Highly Competitive Seed Industry in Indonesia is Expected to Grow at CAGR of 8.1% till 2021: Ken Research

Major crops which have supported the demand for seeds during 2016 were onions, potatoes, rice, corn, soybean, palm oil, tomatoes, chilies, green beans, cassava, sweet potato, rubber, coconut, coffee and cocoa.

Indonesia is the largest palm oil producer in the world and the expansion in oil palm plantation area in the country has triggered the growth of revenues from sale of plantation crop seeds during 2016. The islands of Indonesia had about 11.3 million hectares of land under palm oil cultivation during the same year.

Rice is the staple food of Indonesia and has dominated the overall revenues generated by consumption of various types of grains and cereal seeds in the country during 2016. Indonesia has the largest per capita rice consumption in the world with Indonesians consuming around 140 kg of rice per person per year. Indonesia is amongst the top five rice producing nations in the world.

Indonesia produced about 3.2 million tons of rubber during 2016 and exported majority of it to the US, China, Japan, Singapore and Brazil. Indonesia's manufacturing industries; especially the automotive sector has been the major end user for domestically produced rubber.

Indonesia produced more than 880,000 tons of tomatoes during 2016 which significantly raised the demand for seeds. Revenues from sale of tomato seeds contributed significantly to the overall sale of all seeds meant for growing various types of fruits and vegetables in Indonesia during 2016.

Prohibition on the imports of Granola potatoes, which are planted by most local farmers, surged the sales of potato seeds in the country during 2016. Rising exports of Indonesia green beans to customers in Hong Kong further boosted the production of crop in the country, thereby resulting in rising demand for green been seeds.

The seed market in Indonesia is highly competitive due to large number of domestic and global players offering a wide variety of seeds in the country. The market is dominated by the unorganized players which cater to the needs of the farmers to meet the growing demand for various food crops in the country. However, organized domestic and global seed market players operating in Indonesia have a dominating share merely in the sale of vegetable seeds. The major organized seed companies include PT Bisi International Tbk, PT East West Seed Indonesia, PT DuPont Indonesia, and PT Syngenta Indonesia, Monsanto Indonesia and PT Advanta Seeds Indonesia. There are various factors on which the seed providers compete amongst each other. Some of the major factors include price of seeds, the type of seeds offered, distribution network and reach of the market players, and continuous research and development for introduction of new seeds in the country. Major organized players offering grains and cereal seeds in the country are PT Bisi International Tbk, PT DuPont Indonesia, PT Syngenta Indonesia and Monsanto Indonesia. Players which dominated the revenues from plantation crops seeds included PT SMART Tbk, PT Astra Agro Lestari Tbk, PT Eagle High Plantations Tbk and PT Sampoerna Agro Tbk. The revenues from sale of fruits and vegetables seeds were driven by PT East West Seeds Indonesia and PT Bisi International Tbk.

The emphasis on achieving self-sufficiency by increasing the production of corn, soybean, chili, onions and other major food crops during the outlook period is anticipated to boost the revenues of the players offering seeds for producing crops in Indonesia. The continuously growing population of the country is anticipated increase the demand for staple foods including rice and corn, leading to cultivation of more crops. The market is also expected to benefit from the increasing middle class population in Indonesia, which is projected to boost the demand for fruits and other horticulture crops. Indonesia seed market is anticipated to become highly competitive, with organized players gaining significant market share on the back of their strong R&D and financial strength. This is envisioned to boost the revenues of the players offering new and improved seeds in the country.

According to the report by Ken Research titled "Indonesia Seed Market by Types of Seeds (Fruits and Vegetables Seeds, Grains and Cereals Seeds and Plantation Crops Seeds), by Hybrid Seeds and Non-hybrid Seeds, by Organized and Unorganized Players, by Farmer Saved and Commercial Seeds - Outlook to 2021", the rising trade of cassava for producing food items, glucose, solvents, alcohol, animal feed, fertilizers, energy and other by-products within and outside the islands of Indonesia resulted in cassava seeds contributing 12.0% to the overall revenues generated from sales of fruits and vegetables seeds in the country during 2016.

Key Topics Covered in the Report: 

For more information on the market research report, please refer to below link:

https://www.kenresearch.com/agriculture-and-animal-care/seed/indonesia-seed-market-revenue/142321-104.html

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