SEEDS STUDY

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Concentration of market power
in the EU seed market
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Mergers and acquisitions in the seed breeding and
marketing sector
The consolidation of the seed giants is dependent on complex factors. One of the ways to expand control
over the market is to invest in the hybridisation of certain crops, or in biotech products protected by patents.
Generally, private companies working with varieties designed for industrial-scale production such as F1 hybrids
need on average between 7 and 15 years to breed a new variety and place it on the market26. Indeed, if they
are not backed up with public funds, actors need to invest considerable time and money to enter into the sector,
especially at the beginning of the process. This creates a barrier impeding access to newcomers.
However for the largest seed giants, the breeding experience and the value of genetic resources can be easily
acquired through merging with or acquiring of companies already in the market. In the last 20 years, the biggest
seed companies have acquired smaller local seed companies all over the world. This strategy is an effective
way to enlarge their market share but also to diversify their breeding and genetic know-how. A good example
of this process is the history of the Limagrain group, which has acquired or taken over 15 seed companies since
the 1990s27.
In addition, the biggest companies in the seed sector also build alliances28, often under the form of a joint
venture or partnership, creating non-transparent oligopolies29. Such alliances include so-called “cross-licensing
agreements”. This kind of agreement is used in particular for transgenic seed traits, creating a network of
relationships between seed companies.
“These agreements have increased with the development of adding multiple transgenes in crops.
As stated by MONSANTO in its 2012 annual report: “With the exception of competitors in our
Seminis and De Ruiter vegetable seed business, most of our seed competitors are also licensees of our
germplasm or biotechnology traits”” 30
Some of the interconnections between the largest companies at international level can be seen in the annexes.
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27. “This includes acquisition of Eureka, (USA), also Shamrock (USA), Link Seed (S. Africa), Century Seeds (India), Campbell’s Seeds (USA), Bisco Bio
Sciences (India), Brasmilho (Brazil), the maize business of Sementes Guerra, Dahlco Seeds (USA), Clovis Matton (Belgium), Advanta Europe, Hazera (Israël),
Clause (France), Harris Moran (USA), and Nickerson. Source:
28. Extract from The EU Seed and Plant Reproductive Material (PRM) market in perspective: a focus on companies and market shares,
Directorate-general for internal policies of the European Parliament, November 2013, Brussels, p. 5,
(2013)513994_EN.pdf
29. Commission staff working document - impact assessment accompanying the document proposal for a regulation of the European Parliament and
of the Council on the production and making available on the market of plant reproductive material, European Commission May 2013, Brussels, p. 31,
30. Extract from The EU Seed and Plant Reproductive Material (PRM) market in perspective: a focus on companies and market shares, Directorate-general for internal
policies of the European Parliament, November 2013, Brussels, p. 5