Seed treatment is an industry on the rise, says an international consulting company.
The global seed treatment market is estimated to be worth more than $2.5 billion in 2009 and will continue to expand, reports Kline & Company.
The fastest growing markets are forecast to be corn in Argentina and Brazil and soybeans in Brazil, with an annual growth rate of 7.5 percent.
The report says the main reasons for the growth in seed treatment are increased crop acres and higher seed prices.
“Increased seed costs, especially in countries with high use of costly genetically modified seed types, have been encouraging growers to rethink their prior strategy of seeding at high rates to insure against losses due to insects and diseases,” according to a news release summarizing the report’s findings.
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“As a result, it has been even more important to protect the reduced plant populations by using the best available seed treatments.”
According to the report, the United States is the top market for seed treatment, accounting for more than 50 percent of the global market. Brazil is second at 15 percent.
Fungicides are the leading seed treatment products, used on an estimated 500 million acres.
Insecticides are used on less seeded area but have a 50 percent higher market value due to high-priced products.
The report added that new generation fungicides and insecticides require more precise rates per seed and accurate application of the low rates of some active ingredients.
That in turn requires more sophisticated application equipment than has been the case.
A number of crop protection industry officials in Canada said the international growth in seed treatment is also happening in Canada.
Peter MacLeod, vice-president of CropLife Canada, said the use of seed treatment has increased by 3.7 times since 2000.
He cited three reasons: the introduction of new, highly effective, active ingredients for fungicides and insecticides; seed costs have been increasing, so farmers can plant fewer treated seeds and get the same output; and it reduces the need to spray crops.
MacLeod said the use of seed treatment is proportional to the value of the seed, with corn, canola and soybean leading the way.
Brodie Blair for UAP Canada said there’s no question seed treatment is increasing in Canada.
“It’s definitely a growth market,” he said, adding the demand for seed treatment is tied closely to commodity markets.
“As commodity prices go up, the producer sees his seed as more valuable and he also feels he can maybe increase his spending a little bit.”
Blair added it’s an inexpensive way to protect a crop.
“You only need about an extra bushel an acre to pay for the cost of the treatment.”
The spread of fusarium head blight in recent years has also generated increased demand for fungicidal seed treatment, he said.
Scott Chapman, manager of SeedSolutions, a division of BASF Canada, is also optimistic about the future of seed treatment.
“We definitely see the seed treatment business growing in Canada,” he said.
No figures on seed treatment in Canada are included in the seven-paragraph news release summarizing the study, released Feb. 18.
A detailed analysis of wheat seed treatment in Canada can be purchased from Klein for $6,000 US (the full report costs $105,000).
