In 2021, the A-share agriculture, forestry, animal husbandry and fishery sector showed a correction compared with last year, while the seed industry subordinate to the agriculture, forestry, animal husbandry and fishery sector walked out of the adverse upward trend. Data show that as of December 27, Shenwan agriculture, forestry, animal husbandry and fishery industry index reported 3715.58 points, down 5.05% during the year; The Shenwan tertiary seed industry index rose 11.90% during the year. Individual stocks in the seed sector rose and fell during the year. Among them, Gansu Dunhuang Seed Group Co.Ltd(600354) , Yuan Longping High-Tech Agriculture Co.Ltd(000998) , Shandong Denghai Seeds Co.Ltd(002041) rose 53.67%, 22.92% and 19.14% respectively during the year, while Hainan Shennong Technology Co.Ltd(300189) , Hefei Fengle Seed Co.Ltd(000713) fell 24.13% and 22.75% respectively.
With the intensive implementation of seed industry policies, the Shenzhen Agricultural Products Group Co.Ltd(000061) market has been booming since this year, the demand for seeds has been growing, and the advantages of technological innovation have gradually emerged, which is expected to promote the upgrading of industry varieties, the expansion of market scale and the optimization of pattern. The agency believes that advantageous seed enterprises with high-quality variety resources may take the lead in benefiting, and innovative seed industry leaders are expected to enter a high growth channel.
accelerated implementation of policies
strong support for seed industry innovation
Several recent conferences have made deployment arrangements for the development of the seed industry. The central rural work conference held from December 25 to 26 stressed that we should vigorously promote key agricultural core technologies such as seed sources, improve the R & D and application level of agricultural machinery and equipment, accelerate the development of facility agriculture and strengthen the support of agricultural science and technology. The central economic work conference proposed to put the improvement of comprehensive agricultural production capacity in a more prominent position, continue to promote the construction of high-standard farmland, deeply implement the action to revitalize the seed industry, improve the level of agricultural machinery and equipment, and ensure the reasonable income of grain farmers. The Chinese people's rice bowl should be firmly in their own hands at any time. Tang Renjian, director of the central agricultural office and Minister of agriculture and rural areas, recently said that in terms of seeds, the central government has formulated an action plan for the revitalization of the seed industry, and the Ministry of agriculture and rural areas will play a set of "combined boxing" with relevant departments to gradually realize the self-reliance and self-improvement of seed industry science and technology and the independent control of seed sources.
Looking back to the beginning of 2021, the No. 1 central document put forward a good job of turning seed industry into a battle. The fourteenth five year plan for national economic and social development of the people's Republic of China and the outline of long-term objectives for 2035 propose to strengthen the tackling of key problems in agricultural improved seed technology, orderly promote the industrialized application of biological breeding, and cultivate leading seed enterprises with international competitiveness.
With the continuous high attention of the central government to the seed industry, since this year, the implementation of relevant laws, regulations and policies has been accelerated, and the technological innovation and intellectual property protection of the seed industry have been further strengthened. In May, the Supreme People's court and the Ministry of agriculture and rural areas jointly held a symposium on the protection of intellectual property rights in the seed industry, signed the memorandum of cooperation on strengthening the protection of intellectual property rights in the seed industry, strengthened the judicial protection of intellectual property rights in the seed industry, and punished all kinds of violations in the seed industry according to law; In July, the 20th meeting of the central comprehensive Deepening Reform Commission considered and adopted the action plan for the revitalization of seed industry; In December, the 32nd meeting of the Standing Committee of the 13th National People's Congress made the latest amendment to the seed law. The revised seed law will go into effect as of March 1, 2022.
The industry believes that the revised seed law protects the right of new plant varieties in the whole chain and will escort the development of China's seed industry. It is understood that the revised Seed Law stipulates that the commercial utilization of substantive derived varieties shall obtain the consent of the owner of the new plant variety right of the original varieties; Expand the protection of variety rights from three to eight, and add five links: Processing for reproduction, offering for sale, import, export and storage; Increase the upper limit of compensation from three times to five times. If it is difficult to determine the amount, increase the limit of compensation from 3 million yuan to 5 million yuan.
