CropLife 100: The Return Of The Need For Seed

For most categories within the CropLife 100, 2013 was a better-than-expected year in terms of sales growth. However, for the seed category, this year marked a return to what market watchers would term “the good old days.”

To appreciate this statement more fully, let’s take a brief look back at past 13 years. At the beginning of the 21st century, the seed category was a definite growth curve. During the 2000 CropLife 100 annual survey of the nation’s top retailers, respondents reported that their overall seed sales were just over the $800 million mark. But even with this sales figure under its belt, the seed category only represented less than 8% of all crop input/service revenues at the leading ag retail organizations. Still, sales were on the upswing and the future for the seed category looked bright.

And it was. Over the next decade, the total revenues for the seed category within the CropLife 100 steadily grew. By the time the 2009 CropLife 100 survey was completed, the seed category had increased its overall sales volume to $2.6 billion. Market share was almost double its 2000 mark at 13%. More significantly in 2009, the rest of the crop inputs and services that made up the CropLife 100 sales were down or flat. “Looking at the bigger picture, the success of seed in 2009 effectively cancelled out sales losses in a few other segments,” said the CropLife 100 write-up from the December 2009 edition.

But as the old saying goes, “all good things come to an end.” For the seed category, the first hints of a revenue slowdown appeared during the 2011. Although seed sales grew 13% for the year to $3.4 billion, this percentage increase didn’t keep pace with that for the overall marketplace. As a consequence, the seed category witnessed its first market share drop among crop inputs/services, from 15% to 14%.

This slow growth rate continued to plague the seed category during the 2012 calendar year as well. Last year, seed revenue at the nation’s top ag retailers increased only 6%, topping $3.6 billion. And again, as in 2011, the seed category ended the year losing another 1% in market share, dropping to 13%.

Happy Days Are Here Again

In 2013, the seed category had a much better year, to say the least. According to CropLife 100 survey respondents, their seed revenues grew from $3.6 billion in 2012 to slightly more than $4 billion. This 11% year-over-year increase led all crop input/service categories in terms of market growth. Better still, the seed category grew fast enough vs. the rest of the marketplace to re-gain 1% market share to 14%.

Among the three components that make up the seed category — traditional seed, biotech seed and seed treatment — seed treatment was the fastest-growing during 2013. According to 78% of survey respondents, their seed treatment sales increased 1% to more than 5% for the year compared with 2012. An additional 15% said their seed treatment revenue was the same as during the prior year. Only 7% of respondents reported that their seed treatment numbers had dropped in 2013.

Biotech seed also performed well in 2013 for CropLife 100 ag retailers. According to the survey, 66% of respondents witnessed sales increases of 1% to more than 5% in this sector, with another 23% reporting their sales in this area were flat. Only 11% said their biotech seed revenues had dropped in 2013.

Even traditional seed performed better than in recent years during 2013. According to 35% of CropLife 100 retailers, their traditional seed sales increased 1% to more than 5% for the year. This marked a significant improvement from 2012, when only 29% of respondents reported a sales gain in this sector.

