twitter RSS Feed linkedin acp contact

Seed merger facing SA competition authorities

Two maize seed companies have been attempting to convince the competition authorities in South African that their merger would benefit both farmers and consumers, as well as bring higher-yielding, improved maize products to the market

WheatPannar Seed’s merger with Pioneer Hi-Bred would leave South Africa with just two major seed companies. (Image source: John Nyberg)

Pioneer Hi-Bred and Pannar Seed have faced criticism that a merger between the two entities would have a negative impact on the agricultural sector by effectively reducing the number of major maize seed companies in South Africa from three to two.

South African seed breeder Pannar said that the loss of market share to seed companies utilising modern technology, including the likes of Monsanto, had led it to attempt a tie up with the US-based multinational seed producer Pioneer Hi-Bred International.

The merging parties have argued that the failure to approve the merger would lead to a continuation in Pannar’s decline as an independent maize seed competitor and further reduce “its ability to act as an effective competitive constraint”.

The commission, however, contested this statement by insisting that in the event the merger does not receive approval, Pannar’s dependence on Monsanto’s technology would lead it to forge a partnership with two other global players currently without a presence in SA – Syngenta or Dow.

“The only factual evidence presented by the commission to the tribunal was testimony by Dow and Syngenta that they might consider entering the South African maize seed market at some uncertain point in the future, and that partnering with Pannar would be their preferred route to entry,” argued a Pannar representative.

The companies have been fighting their case at the Competition Appeal Court after failing to win the approval of the Competition Tribunal and the Competition Commission.


LATEST NEWS IN Processing & Storage

Farmers and agribusinesses in Uganda to receive more than US$5mn to become climate resilient

Farmers and agribusinesses in Uganda to …

The Government of the Republic of Korea, through its development agency Korea International Cooperation Agency (KOICA), and the International Trade Centre (ITC) will provide funding to support ITC in boosting...

Cashew project launched to spark economic growth in West Africa

Cashew project launched to spark economi…

High-level guests gathered at Abidjan, Côte d’Ivoire for the official launch of the Prosper Cashew project, a five-year initiative that will help West Africa capture much greater economic value from...

Redesigning key to revamping plastic packaging sector

Redesigning key to revamping plastic pac…

Significant investment is needed to reduce lifecycle carbon impacts and redesigning is the opportunity to clean up plastic packaging as sector GHG emissions are predicted to rise 75%, says Woodmac Plastic...

Mixing oil and water to boost functional F&B development

Mixing oil and water to boost functional…

Prodalim Resources, a global player in the beverage industry introduces Capsoil Foodtech, an innovative platform that converts bioactive oils into water-soluble powders Capsoil Foodtech is developed with an aim to allow...

Ghana-based cocoa company to secure US$86.7mn for expansion

Ghana-based cocoa company to secure US$8…

Cocoa Processing Company (CPC), Ghanaian state-owned manufacturer of chocolates, confectionery and semi-finished cocoa products is eyeing a US$86.7mn loan financing from the Arab Bank for Economic Development in Africa (Badea)...

Ethiopia opens second avocado processing facility

Ethiopia opens second avocado processing…

YBM, a private avocado oil processing company, has become operational within the state-owned Yirgalem Agro-processing Park in Southern region of Ethiopia

Prev Next

OTHER RELATED ARTICLES - Processing & Storage

Africa’s farm exports in the world recession

Africa’s farm exports in the world reces…

MARKETING OF PRODUCE to other countries is critical for virtually every country in Africa. In the current economic crisis affecting most of the countries of the World, African countries are...

Nigeria fully privatises fertiliser import, distribution

Nigeria fully privatises fertiliser impo…

Nigeria’s Federal Government will no longer be involved in the importation and distribution of fertiliser in the country, Minister of Agriculture Dr. Akinwumi Ayo Adesina has said.

Symaga Silos announces COVID-19 protocol

Symaga Silos announces COVID-19 protocol

In line with the Coronavirus outbreak, Symaga Silos has activated COVID-19 protocol, following the instructions of the government, to prevent the spread and reduce the health risks of our employees

New report on technologies and forecasts in novel meat replacements

New report on technologies and forecasts…

According to the IDTechEx report “Plant-Based and Cultured Meat 2020-2030”, the market for novel meat substitutes is expected to exceed US$30bn by 2030

Symaga continues investing to achieve quality production

Symaga continues investing to achieve qu…

Symaga, specialised in the design, manufacture and marketing of galvanised steel silos for the storage of grain, has announced to maintain a continuous business plan to equip the company’s modern...

South Africa ranked 40th on Global Food Security Index

South Africa ranked 40th on Global Food …

South Africa has been ranked 40th out of 105 countries in a Global Food Security Index, which placed the US in the top spot and the Democratic Republic of Congo at...

President Akufo-Addo commissions US$16mn tomato processing factory in Ghana

President Akufo-Addo commissions US$16mn…

The President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, has commissioned the Weddi Africa Tomato Processing Factory, under the 1-District-1-Factory initiative, at Domfete, in the Berekum West District...

Kennie-O Cold Chain Logistics wins Africa’s first SUN Pitch Competition

Kennie-O Cold Chain Logistics wins Afric…

Nigerian firm Kennie-O Cold Chain Logistics from Kwarah State was crowned champion of the first Africa edition of the Scaling Up Nutrition Pitch Competition held at the Nutrition Africa Investor...

Bühler technology helps to reduce sorting costs by up to 90 per cent

Bühler technology helps to reduce sortin…

Bühler technology is enabling the world’s largest fig grower to double its processing capacity to 20,000lbs per hour and reduce increasingly expensive costs associated with sorting, by up to 90...

Cashew project launched to spark economic growth in West Africa

Cashew project launched to spark economi…

High-level guests gathered at Abidjan, Côte d’Ivoire for the official launch of the Prosper Cashew project, a five-year initiative that will help West Africa capture much greater economic value from...

Value-added bananas key to Ghanaian economy

Value-added bananas key to Ghanaian econ…

Ghana could add value to its bananas in order to earn enough foreign exchange rather than only concentrating on exporting the raw fruit just to meet the World Bank target...

Kingspan Group provides innovative solution to post-harvest loss issue

Kingspan Group provides innovative solut…

Kingspan, an Ireland-based company, has come up with an answer to the issue of post-harvest food loss with its cold store systems

Prev Next