Seed Industry Research Report-Ken Research

1
Agriculture Industry Stronger Cotton Hybrids
Could Stabilize Cotton Supply
2
Introduction In April 2018, Zimbabwes major
cotton producer Quton announced to the world that
they had developed a new variety of their cotton
seed market analysis hybrid for low resource,
high yield farming. The company announced that
their cotton hybrid seeds required lesser water
and nutrition compared to non hybrids and
provided 20-25 higher yield when compared to the
non hybrid cotton. The company, along with the
cotton research institute of Zimbabwe, has been
researching advancements in cotton and aiming to
provide a genetically and agriculturally superior
strand of cotton which could help with cotton
demand in Zimbabwe and more importantly, work
towards being a major source of revenue for the
country via exporting if planted on a large
scale. The Plant Natural cotton has a large
scope but also has a need for ideal conditions
for the growth of high quality cotton. Cotton is
grown between latitudes of 37 north and 30
south in temperate, subtropical and tropical
regions and in every continent. Ideal conditions
for the cotton plant are Long vegetation periods
(175 to 225 days) without frost, Constant
temperatures between 18 and 30, Ample sunshine
and fairly dry conditions, A minimum of 500 mm of
water between germination and boll formation and
Deep, well-drained soils with a good nutrient
content. Although these conditions are available
in specific locations, they are usually an
impediment towards the easy and large scale
growth of cotton.
3
The Market Spiral The global seed market has had
a major down period over the last few years with
global cotton production declining and with
export rates falling drastically as well leading
to it having a projected CAGR of 2 for the
period 2018-2023. Although there is immense
effort, it is expected that production will not
keep pace with demand. In the case of Zimbabwe,
production has halved from its peak period of
400,000 tons to 200,000. Although 98 of the
cotton produced in Zimbabwe is exported and that
too, in its raw form, there still is no major
contribution from cotton in Zimbabwe. The major
market nation is China having 29 of the worlds
cotton production followed by Pakistan, Brazil
and Uzbekistan when it comes to exports. The main
reason for the low level of exports from high
producers like India is the majority of the
cotton produced is used for domestic consumption.
Global exports in 2016 amounted to USD 52.77
Billion which was 6.4 lesser than that of 2015.
Although cotton is a major cash crop in the US,
the major production happens in the Asia Pacific
region. The main issue is the heavy amount of
labor required and the high level of
vulnerability to pest attacks coupled with the
growth conditions and major demand for domestic
consumption making cotton a difficult source of
revenue for any economy.
4
Hybrid Application and Advantages The new
varieties of the hybrid cotton have been
introduced with faster speed reducing the period
between introductions of strains. The research
undertaken by the cotton institute has led to the
capacity to develop a new strain every 6-7 years
rather than every 15 years. The company recently
launched 3 hybrids (C567, C571 and C608).
Broadly, they have large bolls, high protein
content and good quality fiber compared to many
varieties of hybrid cotton as well as natural
cotton. Although there is a need for good
agronomic practices, there is a major payoff
using the hybrids in terms of yield has the C567
and C571 can yield about 5,500Kg per hectare
while the C608, which is a drought resistant
variety yields close to 4000Kg per hectare. Quton
breeders expect the plant to have huge potential
estimating that the hybrids have a potential for
60 Bolls per plant. The Opportunity The growth
of the quality and reduction in difficulty of
production in cotton farming has raised the
potential contribution cotton can have on the
economy of major producers. Over 180,000 farmers
in Zimbabwe alone rely on cotton for their
livelihood but falling global cotton lint prices,
rising cost of production and hence, low returns
have continued to subdue cotton production in
Zimbabwe and most other African countries.
5
Although the reform is barely been introduced and
has been focused on a solution mainly for Africa,
the application of the cotton hybrid is for many
developing countries which do not always have the
environment required to easily grow cotton and
more importantly for countries like India and
China which rely on cotton heavily for domestic
consumption. Mainstream adoption of using these
genetically superior strands of hybrid cotton
could lead to the much needed restoration of the
Global cotton market. To know more, click on the
link below https//www.kenresearch.com/agricultur
e-and-animal-care/seed/SC-104-20.html   Related
Report https//www.kenresearch.com/agriculture-an
d-animal-care/seed/global-seed-research-report/277
-104.html   Contact Us Ken Research Ankur Gupta,
Head Marketing Communications sales_at_kenresearch.
com 91-9015378249
6
(No Transcript)