Government focus on seeds spurs dealmaking and stricter variety approvals

Seed technology continues to be an area of intense focus as the Chinese government looks to improved seed varieties to increase yields with the country’s limited land base.

Last week, the Ministry of Agriculture released its first “National Crop Variety Promotion Catalog” with 10 crops and 241 varieties of seed.

The ministry noted that it has been adopting stricter approval processes and strengthening intellectual property protections granted to seed producers. It also said that the number of approvals will slow after several years of rapid growth.

Fengle Seed Industry, a publicly listed seed company, saw 6 varieties of its seed included in the ministry’s catalog last week.

Today, the company’s stock was suspended as there is an ongoing deal for an unnamed industrial development fund to take ownership of 1/5th of the company. The stock is expected to resume trading this week after the deal details are finalized and announced.