US Seed Market Driven by Fuel Production, Demand for Animal Feed and Increasing Demand of Fruits and Vegetables Along With Organic Products

Ken Research

Changing trend towards the use of organic seeds and rising mechanization along with technological advancements in agriculture practices is further augmenting the growth of the seed industry in the US

GURUGRAM, India, June 12, 2019 /PRNewswire/ -- US Seed industry is expected to register a CAGR of 1.8% in upcoming years. Huge consolidation in the market has reduced the number of major players in the US Seed market to less than five. In future, it is less likely that more consolidation may happen among the existing top players. Many new traits and seed varieties are under development and are expected to be launched in the next five years. Companies are expecting to save million in cost synergy as part of merger. BASF which acquired the seed business of Bayer is expected to become a significant player in the US seed industry as it has managed to acquire many important licenses from Bayer. Demand for organic and non GMO seeds are expected to rise and being sold at premium considering the rising demand for organic vegetables and other food products.

The rate of mechanization including use of drones and sensors for seed planting and monitoring, use of robotics for seed R&D and various other uses, upcoming culture of urban farming, hydroponics and the use of IoT (Internet of Things) in the agricultural based activities. USA is the largest market for organic food and is expected to rise at a rapid rate. Organic sector will continue to increase its penetration into the total food market and will account a major share in the food sold in US retail channels. Organic acreage is increasing in most areas of the US, while transitioning to organic corn and soybean.

The prices of Soybean are increasing and the higher producer returns provide incentives to increase plantings, and producers are expected to plant large number acres by the year 2023. Rising domestic use and export demand support a continuation of a large soybean area. This will eventually result in increased demand for soybean seeds. Corn production is expected to increase by the year 2023. Lower corn prices and increasing corn production suggest that more corn will be used for feed and residual use, fuelled by increasing meat production. The US is forecasted to remain the world's largest corn exporter. Companies are adopting strategies such as forming joint ventures and agreements in order to exploit the emerging crops such as Sorghum. The US domestic wheat seed demand is expected to remain steady, with minor gains in food use and a relatively stable demand for feed.