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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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