Dutch breeding company Axia Vegetable Seeds was recently acquired by the Japanese company Denso Corporation. Denso is already known in the Netherlands following its earlier acquisition of Certhon. The question now is: What are Denso's plans with the tomato breeding company?
"Becoming a global leader in tomato seeds," was the message shared in a press release following the flyover of a plane carrying the merger announcement.
Industrialization of cultivation systems
The acquisition fits within Denso's Long-Term Policy 2030. Agriculture is one of the company's four key focus areas. Originally rooted in the automotive sector, Denso is working on the industrialization of cultivation systems in response to challenges in the agri-food sector, such as food supply shortages and the rising demand for food safety and security. The goal is to make food production stable and reliable.
"By combining Axia's strengths with Denso's technology, we aim to build cultivation solutions that enable stable and planned production from seed to harvest," said a Denso spokesperson.
The acquisition of 100% of Axia's shares is intended to further integrate seed breeding into Denso's broader agricultural development strategy. "We see potential in combining Axia's strengths in breeding with Denso's technology," the spokesperson added. "The goal is to build cultivation systems that meet producers' diverse needs, help workforces to prioritize high-value work, and aim to achieve sustainable agriculture worldwide."
Tomatoes
Europe remains a primary focus, with its large share in the global market for high-tech horticultural facilities. Tomatoes, being the largest greenhouse crop in Europe, are currently central to Denso's strategy. "We are currently focusing on tomatoes, the largest crop in Europe," said the Denso spokesperson. "However, we are considering expanding to other crops in the future to respond to the market's diversifying needs."
There is also alignment with previous acquisitions and partnerships in the horticultural sector. Denso plans to integrate expertise across its network. "We plan to combine the specialized cultivation technologies and expertise of partners like Certhon and Delphy to jointly develop data-driven cultivation systems and innovative growing methods," the spokesperson explained. Earlier this year, Denso announced an MOU with Delphy. DENSO acquired a minority stake in Dutch greenhouse builder Certhon in 2020, followed by a full acquisition in 2023.
Shorter breeding times
Denso also aims to shorten breeding timelines by applying its proprietary technologies in automation, image recognition, and AI to seed development. "We aim to expedite the introduction of higher-value seeds to the market," the spokesperson said. "By leveraging Denso's technologies with Axia's breeding capabilities, the objective is to support consistent food production and supply."
As for Axia's future management and operations, details are still being reviewed. "We are currently reviewing these details. Specific acceptance plans have not been finalized yet," the Denso spokesperson noted. "We aim to promote mutual personnel exchanges moving forward."
Denso is also monitoring opportunities in other crops and regions, but has not announced concrete plans. "Any future expansion will be considered carefully, based on a thorough evaluation of market needs and the suitability of growing conditions in each region."
Regarding the potential for further acquisitions in the horticultural sector, Denso is keeping its strategy open. "Our focus remains on growing sustainably and creating value in the horticultural space," the spokesperson said. "While we continuously evaluate opportunities, we don't disclose details about future plans or potential acquisitions."
For more information:
Denso
https://www.denso.com/nl/nl/
For more information:
Axia Vegetable Seeds
[email protected]
www.axiaseeds.com
