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| Source: www.cargill.co.id |
As with the increasing population, the demand
for the food is also increasing across the globe. And so seeds and other
agricultural products are not the exception. The demand for the oilseed and grain seed is increasing day by day. The market for these products is
increasing in terms of value. The research report by MarketsandMarkets
estimates the global market for oilseed and grain seeds to reach $64,113
million by 2018.
The market is growing at a CAGR of 12.0% from 2013 to 2018.
The
key players in oilseed market are:
- Mosanto (U.S.),
- DuPont (U.S.),
- Syngenta (Switzerland), and
- Dow AgroSciences (U.S.)
There are two different approaches to look toward
increased demand of biotechnilogically modified seeds.
a) As an end user, everybody expect to get the best
quality food which would be economic and high in nutritional value.
b) At the same time, farmers expect to get seeds
which can deliver higher yield and have biotech-enhanced food with advanced traits.
This will help farmers to increase efficiency and effectiveness of the farm
field. Biotechnologically advanced seeds can deliver higher rate of return to
the farmers with improved quality of products. These foods can meet the demand-
supply gap in the market by providing good quality seeds in large amount.
New innovations in the field of biotechnology
can be seen across the world. Every major agricultural & biotech company is
investing in research and development activities to make products more and more
advanced.
The picture below illustrate
the Soybean Process Flow:
 |
| Source: www.wilmar-international.com |
Market
Analysis:
The market segmentation is done on geographical
basis such as Asia-Pacific, North America, Europe and Rest of the World. North
America being the largest oilseed market with 80% revenue coming from the U.S.
At the same time Latin America is the fastest growing market where Brazil holds
maximum no. of market share in 2012.
Asia-Pacific is the market leader in the world
for Rice and cotton. China tops in this market with India being second. North America and Europe is considered to be the major producers of
corn and oilseed. These seeds have special traits like herbicide resistance,
insecticide resistance and some other useful traits.
The global market for oilseed is growing at a
fast rate. According to a market research conducted by MarketsandMarkets, it is
estimated that oilseed and green seed market of $ 33,302.1 million in 2012. As
this trend is expected to be continued in the coming years, the market will reach
to $64,113.0 million in 2018. From 2012 to 2018 the market will grow at a CAGR
of 12.0%.
North America, China, India, Brazil are the
important countries for this market. North America is the largest market for
oilseed and grain seeds and will continue to lead the market in next future. The
major players are adopting new technologies to make advanced product and get competitive
advantage. Looking at the different types of oilseeds, corn has the largest
market share followed by soybean, in term of value.
U.S. market is largely associated with trait oriented seed where
herbicide resistant seed lead the market of seed with trait followed by insect
resistant trait used to protect crops.
The advances of genetic engineering are helpful
to make seeds with desired trait and ignore the unnecessary trait. So applications
of genetic engineering are implemented in the field of oilseed market to
produce different seeds with traits like insect resistance, herbicide resistance,
disease resistance, abiotic stress tolerance, quality pollination control
system etc.
Oilseed & Grain Seed: Market Revenue &
Share, By Geography, 2011 - 2018 ($Million)
 |
| Source: www.marketsandmarkets.com |
The Effect
of Biodiesel Prices on Oilseed Markets
There is a strong relation between biodiesel
production and its raw materials i.e. oilseeds. It is a matter of debate
whether oilseed to be used for biodiesel production or not because a large no.
of world population is still unable to get sufficient food to live life.
 |
| Source: news.agropages.com |
Soybeans and Canola are used to produce
biodiesel and the price of Canola is mainly responsible to decide price of end
product i.e. biodiesel. Here why Soybean prices are not important is because it
produces less amount of oil as compared to Canola. There is interdependence
between these two so price of biodiesel must be decided accordingly so that
market equilibrium should be maintained.
Oilseed crushing produces joint products-oil and
meal-and this weakens the link between the biodiesel and oilseed feedstock
prices.
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