The Asia Pacific Forage Seed Market is projected to register a CAGR of 9.5%during the forecast period(2020-2025). With the increasing demand for milk and other dairy products, various countries in the region focused on introducing new fodder varieties, higher-yielding grasses, and promotion of the cultivation of crops such as sorghum, alfalfa, and maize. Governments and other related agencies supported the distribution of the new seeds and established nurseries. This resulted in the development of over 600 acres of fodder plantations in Bhutan in 2017 as cited by dairy Asia, Animal Production and Health Commission for Asia and the Pacific, and also the National Dairy Development Boards of Nepal and India focused on the use of local varieties as feed sources. China dominates the markets in the Asia-Pacific region owing to the growing demand for dairy products coupled with the rising population. The amount and quality of milk produced by the animals are considerably affected by what it is fed on and how the feeding is done. This will thus result in the increased demand for quality seeds for the production of forage crops during the forecast period. Some of the key players operating the studied market are Allied Seed, LLC., Foragen Seeds, GenTech Seeds Pty Ltd, Advanta Seeds, Cates Grain & Seed, PGG Wrightson, Limagrain China, and Beijing TopGreen Turf & Forage Co. Ltd.
Key Market Trends
Rising Demand for Dairy and Other Animal Products
The consumption of dairy products, such as milk, cheese, yogurt, etc., is increasing across the globe, which can be attributed to the increasing awareness of the nutritional benefits of milk and milk products. For instance, as reported by the National Dairy Development Board, in the financial year 2016-17, milk production in India amounted to 165.4 million tons which rose to 187.7 million tons during the financial year 2018-19. Also, the per capita availability in the country was 355 grams/day in 2016-17 which increased to 394 grams/day during the financial year 2018-19. Nutritious forage seeds, such as ryegrass, brassicas, and chicory, and clover are used to improve the yield, in addition to providing cattle with the right amount of nutrition. Nutritious forage seeds, such as ryegrass, brassicas, and chicory, and clover are used to improve the yield, in addition to providing cattle with the right amount of nutrition.
China Dominates the Market
China is one of the established forage seed markets in Asia-Pacific and most of the Chinese forage seed market is import-dependent. However, government policies for lesser import of forage seed from other countries are leading China towards self-sufficiency. The most imported seeds by value for China are grasses such as ryegrass, Kentucky grass, and fescue.
According to ITC Trade in 2018 the ryegrass imports accounted for USD 47,648 thousand that has slightly decreased to USD 47,172 thousand in 2019 with The United States being the largest ryegrass seed supplier to China accounting for 62.4% of total imports in 2019. Kentucky bluegrass is the second-highest imported seeds accounting for USD 25,020 thousand followed by a fescue seed of USD 22,653 thousand in 2019.
The forage seed imports in China are estimated to remain relatively high, due to an increase in demand for forage seed. As per the Ministry of Agriculture (MOA), by 2020, China, fresh grass production will reach 1050 million tons and vegetation coverage of grassland will reach 56%. All the factors driving the growth of the forage seed market in the country.
In the forage seed market, companies are not only competing based on product quality and promotion but also focused on strategic moves to hold larger market shares. Major acquisitions are taking place between companies to expand the forage seed business. Some of the key players operating the studied market are Allied Seed, LLC., Foragen Seeds, GenTech Seeds Pty Ltd, Advanta Seeds, Cates Grain & Seed, PGG Wrightson, Limagrain China, and Beijing TopGreen Turf & Forage Co. Ltd.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support