Outstanding problems and Policy suggestions restricting the Development of seed Industry in China

Seed industry is the source of agricultural industry chain, is the national strategic, basic core industry, and plays an irreplaceable role in ensuring national food security and agricultural industrial security. Since the transformation of agricultural research institutes into enterprises, the seed industry has made rapid development, and has made certain achievements in improving grain yield per unit area, ensuring national food security, promoting seed export and enhancing international competitiveness. However, there are still many problems in the transformation and development of China's seed industry, which urgently need to be paid attention to and effective measures should be taken to promote the healthy and rapid development of China's seed industry.

Outstanding problems in the Development of seed Industry in China

(1) the line between public welfare and commercial breeding is still blurred.

In recent years, China has issued a series of documents, which have achieved certain results in realizing the decoupling of enterprises and promoting the separation of public welfare and commercial scientific research in the seed industry. However, from the perspective of investigation, public welfare and commercial breeding activities are still confused. On the one hand, agricultural research institutions still carry out commercial breeding. After some agricultural research institutions have bred varieties, they will sell them to some small and micro enterprises, put them into the market and obtain profits, which will have a low-price impact on similar commercial breeding enterprises and reduce their R & D enthusiasm. On the other hand, most of the enterprises after the restructuring are highly dependent on the original unit in R & D. Most seed enterprises are established based on agricultural scientific research institutions, and their dependence on scientific research institutions is difficult to change in a short period of time.

(2) low R & D investment and weak innovation ability of enterprises

At present, multinational seed companies invest heavily in R & D, accounting for 10% of sales, accounting for 30% of sales. Monsanto's R & D investment accounted for 10.7% of sales in fiscal year 2014, or about US $1.7 billion? By contrast, the R & D investment of China's seed companies is on the low side. In 2014, the R & D investment of the top 10 seed companies accounted for only 4.7% of sales, only 510 million yuan, less than 5% of Monsanto's? The R & D investment of some large enterprises is very low. The R & D investment of Dunhuang seed industry is only 7.5542 million yuan, accounting for only 0.6% of sales.

From the perspective of R & D strength, Syngenta has more than 5000 researchers, while the total number of researchers in the top 10 of China's seed enterprises is only 1694, less than 1/3 of Syngenta. Some small and medium-sized enterprises have weaker R & D capabilities, according to research and research, some seed companies in Hunan Province have less than 10 R & D personnel, and some newly restructured seed companies do not even have R & D personnel and have no R & D capacity at all.

(3) the efficiency of traditional breeding model is extremely low.

Most of the enterprises in China are still in the stage of traditional breeding, and the traditional closed small-scale breeding will inevitably bring the problem of low efficiency. China's seed industry enterprises and scientific research institutes generally rely on several breeding experts and their small teams to carry out "family workshop" breeding, and there is also a lack of cooperation and communication among breeding teams. The number of varieties that can be tested by small-scale breeding is extremely limited, and the acquisition of good varieties is only an accident. There are many breeding experts and teams in our country, but there are not many competitive varieties and the efficiency is very low.

The successful experience of foreign countries shows that the breeding model with high efficiency should be a modern commercial breeding model with large scale, division of labor and cooperation. The scale of the test is large enough to turn the accidental breeding of a good variety into an inevitable event. Moreover, the larger the scale of the test, the more reliable the results, and the better the selected varieties. Relying on the modern commercial breeding model, international seed giants can cultivate highly competitive commercial varieties.

(4) small-scale seed production leads to low seed quality and high cost

In our country, the seed production base is scattered and the scale is very small, and the seed production is mainly based on one household. Most enterprises provide male and female parent seeds to farmers, which are planted, managed and harvested by farmers, and then purchased from farmers. The degree of mechanization, scale, intensification and standardization of seed production is very low.

The family seed production mode is difficult to guarantee the seed quality. In the process of seed cultivation, it is difficult to meet the requirements of strict isolation and single variety planting, and it is easy to be polluted by foreign pollen, resulting in biological hybrid degradation, resulting in the decline of variety purity. Mechanical mixing may occur in sowing, planting, harvesting, threshing, transportation, drying, storage and other links, reducing seed quality.

The family seed production mode is difficult to reduce the cost of seed production. The level of mechanization of seed production in China is very low, and seed planting, fertilization, medication, harvesting and other links are mainly completed manually. In recent years, the cost of agricultural labor in China has increased greatly, pushing up the cost of seed production year by year. According to the survey, the cost of hybrid rice seed production is higher, and the male and female parents must sow, manage and harvest separately, and a lot of labor costs need to be paid, so enterprises are overwhelmed.

