The Rising Influence of Rising Affluence

[DewDiligence]

MON/DD investors ought not lose sleep over China (IMO):

http://www.wsj.com/articles/china-seeks-to-develop-global-seed-power-1427049765

The world’s second-largest seed market, after the U.S., limits foreign producers to minority stakes in joint ventures. Seeds from foreign ventures supply about 20% of the market, but that is likely to rise as a gulf in quality widens between local and foreign products, growers and analysts say.

…Heavily overworked arable land and slowing yields from local seeds have raised questions among officials about the viability of meeting China’s food demand by domestic means alone.

...China’s key deficit is in research and development… Local seed makers didn’t give research much shrift until around 2011, when a state directive forced seed companies to list R&D spending in annual reports.

Longping China’s largest seed company with a 20% market share] said its R&D in 2013 totaled $15 million—less than 1% of what Monsanto spends.

Unless Chinese seed makers catch up, analysts say the companies will be reduced to middlemen when China opens its seed market.

See #msg-109692345 for related info.