Qiule Seed Industry reported strong revenue and earnings as demand for better seeds has risen.
The company reported that revenue reached 438 million RMB, up 29% year on year, while net profits rose to 61 million RMB, an increase of 53%.
The company’s main products are corn, wheat, and peanut seeds and they have seen strong demand for these products and rising prices.
Qiule noted that “the market environment of China’s corn seed and wheat seed industries has improved, and the demand for customer orders is strong”.
Even with large subsidies for soybean planting, it is still more profitable for most farmers to plant corn, and futures prices on the Dalian exchange are elevated and hovering around 2,865 RMB per ton ($10.50 USD/bushel).
China has also approved many varieties of GMO seeds over the past year, which could further boost seed industry profits. However, at this stage, the approvals do not allow companies to market the newly approved seeds and they remain in a pilot stage with relatively small planted areas.