• Field crops – The acquisitions mentioned above fuelled a huge leap in this sector, from US$648 million in 2004 to US$1.18 billion in 2005. Syngenta has a strong position in maize and soybeans, which accounted for some 49% of total seed sales in 2005. In the US, it estimated it had around a 14% share in the maize and soybean seed market.
• Vegetables and flowers – seed sales totalled US$616 million. It has a dominant position in flower seeds and an important share in the vegetable seed market. Sales are mainly in Europe and NAFTA.

By region, the NAFTA is Syngenta’s largest market for seeds, with 50.3% of sales in 2005. This was followed by Europe, Africa & Middle East (39%), Latin America (6%) and the Asia Pacific (5%). US sales of seeds leapt from US$437 million in 2004 to US$903 million in 2005.

In the US maize and soybean markets, the company piloted its AgriEdge combined package of agrochemicals, conventional seed and the Agrisure brand of GM seed traits in 2005. The scheme was fully rolled out in 2006. In the US GM maize market, Syngenta's traits represented some US$400 million in 2005, and the company expects this to reach over US$1 billion by 2010. It launched stacked trait GA21 glyphosate-tolerant and corn borer-resistant maize in 2006, and expects to follow this in 2007 by glyphosate-tolerant corn rootworm-resistant maize and corn borer/corn rootworm-resistant maize and in 2008 by a triple-stacked trait line.

1.2.4 Limagrain

Limagrain is an agricultural cooperative group headquartered in France. It made consolidated sales of €1.07 billion (US$1.20 billion) in the year ended 30 June 2005, of which seeds accounted for 79.2%. Seeds for field crops represented 33.2% of consolidated sales, and vegetable seeds 46% in 2005. The company is the largest seeds company in the EU.

Limagrain has historically been strong in seeds for field crops, and is now the European leader for maize and wheat seeds. This sector was strengthened by the acquisition of Advanta’s European field crop business in 2005. This included Advanta's European maize, grasses, cereals, winter oilseed rape, sunflowers and other businesses, and also some US interests. The acquired business continued to have access to the Advanta trade mark, where relevant. Other brands include LG, Maïs Angevin and Nickerson.

Through its 50:50 joint venture with KWS, AgReliant Genetics, Limagrain is also an important player on the North American market. AgReliant acquired the US seeds company, Producers Hybrids, in 2005.

Vegetable seeds and garden products are also major areas, through its holding company, Vilmorin, formerly Vilmorin Clause & Cie (VCC). Business is split into:

• The professional business group, which sells to market gardeners and canners. These sales reached acquisition €298 million in 2005. Vilmorin is the second largest professional seed company in the world, the company says.
• The home garden business, which sells to end-consumers seeds, bulbs, young plants and garden products. Sales totalled €196 million in 2005. Vilmorin is the world leader in this market.

In 2006, Limagrain announced plans to integrate field sales with VCC. This saw VCC holding Limagrain’s European field seed activities (Limagrain Verneuil Holding, including Advanta), a 55% shareholding in Biogemma, and AgReliant Genetics. Upon completion, VCC became Vilmorin.

1.2.5 KWS

KWS is one of the world’s leading plant breeding companies. It is an independent family-owned business, headquartered in Germany. Its products include sugar beet, maize and cereal seed as well as oilseeds. Total net sales by the KWS Group reached €495.3 million in the year ended 30 June 2005, with seeds making up 98.5% of sales.

Sales are divided into the following segments:

• Sugar beet, which accounted for 44% of KWS Group sales in 2004/2005, with sales of €217.9 million. The segment’s main markets are EU countries, which accounted for 64.7% of sales in fiscal 2005. Principal countries were France, Germany, Poland and Italy.
• Maize (including oil and protein plants, and field crops), which accounted for 44% of group sales in fiscal 2005, at €217.6 million.
• Cereals (including oil and protein plants and field crops), accounted for sales of €52.4 million in fiscal 2005, or 10.6% of group turnover. KWS operates through its 81%-owned subsidiary, the Lochow-Petkus Group, which consists of four companies, in Germany, the UK (CPB Twyford), Poland and France (49% stake in the Momont Group).
• Others (including services and agriculture).

