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Seed industry ushered in a period of rapid development, leading enterprises will benefit more

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Seed industry ushered in a period of rapid development

Leading companies will benefit more

On the evening of August 4, the Ministry of Agriculture and Rural Affairs announced the list of national crop seed industry formation enterprises to accelerate the building of the backbone of seed industry revitalization. This year’s Central No. 1 document proposed to vigorously promote key agricultural core technologies such as seed sources, and fully implement the seed industry revitalization action plan.

With the continuous improvement of the prosperity of the seed industry, listed companies have increased their layout. Industry insiders said that my country’s seed industry is expected to enter a new stage in the second half of this year, and the R&D advantages of leading companies will gradually be reflected in market share.

Accelerate the construction of the backbone of seed industry revitalization

Recently, the General Office of the Ministry of Agriculture and Rural Affairs issued the “Notice on Supporting the Development of National Seed Industry Formation Enterprises” (referred to as the “Notice”). 69 crops, 86 livestock and poultry, and 121 aquaculture seed industry enterprises and institutions have been selected to focus on building a national seed industry enterprise formation that “breaks problems, fills shortcomings, and strengthens advantages”, and accelerates the creation of a backbone for seed industry revitalization.

The “Notice” emphasizes that in order to realize the self-reliance and self-improvement of seed industry science and technology and the independent control of seed sources, it is necessary to take the support of enterprises as a key measure for the success of the seed industry’s turnaround, put it in a prominent position to comprehensively promote the revitalization of the seed industry, and strengthen the main body of enterprise innovation. Position, guide resources, technology, talents, capital and other elements to gather in key advantageous enterprises, and create a group of aircraft carrier-type leading enterprises, “invisible champion” enterprises and professional platform enterprises with core R&D capabilities, industry driving capabilities, and international competitiveness. Accelerate the formation of advantageous seed industry enterprise clusters.

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The “Notice” requires that the agricultural and rural departments in all regions should take the formation enterprises as the key objects of enterprise support, track the development situation, and help solve difficult problems in a timely manner; support formation enterprises to connect with scientific research units, financial institutions, and seed industry bases as an important focus. We will give full play to the leading role of enterprises in integrating and gathering resources, and continuously improve the level of innovation capabilities; take the creation of support policies as an important means of supporting enterprises, support formation enterprises to take the lead in undertaking the tasks of seed industry projects, and speed up the research and introduction of favorable enterprise support policies; The environment is an important guarantee for enterprises to support excellence, increase the punishment and exposure of illegal cases, and improve the level of intellectual property protection; take the establishment of close-to-clear government and business relations as an important requirement for enterprises to support excellence, establish a contact mechanism with key enterprises, and one enterprise has one policy. , precise support.

According to the list announced this time, listed companies such as Agricultural Development Seed Industry, Denghai Seed Industry, Longping High-tech, Dunhuang Seed Industry, Quanyin High-tech, Fengle Seed Industry were selected as “National Crop Seed Industry Enterprises”, Shengnong Development, Wen’s Shares, Shunxin Agriculture, Aonong Biology, Muyuan Shares, Zhengbang Technology, Jinxinnong, New Hope, Lihua Shares and other listed companies were selected as “National Livestock and Poultry Seed Industry Enterprises”, Tianma Technology, ST Zhangzidao, Haodangjia, Nuohe Listed companies such as Zhiyuan were selected as “National Aquatic Seed Industry Enterprises”.

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Industry insiders said that food security is very important, and the seed industry is the core factor to ensure my country’s food security. In the context of the epidemic and the international environment, the safety of provenance has been elevated to the strategic height of national security. Since 2021, the country has successively issued a number of policies and regulations, reflecting the country’s high emphasis on food security and its determination to expand and strengthen the domestic seed industry. The research and development advantages of leading companies will gradually be reflected in the market share.

The seed industry is expected to enter a new stage in the second half of the year

To help rural revitalization and realize agricultural modernization, seeds are the foundation and the “chip” of agriculture. This year’s Central No. 1 document proposes to vigorously promote key agricultural core technologies such as seed sources, fully implement the seed industry revitalization action plan, and propose to accelerate the census and collection of agricultural germplasm resources, and promote the construction of a major national innovation platform in the seed industry. Launch major agricultural biological breeding projects, and speed up the implementation of key agricultural technology research projects.

With the continuous improvement of the prosperity of the seed industry, listed companies have increased their layout. On July 19, Dabeinong announced that the company’s holding subsidiary intends to acquire a 50.99% stake in Guangdong Xianmei Seedling Co., Ltd. (referred to as “Xianmei Seedling”), with a corresponding transaction amount of 152 million yuan. Dabeinong said that Xianmei Seedling is in a leading position in the field of domestic seed international trade and import and export services. After the completion of this transaction, it will help increase the company’s seed business revenue and increase its market share.

On June 22, Suken Agricultural Development announced that the company plans to invest 2 billion yuan in equity and currency to establish Jiangsu Seed Industry Group. After the establishment of Jiangsu Seed Industry Group, it will become a wholly-owned subsidiary of the company, focusing on “seed industry Revitalize”, and strive to build a seed industry resource integration platform, a seed industry scientific research and innovation platform, a seed industry talent gathering platform, and a seed industry collaborative development platform.

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Kweichow Moutai also announced its entry. On March 19, Moutai Group Hongyingzi Agricultural Technology Development Co., Ltd. was inaugurated and established in Tanchang Street, Renhuai City, marking that Moutai Group officially entered the seed industry market, laid out the business of brewing raw materials and seeds, and firmly controlled the strategy of sorghum seeds for Moutai liquor. Safety.

Huaxi Securities stated in the research report that from a cyclical point of view, the general increase in the prices of major agricultural products such as corn, wheat and rice has led to an increase in the prosperity of the planting industry chain, and the seed industry has officially entered the upward channel of prosperity; from the perspective of growth, Stricter policy supervision is conducive to the optimization of the competitive environment of the seed industry. The cycle and growth resonate, and the prospect of high-quality seed industry leaders is promising.

Pacific Securities stated in the research report that since the second half of 2021, various favorable policies for the seed industry have been released intensively. With the implementation of the policies, the seed industry will usher in a new period of rapid development. In the second half of this year, the seed industry is expected to enter a new stage, leading enterprises have leading advantages in R&D and product layout, and the market share is expected to expand.

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