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**September 1998**

**General Trade Summary**

U.S. planting seed exports duringJuly 1998 (the first month of the marketing year) totaled 59,556metric tons and were valued at $37.1 million. U.S. exports are292 percent in volume and 7 percent in value greater than revisedfigures for July 1997. The sizeable increase in volume occurredprimarily in field crop seed exports and suggests that some grainand oilseed exports may be incorrectly coded as plantingseed on Shippers Export Declarations. 

**Attache Reports**

The following are highlights from recent U.S. agricultural attache reportsand are available on the FAS homepage:

****Spain (********Report number SP8035********):********Spainimported $142 million in planting seeds during calendar year (CY)1997. U.S. seed imported by Spain totaled $21 million in CY 1997,up from $18 million in CY 1996. This 17-percent jump in trade isprimarily due to Spain’s increased imports of U.S. cornseed.

Spain’s corn seed imports from the UnitedStates increased from $4.9 million in CY 1996 to over $8.2million in CY1997. U.S. corn seed captured 40 percent ofSpain’s corn seed market, up from 30 percent in CY 1996.This increase occurred during a period when Spain’s totalcorn seed imports declined by 6.5 percent to $27.4 million from$29.3 million the year before. 

During CY 1997, farmers in Spain planted452,000 hectares to corn, 7-percent less than in CY 1996. Thedecrease in planting was due primarily to penalties for exceedingarea quotas set by the Common Agricultural Policy for CY 1996.The increase in U.S. corn seed imports may in part be due tofarmers’ preference for long-cycle corn seed that is foundin the United States. 

Planting seeds must be registered in either theEuropean Union catalogs or in the Spanish Commercial VarietyRegister in order to market seed in Spain. To produce a varietyin Spain, it must be registered on the Spanish Commercial VarietyRegister. Recently, the Government of Spain approved two biotechseed varieties for use in Spain. Novartis BT-Corn Varieties950242 COMPA CB and 950243 JORDI CB are now listed on the SpanishCommercial Seed Variety Register.

****South Africa (********Report number SF8024)********:****During CY 1997, theSouth African seed market grew to $200 million from $153 millionin CY 1996. South Africa is able to fulfill about 80 percent ofits yearly seed demands with domestic production. Seed importsfrom the United States grew from $6 million in CY 1996 to about$11 million in CY 1997, its highest level in over 25 years.Recent restructuring of the South African seed industry may beresponsible for some of the tremendous growth the seed industryis experiencing. 

The South African seed industry continues to bein a state of transformation resulting from the AgriculturalMarketing Act of 1997 (AMA). The AMA exposed the seed industry tothe free market, creating some confusion and distrust within theindustry. 

The South African Seed Industry Organization(SANSOR), which represents the seed industry and comprises 55private companies and agricultural cooperatives, has appealed toits members to supply trade information so that it may monitorseed imports and promote an organized seed industry worldwide.Some seed companies have been reluctant to share tradeinformation with SANSOR believing that such information may begiven to competitors. SANSOR administers and coordinates seedcertification, legislation, seed testing, and licensing for theGovernment of South Africa. However, the Directorate of Plant andQuality Control is the official and final authority for issuingphytosanitary certificates.

The South African seed industry is attemptingto familiarize farmers and producers with the merits ofbiotechnology. Field testing protocols for plant varieties havebeen in place since 1990 and the first number of evaluations ledto limited commercial release of a few cultivars. There are alsoactive programs to advise farmers and consumers of the policy andprocedures necessary for a healthy biotechnology industry. 

**Key Development**

**Austria Adopts Requirement for SeedImports.**BeginningNovember 1, 1998, Austria will fully implement EuropeanCommission Directive 77/93 regarding phytosanitary measuresgoverning the importation of seed. As a result, imports ofcertain seed will require a phytosanitary certificate from theexporting country and be subject to testing by the AustrianFederal Office and Research Center for Agriculture (AFORCA).AFORCA suggests that importers submit seed samples to AFORCA fortesting at least three weeks in advance of importation. Failingto do so may result in detaining seed shipments in bond at theimporter’s expense until testing is complete. Once an importapproval is issued for the tested variety, it will be valid forthe planting season. 

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

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| *Last modified: Friday, November 13, 1998* |