Germany is the main individual market, accounting for 25% of group turnover in fiscal 2005. The rest of the EU accounted for a further 39%, the Americas 24% and other countries 12%.
While it has been less acquisitive than Monsanto, and has been primarily a German company, its overseas sales have been increasing. It also has a 50:50 joint venture with Limagrain, AgReliant Genetics, which makes it an important player on the North American market. AgReliant acquired the US seeds company, Producers Hybrids, in 2005.

1.2.6 Bayer

Bayer CropScience’s seeds business falls under its business unit, BioScience. BioScience has more than 2000 employees worldwide and is headquartered in Lyon, France. Its activities are focused on three areas:

• Vegetable seeds, under its Nunhems brand. Nunhems (formerly Nunza Group) is among the world’s leading four vegetable seed companies, with annual sales of €180 million. It markets more than 2,500 vegetable seed varieties in 28 species to professional growers, plant propagators, seed dealers and the fresh produce and food processing industries. Its main crops are carrot, onion, tomato, leek, melon, cucumber, watermelon and lettuce. Its main operations are at Parma (US), Gurgaon (India) and Haelen (the Netherlands). Since 2004 all Nunhems vegetable seeds have been sold under the Nunhems brand, including the Sunseeds label acquired by Nunhems in 1997.
• Agricultural crops, mainly canola, cotton and rice. Canola is sold under the InVigor brand, which offers vigorous growth, high yield potential, and the ability to withstand environmental stresses specific to Canada. Bayer’s cotton is sold under the FiberMax brand, and includes insect-tolerant and herbicide-resistant varieties. Bayer also sells a range of hybrid rice seeds adapted to the Indian sub-continent, South-East Asia and Latin America. It has a strong hybrid rice breeding and production. Its Arize hybrid rice seeds are sold in India and in the Philippines.
• Novel plant-based products for health, nutrition and biomaterial applications.
Bayer has divested its maize and soybean seed companies – Pau Seeds in the US and Brazil.

1.2.7 Takii

Takii & Company is a privately owned Japanese seed company, based in Kyoto. It was founded in 1835 and is one of the world's largest breeder/producers of vegetable and flower seeds. It has six breeding and experimental stations in Japan (Shiga, Fujimi, Shiojiri, Ibaraki, Hokkaido and Wakayama) and international facilities located in the US, the Netherlands, France, Chile, Thailand and China.

Subsidiaries include CTT Seed Co Ltd in Thailand, Qingdao Huang Long Seeds Co Ltd in China, Pahuja Takii Seeds Ltd in Delhi, India, the TW Company Ltd in Hong Kong and Takii subsidiaries in the US, France, Chile, Brazil, Indonesia and South Korea.

Annual turnover was ¥41 billion in the year to 30 April 2004.

1.2.8 Delta and Pine Land

D&PL (Scott, Mississippi, US) operates the largest and longest running private cotton seed breeding program in the world. It is the leading cotton seed company in the US. It also breeds and markets soybean seed for the US market. The company recorded sales of US$366 million in the year ended 31 August 2005, with a gross profit margin of 36%.

D&PL’s product range relies heavily on Monsanto transgenic traits, including Bollgard I and Bollgard II, Roundup Ready (RR) and RR Flex. In 1998, Monsanto had agreed to purchase D&PL, but the deal collapsed and D&PL sued Monsanto for breach of contract. However, in August 2006, the company announced again that it was to be acquired by Monsanto, subject to its shareowner approval, antitrust clearance, and closing conditions.

D&PL has ties with other companies, including Syngenta and DuPont (through Pioneer). In 2004, it began developing and commercialising Syngenta’s GM insect-resistant VipCot cotton. Syngenta hoped to launch this in the US in 2004, but this was delayed. In 2006, D&PL acquired Syngenta's global cotton seed business, including operations and assets in India, Brazil and Europe, certain cotton germplasm in the US, and the VipCot technology, which D&PL now hopes to launch in the US in 2008, subject to regulatory approval.

In 2010, D&PL expects to introduce results of the joint venture with DuPont/Pioneer – DeltaMax LLC. This will expand the offerings further to include a new mode of action herbicide resistance (GAT) as well as new insect and nematode-resistant traits.

1.2.9 DLF-Trifolium

The DLF Group is the world’s biggest producer of cool season clover and grass seeds, with an estimated 20% of the global market. This is through its subsidiary, DLF-Trifolium, which is based in Denmark and 95%-owned by Danish seed growers through their cooperative, DLF AmbA. Most of its clover and grass seed is produced in Denmark. It also has significant contract production in the Netherlands, through its subsidiary there, Innoseeds (formerly Cebeco Seeds Group), and the US, through DLF International Seeds (US).

