GM Corn Seed Production in the US Industry Market Research Report Now Available from IBISWorld

Over the past five years, government-supported initiatives for biofuel production and the soaring price of corn have contributed to robust growth for genetically modified (GM) corn seed producers. However, public concern about the potential health effects of GM food inputs have led to proposed legislation to limit their use in edible substances, posing a threat to future demand from down. As the domestic market approaches saturation, industry producers will focus on export growth in response to mounting demand from industrializing economies. For these reasons, industry research firm IBISWorld has added a report on the GM Corn Seed Production industry to its growing industry report collection.

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Firms will seek foreign opportunities in response to market saturation and public skepticism

Los Angeles, CA (PRWEB) November 29, 2012

The GM Corn Seed Production industry has benefited from strong demand from ethanol manufacturers and the rising price of corn. Due to the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007, which enacted and amended Renewable Fuel Standards (RFS), demand for corn-derived biofuel has surged. “To maximize crop yield and create corn with higher oil content, farmers have increasingly turned to genetically modified corn seeds,” says IBISWorld industry analyst Nikoleta Panteva. As a result, 88.0% of planted corn acres in the United States today contain at least one genetically engineered trait. This trend has caused industry revenue to soar at an average annual rate of 13.6% over the past five years to an expected $6.9 billion.

Mounting scrutiny over the benefits of GM crops has threatened the GM Corn Seed Production industry for as long as the technology has existed. Most recently, legislation aimed at making GM foods more costly appeared on the California election ballot, bringing the industry back into the spotlight. “In addition, demand has started to slow as GM plantings reach saturation, and major players DuPont and Monsanto will likely acquire smaller companies to expand operations and geographic presence,” says Panteva. Already, Monsanto has made efforts by acquiring seven companies for its seed operations from 2007 to 2009. Nonetheless, industry concentration has not changed significantly over the past five years, and the number of industry players has actually grown.

The next five years are forecast to be slightly more subdued for the GM Corn Seed Production industry. RFS for ethanol have been capped at 15 billion gallons from 2015 onward, limiting demand growth for corn-derived biofuel. As a result, domestic demand for GM corn seeds is likely to moderate thereafter. However, demand from developing nations will provide industry operators with a new revenue stream. IBISWorld expects exports' share of revenue to increase, highlighting the international markets' growing prominence in this industry. Largely driven by this trend, combined with new industry-related technologies, will keep the industry in a growth phase. For more information, visit IBISWorld’s GM Corn Seed Production in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry manufacture and distribute genetically modified (GM) corn seeds including insect-resistant corn seeds, herbicide-tolerant corn seeds and stacked trait corn seeds.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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