SEEDS STUDY

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Concentration of market power
in the EU seed market
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What can we expect in case of a policy status quo? In the absence of significant changes in the forces affecting
the global seed industry, Howard expects“consolidation to continue at a rapid pace. Industry analysts note that for
remaining independent seed companies many of them may have to consider strategic alliances or exit strategies.
Based on trends in other industries, this will eventually result in a stable oligopoly, with perhaps as few as 2
to 4 firms or clusters of firms. Monsanto is most likely to remain as one of these, due to its dominance in traits
with intellectual property protections, and willingness to aggressively and strategically exert their economic
and political power to increase profits. The pharmaceutical/chemical/seed oligopoly has already achieved high
market shares for major crops in industrialized countries, as well as in countries with large, emerging markets.
Strategies of accumulation will continue to extend the commodification process to all seeds, and an increasing
number of countries, however. In addition, oligopolies will become even more dominant across multiple farm
input and output sectors through the further coalescence of food chain clusters.” 97
This is clearly not the way to go for a healthy and sustainable European agricultural system. Sustainable
agricultural or agro-ecological practices of saving seed and replanting on farm level are at direct odds with
increasing profits and power of the global seed giants. “Increasing the opportunities for renewable agriculture
requires reversing these trends, but such a reversal is unlikely unless major political and economic changes are
enacted,” concludes Howard. Given the importance of the issue, EU institutions ought to provide better tools in
order to reverse these trends, and could start at the very least by recognising the seriousness of the issue, rather
than citing statistics provided by the big players of the seed industry.
EU law-making should be done with a clear and transparent picture of a situation. In this case, it is crucial
that the European Commission’s competition authorities start a preliminary antitrust investigation into the seed
market concentration, as was started by US authorities.
In addition, it should be investigated whether the genetic diversity of varieties on the EU market has increased
or decreased, as the Dutch government was advised in March 201198. Furthermore, the European Commission
should investigate if the number of varieties in the EU Common Catalogue, rather than being inappropriately
used as an indicator of genetic diversity, is not in fact obscuring a shrinking of genetic variation, which has
negative consequences for long-term food security.
97. Philip H. Howard, Visualizing Consolidation in the Global Seed Industry: 1996-2008, Sustainability journal, 2009, 1, 1266-1287, Basel. p. 1281,
98.