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MARKET INTELLIGENCE REPORT ON

DEVELOPMENT OF FOOD CROP SEED INDUSTRY IN INDONESIA

April 2009

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Production  of certified rice seeds  reaches 181,000 tons

Production of certified rice seeds in Indonesia includes ES and seeds with pink label.  Until 2007, seeds with pink label were still produced in the country, but in 2008, production was no longer produced as the quality was poor.

Most rice seeds  that consist of  local seeds and composite seeds are produced government agencies  such as  seed centers  and a small part  consisting of hybrid seeds are produced  by state companies and private companies.

The country's production of rice seeds in the past six years has continued to scale up.  In 2007, the production of ES grew by  22%  to 147.363 tons and that of seeds with pink label  fell 70%  to 161 tons,  with  the total production of certified seeds   up 21.5% to 147,524  tons.  In 2008, the production  grew further  by 23% to 181400 tons. Increase in the production certified seeds were attributable more too growing number of farmers using certified seeds. 

The production of  certified rice seeds  is around 50%  of the country's rice seed requirement  of 300,000 tons per year  with rice fields totaling 12.66 million  hectares. The country's production  of hybrid rice seeds in the past two years  grew 21% . The production of hybrid seeds  in 2007 reached 1,231 tons  , up to 4,624 tons in 2008.

The high growth  in production  came with growing number of farmers  aware of the benefit of using certified seeds.  However, the production hybrid rice seeds are still very small in proportion - around 0.61% of the country's total production of seeds.

The high price of hybrid seeds contributes to  keeping many farmers  from using hybrid seeds .  The price of hybrid seeds  averages Rp50,000 per kg  as against only Rp7,000 per kg of non hybrid seeds.

Production  of hybrid rice seeds starts increasing

Business in  the production  of  hybrid rice seeds has good prospects in Indonesia . The past several years gave seen a steady increase in the production of hybrid seeds. In 2006, production surged  from 7.7 tons  to 201 tons.

Increase  was recorded in the following two years  up 510%  to  1,231 tons in 2007 and again by 275% to 4,624 tons in 2008.

The increase in production reflects good prospects of  business in hybrid rice seeds industry.

There are 14 producers  of hybrid rice  seeds in Indonesia  and three of them have an annual production  of more than 100 tons . They are PT. BISI, SHS, and DuPont. BISI Internasional  is the largest player in the business  with production of 3,000 tons of hybrid rice seeds in 2008.

Production  of corn seeds  continues growing

Increase has also been recorded in the country's production  certified corn seeds since 2005.  In 2007,  the production  grew  24.3%  to 38,349 tons. In  2008, the  production rose further by 49.3%  to 57,266 tons.

The country's production of hybrid  corn seeds  in 2003-2008  made up around 70% of the  country's total production of certified corn  seeds.

Hybrid corn seeds  account for 56% of the total quantity of corn seeds used  in the country in 2008.

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ICN - April 2009


FOCUS:
AGRICULTURE BACK AGAIN AS ECONOMIC BACKBONE

INDUSTRY PROFILE:

PLANT SEEDLING CULTIVATION INDUSTRY
  • Backgrounds
  • Description of product
  • Seed Production Capacity
  • Production seeds increasing
  • Locations of seeds/shoots production centers
  • Main producers of seeds/shoots/seedlings
  • Availability of seeds until  2010
  • New investments
  • Seed requirement        
  • Distribution and Marketing
  • Exports and imports
  • Prices of seeds tend to be stable
  • Government Policy
  • Conclusion

INDUSTRY PROFILE:
DEVELOPMENT OF FOOD CROP SEED INDUSTRY