Market Trends of south america seed Industry
Oilseeds dominate South America row crops seed market, with soybean as the major contributor, driven by high export demand from oil processing as well as food and beverage industries
- In South America, row crops dominated the acreage under cultivation, accounting for more than 95% of the cultivated area in 2022. The major row crops cultivated in the region are soybean, corn, wheat, pulses, alfalfa, and rice. In 2022, oilseeds held a major share of 44.1% in the row crops segment. Additionally, the area under row crops increased by 16.7% from 2017 to 2022 due to increased wheat, corn, and soybean acreages. Globally, South America is the largest producer of soybeans, and the area under soybeans was 61.7 million hectares, with a production of 196.8 million metric tons in 2021. The major area under soybean is due to increased export value, high global demand from oil processing industries, availability of arable land compared to other major producing countries, and higher profit margins.
- Brazil is the major country cultivating different field crops, such as corn and soybeans. It accounted for 53% of the region’s area used to cultivate row crops in 2022. The higher area under row crops is due to the increased demand from food and beverage industries and the high demand for bio-fuel generation using corn. Furthermore, corn is the major crop cultivated in the region. It accounted for 27.6% of South America’s area for row crops in 2022. There was a 34.1% increase in the cultivated area for corn from 2017 to 2022 as it was one of the most consumed crops globally, and due to an increase in demand from corn-based oil-generating industries.
- The demand for oil generation, the high export potential of oilseeds, especially soybean, and the increasing demand for bio-fuel generation in the global market are increasing the area of cultivation for field crops during the forecast period.
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Disease resistant and herbicide-tolerant are the popular traits in South America corn and wheat cultivation due to the significant impact of diseases on crop productivity and agricultural sustainability in the region.
- Corn and wheat are the major cereal crops grown in the South American region. These highly profitable crops are used for domestic consumption and export to other countries. In the region, especially in Brazil, herbicide-tolerant corn seeds are extensively cultivated. These seeds are tolerant to glyphosate, which helps control broad-spectrum weeds and improves yields and quality. Major companies like Bayer, Limagrain, and Corteva Agriscience offer such herbicide-tolerant varieties, with Dekalb being a popular brand from Bayer. In addition to herbicide tolerance, farmers in the region prefer corn varieties that are more adaptable to different growing conditions. These seeds serve dual purposes: grain, fodder, and resistance to early rots and leaf diseases.
- Wheat is another major staple cereal grain widely cultivated in South America. Farmers in the region mainly cultivate wheat cultivars resistant to diseases like Septoria, Fusarium, and rust to minimize crop losses and ensure productive tillers and panicles. In 2020, Argentina's government approved the cultivation of genetically modified (GM) wheat, and in 2020, Brazil also approved GM wheat cultivation. The HB4 drought-tolerant varieties, developed by Bioceres company, covered 55,000 hectares in Argentina and accounted for 0.85 of the total wheat cultivated area in 2021.
- Other popular wheat traits in the region include high tillering capacity, adaptability to various climatic conditions, and high milling quality. Therefore, with increasing export demand and advancements in breeding technology, such as the development of transgenic varieties, the demand for wheat and corn cultivars with multiple traits is projected to increase during 2023-2030.
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Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Chili is experiencing the fastest growth in cultivation area among vegetables in the region, driven by rising prices and consumption of chili
- Disease resistance and herbicide-tolerant traits dominate the market, driven by the rise in weed populations and the increasing prevalence of diseases in these crops
- Transgenic breeding dominated in row crops due to high approval rates of GM crops whereas hybrid breeding dominated vegetables due to improved traits.
- Disease resistant is the primary trait preferred in onion and lettuce cultivation to combat diseases such as pink root, bolting, and others.
- Disease resistance is a highly preferred trait in tomato, pumpkin, and squash cultivation due to its ability to combat prevalent diseases such as leaf curl virus in tomatoes and floral diseases in pumpkins and squash
