The agriculture industry has seen several big waves of integration recently . Philip Howard , Associate Professor in the Department of Community Sustainability at Michigan State University , has been come after development in the global seeded player industry for years now . Hislatest chartillustrates how the “ Big 6 ” agrochemical / seed firms combine into a Big 4 . These four firm are now estimate to control over 60 % of global proprietary seed sales . A identification number of the brands take in previous acquisitions have been bed .
tick here to expand ( PDF )
While this course of integration will slow down , the end is n’t in ken just yet , Philip believes : " Although there are few braggart acquisitions left to make , smaller seed companies will continue to be adopt , particularly in countries like Brazil , China and India . "
Preventing monopoliesThis immersion of top executive in the spherical seed industry begs the doubtfulness if anti - monopoly authorities , which are supposed to prevent situation where too few companies have too much power , have ‘ settle asleep at the wheel ’ . Philip explains : " antimonopoly legal philosophy , with insistency and influence from corporations and think tanks , have been dramatically reinterpret , move aside from their initial design , and toward very narrow-minded and strict consumer welfare ideas . These are often come on theoretically as well , and empirical datum to gauge whether or not consumer are harmed are seldom collected . There is a grow motion challenging these trend , which includes economists and lawyers , and is sometimes call the ' New Brandeis Movement . ' "
' Less and less innovation’According to Philip , the current berth of continued consolidation typify a danger to growers . " We have already see to it prices increase dramatically with industriousness integration , although it has slowed in recent yr as declining commodity Leontyne Price make it difficult to express more from raiser . inquiry investment is also being centralized , focused on a smaller number of crops and traits within those crops , and on region where these crops are set most extensively . Those who are growing anything else are typically have less and less innovation . "
China in controlChinese companies have been quite active in the market lately , for example with the ChemChina takeover of Syngenta . Commenting on the increasing interest of the Chinese in the international agriculture manufacture , Philip says : " China is not ego - sufficient in food , therefore the administration is encourage firms headquartered in China to make extraneous acquisitions . The politics of China has provided these firms with advantages , such as low toll funding , that competitors in other countries may not have . These advantage may be hyperbolise over time , resulting in more and more control of the global food system by China , where the edge between governments and business firm are even blurrier than many other parts of the world . "
Consumer awarenessWhile consumer are becoming more witting when it comes to what ’s on their plate , the come industry is still reasonably removed and hidden from the vista of most . " Even cultivator may struggle to know who owns the seeds they buy through intermediator " , according to Philip .
He does see a movement toward smaller ( seed ) provider popping up , however , just like what happen with local / urban farming devising headway . " Yes , this is already find . In the US , for example , a number of business firm specializing in organic and/or open - pollinated seeds are small , but growing speedily . Many are also associated with the Open Source Seed Initiative , which works to acquire new sort that promote sharing rather than restricting accession to plant germplasm . "
For more information : Philip H. Howardphilhoward.net
© FloralDaily.com/Jan Jacob Mekes
