US sales to reach $2.9 billion in 2006
US sales of agricultural biotechnology products will rise 6.3 percent per
year to $2.9 billion in 2006. Over the same period, arable land devoted to
transgenic crops (genetically modified organisms, GMOs) is expected to reach 102
million acres, up from about 93 million acres in 2001.
Transgenic seeds and crops will continue to dominate sales of agricultural
biotechnology products based largely on rising demand for insectprotected and/or
herbicidetolerant soybeans, corn and cotton. Most long-term growth in the market
value of transgenic seeds and plants will be spurred by the development of crops
adding beneficial, value-added output traits (e.g., vitamin-fortified rice,
cholesterol-lowering corn). Crops of this type will provide producers with more
opportunities to appeal directly to consumers. Plants capable of pharmaceutical,
chemical and vaccine manufacture wlll also become a commercial reality over the
next decade
Soybeans, cotton, corn to remain dominant
Among specific major crops, soybeans, corn and cotton will continue to
account for nearly all US transgenic seed sales. Anticipated growth in nonfood
applications, coupled with herbicide and insecticide cost saving advantages,
will enable transgenic technologies to capture an increasing percentage of
acreage and seed sales in corn, soybeans and cotton.
The expiration of the patent on Monsanto' s ROUNDUP glyphosate herbicide in
September 2000 is the major factor which propelled soybeans into the top
position related to transgenic seed sales in the US. The availability of low
cost generic glyphosate preparations, coupled with a Monsanto price cut on its
ROUNDUP brand, will increase herbicidetolerant soybean plantings among US
farmers.
Since its introduction in the mid-1990s, GM corn has experienced strong
growth in both acreage and seed sales. Weak prices prompted US corn growers to
pursue additional means of raising profits. This trend impacted favorably on the
market for insect-protected and herbicide- tolerant seeds, which reduced
pesticide costs while increasing corn yields.
The penetration of GM cotton into the US market reflects the crop' s
challenging cultivation requirements. Growers are willing to pay substantial
premiums for insect-protected and/or herbicide-tolerant cotton. It is estimated
that by the end of the decade, over 90 percent of the US cotton crop will be
transgenic.
Other biotech products hold mixed growth prospects
Agricultural diagnostics and biopesticides hold mixed growth prospects. Sales
in both product groups will remain limited due to continued weakness in the US
agriculture market. Biopesticides will contend with fierce competition from
transgenic crops and safer chemical pesticides. Biopesticides will benefit from
rapid growth in organic farming. Agricultural diagnostics will derive most
upward sales momentum from the controversy surrounding GMOs, as grain
processors, growers and importers seek to determine what fraction of any given
shipment is transgenic.
Study coverage
Details on these and other key findings are presented in Agricultural
Biotechnology, a new Freedonia study priced at $3900. Historical data for
1996 and 2001 plus forecasts to 2006 and 2011 are given for transgenic seed
sales by crop, as well as for sales of other agricultural biotechnology
products. Growth opportunities for agricultural biotechnology products by
function are also outlined. The study also examines the industry structure and
profiles major companies competing in the US industry.
View Cart
