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Seed Market in Chile: Analysis of Seed for Sowing by Major Crops, Production, Trade, Growth, Trends and Forecasts (2020 - 2025)

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Market Insights

A large continuum in altitude and latitude provides Chile with a large climatic range, suitable for varieties of seed productions. Among the strengths of Chile as a reliable partner for seed production is that it has a strong and well-constituted National Seed Association, ANPROS, with 58 years of presence in the market, composed of 65 members, who represent 98% of the domestic seed sector. Members not only include Chilean companies but world’s leading seed companies as well. This means the association has valuable and broad national and international experience. Strong support by the Chilean government, free trade agreements, and minimal-tariff access to multiple international markets lend Chile notably numerous comparative advantages in the seed sector. Domestic seed market of Chile was worth USD 120 million in 2012.

Chile is a global powerhouse in the production of GM seeds. Interestingly, all GM (genetically modified) seeds grown in the country are exclusively for export.  Chile does not allow domestic use of GM seeds, and the law governing the production and exportation of biotechnology seeds is strictly enforced. The main GM seeds produced in Chile are maize, canola, and soybean. The production of GM seeds varies as per the demand from the northern hemisphere, particularly the United States and the European Union. During the 2014-2015 season, the total area for GM seed production in the country was at 8,818 hectares, of which 67% were for maize seeds, 18% for canola seeds, and 15% for soybean seeds. In contrast, during the 2013-2014 season, the total area for GM seed production in the country was 23,904 ha., of which 82% were for maize seeds, 12% for canola seeds, and 6% for soybean seeds. During Chile’s 2015-2016 seed production season, the total area planted for GM seeds was 9,310.08 ha., which was much lower than the previous five-year average.

The Chilean production of GM seeds during the 2015-2016 season can be broken down as follows: 50% were corn seeds (4,681 ha), 31.8% were canola seeds (2,963 ha), and 17.8% were soybean seeds (1,662 ha). Other GM seeds produced in the country were cotton seed, tomato, and grape seeds, which, in total, accounted for less than 0.03% of the total area for GM seeds.

Organic seeds make up only a fraction of the market, which is why the segment is ignored in this study. Considering the overall seed production scenario, as per 2013 data, 2,352 metric ton of barley seeds, 2,348 metric ton of maize seeds, 20,451 metric ton of oat seeds, 73,448 metric ton of potato seeds, 40,777 metric ton of wheat seeds, 1,760 metric ton of dry bean seeds, and 3,584 metric ton of rice seeds were produced.

The major seed companies in Chile, which are considered for the competitive analysis segment in this report, include ANASAC, Syngenta, Seminis, KWS, DuPont Pioneer, Nunhems, BHN, Sakata, Rijk Zwaan, Bejo, and Agrical.

Market Dynamics                                                     

Drivers for the Seed Industry:

  1. Large number of Regional Trade Agreements with dominant markets across the world.
  2. Favorable climate, soil, and isolated geography, which nullifies the risk of pests and diseases.
  3. Highly efficient production and marketing services and good industry linkages.
  4. Strong government support and abundance of investments.

 Restraints for the Seed Industry:

  1. Lower rates of currency exchange (Weakening Peso).
  2. Scarcity and higher cost of agricultural labor.
  3. Rising cost of energy leading to higher shipping costs.
  4. Lack of long-term government policies.

Trade Analysis

The United States is the major export market (52%) for Chile by far. In total, Chile exported 38,850 metric ton of seed in 2014. Out of this total export, 37,420 metric ton were field crop seeds, 1,415 metric ton were vegetable seeds, and 15 metric ton were flower seeds. In 2014, GM seed export was worth USD 191 million and non-GM seed export, which mainly includes vegetable seeds, was worth USD 296 million. GM seed exporting is a fast and growing business; USD 314 million worth of GM seeds were exported in 2016.

Recent Industry Insights

  • The European Commission and Chile came to an agreement on the free trade of organic products. The agreement entails an acknowledgement of "the equivalence of all organic products of the European Union in Chile" and vice versa. This includes seeds for cultivation as well and would probably lead to increased export of seeds to Europe in the coming years.
  • Due to high inventory levels of corn in the United States, maize seed production in Chile showed a downward trend, because of reduction in acreage. Since Chile is actively seeking alternate markets for the export of maize seeds, a moderate growth in the corn business is expected in the upcoming years.

 Key Deliverables in the Study

  • The study covers the seed industry of Chile, and gives an overview of the current market dynamics.
  • The report analyzes the production, consumption, import, and export of major seeds produced in Chile, along with recent market trends, government regulations, growth forecast, major regions for export & import, etc.
  • The study affirms that Chile is the number one exporter within the Southern hemisphere and the world’s fifth largest seed exporter. Seeds rank third in the country’s agricultural exports.

