Limagrain in China: lasting presence on a market with future potential

>>> What is China like today?

China is an immense country, with 20% of the world's population. But it has only 8% of the planet's arable land. So we can easily understand why, in order to feed its population, it has had to innovate permanently! In the south, which receives 80% of the country's rainwater, agriculture is very intensive, with 2 to 3 crops per year, one of the most productive in the world. In the north of the country, the lack of rainfall is a serious handicap for development, which means that the mobilization of new water resources coming from the south, and the creation of plants that are more tolerant to drought, are the priority.

China is the biggest producer in the world for many things: this is the case for vegetables, with 50% of the world's production over a surface area of 17 million hectares, and for cereals, with 29 million hectares for rice, 24 million hectares for corn and 21 million hectares for wheat. China is also associated with inventiveness, massive investments in new technologies and the desire to develop a prosperous economy.

China’s needs are immense.
The development of industrial production is the cause of a powerful increase in food demand. China is looking for partners to help it rise to this challenge in favorable conditions, and we can meet this demand.

>>> How have we been accepted in China?

Well, very well in fact. Beyond our know-how in the seed sector, which is recognized in China, our agricultural cooperative group philosophy has been received with great interest. The visit of HUI Liangyu, Deputy Prime Minister in charge of agriculture, to Limagrain, who was welcomed by Pierre Pagesse, President of Limagrain, and President Valéry Giscard D’Estaing, Chairman of the France-China Committee, proved to be very valuable. The visit of the Ulice technological center and the talks held on the competitiveness cluster Céréales Vallée and its leading programs “Tomorrow’s seeds” and “Biodegradable plastics” reinforced the credibility of our approach. In August, the Cooperative Bureau’s visit to China, during which it was confirmed that our investments were on a long-term basis, was a significant event for our Chinese partners. In China, it is essential to take the time necessary to establish confidence and develop sustainable business activities.

>>>  How is business in China going for Limagrain?

Limagrain has been physically present in China since 1997. Understanding the country’s needs was essential. We developed a joint venture with the Academy of Agricultural Science (77.5% Limagrain, 22.5% ASAS through its subsidiary Tengda), which combines soft wheat and maize R&D programs. In wheat, our objectives include the breeding of winter varieties for bakery products in the West and the production of Chinese noodles for the provinces of Hebei, Shanxi, Shandong, Henan, Anhui and Jiangsu (the country’s “granary”, situated in the Centre-East region) and the exchange of useful genetic material to reinforce our European programs. In maize, we are working on Chinese maize, medium-late to late grain for spring and summer sowing. In vegetable seeds Vilmorin & Cie is working in R&D with the CAAS, Chinese Institute of Vegetables and Flowers. Several Vilmorin & Cie subsidiaries are present in the country and already sell seeds there, including in the Shandong, Liaoning and Gansu
regions. Today we have more than 60 partners and are open to other possibilities.