What prominent problems does our country's seed industry development face? Understand the policy recommendations in one article
The seed industry is the source of the agricultural industry chain and a strategic, foundational core industry of the nation, playing an irreplaceable role in safeguarding national food security and agricultural industry security. Since our country's agricultural research institutes underwent corporatization reform, the seed industry has achieved relatively rapid development, making certain achievements in increasing grain yields per unit area, safeguarding national food security, promoting seed exports, and enhancing international competitiveness. However, the transformation and development of our country's seed industry still faces many problems that urgently need attention, and vigorous measures must be taken to promote the healthy and rapid development of our country's seed industry.
Prominent problems facing our country's seed industry development
(1) The boundary between public-interest and commercial breeding remains blurred
In recent years, our country has issued a series of documents and achieved certain results in separating institutions from enterprises and promoting the separation of public-interest and commercial research in the seed industry. However, according to surveys, public-interest and commercial breeding activities remain confused. On the one hand, agricultural research institutions still carry out commercial breeding. After some agricultural research institutions breed varieties, they sell them to some small and micro enterprises, put them on the market, and obtain returns, creating a low-price impact on similar commercial breeding enterprises and reducing enterprises' enthusiasm for research and development. On the other hand, most enterprises after restructuring are highly dependent on their original units in research and development. Most seed enterprises were established relying on agricultural research institutions, and their dependence on research institutions is difficult to change in the short term.
(2) Enterprises invest little in research and development and have weak innovation capacity
At present, multinational seed companies invest heavily in research and development, generally accounting for 10%-30% of sales. Monsanto Company of the United States invested 10.7% of sales in research and development in fiscal year 2014, about 1.7 billion US dollars? By contrast, our country's seed companies invest relatively little in research and development. In 2014, the top ten seed enterprises in our country invested only 4.7% of sales in research and development, only 510 million yuan, less than 5% of Monsanto Company's? Some large enterprises invest extremely little in research and development. Dunhuang Seed's research and development investment was only 7.5542 million yuan, accounting for only 0.6% of sales?
From the perspective of research and development strength, Syngenta has more than 5,000 scientific researchers, while the top ten seed enterprises in our country have a total of only 1,694 scientific researchers, less than one-third of Syngenta's? Some small and medium-sized enterprises have even weaker research and development capabilities. According to surveys, some seed companies in Hunan Province have fewer than 10 research and development personnel, and some seed companies that have just been restructured even have no research and development personnel at all and completely lack research and development capabilities?
(3) Traditional breeding models are extremely inefficient
Most enterprises in our country are still at the traditional breeding stage, and traditional closed small-scale breeding inevitably brings inefficiency. Our country's seed enterprises and research institutes generally rely on several breeding experts and the small teams they lead to carry out “family workshop-style” breeding, and there is also a lack of cooperation and exchange among breeding teams. Small-scale breeding can test an extremely limited number of varieties, and obtaining excellent varieties is only an accidental event. Our country has many breeding experts and many teams, but few competitive varieties have been cultivated, and efficiency is very low.
Successful foreign experience shows that an efficient breeding model should be a large-scale, division-of-labor and collaborative modern commercial breeding model. If the testing scale is large enough, the accidental event of breeding excellent varieties can be turned into a necessary event. Moreover, the larger the testing scale, the more reliable the results, and the better the selected varieties. Relying on modern commercial breeding models, international seed giants can cultivate highly competitive commercial varieties.
(4) Small-scale seed production leads to low seed quality and high cost
Our country's seed production bases are scattered and very small in scale, and seed production is mainly household-based. Most enterprises adopt the method of providing paternal and maternal seeds to farmers, letting farmers plant, manage, and harvest, and then purchasing from farmers, resulting in very low levels of mechanization, scale, intensification, and standardization in seed production.
The household seed production model makes it difficult to guarantee seed quality. In the seed cultivation stage, it is difficult to meet the requirements of strict isolation and single-variety contiguous planting, and it is easily contaminated by foreign pollen, causing biological mixing and degeneration, leading to decreased variety purity. Mechanical mixing may occur in all links such as sowing, transplanting, harvesting, threshing, transportation, drying, and storage, reducing seed quality.
The household seed production model makes it difficult to reduce seed production costs. Our country's level of seed production mechanization is very low, and links such as seed planting, fertilization, pesticide application, and harvesting are mainly completed by manual labor. In recent years, our country's agricultural labor costs have risen substantially, pushing up seed production costs year by year. According to surveys, hybrid rice seed production costs are even higher. Paternal and maternal seeds must be strictly sown, managed, and harvested separately, requiring large amounts of labor costs, and enterprises are overwhelmed.
