Seed Corn Industry Essay

1521 words - 6 pages

Introduction

This paper will delve into the complex nature involving the seed corn industry. Looking at multiple aspects from producers of seed corn and how the production process has changed over the years to reflect customer demand. Many times the major producers of seed corn are very involved in the marketing and selling of the product and we will discuss this relationship.
The product life cycle of different technologies and products offered by these major seed corn producers will be viewed in depth as its evolution has played a major role on both the marketing strategy used and the agricultural industry as a whole.
Few people not directly involved in the production, buying, or selling aspect of the seed corn industry understand its evolution and the increased competition. Looking at the shifts in market share has shown that larger companies continue to grow at an increasing rate. This could could result in the end of smaller seed corn sellers. While discussing the purchasing of seed corn with a farmer we will see the influence certain selling tactics have on their decisions.
The changes in competition have been plentiful over the years in the seed corn industry and we will delve into the complexities involving these changes and the results of these changes on the industry. There are three main points revolving around the change in the seed corn industry today.
1.) Unaware to most is the high competitiveness involved in the seed market today.
2.) Grower choice is increasing as technologies and innovation revolutionize the product choices.
3.) Farmers have benefited immensely from the changes in the seed corn industry.
(“Observations of competition”, 2009)

Product Life Cycle

Problems with Measuring the Industry
It is very difficult to get an accurate measurement involving the exact product life cycles of the products in the seed corn industry due to several major factors.
1. Sales often occur over a large amount of time.
2. Today, there are thousands of hybrids used across the United States.
3. Many of the sales are limited and in fact cover a few thousand acres.
(Magnier, Kalaitzandonakes & Miller, 2010)

Variations of Different Product Life Cycles
Through collection of data that excludes an estimated fifteen percent of the seed corn products due to factors before mentioned we are able to garner a good view on the product life cycle of specifically hybrid seed corn. When examining the data collected by Magnier, Kalaitzandonakes, and Miller one can see that there is very large variation in the lengths of the product life cycles including the amount of time spent in each stage (Introduction, Growth, Maturity, Decline). Most hybrid seed corns reach their peak in a matter of two or three years and then experience a slow decline from there on out. Although the research did show an important grouping between large acreage hybrids and small acreage hybrids. “Large acreage hybrids are typically sold and planted in multiple maturity...

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