Countries continue to increase support for seed industry

 Into hybrid rice seed industry is expected to give priority to support the object

Premier Wen Jiabao on Feb. 22 chaired a State Council executive meeting, study and plan to accelerate the development of modern crop seed industry. It was noted that the policy will increase the support and input, and strive in 2020 to create a number of breeding capacity, production and processing technology advanced, a sound marketing network and technology services in place of the modern crop seed industry groups to enhance the crop seed industry in China level of development.

Do panic! The main force is still diving? Stuck with the stock is likely to have saved! March the stock market changes are likely to occur? Tug of war behind the hidden financial trends!
Our study shows that after 2000 On the one hand improve the seed from the relevant national laws and regulations, and increase seed subsidies, support seed research and development, strengthening R & D units and cooperation in the seed business to support the seed industry. On the other hand, the three international seed giant controlled 65% of the world corn market and more than 50% of the soybean market, and have penetrated into China's corn, cotton, soybeans and other kinds of industry.

species related to the agriculture industry in the development of stability and national food security, the state has increased its support to the national strategic level, we expect the seed industry policy support will continue to increase. Hybrid rice seed industry in China has the world's leading seed breeding technology, a few have the advantage of the seed industry, is expected to become a national priority to supporting the object, the industry faces significant consolidation opportunities.

we expect in 2011 with the strengthening of policy support, the threshold for a substantial increase in registered capital, the National Seed 8700 would be compressed to 1,500 companies within the industry is facing significant consolidation opportunities, with complex, pushing

In addition, demand-driven by internal and external, hybrid rice seed market space continues to expand. 2010, the domestic rice market value of 101 billion yuan. With the price of hybrid rice seeds and the improvement of penetration, we expect the domestic rice market in 2030 will reach 39.2 billion worth, more than 250% increase over 2010.

】 【investment advice

market given the higher growth of rice seed business expectations, the valuation is relatively higher than other seed companies. One of hybrid rice seed company nearly 70 times 2011 earnings. Other seed companies in 2011, 45 times PE. We believe that hybrid rice seed industry in support rose to national strategic context, with Hi-Tech, Tsuen Fung Lok Silver Seed Industry and Tech.