(Image Source Big Stock Photos)
JAKARTA - Global genetic modification and hybrid seed company Monsanto has had connections with PT BISI International Tbk (BISI), Indonesia's leading seed developer, to control a dominant stake in market share for hybrid corn seed.
"We have a really long history with Monsanto since the 1980s," President Director BISI Jemmy Eka Putra told attendees of the company's public expose in Jakarta.
In what BISI describes a strategic partnership, the Indonesian based company pays Monsanto a royalty fee to be a licensor for hybrid corn seed. Together, they control 60 percent of sales in the market.
"This is the business model of Monsanto in the world, not only Indonesia. They sell with their own brand, and they also sell through the liscensor," Putra added. As 2015 polls portray for hybrid corn seed, BISI controls 48 percent of Indonesia's market share, while Monsanto controls 12 percent.
Despite Monsanto's dodgy history in Indonesia, genetically modified and hybrid seed developing companies have found themselves in favorable positions moving along with government's self-sufficient agenda for food sovereignty.
In Indonesia, corn is the second largest field crop after rice paddy and needs a supply of 60,000 tons of corn seed per year; the existing market only contributes an average of 30,000 to 35,000 tons, leaving the potential market to double.
Pushed largely by corn seed sales, BISI's revenue grew nearly thirty percent to Rp340 billion in the first quarter 2016 compared to the previous year over the same period. The company targets sales of its BISI 18, a hybrid corn seed package, to reach 10,000 tons or 77% growth supported by plans to integrate corn crop with palm oil plantations. (CH)