Leave a Reply

Crop Inputs Stories

Crop InputsArkansas Plant Board Votes to Ban Dicamba — Now What?
June 23, 2017
The Arkansas State Plant Board has voted to pass a proposed emergency rule to ban the use of in-crop dicamba, Read More
Engenia soybeans
Crop InputsBASF: ‘Closely Monitoring’ Dicamba Situation in Arkansas
June 22, 2017
BASF, whose Engenia herbicide is the target of more than 200 drift complaints in Arkansas, emailed the following statement to Read More
Palmer pigweed seedhead in cotton
Crop InputsThreat of Dicamba Ban Looms in Arkansas
June 22, 2017
The Arkansas State Plant Board has rejected a proposed ban on the use of dicamba herbicide, but a procedural error Read More
Potash Agrium
Crop InputsAgrium-PotashCorp to become Nutrien upon Merger Completion
June 21, 2017
Potash Corporation of Saskatchewan Inc. and Agrium Inc. have announced today that once the anticipated merger transaction closes, the new Read More
Trending Articles
PrecisionAg Vision Conference
Precision AgPrecisionAg® Vision Conference: Focused on the Future
June 13, 2017
PrecisionAg® is pleased to announce the return of its PrecisionAg Vision Conference, October 10-12, 2017. Based on overwhelmingly positive response Read More
Redbanded-stinkbug-on-soybean-Photo-credit-Thomas-County-Ag
Crop InputsExperts: Mild Winter, Early Planting Will Increase Soybean Insect Threat
June 12, 2017
Higher than average temperatures this past winter affected much of the nation, especially the South and Midwest. The National Centers Read More
Eric SfiligojMonsanto ‘Picks Its Battles’ by Nixing Deere Deal
May 23, 2017
Having been in the trade journalism game since the mid-1980s, I remember several watershed moments during my career. One of Read More
Migrant farm workers
LegislationTrump: Immigration Crackdown Won’t Impact U.S. Agriculture
May 16, 2017
President Donald Trump said he would seek to keep his tough immigration enforcement policies from harming the U.S. farm industry Read More
AGCO Ratliff featured
Eric SfiligojRemembering Robert Ratliff
May 15, 2017
With all the fast-paced happenings in agriculture this spring, with multiple mergers in the works and planting season in full Read More
Case sprayer nozzle closeup
EquipmentSpray Application: A Nozzle Renaissance
May 2, 2017
If you had asked four-decade ag veteran Mark Bartel, President of Wilger Inc., just a few years ago what lay Read More
Latest News
Crop InputsArkansas Plant Board Votes to Ban Dicamba — Now W…
June 23, 2017
The Arkansas State Plant Board has voted to pass a proposed emergency rule to ban the use of in-crop dicamba, Read More
Engenia soybeans
Crop InputsBASF: ‘Closely Monitoring’ Dicamba Situatio…
June 22, 2017
BASF, whose Engenia herbicide is the target of more than 200 drift complaints in Arkansas, emailed the following statement to Read More
ManagementConsolidation Update
June 22, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss progress on manufacturer consolidation, and another big move for Midwest cooperative Central Valley Read More
Palmer pigweed seedhead in cotton
Crop InputsThreat of Dicamba Ban Looms in Arkansas
June 22, 2017
The Arkansas State Plant Board has rejected a proposed ban on the use of dicamba herbicide, but a procedural error Read More
Potash Agrium
Crop InputsAgrium-PotashCorp to become Nutrien upon Merger Complet…
June 21, 2017
Potash Corporation of Saskatchewan Inc. and Agrium Inc. have announced today that once the anticipated merger transaction closes, the new Read More
Crop InputsMidwestern BioAg Hosts TerraNu Fertilizer Plant Opening…
June 20, 2017
Last Friday, Midwestern BioAg was joined by over 80 local farmers, media and staff to celebrate the grand opening of Read More
Soybean Field
Industry NewsAligned Ag Distributors Names New President
June 19, 2017
Aligned Ag Distributors LLC announced this morning the appointment of Mary Tolke to the position of President/CEO, effective July 1. Read More
ManagementPlotting Corn, AGCO/Asmark’s Applicator Training Center…
June 15, 2017
Editors Paul Schrimpf and Eric Sfiligoj talk about their recent visits to Columbus, OH, and Bloomington, IL, along with an Read More
Seed/BiotechDow AgroSciences Announces Launch of Enlist Corn for 20…
June 14, 2017
Enlist corn will be commercially available in the U.S. for the 2018 growing season. Dow AgroSciences announced the launch today Read More
ASMARK AGCO Applicator Training Center
EmployeesAsmark, AGCO Open Training Center for Beginning Applica…
June 13, 2017
AGCO Corp. and the Asmark Institute have opened a new Applicator Training Center, created in a collaboration between the two Read More
Power to Do More Contest Winners
HerbicidesDow AgroSciences Announces Three Winners in Power to Do…
June 13, 2017
Thousands of votes have been cast and three farmers have been awarded the power to do more with a $10,000 Read More
Frogeye leaf spot
FungicidesStrobilurin-resistant Frogeye Leaf Spot Threat Looms wi…
June 13, 2017
Heavy spring rainfall throughout the South and Midwest delayed planting and created the perfect environment for diseases like frogeye leaf Read More
PrecisionAg Vision Conference
Precision AgPrecisionAg® Vision Conference: Focused on the Future
June 13, 2017
PrecisionAg® is pleased to announce the return of its PrecisionAg Vision Conference, October 10-12, 2017. Based on overwhelmingly positive response Read More
CHS St. Paul, MN fertilizer terminal
LegislationICGA Praises President Trump’s Remarks on Waterwa…
June 12, 2017
Illinois Corn Growers Association President Justin Durdan, a farmer from Utica, issued the following statement regarding President Donald Trump’s comments Read More
Wheat Growers
UncategorizedWheat Growers Names Tracy Linbo as Senior Vice Presiden…
June 12, 2017
Wheat Growers has hired Tracy Linbo as Senior Vice President of Agronomy. Linbo joins Wheat Growers after having served 10 Read More
EquipmentAgTech Summit Aiming High for Modern Farming Solutions
June 12, 2017
THRIVE AgTech, in partnership with SVG Partners and Forbes, is hosting the third annual Forbes AgTech Summit June 28-29 in Read More
Central Valley Ag Randolph, NE
Precision AgLand O’Lakes Invests in EFC Systems
June 12, 2017
Land O’Lakes, Inc. has made a minority equity investment in EFC Systems, Inc., an ERP (Enterprise Resource Planning) and precision Read More
BRANDT
Crop InputsBRANDT Products Approved for Use with New Cropping Syst…
June 12, 2017
BRANDT, a leading manufacturer of specialty products for the agriculture and turf markets, has announced that 11 BRANDT formulations have Read More