Save Out Seeds Nachricht
23.12.2009 | permalink
What You Pay For Seed Corn Is Based On More Factors Than Just Supply & Demand
The cost of seed corn with bundled traits was analyzed by a trio of economists from the University of Wisconsin, who looked at the price structure for seed corn around the Cornbelt from 2000 to 2007. Their data did not reach into the current pricing period, but they identified the trend that is determining the price of seed corn. Their report is a lengthy analysis of the practices of the major seed retailers. Their research begins with the statement about the industry, “One major finding is that standard component pricing in biotech traits is soundly rejected in favor of subadditive bundle pricing.” The economists say new seed technology offers prospects for increased productivity, but they add that mergers and acquisitions in the seed industry have resulted in a concentrated seed market dominated by a few large biotech firms, and add, “This has raised some concern that market power and imperfect competition could lead biotech firms to charge high prices for the biotech seeds, with potential adverse effects on farmers’ welfare.”