Seed China Monthly Report(Seed China Monthly Report 202502)

Market analysis: On 19 Feb., 2025, Hubei released 40 leading agricultural varieties, covering rice, wheat, and other fields. Among the rice varieties, E Liangyou 2300 is high-yielding, and Huaxia Xiangsi was selected as the leading variety of "Jianghan Rice". The wheat variety Eum 590 achieved excellent per unit yield, and Kenmai 58 broke through bottlenecks and set a new record for transfer price. On 24 Feb., 2025, the Ministry of Agriculture and Rural Affairs of the People's Republic of China issued the "Implementation Opinions" to promote the comprehensive revitalization of rural areas. Key points include consolidating food security, enhancing agricultural equipment, promoting green transformation, strengthening rural industries, improving rural construction, deepening rural reforms, and strengthening factor support. The goal is to promote increased efficiency in agriculture, increased vitality in rural areas, and increased income for farmers, achieving high-quality development of agriculture and rural areas.

Company dynamics: In Feb. 2025, Shandong integrated Shandong Seed Industry Group and Lu Liang Group were merged to establish Shandong Agricultural Group, deepening state-owned enterprise reform and implementing the grain security strategy. The new group aims to build a "Qi Lu Granary" by integrating the industrial chain, promoting agricultural modernization, and is expected to achieve annual revenue of over USD418.5 million (RMB3 billion). On 24 Jan., Shennong Seed Industry released its earnings forecasts for the year 2024. It is anticipated that the net profit for the year 2024 will make a loss of USD6.14 million to USD8.09 million (RMB44 million to RMB58 million).

Policy: In Feb., the General Office of the People's Government of Gansu Province issued the Action Plan for Stable Grain Production in the Province by 2025, with the aim of ensuring that the grain sowing area in the province remains stable at more than 2.67 million hectares and the total grain output in the province remains stable at more than 12.60 million tonnes. On 14 Feb., the Ministry of Agriculture and Rural Affairs of the People's Republic of China issued a notice on the issuance of the "National Key Areas of Agricultural Science and Technology Innovation (2024–2028)", aiming to promote self-reliance and strength in agricultural science and technology, enhance industrial competitiveness, and support agricultural modernization and rural revitalization.

Variety: On 26 Jan., 92 approved new major crop varieties of Guangdong Province were publicised. On 17 Feb., China's Ministry of Agriculture and Rural Affairs announced Anhui's approved main crop varieties for 2025.

The USD/RMB exchange rate in this Report is USD1.00=CNY7.1693 on 2 Jan., 2025, sourced from the People's Bank of China.