Foreign companies are positioning themselves to gain market share in Brazil’s soybean seed industry. Brazil’s corn seed market is structured much like that in the U.S. with Monsanto leading, followed by DuPont Pioneer and Syngenta following, but the Brazil’s soybean seed market has room for consolidation. Small entities represent 50%-60% of Brazil’s soybean seed market which covers twice the acreage of the country’s corn crop at 29.9 million hectares compared to 15 million hectares. This forecasted consolidation would be the second wave of consolidation for Brazil’s seed sector. In the 1990’s Monsanto acquired Agroceres and Grupo Maeda, DuPont bought Sementes Dois Marcos Melhoramento, and Dow acquired Sedol and Semenes Hata. Credit Suisse has noted specific positive reaction in Brazil to Monsanto’s Intacta soy range which under certain conditions could boost soybean margins by 20%-30% and could produce noticeable change in the industry.
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