(5) The variety approval system is not conducive to the research, development, and promotion of new varieties
The variety approval system has made great contributions to our country's seed industry development, but there are also some problems that cannot be ignored. First, scientific research is disconnected from the market; second, it leaves room for rent-seeking and corruption; third, it leaves risks to growers and the government; fourth, it is not conducive to the promotion of new varieties.
(6) The level of intellectual property protection is relatively low
Intellectual property protection in our country's seed industry still remains at the UPOV (International Convention for the Protection of New Varieties of Plants) 1978 Act stage, and the level of protection is very low. For example, during the new variety approval process, DNA fingerprint testing of participating varieties is required. As long as there are differences at 2 or more loci in genetic testing, it can be determined to be distinct and be a “new variety.” This causes very small differences among varieties, many homogeneous varieties, and a high possibility of seeds being improved and infringed. Enterprises report that once a popular excellent variety is developed, a series of derivative varieties quickly appears on the market, and intellectual property is difficult to effectively protect. The industry generally reports that the scope of protection under the UPOV 1978 Act is very narrow, the new variety approval standards are relatively low, and protection for original varieties is insufficient.
Compared with the UPOV 1978 Act, the 1991 Act provides a longer protection period for variety rights and stricter protection conditions, especially broader rights. The UPOV 1991 Act not only strictly protects original varieties, but also strictly protects relevant harvested materials, essentially derived varieties, and so on, expanding and strengthening the rights of original breeders.
Compared with the UPOV 1991 Act, the design of variety right powers under the UPOV 1978 Act is relatively simple. This damages the legitimate rights and interests that breeders should have and is not conducive to research and development innovation.
(7) It is difficult to “go global” and establish a global breeding system
In recent years, our country has issued a series of policies to promote the seed industry's “going global” and achieved certain results. According to statistics from the Ministry of Agriculture, in 2014 our country's total annual seed export value had already exceeded 300 million US dollars. But overall, our country's seed enterprises account for a very small share of the international seed market, and the seed industry's “going global” still faces many obstacles. First, seed adaptability is poor. Seeds produced domestically are difficult to adapt to foreign climates. Second, seed costs are high. When finished seeds are exported abroad, logistics costs such as warehousing and transportation are very high. Third, seed quality is unstable. After long-distance transportation, seeds have a relatively high packaging damage rate and are prone to heating and mildew, reducing seed quality. Fourth, export procedures are cumbersome. Our country's seed exports must undergo dual inspection and quarantine in both the domestic country and the importing country. Different enterprises, different varieties, and different batches must all undergo inspection and quarantine separately, extending seed export time and sometimes even missing the sowing season. Fifth, germplasm resource control is strict, which is not conducive to developing overseas breeding. Our country controls germplasm resources very strictly, making it difficult for enterprises to use high-quality domestic germplasm resources to breed excellent varieties suitable for local conditions, and this is incompatible with the demands of many countries hoping to introduce parental seeds that can reproduce directly locally and carry out localized production.
Countermeasures and suggestions
(1) Further clarify the boundary between public-interest and commercial breeding
First, clarify the connotations of public-interest and commercial breeding, establish guiding lists for public-interest and commercial breeding projects respectively, and clarify the boundary between public-interest and commercial breeding. Second, further clarify the research responsibilities and scope of public research institutions, requiring research institutions and universities supported by national finance to conduct only basic and public-interest research, withdraw from commercial research activities, and gradually realize their transformation toward major basic and public-interest research. Third, adhere to cultivating enterprises as the main body of commercial breeding. It is inevitable for enterprises to be the main body of research and development. From 1950 to 1982 in the United States, the annual return rate on applied plant breeding research investment in the public sector was 45%, while the return rate for seed companies was as high as 90%. The return rate on public-sector plant breeding research and development is far lower than that of seed companies. In fact, as early as the late 1980s, American enterprises had already surpassed the public sector to become the main body of plant breeding investment. It should be clearly stipulated that applied research be handed over to enterprises, improving enterprises' enthusiasm for commercial breeding and enhancing enterprises' scientific research and innovation capabilities.
