The European Forage Seed Market is projected to witness a CAGR of 8.6% during the forecast period (2020-2025). Russia is one of the major markets for forage seeds in the European region. This is majorly due to the fact that animal breeding is being actively developed in Russia, which is restructuring arable farming, that is aimed at improving the forage resources available for animal breeding. Moscow is mainly focusing on the development of forage crops. Three-fifth of the cultivated area in the city is covered with forage crops, leading to a higher demand for forage seeds in the country. Alfalfa is one of the major grown forage in the European region. In 2017, the area under forage crop, in Italy, accounts for 49,236.5 hectares of the land. Italy is the largest producer of alfalfa seeds in Europe, accounting for 40% of the alfalfa production in the country, in the same year.
Key Market Trends
France Dominate the Market
France is the main producer of grass seed, after Denmark and Germany. Ryegrass and turf dominate the market, holding about 46.4%. The increase in the area of forage seeds is one of the major factors powering the market in France. The application of forage seeds is in the commercially grown croplands by the millers, in the forage grassland, for grazing livestock, by the forage farmers and the dairy farmers. Alfalfa was the first grown forage seed in France, and it covers the largest market share, of about 58%. France usually exports alfalfa seeds to Italy, Germany, Denmark, and Romania. The country exported USD 13,189 thousand worth alfalfa seeds, in 2017. However, during the bad market periods, the country also imported products. According to UN Comtrade, The major exporters of alfalfa seeds to France were were Italy, Romania, Canada, and Germany, holding 63%, 7.8%, 5.5%, and 5.3% shares, respectively, in 2017.
Increasing Livestock Population
According to FAO, the European livestock population has grown from 2.89 billion in 2016 heads to 2.94 billion heads in 2018, a 2% increase in the livestock population in the region. Denmark, Ireland, the United Kingdom, and Belgium are the major producers of livestock in the region. According to research by Greenpeace organization, nearly USD 26.08 billion goes for increasing livestock production in the European Union in 2018. However, a recent study conducted across the region has shown that livestock production has increased above the safe bounds leading to the excess emission of greenhouse gas and affects bio-diversity. Hence, the EU is planning to reduce the free grazing method livestock farms which would slightly impact the European forage seed market in the upcoming years.
The Europe forage seed market is a concentrated market with few players such as Barenbrug UK Ltd, DLF Seeds Ltd, Limagrain UK Ltd, Advanta Seeds, S&W Seed Company dominating the market. Mergers & Acquisitions, expansions, partnership and product launched are the most adopted business strategies by these major players in the market.
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