New Revenue Sources in Seed Treatment Market

 The seed treatment market was valued at USD 6.11 billion in 2016 and is projected to reach 11.31 billion by 2022, at a CAGR of 10.82% during the forecast period. Due to the increasing demand for integrated pest management practices to minimize pesticide usage, seed treatment products have been gaining preference for their beneficial characteristics such as the ability to combat early-season diseases and pests and their effect on crop yield.

How investments in the cultivation of high-value crops are presenting growth opportunities for manufacturers in the seed treatment market?

Seed treatment increases seed performance for high-value crops, varieties, or hybrids such as cotton, soybean, corn, sugar beets, vegetables, and sunflower. If seeds are not treated under ideal conditions, there are increased chances for re-sowing, bringing losses to the farmer.

According to FAOSTAT 2013, Brazil utilized more of insecticide treatment than fungicide seed treatment which accounted for 6,089 tons and 515 tons, respectively. This significant consumption has been to control the infestation of soil and sucking pests, lepidopteran pests, and nematodes in high-value crops such as corn, soybean, and cotton crops in Brazil.
Application of seed treatment helps protect seeds and increases its performance in the field during early establishment or during its vegetative cycle, by way of higher yield and minimized pest and disease attack.

How is high resistance to diseases and new active ingredients in plants projected to pose challenges for the growth of the market?

To achieve profits, growers have limited their adoption of good agricultural practices such as controlled pesticide application within the dosage limits and crop rotation. For instance, Brazilian farmers have been combating the soybean rust problem since it was first discovered in Brazil during the 2000/01 growing season. It took a significant number of years for researchers and farmers to develop successful strategies to limit the extent of damage from the disease. But recently, farmers and researchers have observed increased resistance of these diseases even toward new active ingredients. Increased usage of similar fungicides over the years has resulted in more rapid development of fungal resistance. This resistance can be observed in key soybean areas of Brazil, such as Parana and Mato Grasso du Sul, where losses of USD 738 million were incurred due to Asian rust during the 2012–2013 growing season; similarly, in Paraguay, losses of up to 50% were incurred. These factors are projected to pose challenges for the growth of the market during the forecast period.

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Innovative combination of products

With growth in R&D associated with seed treatments, there have been various positive product evolutions that can enter the market in the next five years. Manufacturers of seed treatment products have come up with innovative combinations of these products, which could be extremely beneficial for crop yields, both qualitatively and quantitatively.

For instance, the Poncho/VOTIVO product from Bayer SeedGrowth is a biological seed treatment for corn and soybean crops, and is a combination of a systemic chemical insecticide and biopesticide that provides protection against nematodes. Another multicomponent product launched in the market is BASF’s Vault HP plus Integral, which helps in maximizing nitrogen fixation and improving crop yield. In addition to the rhizobium inoculant, the product is also treated with a biofungicide, which helps in crop protection.

These combinations of chemical-biological and biological-biological components can be marketed and distributed to farmers in a customized way depending on the crop to be harvested and the soil conditions. Manufacturers such as Bayer and Syngenta have been developing biological seed treatment products based on crop growing conditions at the regional level. These customized services are expected to develop strong market inroads in the commercialized seeds industry in the next five years.

Seed treatment as a low-cost crop protection solution

Seed treatment is one of the most popular chemical crop protection methods available today. It provides better crop establishment, that is, healthy germination and protection against seed-borne and soil-borne diseases at a relatively low cost than spraying, thereby ensuring the salability of the harvest. A relatively small amount of active ingredients is required to protect the seedling against a wide variety of fungal diseases and pests.

With rising concerns regarding crop protection, productivity, and yield, expenses on crop protection have significantly increased. Crop protection is the second-highest expense after fertilizers in farming. These expenses can be reduced through seed treatment as the volumes required are less as compared to foliar or furrow application. Due to the limited seed surface area, not only are the active ingredients required in limited quantities, but also are effective enough to control early seed diseases to a large extent. As compared to surface application of crop protection products, the loss is significantly reduced by 99% with the help of seed treatment.

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