About 95% of its Danish production of clover and grass seeds is exported via its subsidiaries in Germany, the UK, France, the Netherlands, the US and the Czech Republic, and via representative offices in Russia and China and the export department in Roskilde, Denmark.
DLF-Trifolium purchased the Dutch Cebeco Seeds Group in 2003. A condition of the purchase allowed for the continued use of the Cebeco brand only until 2006, when Cebeco Seeds Group became the Innoseeds Group. The acquisition extended DLF-Trifolium’s product range to include cereals, flax and peas.

Innoseeds breeds and markets winter wheat and spring and winter barley mainly for France, Germany, the UK, the Benelux countries, Denmark, the Czech Republic, and the other central European countries. Pea seeds are targeted towards the markets in France, Germany, the UK, the Benelux countries, Denmark and the Czech Republic.

1.2.10 Sakata

Sakata Seed Corporation is a global seed company, involved mainly in the research, development and production of vegetables and flower plant varieties. It was the first Japanese company to export seed. The company’s sales are split into

• Wholesaling – producing and procuring vegetable and flower seeds, bulbs, seedlings and agricultural and horticultural products, and wholesaling them to nurseries and other retailers in Japan and overseas.
• Retailing – primarily buying products for the home gardener, and selling them to home improvement retailers in Japan.
• Others – landscaping, and other areas, including insurance.
Sakata’s business was mainly domestic until it established an office in the US in 1977. This was followed in 1988 by a European office and subsidiary. Subsidiaries were established in Chile (1991), Mexico (1993) and Brazil (1994), and the 1990s witnessed considerable expansion in Latin America, Europe and parts of Asia.

In 2002, Sakata acquired full ownership of the Alf Christianson Seed Company, Mt Vernon, Washington, US, having been a minority shareholder for 21 years. Christianson provides contract seed production services for companies worldwide and markets its own varieties under the Chriseed Brand, mainly cabbage, spinach, carrot, radish, beet and other vegetables and herbs. The flower division of Daehnfeldt A/S was purchased in 2003.

Total net sales for the year ending May 2005 were ¥46.3 billion (US$431 million), including sales of bulbs, seedlings and landscaping enterprises. Strict seed sales are estimated at ¥29.6 billion (US$276 million).

On a geographical basis, 14.1% of sales were in North America, 11% in Europe and 10% in other regions, with the balance being represented by Japan’s domestic business and exports. During the 2004/2005 fiscal year, the Japanese market was stable while there was substantial growth in the US. Sales were strong in Asia for vegetables and in South America for tomatoes. Both vegetable and flower sales were flat in the domestic market and higher overseas.

1.3 Types of seed

1.3.1 Farm-saved seed

Farm-saved seed is a major factor in developed and developing countries for non-hybrid crops, such as cereals and rice. These crops maintain their genetic purity, although seed quality may decline, particularly if care is not taken over seed selection and storage. Careful screening and cleaning can avoid spreading weed seeds and disease.

In Africa, much of seed sown is from farm- or village-saved seed. The majority of the rice grown in Asia is also saved and not purchased each year. Much wheat seed is farm-saved, even in the US, France and other developed countries. The European Seed Association (ESA) estimates that some 53% of all cereal seed and 65% of all potato seed in Europe is far- saved.

This figure is rising. Farmers are constantly seeking to minimise costs, the size of farms is growing, and farmers are becoming better educated, and so capable of producing better seed. In the UK, for example, more farmers have been saving their cereal seed in the last ten years.

Seed laws in EU countries do allow for a payment by farmers growing their farm-saved seed of protected varieties. However, farmers do not always pay up. The ESA estimates that breeders of cereal and potato seeds in Europe alone are losing an estimated €65 million a year in unpaid royalties.

Seed that is farm-saved, rather than certified or purchased, can still receive a seed treatment. Various techniques and approaches for treating seed at the farm level are available.
In 1961, the International Union for the Protection of New Varieties of Plants (UPOV) recognised plant breeders’ rights to be paid for their investment in plant breeding. The Convention limited these rights to the production for commercial marketing of the new variety. This allowed the ‘farmer’s privilege’ so that a farmer could produce seed for his or her own use, as long as it was not offered for sale.

