Summary：China's seed &
seed treatment industry faces structural shifts amid tightened imports,
pressuring firms like Longping and Denghai. Policies drive tech upgrades (e.g.,
soybean/rice seed coatings), bio-fungicide growth (28% penetration), and key
projects (Zhejiang Hill, Huajin Aramco) address supply chain gaps.
I. Import-Export and International Trade
Strictened Import Quarantine
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On May 6, the Khorgos Customs announced the interception of
barley seeds carried by incoming passengers, which were found to contain
quarantine pests Aegilops cylindrica and Galium mollugo. The
batch was harmlessly disposed of.
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Five Brazilian soybean export enterprises had their
qualifications to China reinstated on April 25. Their operations were
previously suspended due to repeated detections of seed-coated soybeans,
and the resumption is expected to alleviate pressure on domestic soybean
seed imports.
Structural Shifts in Export Markets
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Data from the Ministry of Agriculture and Rural Affairs shows
that agricultural exports reached $15.22 billion in January-February 2025
(+3.0% YoY), though seed and treatment agent categories were not
subdivided.
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During the International Seed Congress, China reached germplasm
resource exchange agreements with the Netherlands, Brazil, and other
countries. Hainan Free Trade Port launched a "cross-customs area
conditional release" fast-track clearance model for seedlings,
enhancing seed export efficiency.
II. Sales and Market Performance
Performance Pressures on Leading
Enterprises
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Longping High-Tech: 2025 Q1 revenue
fell 32% YoY, with corn seed business losses due to oversupply; rice seed
revenue reached ¥2 billion (+12.97% YoY), supporting fundamentals.
-
Denghai Seed Industry: 2025 Q1
revenue was ¥163 million (-30.04% YoY), net profit ¥24.59 million (-18.37%
YoY), with significant inventory pressure in corn seeds.
Technology-Driven Demand Upgrades
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The Ministry of Agriculture and Rural Affairs issued the National
Soybean Seed Coating Technical Guidelines in March, requiring the
promotion of seed coatings containing fludioxonil and thiamethoxam,
expected to drive growth in the soybean seed treatment market.
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Technical guidelines for rice seed treatment emphasized the
prevention of bakanae disease and dry tip nematode, recommending compound
agents like jingjia·luojunjing and thiamethoxam·luo·jingjia, promoting the
penetration of rice treatment agents.
III. Price and Cost Dynamics
Sustained Decline in Pesticide Technical
Prices
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Data from the China Pesticide Industry Association shows the
2024 Pesticide Price Index (CAPI) fell to 80.14, a 54% decline from the
2022 high, with costs of key seed treatment ingredients (e.g.,
tebuconazole, thiamethoxam) declining synchronously.
-
Huinong.com data on May 5 showed ethylmorpholine (seed
treatment agent) priced at ¥12-370 per bottle, and jingjia luojunjing at
¥8.9-49 per bottle, reflecting terminal market fragmentation.
Notable Growth in Biological Fungicides
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Industry reports predict the penetration rate of biological
fungicides in seed treatment will reach 28% in 2025, with microbial agents
like Bacillus subtilis and Trichoderma accounting for over
60%, and market size expected to exceed ¥2.85 billion.
IV. Supply Chain and Capacity Layout
Breakthrough in Key Raw Material
Projects
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Zhejiang Hill Chemical's 960-ton/year chiral epichlorohydrin
project received environmental approval on May 7. This product is a key
intermediate for high-end seed coatings, filling a domestic gap and
expected to enter production in 2026.
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The China-Saudi Arabia Huajin Aramco fine chemicals project
(total investment ¥83.7 billion) completed key equipment hoisting, with
operations expected in 2026 to enhance domestic self-sufficiency in
high-end chemical raw materials.
International Supply Chain Volatility
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Qualifications for U.S. enterprises like CHS Inc. to export
soybeans to China remain suspended, leaving some processing enterprises
dependent on imported soybean seeds facing raw material shortages.
V. Policies and Industry Trends
Domestic Policy Guidance
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The Ministry of Agriculture and Rural Affairs requires a 10%
annual increase in biological pesticide usage by 2025, with policy support
intensifying for seed treatment as an efficient application scenario.
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Hainan Free Trade Port is advancing a "five-in-one"
intellectual property protection system to safeguard seed industry
innovation.
International Standard Updates
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The International Seed Testing Association (ISTA) implemented
new regulations in 2025, strengthening detection standards for seed
treatment agents. Export enterprises need to monitor rising compliance
costs.
VI. Industry Conferences and Technical
Exchanges
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The 34th ISTA Congress will be held in New Zealand from May
5-9, focusing on "Seed Quality and Global Food Security," with
the expected release of new seed treatment agent testing standards.
-
During the 2025 Seed Congress, the China Seed Association
signed a cooperation memorandum with the International Seed Federation to
promote cross-border germplasm exchange and intellectual property
protection.
Data Sources:
Ministry of Agriculture and Rural Affairs, General Administration of Customs,
CCM.
More information can be found at CCM seed&seed treatment China Monthly Report.
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