Seed Type Sold in the World Market 1. OP (open pollination) type 2. F 1 hybrid (crossing elite lines) 3. GM (genetically modified) seed (F 1 )
Changes in World Seed Market Magnitude World Seed Market 1975 1985 1996 2006 2009 2010 2011 2012 2015 2020 year 12.0 18.0 30.0 34.0 38.0 42.0 43.0 45.0 48.2 61.5 B$ [ISF(International Seed Federation) 2013, NWB] CAGR: 3-5% World GM Seed Market 1996 1998 2000 2004 2006 2008 2009 2010 2011 2012 2013 2014 0.09 1.51 2.42 5.10 6.70 9.04 10.48 11.70 13.20 14.60 15.60 15.70 year B$ Global market value of biotech crops = biotech seed + technology fee (ISAAA, 2014) GM seed of total seed market: 33%
Global Seed Market Distribution Cotton 3% Barley 2% Sugar Beet 2% Potato 4% Wheat 4% Canola 5% Other 6% Sunflower 2% Corn 32% Rice 10% Soybean 12% Vegetables 18%
Seed Market in Korea Present and Future M$ 1200 800 550 2012 2021 2030 -Seed from cereals, horticultural crops, medicinal plants & etc. -Annual growth rate: 5% -1.2% of global seed market.
Seed Market Composition Feed 3.8% Mushroom 3.5% Medicine 12.2% Cereal 20.4% Seedling 15.3% Vegetable 20.7% Fruit 10.2% Flower 13.5% Korean government controls the cereal market. (RDA, 2013)
General Process of Seed Business It takes 7-10 years to get one variety!
Vegetable Seed Market Growth in Korea ( 억원 ) 4,000 (M$) 360 3,000 270 236 M$ 2,000 180 1,000 0 2008 2009 2010 2011 2012 2013 Annual growth rate: 7.5% (KSA, 2014)
Magnitude of Seed Sales (vegetable) lettuce 3% spinach 3% squash 3% carrot 3% cabbage 2% O.melon 2% cucumber 2% G.onion 2% broccoli 1% pepper 17% root stock 4% WM 5% radish 17% Etc. 7% CC 7% tomato 10% onion 11% -Vegetable seed market in 2014: $230M -1% = $2.3M (KSA, 2015)
Production Value of Crops (average of 2007-2011) 100M$ 9.5 (Dr. MK Yoon, 2013) 7.6 8.9 8.3 8.1 5.7 3.8 6.4 5.8 1.9 4.3 4.2 3.9 3.5 3.0 0.0 Pepper SB WM CC Tomato OM Cucumber Garlic Radish Onion A total vegetable produce market: ~9.5B$ (2013)
Vegetable Seed Company KOSDAQ (since 2002) Employee: 430 (domestic) Nongwoo Bio Co. Agbiotech R&D Annual Sale 1 st ranked in Korea An affiliate of NH NWB was merged with NH on Sept. 1, 2014
President (CEO) Auditor Executive Director S T R A T E G I C F I N A N C E M A R K E T I N G O V E R S E A Q A R & D P R O D U C T I O N A F F I L I A T E S D O M E S T I C B. Director M. Director Organization of NWB BEIJING SHINONG CHINA NONGWOO SEED AMERICA PT. KOREANA SEED INDONESIA NONGWOO SEED INDIA NONGWOO SEED MYANMAR FAC
Organization of R&D Director Biotechnology Institute (at Yeoju) 6 team -Molecular Breeding -Marker Development -Marker Analysis -Phytopathology Research -Basic Research -Tissue Culture Research Breeding Institute at Beijing, Kwangdon, Hebei in China Breeding Institute at California in U. S. A. Kediri-Jatim Breeding Institute in Indonesia Banglore Breeding Institute in India Research Farm in Myanmar Breeding Institute (at Yeoju) 7 team -Chinese cabbage, lettuce -Radish -Cabbage, broccoli, cauliflower -Hot and sweet pepper -Tomato -Oriental melon, melon -Maize Breeding Institute (at Miryang) 3 team -Watermelon, squash, zuccini -Onion, spring onion -Cucumber Stock seed production center (3 team) at Yeoju 3 institutes & 1 center
Human Resources for R&D (domestic) Ad (11) Foreigner (17) Engineer (23) etc. (11) Breeder (29) 184 Stock center(2) Technician (61) Biotech (30) R. Scientist: 61 Breeder: 29 Biotech. S.: 30 Stock center: 2 PhD: 17 MS: 27 BS: 17
Location of R&D Institute and Farm Yeoju -Breeding Institute -Biotechnology Institute -Yangkiri stock seed production farm -Bonduri Pathology research farm Domestic Noen -Research farm Miryang -Breeding Institute 55ha Foreign (2020) (2018) (2016) (2018)
Cultivation Area and No. of Research Scientist Abroad Total: 89 2 Total: 12 Total: 7 2 India China USA 3 Myanmar Total: 83 Indonesia Total: 18 1 Area (ha) Breeder: 8
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Annual Turnover of NWB ( 억원 ) 61.0 M$ 700 600 500 400 300 200 100 0 65M$ in 2014 (net profit: 20%) Global total: 85M$ in 2014
Sales Magnitude from Exporting M$ 20.0 M$ 20 18 16 14 12 10 8 6 4 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 25M$ in 2014
Vegetable Seed Sales of Seed Companies Company 2012 (M$) Monsanto 851 Limagrain 756 Syngenta 682 Nunhems 410 Rijk Zwaan 340 Sakata 295 Takii 267 Enza Zaden 233 Bejo Zaden 178 East West 120 --- --- NWB 85 (global) Kaneko 75 ranked 13-14 Cf) World vegetable seed market: $5B (2012)
Breeding Institute (domestic) Objective: development of elite seeds (F 1 hybrid) Yeoju Institute (7 team): Chinese cabbage, lettuce Radish, carrot Cabbage, broccoli, cauliflower pepper Tomato Oriental melon, melon Cucumber Maize Miryang Institute (3 team): Watermelon, rootstock, squash, zucchini Onion, spring onion Cucumber 500 F 1 varieties are sold in the market every year Since 1998, about 1000 varieties have been developed.
Biotechnology Institute Objective: B C -Provide breeding tools and new genetic sources Molecular Breeding Marker Development Marker Analysis Phytopathology Research Basic Research Tissue Culture Research
( 억원 ) 120 100 R&D Budget (domestic) 10M$ 80 60 40 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 11M$ in 2014, 12M$ in 2015 (In addition, 2.5M$ from Government)
A Pipeline through Technology Combination DNA marker application New breeding tool New genetic sources Classical breeding technology Selection Production Assurance of quality Biochemical analysis Disease resistance screening Sale
IP 1) PVPR Crop Number of Varieties (PVPR issue) Crop Number of Varieties (PVPR issue) Radish 71 (31) Watermelon 32 (18) Chinese cabbage 42 (26) Carrot 8 Cabbage 18 (1) Onion 28 Pepper 109 (18) Green onion 8 Tomato 19 (5) Lettuce 15 (9) Cucumber 20 (12) Spinach 16 Oriental melon 11 (8) Others 148 (6) Pumpkin 37 (6) Total 582 (132) Variety Production/sale registration For last 10 yrs (2003-12) PVPR application PVPR issue
2) Patent Application Registration Domestic Foreign Domestic Foreign since 2003 10 1 11 5
Vision 2020 Vision Global Top 10 in 2020 Goal One of the world s leading companies in the vegetable seed industry 180M$ (2020) Core value Customer centered Global Change R&D focused Environmental friendly