Brazil's vegetable seed market keeps growing
September 21, 2010
Source: MN Agro
Statistics on vegetable seed market are very limited in Brazil.
ABCSEM (the seed association for the segment) is the only entity that has some information about it. In view of the limited organized information it is quite complicated to estimate the value of vegetable seeds sold in Brazil.
The most recent information indicates that this market is around US$200 millions and is growing significantly on last 3 years.
The positive atmosphere we find with the vegetable seeds men allow us to believe the market has been very good on recent years.
Majority of the managers and sales people from seed companies when asked how are the business usually answers; “good” or very good. This situation is helping vegetable seed companies to reach their sales budget and deliver goods results.
What are the explanations for it?
The reasons for the good performance of the vegetable seed segment start with the economic situation of the country which has been very good in recent years. The good country economic situation allowed people to have a better purchase power and permit more people to buy several types of foods.
As a good example supermarket sales keep growing for last several years. On 2009 they reached a record of RS$177 billion (about US$90billions) and reported about 10% of their sales are fruits and vegetables.
When we look specifically in the vegetable seed sector we see interesting changes on the market that help to increase the seed market value.
Some examples are:
- Carrot market is moving more and more to hybrids, so the growers increased his seed expense per hectare from about US$150 to around US$800. Of course grower does such investment because he has a return on yield.
- Watermelon market continues to moving from OP Crimson Sweet to seeded hybrids. In addition to it there more seedless hybrids cultivated for export and “personal” (3 to 4 kgs) hybrids watermelon. All these types have a higher price than OP, increasing the seed market value.
- Even in fresh market tomato (ESL type) where some prices competition increased on last years we have hybrids with Fusarium race 3 resistances being sold at much high price than TY types.
- The effort to convert OP beets market in hybrids remains and is getting progress, so seed value is increasing.
These above are just few examples to explain the reasons for market value increase.
Of course the utilization of more seed technology (pellet & primed seeds) as well as sowing onion and other crops in high density increases seed consumption and market value.
In view of the positive situation and trends we see more companies putting more and more investment on their activities in Brazil, specially increasing their product development and sales team.
The growth of vegetable produce in Brazil 1998-2008.
As you can see there is a tremendous growth specially due to the increase yield growers are being able to obtain.
The growth in yield is the result of better technology used on vegetable production starting with better seeds.
More news from: MN Agro
Published: September 21, 2010