Seed Sector Analysis – Pakistan Industry, Growth, Trends and Forecasts (2017 - 2022)
Pakistan is predominantly an agrarian economy with agriculture contributing 19.2% of the total GDP of the country. In Pakistan, the total seed requirement as per 2013 was close to 1,675,804 metric tons whereas the country could only produce 362,137 metric tons certified seeds.
Pakistani seed industry includes 760 private-sector seed companies (including five multinational seed companies). The informal sector is the major seed supplier in the country, where more than 90% of the seeds come from farmers (other sources like commissioned agents, retailers, and shopkeepers).
Two global players, Monsanto and Syngenta are likely to make long-term investments in the country’s seed sector that may help in revolutionize the industry. The Pakistan seed industry has been steadily growing with 21 new players entering the market since 2008. Moreover, Pakistan signed a deal with the Philippines for the export of hybrid rice seed in the first part of 2017, which could generate higher revenue for the country in the coming years.
Some of the important seed companies in Pakistan include
• Monsanto Pakistan
• Jullundur Private Ltd.
• Syngenta Pakistan
• Punjab Seed Company Corporation
• ICI Pakistan Ltd.
• Market Dynamics
• Major factors limiting the market growth include high prices of seeds, lack of reforms in the seed sector, insufficient supply of early generation seeds by public sector and poor collaboration between private and public entities. The market is driven by factors such as increased promotion of use of GM crops in Pakistan and the increasing concerns for food security.
• Market Segmentation
• Pakistani seed market is segmented, based on application, into crop-based and non-crop based seed segments. The crop-based segment can further be segmented into grains and cereals, vegetables, and others with grains and cereals occupying the majority of the market share in Pakistani seed market. The grains and cereals segment can further be segmented into wheat, rice, and others and the vegetables segment can further be segmented into onions and others. The grains and cereals segment of Pakistan is expected to increase at a CAGR of XX%, during 2017-2022 (the forecast period).
Major Companies in the Sector Include:
• MONSANTO PAKISTAN
• JULLUNDUR PRIVATE LIMITED
• SYNGENTA PAKISTAN
• PUNJAB SEED COMPANY CORPORATION
• ICI PAKISTAN LTD.
• PIONEER PAKISTAN SEED LIMITED
• ALI AKBAR GROUP
• FOUR BROTHERS GROUP
• SKY SEEDS
• AURIGA SEEDS
• RASHID SEEDS
Recent Industry Insights
• Pakistani government has been attempting to ensure 100pc certified cotton seed supply for farmers between 2017-18 Kharif season, which is likely to enhance per acre crop output in the country.
• In 2016, the Punjab government was on the verge of finalizing deal with Monsanto — a leading producer of genetically modified (GM) seed — to acquire advanced cotton seed technology and technical expertise for five years.
• Syngenta is likely to invest USD 1.4 billion in Pakistan to support small and medium growers to take up modern ways of farming, with the primary objective to ensure food security in the country.
• In the year 2017, the Punjab Agricultural University (PAU) released new varieties of rice, mung-bean, basmati and sugarcane for general cultivation in Punjab. Some of the salient features of these new varieties is that they either have a short duration - maturing early, have high yields, are water lodging, and pest tolerant in some cases.
Key Deliverables in the Study
• Market analysis for Pakistan’s seed market, with region-specific assessments and competition analysis
• Market overview, identification and analysis of the macro and micro factors that affect Pakistan’s seed market and how these factors are instrumental in changing the market scenario, on both, global and regional scale
• Extensively researched competitive landscape section with profiles of major companies and their market share, along with an analysis of their current strategic interests, financial information and plans adopted by them to sustain and grow in the studied market.
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