According to the analysis of Shanghai Securities, the infringement of seed industry has limited the technical development and innovation ability of seed industry to a certain extent. The intellectual property protection of seed industry is conducive to improving the driving force of independent research and development, improving the independent innovation ability of enterprises, creating a good business environment, and laying a foundation for the long-term development of China's seed industry. Tianfeng Securities Co.Ltd(601162) also said that the current decentralized seed industry has the opportunity to accelerate its development after experiencing "institutional change" and "technological change", which benefits the leading enterprises, so as to maintain the driving force of R & D and improve the breeding level. The revised seed law is a clarion call for the reform of the seed industry system. The seed industry approval standards, approval methods and judicial procedures are carried out under the tone of "protecting seed industry innovation" of the seed law.
good sales of high-quality varieties
highlights of industrialization
Industry insiders said that a series of heavy conferences emphasized the revitalization of the seed industry, further indicating the country's determination to expand and strengthen the seed industry. China International Capital Corporation Limited(601995) believes that from the perspective of supply, China has a strong ability to guarantee rations and relatively poor feed grain. Among them, there is a gap in the production and marketing of corn in China, and the self-sufficiency rate of soybean is low. Since 2020, China has continuously emphasized food security and focused on supply side structural adjustment. The agency believes that China's ration collection and storage system will continue, and the collection and storage price is in the upward range. It is expected that the measures to increase production of feed grains, especially soybeans, will continue to increase.
According to the news released by the Information Office of the Ministry of agriculture and rural areas, from December 21 to 22, the Party group of the Ministry of agriculture and rural areas held a (expanded) learning and exchange meeting of the theoretical learning center group of the Party group of the Ministry. The meeting proposed to stabilize the area and increase the unit yield, and encourage the competent places to increase production as much as possible.
Judging from the sowing situation in China, the latest national grain production data released by the National Bureau of statistics shows that as of December 6, the total national grain output in 2021 was 1365.7 billion kg, an increase of 26.7 billion kg or 2.0% over the previous year. The annual grain output reached a new high and remained above 130 million kg for seven consecutive years. The sown area of grain in China was 1.764 billion mu, an increase of 12.95 million mu over the previous year, an increase of 0.7% for two consecutive years. The sown area of grain in China was 1.503 billion mu, an increase of 33.2 million mu or 2.3% over the previous year. The sown area of corn in China reached 650 million mu, an increase of 30.9 million mu or 5.0% over the previous year. The sown area of wheat was 354 million mu, an increase of 2.83 million mu over the previous year, an increase of 0.8%, reversing the downward trend of the area for four consecutive years. Meanwhile, the sown area of soybean was 126 million mu, a decrease of 22 million mu or 14.8% over the previous year.
In this context, the planting area of Shenzhen Agricultural Products Group Co.Ltd(000061) is expected to grow steadily, the demand for excellent seeds in the market is increasing, and the seed industry will benefit directly.
From the perspective of seed sales, the industry entered a high boom period in 2021, and the boom of "two miscellaneous" seed industry turned to be good. According to the statistics of Citic Securities Company Limited(600030) Research Report, in the sales season from 2021 to 2022, the supply and demand of corn varieties are in tight balance, and the supply of high-quality varieties is in short supply. At present, the core market has been in the middle and late stage of distribution, with high enthusiasm for receiving goods through channels, and some hot selling varieties have been sold out. It is estimated that the average ex factory price of the industry will increase by 20% to 25% in the sales quarter from 2021 to 2022. Although the overall supply of rice exceeds demand, there is a structural shortage of high-quality varieties. The "two-line method" is upgraded, and the variety sales are hot, leading the industry boom upward.
From the market pattern of commercial characters, at present, insect resistance and herbicide tolerance are the focus of enterprise R & D.
During the period of new technology upgrading, the R & D investment of enterprises continued to increase. From the R & D investment in the first three quarters of this year, the R & D expenses of six of the eight companies in Shenwan seed industry increased year-on-year. Among them, Gansu Dunhuang Seed Group Co.Ltd(600354) increased by 119.62%, Hainan Shennong Technology Co.Ltd(300189) increased by 108.24%, Winall Hi-Tech Seed Co.Ltd(300087) increased by 56.14% and Yuan Longping High-Tech Agriculture Co.Ltd(000998) increased by 45.12% year-on-year. Some institutions pointed out that driven by the current reform factors, the "double excellent" industrial chain cooperation mode of "excellent traits + high-quality hybrid varieties" in the seed industry will highlight the importance of R & D and innovation. Companies with varieties, R & D advantages and sustainable innovation advantages are expected to open a high-speed growth path.
(economic information daily)
