Developments in Breeding and Propagation Due to Socio-Economic Factors

Total production value for seeds and propagation material in the Netherlands in 1994 equals 640 million Euro, approximately 6% of world production value. The organisation of the industry is continuously changing. To predict developments in this industry, we performed desk-research and asked managers about their response on the development of important socio-economic factors: With these developments in mind, companies have to develop a global strategy: Shareholders value is related to availability of patents, access to genetic sources and efficiency in which markets can be opened up and maintained. Besides this strategy the following will occur. . Economies of scale are important. Mergers or buy-outs will continuously occur. Local activities will be managed from a headquarter, located in the USA, Europe or Japan. . Chain management becomes more important. Guarantee- or certification-systems will be introduced Seed business companies claim a good performance of their varieties to production, processing and environment. • R&D is not restricted to national borders. . Economic arguments, climate conditions and regional logistic possibilities will decide on the location of breeding and propagating activities.