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Concentration of market power

in the EU seed market

INTRODUCTION

This study sheds light upon the increasing concentration of the EU seed market. It uses industry data

to show that the mantra of the seed lobby and giant seed companies, that the EU market is healthy and

diversified and is made up of some 7000 mainly small and medium enterprises (SMEs), is misleading.

Notably, in the absence of freely available data and independently verifiable statistics, the European

Commission is forced to rely upon industry statistics and further promotes the industry myth. This

allows the corporations to dominate the narrative and manipulate the arguments to the general public

on what is in their best interest.

The European Commission has been accused of drafting the seed marketing law 

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to benefit the big

seed lobby, who in turn claim they are not a big lobby but a multitude of some 7000 medium and

small players. The DG SANCO of the European Commission routinely contradicts itself when its

representatives quote industry figures stating that there is no concentration in the EU market(s), while

in their own impact assessment for the seed marketing regulation they state that 95% of the vegetable

seed sector is controlled by a mere 5 companies.

In the case of maize, just 5 seed companies control around 75% of the EU market share. In the case

of sugar beet, just 4 companies control around 86% of the market and 8 companies together control

99% of EU market.

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In the vegetable sector for example, the agro-chemical/seed company Monsanto

already controlled around 24% of the EU market as far back as 2005.

Why is it important not to have a concentrated market dominated by a few major players? Firstly,

because a concentrated sector is not a healthy sector, in terms of competition and openness of the

market. Secondly, because of the effects on the diversity of players in the seed sector and of the

biological, especially genetic, diversity of our crops:

Globally, we have been seeing a steady decrease in agricultural and horticultural genetic diversity,

both in terms of i) genetic variation within strains and also ii) the absolute numbers available for

farmers and gardeners: Indeed, the UN’s food and agricultural organisation, the FAO, estimates that

the diversity of cultivated crops declined by 75% during the 20th century and that a third of today’s

diversity could disappear by 2050. According to the FAO 

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more than 7000 species have been used in

the history of humanity to feed us and meet basic human needs. At present, only 30 crops constitute

90% of the calories in the human diet, and only three species (rice, wheat, maize) account for more

than half of the human calorie supply. The wealth of species that have contributed to humanity’s

balanced nutrition has therefore been severely eroded.

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1.

Proposal for a regulation of the European Parliament and the Council on the production and making available on the market of plant reproductive material

(plant reproductive material law),

COM(2013) 262 final, 2013/0137 (COD),

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2013:0262:FIN:EN:PDF

2. KWS data, 2013:

http://www.kws.de/global/show_document.asp?id=aaaaaaaaaaffxwn

3.

First Report of the State of the World’s Plant Genetic Resources for Food and Agriculture

, FAO, 1997,

http://apps3.fao.org/wiews/docs/SWRFULL2.PDF