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**November 1998**

**Attache Reports**

The following are highlights fromrecent U.S. agricultural attache reports that are available onthe FAS homepage at:http:www.fas.usda.gov/scriptsw/AttacheRep/attache_frm.idc.

**Korea (Report numberKS8107)****:** During Marketing Year (MY) 1998/99,planting seed imports are projected to reach 10,000 metric tons,up from about 8,300 metric tons during MY 1997/98. This projectedincrease is due to the Ministry of Agriculture and Fishery’s(MAF) interest in increasing forage and grass production. Duringthe height of the economic crisis, the Korean livestock industryexperienced sudden production cost increases due to thedevaluation of the Korean Won and the industry’s dependenceon imported feeds. 

The MAF expects that additionalfarmland will be planted with forage and grass seed in an attemptto limit the livestock industry’s dependence on importedfeeds. However, Korea will still be reliant on foreign suppliersfor seed because Korea produces almost no grass seed and verylittle forage seed. 

Korea’s imports of U.S. seedrepresents about 54 percent of the total import seed market.During MY 1997/98 U.S. seed imports amounted to about 4,500metric tons, down 3 percent from the previous marketing year.During MY 1998/99 U.S. seed exports to Korea are expected toreach 6,000 metric tons, largely due to the increased demand forforage and grass seed. 

Korea implemented the SeedIndustry Act in January 1998 which brought Korean regulations inline with the World Trade Organization’s Trade RelatedAspects of Intellectual Property Rights (TRIPS) and the Office ofEconomic Cooperation and Development (OECD) commitments. The Actalso removed the Korean Seed Association control over theproduction of many vegetable seeds. Now domestic production ofover 14 major seeds is fully liberalized. 

Despite the economic crisis,investment interest in the Korean seed industry remains strong.In June 1998, Seminis, a U.S. subsidiary of the Mexican groupELM, purchased Heung-Nong Seed and Jungang Seed. Seminis now has44.4 percent of the vegetable seed market, research anddevelopment facilities, and intellectual property rights of theacquired firms. 

Companies from Japan, Canada,Germany, Netherlands, Australia, Italy, Denmark, and China areall competing for the Korean seed market. Japan is a majorcompetitor in the vegetable\flower seed market and has beensuccessful at entering the market through joint ventures andacquiring Korean seed companies. However, other foreign seedcompanies prefer to enter the market by establishing personalrelationships with government officials, importers, researchersand end-users mainly by providing training courses demonstratingthe benefits of their seed products. 

**The Netherlands (Reportnumber NL8056)****:**

The Dutch are major producers and exporters of a wide varietyof planting seeds. They are particularly strong in the productionof grass, pulse, sugar beet, and horticultural seed. TheNetherlands is also the third largest supplier of seed in theworld behind France and the United States. 

Grass is the most important seed crop in the Netherlands. Over75 percent of the grass seed produced in the Netherlands isexported. Acreage planted to grass seed in the Netherlands jumped20 percent, from 20,000 hectares in 1997 to 32,000 hectaresin1998 in order to rebuild stocks. The Dutch production of grassseed is likely to continue increasing due to improved croprotation schemes within the Netherlands and the anticipatedexpansion of the livestock industry in Eastern Europe. 

Area planted to vegetable seed has been trending downward inthe Netherlands since 1995 due to a shift in seed production toother European Union countries, the United States, and Asia.Subsidiaries of Dutch seed companies were established in theseregions to take advantage of ecological conditions that are morefavorable to particular seed types. 

Despite the Netherlands and the European Union’sreluctance to fully accept biotechnology, the Dutch seed industry(which has traditionally concentrated on the development anddistribution of high quality seeds) is beginning to focus onmodern biotechnology. There are many companies in the Netherlandsresearching and developing transgenic seed products. Someresearch is concentrating on understanding better the process ofripening and discoloration of fruits and vegetables in hopes ofimproving product quality. 

**NOTE: Subscriptions for U.S. Planting Seed Trade will nolonger be made available. As subscribers were informed in aNovember 1998 letter from the National Technical InformationService, the November 1998 report will be the last hard copyissue published by FAS. However, the report will continue to bemade available to the public on the FAS homepage at:http://www.fas.usda.gov/currwmt.html****.**

For more information on U.S. Planting Seed Trade you maycontact Mark Rasmussenat (202) 720-9497

|  | Data in this report is available in both Adobe        Acrobat and Lotus 123 formats. You may need to Get        the Adobe Acrobat Reader. |
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**Planting Seed Exports July-September** in Adobe PDF Format or Lotus 123**Planting Seed Imports July-September** in Adobe PDF Format or Lotus 123

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| *Last modified: Wednesday, December 23, 1998* |