Market Trends of Mexico Seed Treatment Industry
Increase in Cost of High-quality Seeds
The cost of seeds is expected to increase, owing to the increasing demand for high-quality seeds with desirable agronomic traits. Both companies and farmers are ready to spend on seed treatment solutions to save high-quality seeds. According to the USDA estimates, 2017, corn seeds cost about 300% since 1995, while the yield grew by only 35%. Farmers are trying to cut down operating costs by selecting seeds that do not require multiple doses of chemicals. The initial protection of these engineered seeds is ensured by using seed treatment products. In the past seven years, the seed's portion of total operating costs for corn increased from about 28% to 32%. Even though there was a drop in operating costs of corn between 2015-2016, the seed cost share of corn increased by 2%. The operating costs of soybean seeds decreased from 45% in 2010 to 37% in 2016. This decrease was due to the prevention of seeds with a seed treatment product.
Increasing Usage of Treated Seeds
Mexico is the second-largest market of seed treatment in North America, and it is one of the fastest-growing countries in the region. The demand for seed treatment in Mexico is growing, owing to a large number of factors, such as increasing rates of crop rotation, flexibility in sowing approaches, and changing climatic conditions. Syngenta, Bayer CropScience, and BASF are some of the significant seed treatment companies in Mexico, and they are majorly focused on developing new products.
