Brazilian Vegetable Seed Market - Overall Comments

Vegetable seed market keep growing in Brazil.

The below figures published by ABCSEM show this in local currency. More  recent news indicate that the value in dollars at growers selling price will be around USD250-300 MM.

Main reason for the seed value increase has been the conversion from OP to hybrids instead of planted area expansion. Therefore, more and more hectares of onions, carrots, watermelons, etc. are being converted to hybrid seeds during the recent years.

Seed technology utilization (pelleting and others) is also a reason for increasing of some OP species like lettuce.

Other causes for the seed market value growth are the market segmentation with more presence of new watermelon and tomato types (cherry, grape, etc.) besides the fact that some hybrids with more disease resistance and adaptation to tropical conditions, combined with the increase of plant density, is directly rising the seed volume used.

The majority of the top worldwide seed companies is present in Brazil including the fact that they have offices and breeding or trials station here.  Thus, it could indicate a strong competition, which is true, but sometimes appears to be a market with limited opportunities. It is a practice in the Brazilian vegetable seed market to have products from small foreign companies introduced under license to local companies. This means that some local companies rather than putting a lot of money in breeding go out of Brazil and bring products from other suppliers to sell under their brands.

Local companies also go outside the country to contract some seed production since vegetable seed production in Brazil does not reach a high stage until now. Tropical conditions create limitations to this activity.

The expectations are that the market continues on the direction of sophistication but in some species, it will take more time. It can be considered also that in some segments there is still a high percentage of OP utilization that will be converted to hybrids in the future. Maybe onion is one of the best examples to be analyzed.