(5) the variety approval system is not conducive to the development and promotion of new varieties.

The variety approval system has made a great contribution to the development of China's seed industry, but there are also some problems that can not be ignored. The first is the disconnection between scientific research and the market, the second is to leave room for rent-seeking corruption, the third is to leave the risk to growers and the government, and the fourth is not conducive to the promotion of new varieties.

(6) the level of intellectual property protection is low.

The intellectual property protection of China's seed industry is still at the stage of UPOV (International Convention for the Protection of New Plant varieties) 78, and the level of protection is very low. For example, in the process of new variety approval, it is necessary to detect the DNA fingerprints of the tested varieties, as long as there are more than 2 locus differences in gene testing, they can be identified as specific and a "new variety". As a result, there is little difference between varieties, there are many homogenized varieties, and there is a great possibility that the seeds will be improved and infringed. Enterprises report that once popular varieties are developed, a series of derivative varieties will soon appear on the market, and it is difficult to effectively protect intellectual property rights. It is generally reflected in the industry that the protection scope of UPOV78 text is very narrow, the approval standard of new varieties is low, and the protection of original varieties is not enough.

Compared with the UPOV78 text, the 91 text has a longer protection period and stricter protection conditions, especially a wider range of powers. The UPOV91 text not only strictly protects the original varieties, but also the relevant harvest materials and dependent derived varieties, which expands and strengthens the rights of the original breeders.

Compared with UPOV91 text, the design of UPOV78 text variety right is relatively simple. This harms the rights and interests of breeders and is not conducive to R & D and innovation.

(VII) It is difficult to "go out" and establish a global breeding system

In recent years, China has issued a series of policies to promote seed industry "going out" and achieved certain results. According to the statistics of the Ministry of Agriculture, the total annual export of seeds in China in 2014 has exceeded 300 million US dollars. However, on the whole, China's seed enterprises account for a small share of the international seed market, and seed industry "going out" still faces many obstacles. The first is the poor adaptability of seeds. Domestically produced seeds are difficult to adapt to foreign climates. The second is the high cost of seeds. Seed products are exported abroad, and logistics costs such as storage and transportation are very high. Third, the quality of seeds is unstable. After long-distance transportation, the packaging damage rate is high, and it is easy to heat and mold, which reduces the quality of seeds. Fourth, export procedures are cumbersome. China's seed exports have to undergo double inspection and quarantine in both domestic and importing countries. Different enterprises, different varieties and different batches have to undergo inspection and quarantine separately, which prolongs the seed export time and sometimes even misses the planting season. Fifth, strict control of germplasm resources is not conducive to the development of overseas breeding. China has very strict control over germplasm resources, so it is difficult for enterprises to use domestic high-quality germplasm resources to breed excellent varieties suitable for local areas, which is incompatible with the requirements of many countries to introduce parent seeds that can be directly propagated locally for localized production.

countermeasures and suggestions

(1) Further clarify the boundary between public welfare and commercial breeding

The first is to clarify the connotation of public welfare and commercial breeding, establish the guidance list of public welfare and commercial breeding projects respectively, and clarify the boundary between public welfare and commercial breeding. The second is to further clarify the research responsibilities and scope of public scientific research institutions, require scientific research institutions and colleges and universities supported by state finance to carry out only basic and public welfare research, withdraw from commercial scientific research activities, and gradually realize their transformation to major basic and public welfare research. The third is to insist on cultivating enterprises as the main body of commercial breeding. It is inevitable for enterprises to act as R & D subjects. The annual rate of return of public sector plant breeding applied research investment in the United States from 1950 to 1982 was 45%, while the rate of return of seed companies was as high as 90%. The rate of return of public sector plant breeding research and development was much lower than that of seed companies. In fact, as early as the late 1980s, American companies surpassed the public sector as the main investment in plant breeding. It should be clearly stipulated that applied research should be handed over to enterprises, so as to improve the enthusiasm of commercial breeding and enhance the scientific research and innovation ability of enterprises.

