Why Have Corn Seed Prices Soared? An In-Depth Analysis of the Causes
"Last year a bag of 50,000 kernels of Demeiya No. 1 seed cost 500 yuan, this year it has risen to 1250 yuan. How can it rise so much? That's outrageous." said Pang Long, a large grain farmer in Wudalianchi City, Heilongjiang. One hao of land (one hao equals 15 mu) needs two bags of seed, so the seed cost alone increases by 1500 yuan per hao.
Just as spring plowing preparations are underway in Northeast China, a reporter recently learned during a survey of some major corn-producing areas in northern Heilongjiang that the price of the corn seed Demeiya No. 1 has more than doubled compared with last year, and farmers say they "can't afford it."
Demeiya No. 1 is an early-maturing corn variety introduced by Beidahuang Kenfeng Seed Co., Ltd. from the German company KWS, and was approved and promoted by the Heilongjiang Crop Variety Approval Committee in 2004.
The reporter went to the Wudalianchi sales station of Beidahuang Kenfeng Seed Co., Ltd., which is the only directly operated store in Wudalianchi City. Staff said Demeiya No. 1 is out of stock, and the price for one bag of 50,000 kernels is 675 yuan, with only pre-orders accepted. "When stock will arrive, we don't know either. We are also waiting for notice."
The directly operated store has no stock, so why are other seed dealerships selling it at high prices? Where is the supply coming from? Faced with these questions, staff at the Wudalianchi sales station of Beidahuang Kenfeng Seed Co., Ltd. said they did not know.
Zhang Libin, deputy director of the Wudalianchi City Price Bureau, said the price of Demeiya No. 1 seed was more than 500 yuan per bag (50,000 kernels) last year and has risen to about 1200 yuan this year, making it hard for ordinary people to accept, and whether there is a monopoly will be investigated through law enforcement inspections.
Choosing a good variety is the key and foundation for achieving high and stable agricultural yields. The seed cost alone for one hao of land is 1500 yuan higher than last year, which makes it hard for ordinary people to accept. On the one hand, the directly operated store says it has no stock, while on the market it is being sold at high prices, which has led many farmers to suspect that distribution companies are driving up prices.