(2) Cultivate large modern seed enterprises and increase industry concentration
Since the end of the last century, the trend toward concentration in the world seed market has become increasingly obvious. At present, the sales of the world's top ten seed companies account for more than 70% of the global market, and the proportion of the top three seed companies (Monsanto, DuPont-Pioneer, Syngenta) exceeds 50%. Some developed countries have very high seed market concentration and extremely high industry efficiency. By contrast, our country has a large number of seed enterprises and very low industry concentration. As of the end of 2014, there were still 5,200 seed enterprises, and the sales of the top 10 seed enterprises were only 11.01 billion yuan, less than 20% of the seed market. It can be seen that seed industry development must vigorously enhance enterprise strength and market competitiveness. Suggestions: First, further tighten access restrictions for seed enterprises and raise entry thresholds. Second, strengthen comprehensive regular review of the qualifications of existing seed enterprises, and eliminate unqualified enterprises according to regulations and standards. Third, encourage and guide seed enterprises to accelerate the pace of mergers and reorganizations, guide various scientific and technological resources and innovation factors to gather in large enterprises, and build large modern seed enterprises.
(3) Vigorously build production bases adapted to commercial seed production models
Our country's “millions of households” seed production model no longer meets the needs of commercial seed production. A number of standardized, large-scale, mechanized, intensified, and appropriately scaled seed production bases must be established to solve the problem of household seed production. The state should increase support for existing national-level seed production base cities and counties, and truly implement subsidies in land transfer, land consolidation, water, electricity, roads, and other infrastructure construction in seed production bases. Another batch of reserve seed production bases should be built to provide strong support for seed industry development. Seed production has the characteristic of appropriate scale. Townships and villages with suitable climate and relatively concentrated land can undertake seed production tasks. It is suggested that places with conditions establish major seed production towns (townships) and major villages, increase fiscal support, promote land consolidation and appropriately scaled operations, and build reserve seed production bases.
(4) Reform the variety approval system into a filing and registration system
To deepen the reform of the seed industry system, the decisive role of the market in allocating seed industry resources should be fully brought into play. It is suggested that the current variety approval system be gradually replaced by a filing and registration system, allowing enterprises to become the responsible subjects of research and development. On the one hand, while the current variety approval system continues to be implemented, accountability for variety approval should be strengthened. If lax variety approval leads to large-scale abnormal yield reductions, committee members participating in the review should bear corresponding responsibility. On the other hand, large seed enterprises with strength and the ability to bear the risks of seed promotion should be included in the pilot scope of the filing and registration system. “Whoever registers is responsible”; the variety registrant bears all risks brought by seed promotion. After the pilot has been implemented for a period of time, enterprises that meet the requirements and have strength should gradually be included in the filing and registration system in batches. After the implementation of the filing and registration system, the main functions of relevant administrative management departments should shift to improving relevant systems, strengthening market supervision and management, and perfecting the safeguard system.
(5) Join and implement the UPOV Convention 1991 Act as soon as possible
The UPOV 1991 Act sets higher requirements for member states. Once joined, it will have a certain impact on our country's seed industry, and even the entire agricultural industry. However, the core position of UPOV in international protection of new plant varieties should be clearly recognized. Joining and implementing the UPOV 1991 Act will play an important role in improving our country's enterprises' independent innovation capabilities, promoting our country's integration into the international environment for new plant variety protection, introducing more high-quality new varieties, and advancing international exchange and cooperation. We should actively adapt to the new situation and new changes and promptly start revising and improving relevant laws and regulations such as our country's Regulations on the Protection of New Varieties of Plants. We should narrow the gap with the UPOV 1991 Act by stages, by industry, and by project, and gradually realize a smooth transition from the UPOV 1978 Act to the 1991 Act.
(6) Take multiple measures to promote the seed industry's “going global”
Implement the seed industry's “going global” strategy, make coordinated use of two markets and two types of resources, gradually transform the current pure seed export into technology export, and adopt methods of local breeding, local seed production, local sales, and local after-sales service to enhance our country's seed industry's international competitiveness. First, a coordination mechanism among competent departments should be established to further simplify administrative approval procedures for seed exports and shorten approval time limits. Second, establish a seed industry export association, strengthen industry self-discipline, and improve the interest coordination mechanism among enterprises. Third, standardize the management of germplasm resource exports. Formulate supporting policies and management measures, and, on the premise of not harming national interests, allow the export of ordinary parental germplasm resources. Support enterprises in using our country's germplasm resources, combining them with local germplasm resources, giving play to complementary advantages, breeding excellent varieties suitable for local production and application, and accelerating variety localization. Fourth, standardize the management of technology output. For seed technologies in which our country has advantages, establish categorized implementation and management measures for technology export, do a good job in professional technology protection, and, in combination with germplasm resource protection, establish overseas seed production bases in which our country controls key technologies and germplasm resources.