BEIJING (Commodity Online) : World’s largest populated country, China expressed concerns over the aggressive expansion tactics adopted by foreign seed companies in the country that threatens it food safety.

According to Center for Chinese Agricultural Policy under the Chinese Academy of Sciences, domestic seed companies need to wake up to the threat and build necessary safeguards to retain their market share.
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Worries surfaced after prices of some agricultural products spiraled in the past few months, and also amid concerns that the prevailing weather vagaries will impact yields over the next few months

Though foreign seed companies have a presence in China, they are dominant only in the supply of non-staple seeds like tomato and pepper and hence not a major threat to food safety.

There are 35 foreign seed companies in China. Out of this five supply corn seeds, while the rest are involved with vegetable and flower seeds.

International seed companies have a limited market share in China’s staple seeds market especially in grains like wheat, corn and rice.

The situation is not that bad when it comes to other staples like wheat and rice where domestic companies still have a sizable lead over foreign players.

China’s total grain harvest was around 500 million tons last year, with corn accounting for 155 million tons.

But analysts said the scenario may not remain the same. Chinese companies will have to make significant technological advances and develop better marketing strategies if they have to stay ahead of the foreign companies.

China has about 8,700 seed firms, and only 10 of them have independent R&D capabilities, they added.

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