Everyone needs to be on the same page to achieve target yields.
c. Control:
Mistakes are inevitable, but their impact can be minimized through rigorous control systems. Monitoring every operation ensures that processes are executed correctly and consistently. Even well-established practices can benefit from continuous oversight and improvement.
As part of this systematic approach, producers should update their technological maps based on available equipment and grower capabilities. Preparation is also key — this includes securing fertilizers and crop protection products well in advance and ensuring that all team members understand and adhere to the plan.
SWE: Can you summarize the key takeaway for seed producers?
SK: The main risks lie in field production. If we can manage these risks effectively and produce sufficient raw materials, we can then focus on seed processing and quality management. Producers need to adapt to environmental realities, focus on favourable locations, and implement systematic approaches to planning, communication, and control. By doing so, they can build a more reliable and cost-effective seed production network.