The Report Holds Importance for the Following Stakeholders

  • Growers and Packers
  • Traders and Retailers
  • Researchers
  • Investors
  • Seed Industry Personals

Customization Options

  • Supply Chain Analysis
  • Regulatory framework
  • Trade Analysis
  • Trend Analysis

1. Introduction

                1.1 Market Definition

                1.2 Key Findings of the Study

2. Research Scope and Methodology

                2.1 Study Deliverables

                2.2 Market Segmentation

                2.3 Study Assumptions

                2.4 Research Methodology

3. Market Dynamics

                3.1 Drivers

                                3.1.1 Favorable Agroclimatic Conditions and Low Risk of Pests and Diseases

                                3.1.2 Highly Efficient Production and Marketing Services and Good Industry Linkages

                                3.1.3 Large Number of Beneficial Trade Agreements with Dominant Markets

                3.2 Restraints

                                3.2.1 Lower Rates of Currency Exchange (Weakening Peso)

                                3.2.2 Scarcity and Rising Cost of Labor

                                3.2.3 Rising Cost of Energy and Higher Transportation Costs

4. Industry Analysis

                4.1 Porter's Five Forces Analysis

                                4.1.1 Bargaining Powers of Buyers

                                4.1.2 Bargaining Powers of Suppliers

                                4.1.3 Threat of New Entrants

                                4.1.4 Threat from Substitute products

                                4.1.5 Competition Rivalry

5. Market Overview

                5.1 Analysis of Types of Seeds

                                5.1.1 Conventional Seed

                                5.1.2 Hybrid Seed

                                5.1.3 GM Seed

6. Market Segmentation

                6.1 Cereal and Grain

                                6.1.1 Maize

                                                6.1.1.1 Domestic Production Overview

                                                6.1.1.2 Trade Analysis

                                                6.1.1.3 Market Size

                                6.1.2 Wheat

                                                6.1.2.1 Domestic Production Overview

                                                6.1.2.2 Trade Analysis

                                                6.1.2.3 Market Size

                                6.1.3 Rice

                                                6.1.3.1 Domestic Production Overview

                                                6.1.3.2 Trade Analysis

                                                6.1.3.3 Market Size

                                6.1.4 Oat

                                                6.1.4.1 Domestic Production Overview

                                                6.1.4.2 Trade Analysis

                                                6.1.4.3 Market Size

                                6.1.5 Barley

                                                6.1.5.1 Domestic Production Overview

                                                6.1.5.2 Trade Analysis

                                                6.1.5.3 Market Size

                6.2 Fruits and Vegetables

                                6.2.1 Bean

                                                6.2.1.1 Domestic Production Overview

                                                6.2.1.2 Trade Analysis

                                                6.2.1.3 Market Size

                                6.2.2 Grape

                                                6.2.2.1 Domestic Production Overview

                                                6.2.2.2 Trade Analysis

                                                6.2.2.3 Market Size

                                6.2.3 Brassica

                                                6.2.3.1 Domestic Production Overview

                                                6.2.3.2 Trade Analysis

                                                6.2.3.3 Market Size

                                6.2.4 Cucurbit

                                                6.2.4.1 Domestic Production Overview

                                                6.2.4.2 Trade Analysis

                                                6.2.4.3 Market Size

                                6.2.5 Onion

                                                6.2.5.1 Domestic Production Overview

                                                6.2.5.2 Trade Analysis

                                                6.2.5.3 Market Size

                                6.2.6 Tomato

                                                6.2.6.1 Domestic Production Overview

                                                6.2.6.2 Trade Analysis

                                                6.2.6.3 Market Size

                                6.2.7 Sugar Beet

                                                6.2.7.1 Domestic Production Overview

                                                6.2.7.2 Trade Analysis

                                                6.2.7.3 Market Size

                6.3 Oilseeds

                                6.3.1 Canola

                                                6.3.1.1 Domestic Production Overview

                                                6.3.1.2 Trade Analysis

                                                6.3.1.3 Market Size

                                6.3.2 Soybean

                                                6.3.2.1 Domestic Production Overview

                                                6.3.2.2 Trade Analysis

                                                6.3.2.3 Market Size

7. Market Entry Analysis

                7.1 PESTLE Analysis

                7.2 Government Policies and Regulations

8. Competitive Analysis

                8.1 List/Profile of Key Players

                8.2 Market Share/Rank Analysis

9. Future of the Market

10. Appendix

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