China is a large agriculture country, and the annual usage of seed is more than 12.5 billion kg. Following the USA, China has become the second largest seed market in the world. As the fast increasing of seed commercialization rate, the market size of China’s seed industry rose rapidly, up to about RMB100 billion in 2014 from RMB25 billion in 2000.
However, compared with the developed countries such as the USA and Japan, the industrial concentration rate of China’s seed industry is low, and the overall strength of China’s seed enterprises and competitiveness is weak. In recent years, China’s government has issued series of policies and measures to support the seed industry reform.
According to the Development Guide of National Modern Crop Seed Industry (2012-2020), up to 2020, the market share of top 50 seed enterprises will reach 60% in China. China has seen a wave of M&A in seed industry in recent years. In 2010, there were about 8,700 enterprises holding a permit for management of seed sales, while in 2014 it down to less than 5,000. What’s more, the M&A boom will continue in future few years. Obviously, with advantages of R&D and financial strength, large scale enterprises have developed fast, and will become more competitive in global market.
In this report, ASKCI analyzes the market size of seed industry, supply and demand of seed, major causes of M&A causes in seed industry, experience from transnational enterprises’ M&A cases, as well as make a comprehensive & in-depth analysis the M&A cases in some major domestic large scale seed companies.
I OVERVIEW OF CHINA'S SEED INDUSTRY
I-1 Market size
I-2 Supply and demand
I-3 Industry characteristics
II CAUSE OF M&A IN CHINA'S SEED INDUSTRY
II-1 Policy support
II-2 Inventory pressure
II-3 Low industrial concentration
II-4 Challenge from transnational enterprises
III M&A ANALYSIS OF TRANSNATIONAL SEED ENTERPRISES
III-4 Experience from transnational enterprises
IV M&A ANALYSIS OF DOMESTIC SEED ENTERPRISES
IV-1 Overview of M&A in China‘s seed industry
IV-2 Case analysis of M&A in domestic large-scale seed company
IV-2-1 Zhongnongfa Seed Industry Group LTD
IV-2-1-1 Company profile
IV-2-1-2 Process of M&A
IV-2-1-3 M&A characteristics
IV-2-1-4 M&A experience
IV-2-2 Winall Hi-tech Seed Co., Ltd.
IV-2-2-1 Company profile
IV-2-2-2 Process of M&A
IV-2-2-3 M&A characteristics
IV-2-2-4 M&A experience
IV-2-3 Yuan Longping High-tech Agriculture Co., Ltd.
IV-2-3-1 Company profile
IV-2-3-2 Process of M&A
IV-2-3-3 M&A characteristics
IV-2-3-4 M&A experience
IV-2-4 China National Seed Group Co., Ltd.
IV-2-4-1 Company profile
IV-2-4-2 Process of M&A
IV-2-4-3 M&A characteristics
IV-2-4-4 M&A experience
List of Table
Table III-1 Government policy and documents of seed industry, 2011-2014
Table III-1-1 M&A cases of Winall Hi-tech Seed Co., Ltd., 2010-2015
Table III-2-1 Financial performance of Winall Hi-tech Seed Co., Ltd., 2010 and 2015
List of Chart
Figure I-1-1 Market size of China’s seed industry, 2009-2014
Figure I-1-2 Product structure by market value of China’s seed industry, 2014
Figure I-3-1 Number of seed companies in China, 2002-2014
Figure II-2-1 Seeds commercialization rate in China, 2014
Figure II-2-2 Effective inventory of hybrid rice seed, kilograms, 2001-2014
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