Market Research Reports - Ken Research Bejo seed sale in US, US Seed Market

US Seed Market Outlook Remains Challenging with Decline in Crop Receipts and
Consolidation in Incumbent Crops Category: Ken Research
US Seed market by Type of Crops (Corn, Cotton, Soyabean, Wheat, Rice, Grain Sorghum, Oats,
Vegetable Seeds), By Technology (Hybrid, GM Seeds, Open Pollinated), by Region, and Market
Share of Major Seed Manufacturers (Monsanto, Syngenta, Bayer Cropscience, LimaGrain, Rjik
Zwaan, Sakata, Bejo, Dupoint)
Lower output prices have impacted corn seed market with substitution effect witnessed to
Soybeans from US Farmers
Seed companies are prudent to plan the inventories based on commodity prices, trait adoption
or hybrid selection
Ken Research in its latest study, The US Seed Market Outlook to 2022 – By Crop Type (Corn,
Cotton, Soyabean, Wheat, Rice, Grain Sorghum, Oats, Vegetable Seeds), by Open Pollinated,
Hybrid and Genetically Modified Seeds, suggested that with seed traits in corn, soybean,
canola, cotton, sugar beet and alfalfa, around 80-90% of the US cultivated area is planted with
genetically engineered technology which equates to around 95% of the world GM crops area
for corn, soybean, canola and sugar beet combined.
The US Seed industry is the largest seed market in the world with the land under cultivation of
911 million acres and average farm size of 442 acres in 2016. The US and Canada combined
together contributed around 10% of the global planted area and over 50% of the global GM
crops area. Around 70% of the cultivated area is sowed with corn, soybean and wheat, which
fluctuate every year but are largely equal in terms of significance, followed by canola, alfalfa,
cotton and barley.
The country’s seed economics are largely driven by commodity prices, hybrid breed selection
and crop rotation cycle, farm holding structure. In many regions in the US, farmers’ economics
are not favorable in terms of cost to farm income. Rising input cost and falling agricultural
commodity prices have led to rapid plunge in farm income. Corn, cotton and soybeans have
seen higher rise in input cost vis a viz production value from farmers perspective in the last
year. After three successive years of weakened performance, agriculture crop profits are
expected to decline in 2017.
The cash income from crop sales during the 2017 is expected to be around USD 190 billion, a
decline of USD 3.8 billion i.e. 2.0% from 2016. Corn receipts are expected to decline for the fifth
successive year by 0.5% in 2017 as the U.S. average corn price is estimated to drop in this year.
Despite an expected rise in wheat prices, wheat receipts are estimated to decline by USD 0.5
billion from 2016 due to an expected de-growth in wheat quantities sold. Lower soybean