The 1991 amendment cancelled the reference to commercial marketing, but an exception was made for farm-saved seed produced by subsistence farmers. An optional exception permitted farmers to plant seed on their own holding from their own harvested seed of the protected variety.

1.3.2 Seed supplied commercially

1.3.2.1 Conventional breeding

Conventional plant breeding has achieved regular and significant increases in yield and quality of the major world crops. The greater sophistication of farmers around the world and their need to optimise economic returns has increased uptake of new varieties.

The life of average varieties is only a few years, so that growers need to purchase new seed on a regular basis to maximise yields and produce varieties requested by the trade and processors. Obviously, seed must be purchased each year for hybrid crops such as maize, sugar beet, sunflowers and many vegetables. The trend to hybrid cultivars will continue even in field crops, such as rice. This combination of wider availability of high yielding new varieties and hybrids has fuelled the increasing demand for purchased commercial seed.

1.3.2.2 GM plants

The introduction of biotechnology has added further value to the seed through the introduction of traits that facilitate insect or weed control. Growers have adopted these input traits with unprecedented speed.

GM crops were first grown in 1996, and since then the area planted has risen by more than 10% every year. Their global area reached 90 million ha in 2005, up 11% on 2004, the International Service for the Acquisition of Agri-biotech Applications (ISAAA) estimated. The main GM crops are soybeans, maize, cotton and canola. Together, these crops covered 299 million ha in 2005, of which GM lines accounted for 30%.

The ISAAA (using Cropnosis figures) put the global market for GM seed at US$3 billion in 2000, rising to US$5.25 billion in 2005. This represents 15% of the global crop protection market of US$34 billion and 18% of the global seed market of some US$30 billion. This figure is similar to the figure of US$5 billion, quoted by Syngenta (Phillips McDougall figures).
As a result of the higher cost of transgenic seed, growers try to optimise seed populations and ensure that all drilled seed develops into healthy plants. Seed treatment provides an economic investment to protect the germinating seedling.

1.3.2.3 Stages in seed production

The stages in the production of seed for commercialisation can be described as follows:

• Breeder seed is the first seed produced by the breeder from the parent lines. It is the source for the production of seed of the certified classes.

• Foundation seed is the term used to describe the first generation from breeder seed. It is handled to ensure that specific genetic purity and identity is maintained.
• Registered seed has to be grown from foundation seed and is usually not commercialised. It is used as the basis for bulk production of certified seed.

• Certified seed is produced from foundation or registered seed for commercialisation.
The progression through the bulking up steps is slightly different for hybrid varieties in that certified seed is produced from the two inbred parents. For crops like cereals and rice, the foundation or registered seed is bulked up by farmers, who must grow under strict rules. Seed treatment is standard practice during all stages of the breeding and multiplication process. Certified seed is likely to be treated.

1.3.2.4 Seed certification

Certification assures purchasers of the quality and purity of the seed. Three criteria – distinctness, uniformity and stability – are the foundation for identifying crop seed varieties. In most countries, seed certification is voluntary and safeguards consumers over and above any legal requirements. Certifying seed involves an added cost, and farmers may not be willing to pay the premium, particularly if it is not perceived to offer any clear benefit.

Various international organisations help with certification. These include:

. . . Organisation for Economic Co-operation and Development (OECD)

The OECD Seed Schemes began in 1958, to facilitate seed movement between member countries. They set up an official system of certification through national authorities to give assurance of varietal purity. The schemes are open to non-members, and by the end of 2005, 55 countries participated, with several others, such as China and India, showing interest. These countries do not have to subject all their domestic seed production to the OECD requirements. Often, only seed for export is certified.

Countries participate in any of seven schemes. Fifty participate in grasses and legumes and crucifers, oil and fiber species, 49 in cereals, 39 in maize and sorghum, 29 in sugar beet, 26 in vegetables and only four in subterranean clover and similar species. The schemes covered 191 crop species in 2005/2006.

The number of varieties listed in the Seed Schemes List of Varieties eligible for seed certification has increased from around 3,000 in 1975 to 17,000 in 1997 and 37,000 varieties in the current list. Growth has averaged 5-10% a year.

