Seed Sector Analysis – Sri Lanka Industry, Growth, Trends and Forecasts (2017 - 2022)
Market Insights Rice is a staple crop in Sri Lanka and the government has invested significant resources towards the crop for varietal improvement, technology development and in support of national seed programs. The seeds which belong to the formal seed sectorinclude those certified by the Seed Certification Services (SCS) of Department of Agriculture (DOA). Sri Lanka works extensively with research agencies (like the International Rice Research Institute (IRRI)) to develop new rice varieties (such as Green Super Rice) and improve the most commonly used crop establishment method i.e. the direct seeding method. Almost 90% of the farmers in Sri Lanka use rice seeds they have produced or they borrow from their neighboring farmers, using an informal seed supply system. The Sri Lankan government does not have any crop-specific policies. Some of the important companies in Sri Lankan seed market include Tropical Seeds/OPEX Holdings, Best Seeds (a representative of East West Seed), CIC Agri Business, Hayleys Agriculture, Supreme Marketing Company, Lanken Ceylon Plc-Agro. Market Dynamics The major factors driving the market of Sri Lankan seed industry are the government initiatives to develop the seed sector and the growth in demand for vegetables. Whereas, the factors restraining the growth of the market include the lack of knowledge of quality seeds and ban of genetically modified crops in Sri Lanka. Market Segmentation The market is segmented, based on crop type, into grains & cereals, vegetables, and others with grains & cereals occupying the majority of the market share. The vegetable segment is expected to witness the fastest growth rate registering a CAGR of XX%, during 2017-2022 (the forecast period). Major Companies in the Sector Include: • Tropical Seeds/OPEX Holdings • CIC Agri Business • Hayleys Agriculture • Supreme Marketing Company • Lanken Ceylon Plc-Agro • Plantchem Pvt. Ltd.(Plant Seeds Private Limited) • Eylon Agro Industries Ltd. (PRIMA Group) Recent Industry Insights • In order to increase vegetable seed production in the country, Sri Lanka's Department of Agriculture commenced a joint project with Bangladesh’s Lal Teer Seed Limited. • The Ministry of Agriculture appointed a Seed Task Force (STF) to develop strategies to enhance the seed sector in Sri Lanka. The government aimed to develop the seed sector to support development of the agriculture sector, by promoting government and private sector involvement in seed production, implementation of national seed production programs, and initiation of hybrid seed production. Key Deliverables in the Study • Market analysis for the Sri Lankan seed market, with region-specific assessments and competition analysis. • Market overview, identification and analysis of the macro and micro factors that affect the Sri Lankan seed market and how these factors have been instrumental in changing the market scenario, on both, global and regional scale. • Extensively researched competitive landscape 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.