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October 16, 2025

The Status Quo and Countermeasures of the Management and Management of Seed Market in China

2 Questions

In the seed market, state-owned seed companies, agricultural research institutes, colleges, and technology promotion departments once held a strong position due to their trusted image among farmers. They were able to leverage their reputation and resources to dominate the market. However, with the increasing involvement of private and collective enterprises, as well as the growing presence of foreign seed companies, competition has intensified significantly. This has led to disorder in the market, with counterfeit seeds becoming a major issue. These fake seeds have not only harmed the interests of most farmers but also strained relations between local officials and the public, impacting agricultural productivity and social stability.

2.1 Unclear Operating Qualifications

First, the legal representative of the permit does not change when the company’s leadership changes. Second, some companies fail to renew their seed licenses or allow them to expire, yet continue operating without proper authorization. Third, some companies initially obtained licenses through joint stock arrangements, fundraising, or loans, but later withdrew their capital when market conditions changed, leaving the company with no real resources. Lastly, some businesses rent or borrow licenses for others, showing little concern for the quality of seeds produced by those third parties.

2.2 Unauthorized Seed Production

2.2.1 Main Crop Seeds

Some companies produce seeds beyond their licensed scope without proper registration with local authorities. Others operate without any license at all, while many engage in small-scale production using illegally acquired seeds from other sources.

2.2.2 Non-Essential Crop Seeds

Some produce fruit seedlings without a proper license, while others sell tissue culture or cutting seedlings without valid permits. Additionally, some produce vegetable seeds and mushroom strains without the necessary licensing, further contributing to market instability.

2.3 Non-Standardized Seed Labels and Packaging

Seed labels are often altered without permission, with old seeds being relabeled as new. Some companies switch less popular varieties for more profitable ones on the label. Many lack essential information such as usage instructions or legal requirements. Also, the transparent area on packaging is too small, making it difficult for buyers and inspectors to assess seed quality effectively.

2.4 Low Quality of Seed Business Operators

Many seed sellers lack basic agricultural knowledge and cannot properly advise customers on seed use. Their understanding of laws and regulations is weak, leading to random seed exchanges between outlets. Sometimes, seeds from one company are sold using another’s invoice to avoid scrutiny. In addition, they may hide substandard or illegal seeds by selling them covertly or falsifying invoices. Finally, some operators do not update their business licenses or register with the relevant agricultural authorities as required, further complicating regulation and oversight.

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