Organisation for Economic Co-operation and Development (OESO)

Report about concentration in the seed market

The Organisation for Economic Co-operation and Development (OESO) has, because of recent large movements between quoted companies (Dow/Dupont, ChemChina/Syngenta and Bayer/Monsanto/BASF), conducted a study into the concentration in the sector. The study is mostly directed at large agricultural crops. Seed potatoes and vegetable seeds are mentioned in the margin. According to Plantum, the report is well worth reading for people from that sector.

The study concludes, based on large data, that there are major differences between crops and countries. Concentration with regard to technology (GGO properties) is much higher than with seeds. No evidence has been found for increased prices and reduced innovation, which, according to economic theory, are the logical effects of too much concentration.

The study also poses that policy makers should not only look at competition policy, but that other policy fields can influence the market negatively. The author points at the high costs of bringing products of new breeding methods onto the market. He also emphasizes efficient licensing methods of intellectual property and the importance of access to genetic sources and of public-private research.

Read the report here.

Source: Plantum


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