(II) Cultivate large-scale modern seed enterprises and improve industry concentration

Since the end of last century, the trend of concentration of world seed market has become increasingly obvious. At present, the top ten seed companies in the world account for more than 70% of the global market sales, and the top three seed companies (Monsanto, DuPont Pioneer, Syngenta) account for more than 50%. Some developed countries have a high concentration of seed markets and high industry efficiency. On the contrary, in China, there are many seed enterprises and the industry concentration is very low. By the end of 2014, there were 5200 seed enterprises, and the sales volume of the top 10 seed enterprises was only 11.01 billion yuan, less than 20% of the seed market. It can be seen that the development of seed industry must vigorously enhance the strength and market competitiveness of enterprises. Suggestions: First, further strict access restrictions for seed enterprises and raise the entry threshold. Second, strengthen the comprehensive and regular review of the qualifications of existing seed enterprises, and eliminate unqualified enterprises according to regulations and standards. Third, encourage and guide seed enterprises to accelerate the pace of merger and reorganization, guide various scientific and technological resources and innovative elements to gather in large enterprises, and build large-scale modern seed enterprises.

(III) Vigorously build production bases adapted to commercial seed production models

The seed production model of "thousands of households" in China has not adapted to the needs of commercial seed production, so a batch of standardized, large-scale, mechanized, intensive and moderate seed production bases must be established to solve the problem of family seed production. The state should increase support for existing state-level seed production bases in cities and counties, and effectively implement subsidies to the land circulation, land renovation, water and electricity roads and other infrastructure construction of seed production bases. A batch of reserve seed production bases should be built to provide strong support for seed production development. Seed production has the characteristics of moderate scale. Towns and villages with suitable climate and relatively concentrated land can undertake the task of seed production. It is suggested that large seed production towns (townships) and villages should be set up where conditions permit, financial support should be strengthened, land consolidation and moderate scale management should be promoted, and reserve seed production bases should be built.

(IV) Reform the variety examination and approval system into a filing and registration system

To deepen the reform of seed industry system, we should give full play to the decisive role of market in seed industry resource allocation. It is suggested that the registration system should replace the current variety approval system gradually, so that enterprises can become the main body of R & D responsibility. On the one hand, in the process of continuing to implement the current variety approval system, we should strengthen the investigation of variety approval responsibility. If the variety approval is not strictly controlled, resulting in large-scale abnormal yield reduction, the committee members participating in the evaluation shall bear corresponding responsibilities. On the other hand, large-scale seed enterprises with strength and ability to undertake seed promotion risks will be included in the pilot category of filing registration system. "Who registers, who is responsible", the variety registrant bears all the risks brought about by seed promotion. After a period of pilot implementation, enterprises that meet the requirements and have strength will be gradually included in the filing registration system in batches. After the implementation of the filing and registration system, the main functions of relevant administrative departments will be transformed into perfecting relevant systems, strengthening market supervision and management, and perfecting the guarantee system.

(v) Accede to the implementation of UPOV Convention 91 as soon as possible

The UPOV91 text puts forward higher requirements for member countries. Once China joins, it will have a certain impact on China's seed industry and even the whole agricultural industry. However, we should clearly understand the core position of UPOV in the international protection of new plant varieties. Joining and implementing UPOV91 text will play an important role in improving the independent innovation ability of Chinese enterprises, promoting China's integration into the international environment of new plant variety protection, introducing more high-quality new varieties and promoting international exchanges and cooperation. We should actively adapt to the new situation and new changes, and start the revision and improvement of relevant laws and regulations such as the Regulations on the Protection of New Plant Varieties as soon as possible. Narrow the gap with UPOV91 text by stages, industries and projects, and gradually realize the smooth transition from UPOV78 text to UPOV91 text.

(6) taking more measures to promote the "going out" of the seed industry.

Implement the "going out" strategy of the seed industry, make overall use of two markets and two kinds of resources, gradually transform the current pure seed export into technology export, and adopt the methods of local breeding, local seed production, local sales, and local after-sales service. enhance the international competitiveness of China's seed industry. First, a coordination mechanism among the competent departments should be established to further simplify the administrative examination and approval procedures for seed export and shorten the time limit for examination and approval. The second is to establish the seed industry export association, strengthen the industry self-discipline, and improve the interest coordination mechanism among enterprises. The third is to standardize the export management of germplasm resources. Formulate supporting policies and management measures to allow the export of common parent germplasm resources without harming national interests. Support enterprises to make use of China's germplasm resources, combine local germplasm resources, give full play to their complementary advantages, select and breed excellent varieties suitable for local production and application, and speed up the localization of varieties. The fourth is to standardize the output of management technology. For China's advantageous seed technology, we should establish measures for the implementation and management of technology export by category, do a good job in professional and technical protection, and establish an overseas seed production base for China to control key technologies and germplasm resources.