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Ukraine will press Europeans in the world seed market
Jul. 6, 2015
On June 4, 2015 the EU Commission finished its work for assessing the system of official control and certification of cereal seeds and their equivalence to the EU requirements. The final conclusions will be published in the first quarter of 2016.
How the Ukrainian seed market will benefit from the commission’s positive conclusion? First of all, this will allow supplying Ukraine-grown seeds to the EU. Secondly, the EU’s recognition of the Ukrainian certification equivalent to the European Union requirements will contribute significantly to entering new markets.
Who will be able to make use of this? Of course, international companies growing seeds in Ukraine are in a more advantageous position. Many distinguished companies such as DuPont Pioneer, Maisadour Semences have managed to build seed plants lately. Others, such as Monsanto, have declared their intentions.
Ukrainian producers growing foreign-bred seeds for foreign companies will also benefit from the expansion of seed production in Ukraine. Remarkably, foreign companies work both with major companies such as Cherliss, Rise, Help Agro and minor agricultural factories and farms able to meet all the technological requirements. The higher profit of growing seeds compared to commodity produce does not even need any discussion.
Ukrainian breeders must not stand off either. Sure, it will be more difficult for them to enter other markets. However, Ukrainian cultivars and hybrids of cereals can win new buyers at the expense of lower prices and quite good quality. The more so as many of Ukrainian enterprises and institutes – such as the Odesa-based Plant Breeding and Genetics Institute and the Kharkiv-based Yuriev Plant Production Institute – have good partnership relations not only within Ukraine but also abroad.
In case of a favorable decision, all the seeds will be exported and Ukraine will end up with no seeds. Ukraine is capable enough of boosting seed production. In turn, this will bring additional investment to Ukraine for upgrading existing production facilities and building new seed plants.
Source: UkrAgroConsult
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