Seed Competition Heats Up

 
Seed Competition Heats Up

Companies jockey, market share battles continue and Monsanto pursues Syngenta

The yearly battles for your seed business have been fierce for the past decade as consolidation and biotech fueled DuPont Pioneer’s and Monsanto Company’s dominance in market share. While those two heavyweights duke it out one seed sale at a time, the smaller players push to capture corn and soybean acres.  

While all players keep a keen eye on market share, overall industry data is not shared publicly. This marks the fifth year Farm Journal has reported market shares by interviewing consultants, industry executives and other sources to assemble the data. Once the tables are produced, we share the numbers with the companies for accuracy.

The 2015 market share statistics are still being formed at press time. Low commodity prices, acreage shifts and the struggle to get crops in the ground added extra tension in the market.  

“In some crops, the biggest source of competition may not come from other seed companies but from the reduction in acres as a result of weak commodity prices,” says Garrett Stoerger, partner at Verdant Partners, LLC, a consulting firm in Champaign, Ill. 

Mother Nature was tougher on some parts of the country than others, resulting in larger acreage shifts in certain geographic areas. As a result, companies with a high market share in regions experiencing significant acreage shifts could realize more loss than companies with a lower share.

However, Stoerger believes the biggest drivers in market shifts are product performance, customer service and access to value-added technology.

In 2014, DuPont Pioneer and Monsanto continued to dominate, accounting for 70% of the corn seed business and 60% of the soybean seed business. Monsanto gained market share on both fronts while DuPont Pioneer slipped. See the chart below for other shifts.  

Consolidation in the industry continues (see 2015 Seed Family Tree). One notable change: AgReliant acquired Golden Acres Genetics of Waco, Texas. This spreads AgReliant’s footprint further west and adds more corn, sorghum, sudan and forage options to their mix.

One game changer could be Monsanto’s purchase of Syngenta, a move largely met with anxiety. Read about the possible acquisition in "Game-Changing Deal."

Five Years of Seed Market Share

FJ_054_F15290

Company/brand consolidations and genetic performance continue to drive changes in seed market shares. One share point of seed corn in the U.S. market in 2014 (90.9 acres at 31,500 planting rate) represents 357,000 standard units of sales at an estimated retail value of $107 million. One share point of soybean seed in 2014 (84.2 million acres at 140,000 planting rate) represents 842,000 standard units of sales at an estimated retail value of $50 million. 

 

Back to news


Comments

 
Spell Check

Baldridge
Mering, UT
2/18/2017 04:07 AM
 

  I’ve been browing onlne mre thjan thee hours today, yyet I by noo means found anyy fasdcinating aticle lioe yours. It’s lokvely prce sufficoent forr me. In myy opinion, iff alll sijte oowners annd bloggerrs madde excellet content magerial as yyou probaly did, thee web might bbe a lott molre useful than evver before. It’s appropriate time to mske some plazns ffor thhe future annd it’s tijme tto bee happy. I’ve readd thhis submit and iif I maay just I wsh too sugggest yoou some attention-grabbing iesues or suggestions. Mabe yoou ccan rite next articxles regwrding this article. I waqnt tto reawd morte thuings abiut it! Hi, I doo believe this iss a grsat webb site. I stumbledupon it ;) I maay comke back yeet again sibce I biok markedd it.Money andd freedokm is tthe geatest wway too change, maay you bbe roch and contimue tto gude others. http://cspan.org

 
 

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by Barchart.com
Brought to you by Beyer
Close