The weight of seed certified has also risen, from 325,145 tonnes in 1996/1997 to 533,988 in 2003/2004. Four countries represented 57% of the certified seed in 2003/2004 – the US (20%), France (14%), Hungary (12%) and Chile (11%). Maize and sorghum were the major crops, representing 66% of volume, followed by grass and legumes 13%, crucifer and other oil and fibre species 11%, cereals 8% and beet 2%. Almost 93% of the seed certified (by weight) is for First Generation seed, 4.8% for basic and the remainder divided between Second Generation and Pre-Basic.

Biotechnology-derived seed raises a number of issues, such as levels of varietal purity and appropriate testing protocols, which are still in debate. Development of seed-testing protocols is outside the scope of the Seed Schemes and is done by seed testing associations.

. . . Association of Seed Certifying Agencies (AOSCA)

This began in 1919 as the International Crop Improvement Association, but changed its name to reflect more precisely the role that it plays. AOSCA assists seed certifying agencies in the production, identification, distribution and promotion of certified classes of seed and other crop propagation materials. Members include the certification agencies of the major seed producing states in the US, as well as Australia, Argentina, Canada, Chile and New Zealand.

AOSCA’s main purposes are to establish minimum standards of generic purity and recommend minimum standards of seed quality for the different classes of certified seed; to standardise seed certification regulations and procedures; to review agency genetic standards and to co-operate with seed regulatory agencies, the OECD Seed Schemes and other international organisations in developing standards, regulations, procedures and policies to expedite the movement of seed and encourage international commerce in improved varieties.

1.4 Seed testing

Seeds have the potential to spread diseases to new places, and this risk has increased with the growth in trade. Consequently, seed inspection has also risen. Testing is standard procedure in many countries to satisfy domestic certification requirements, quality assessment and for plant quarantine reasons. A phytosanitary certificate is required for seed moving into international markets.

Some seeds show outward signs of disease. For instance, French bean seeds have dark spots when infected with Colletotrichum lindemuthianum, while lighter-than-expected melon seed may be infected with squash mosaic virus. However, many seeds appear healthy, although they are carrying pathogens. Therefore, laboratory testing is necessary to confirm whether seeds are healthy.

The list of diseases and pests that must be checked varies from country to country. There has also been a lack of standardisation in testing procedures. In 1924, the International Seed Testing Association (ISTA – Switzerland) was founded to develop, adopt and publish standard procedures for sampling and testing seeds, and to promote their uniform application for evaluating seeds in international trade. ISTA now has some 210 personal members and 162 member laboratories from 74 countries.

ISTA updates its International Rules for Seed Testing each year so that laboratories use the latest, uniform, harmonised and agreed methods. Laboratories and testing programmes are accredited and audited, with ISTA International Seed Lot Certificates issued. Some 95 laboratories are ISTA-accredited.

The association also promotes research in all areas of seed science and technology. Its technical committees establish standards for a wide range of subjects, from germination through storage and GMOs. In 2000, ISTA introduced the principle of Method Validation for all methods proposed for seed quality testing. All methods are verified and approved to ensure the “final product is a sound, validated seed quality test method”.

Seed testing results can be used for grading seeds, assessing vigour, evaluating the need for treatment and determining whether a seed treatment has been successful. Seeds may be damaged or infected by insects or fungal pathogens prior to harvest or during storage. Seed coats may have become chipped or cracked during harvesting, handling or storage. Such seeds are more prone to infection and attack once they are drilled. Damaged seed coats also encourage infection by allowing nutrients within the seed to diffuse into surrounding soil and so attracting and facilitating the entry of pathogens and insects.

Seed testing does not just apply to seed companies and seed certification. Farm-saved seed can be tested for diseases. For example, the UK National Institute of Agricultural Botany (NIAB) offers testing packages, giving the farmer a quick and convenient way of checking the quality of farm-saved seed prior to sowing. Basic tests cover germination and thousand-grain weight allowing sowing rates to be optimised. Standard tests also include the assessment of seed for common diseases allowing the right seed treatment to be applied.

Tests have improved in recent years, with turnaround times becoming faster. This offers more flexibility for farmers, and so it is expected that the number of farmers testing their farm-saved seed will increase. For example, the UK Home Grown Cereals Authority (HGCA) suggests that farm-saved cereal seed should not be routinely treated. Instead, seed should be tested, and treating limited to when certain disease thresholds are reached:

• If bunt exceeds 1 spore/seed.
• If Microdochium plus Septoria nodorum plus Fusarium graminearum exceed 10%.