Market Trends of europe grain seed Industry
Increased demand from processing industries and increasing prices of cereals are driving the area under crop cultivation
- Grains and cereals occupied the major area under cultivation of crops in Europe. The area under cultivation of the grains and cereals in 2022 accounted for 134.04 million ha, which increased by 1.6% from the previous year due to strong demand for cereals as a staple food and an increase in output prices. The acreage declined in 2017 and 2018 in major grains and cereals-producing countries such as Turkey, Italy, Russia, France, and Germany. The major reasons for the decline include unexpected heavy rainfall, hail damage, higher precipitation prior to planting season, and shifting toward oilseeds.
- In Europe, Russia was the major country in terms of acreage under grains and cereals, which accounted for 32.8% of the acreage in 2022. The higher acreage was because of the trade advantage with the Black Sea and favorable climatic conditions for cultivating primary cereals such as corn and wheat. However, the acreage declined in 2021 by 3% compared to 2020 due to the ice crusting event affecting barley and wheat crop acreage in the country.
- Ukraine and Turkey are also the major cultivating countries of grains and cereals, which accounted for 12.04% and 8.3% of the overall acreage in 2022, respectively. Ukraine was one of the major exporters of wheat and corn to neighboring European countries. In Ukraine, wheat and corn accounted for 7.3 million hectares and 5.8 million hectares in 2022, respectively, which together accounted for 80.7% of the area under the grains and cereals segment in the country.
- Therefore, increasing demand for human consumption, blending industries for biofuel, and favorable market prices from export markets are anticipated to increase the area under grains and cereals during the forecast period.
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Climatic factors and disease management are driving the adoption of hybrid varieties of wheat and corn in the region
- In the last few years, large parts of Europe have witnessed a decline in the yield performance of wheat and corn. The decline is primarily attributed to the impact of climate uncertainties and variability on these crops in many countries over the last 5 to 15 years, depending on the country. Moreover, stressful environmental conditions and biotic stresses, such as diseases and pests, have led to considerable damage to crops. For instance, susceptible genotypes with high disease severity have resulted in more than 30% of grain yield losses. Therefore, growers are shifting toward resistant varieties to minimize these losses.
- Companies such as Syngenta, Groupe Limagrain, and KWS SAAT are offering disease and pest-resistant wheat varieties such as SY Insitor, Graham, LG Typhoon, and LG Prince to address yield losses caused by diseases like Septoria, rusts, OWBM (orange wheat blossom midge), and others, in field conditions. Additionally, in 2021, Bayer and RAGT Semences collaborated to develop hybrid wheat seeds using the latest breeding methodologies, high-performing seed product systems, and advanced digital solutions.
- The demand for corn varieties that are resistant to lodging has increased among European farmers. These varieties can endure adverse weather conditions and reduce crop losses caused by lodging. Corteva Agriscience offers varieties like P7179 and P7326, which have improved standability during strong winds.
- Corn cultivars with early matured, high starch and dry matter content, and disease-resistant traits are projected to gain more traction during the forecast period, subjected to the changing climatic conditions and the increasing demand for high-yield production.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Hybrid breeding techniques are the most popular technique employed by seed companies.
