Market Trends of South Africa Seed Industry
This section covers the major market trends shaping the South Africa Seed Market according to our research experts:
Demand for Quality Seeds
The increase in the population level of the country has fueled the demand for higher productivity. Maize is the staple food in the country, consumed in its direct form. The cereal consumption in South Africa was valued at USD 5563.4 million in 2018 and is estimated to reach USD 6060.1 million by registering a CAGR of 3.3% during the forecast period. With the growing population and shrinking plots of cultivable land, the demand for quality seeds is increasing. COMESA (Common Market for Eastern and Southern Africa) reports that just 23% of the smallholders have access to certified seeds, which indicates huge scope for the quality seeds.
Government Initiative for Hybrid and Certified Seeds
The seed industry in South Africa is quite mature and serves commercial farmers with over 100 seed companies being a part of SANSOR. The Agriculture, Forestry, and Fisheries department of South Africa planned in 2016 to increase financial support to emerging producers by USD 28.4 million over the medium term, which will be accessed through the Land and Agricultural Development Bank of South Africa. SANSOR certifies the seed of high and known quality according to the rules of the SA Seed Certification Scheme. It certifies on average 3,000 seed lots per annum. According to ISF the South Africa seeds export valued USD 120 million in 2017 against USD 110 million in 2016, which indicates the growing seed market.
