Seed sector may have up to 70% fewer companies in 10 years, says Blink

Blink Applied Intelligence has revealed that only approximately one-third of the seed-producing companies will exist in the next ten years. 

Blink stated this during Enssoja, Brazil’s National Meeting of Soybean Seed Producers. Currently, the seed sector has around 370 companies facing difficulties due to lower profitability margins in the input market.

Lars Schobinger, CEO of Blink Applied Intelligence, further explained that this segment was undergoing a consolidation process. According to him, the seed chain moved BRL33.5 billion in the 2022-2023 harvest, an increase of more than 18% compared to the previous year. For the 2023-2024 season, the consultant projected a 20% drop due to price adjustments, placing the total seed market at BRL26.8 billion.

In this amount, Blink included the values of royalties for the technology embedded in the seeds and the amount paid for TSI (industrial seed treatment) offered by companies. For the 2024-2025 harvest, Lars Schobinger had a more optimistic view, projecting that the planted area will still grow by 2%.

According to Blink Consulting, a threat to the sector is seeds obtained irregularly, without certification and without paying for the technology. According to him, the loss had reached BRL2.44 billion.

New Cultivar Protection Law

Fabrício Rosa, Executive Director of the Brazilian Association of Soybean Producers

Another widely discussed topic at Enssoja was updating the Brazilian Cultivar Protection Law. Fabrício Rosa, Executive Director of the Brazilian Association of Soybean Producers (Aprosoja Brazil), stated that the current law had weaknesses.

One of them was the low incentive for new companies to enter the market and the creation of filters at specific points that producers considered necessary, especially regarding tolerance and resistance to pests and diseases.

Gladir Tomazelli, President of the Brazilian Association of Soybean Seeds

Rosa also advocated harsher penalties for those who practised 'piracy' to differentiate the criminal from someone who ″saves seeds″ they produced. Gladir Tomazelli, President of the Brazilian Association of Soybean Seeds (ABRASS), argued, ″The company that develops genetics for soybeans must be compensated for it, and those who use these genetics should do so responsibly, without pirating it.″

Edilene Cambraia Soares, Director of the Department of Plant Health and Agricultural Inputs at the Ministry of Agriculture, stated that the ministry is committed to reviewing complementary regulations to fill gaps perceived by inspections.

(Editing by Leonardo Gottems, reporter for AgroPages)