There is no doubt that entrepreneurship related to the sale of seed in Russia is promising. The development dynamics of the corresponding market is evidenced by the fact that, since 1976, the seed market in Russia has grown 11 times.
Its main consumers are not only peasant and farm enterprises, but also urban residents - summer residents (according to statistical information, 30 million Russians have summer cottages).
However, we have to admit that domestic seed on the seed market does not dominate. The reason is the lack of funding. In the Netherlands, for example, businessmen are willing to invest tens of millions of dollars in creating one variety. As a result of this constructive approach, professional vegetable seeds are obtained at the output, which guarantee the harvest for farmers.
Macroeconomic situation
The following rating characterizes the current market situation: the sixth position in Russia in the ranking of world seed importers and the forty-seventh among exporters. This indicates a lack of market activity of exporters. (The reasons were discussed earlier.)
The three leading countries in the seed market are as follows: United States, Holland, France. Their secret is in high-yielding breeding (providing high parameters of germination, viability, purity of the variety) and, of course, in the operational efficiency of the full business cycle - from selection to targeted shipment. Therefore, due to two factors - the quality of the material and market dominance - Russian summer residents prefer the seeds of Dutch selection vegetables.
About Russian seed producers
Currently, the players in the Russian seed market are small and medium-sized farms. Although it is developing dynamically, it has not yet passed the stage of monopolization. The list of Russian seed producers can be very long. We restrict ourselves to just a few. In online reviews, we found positive feedback from buyers of seeds of the Russian Garden-NK, holding Russian Seeds, Petersburg Seeds.
Given the obvious underfunding of breeding work and the promotion of Russian seed exports to the markets of other countries, its volumes are limited. The reality is that in the face of fierce competition in the domestic market, importers are still leading. Foreign monopolies, penetrating the domestic market of pure competition, sometimes even use dumping.
Possessing significant financial resources, they can afford in the medium term to recoup the costs of selection for seeds of Dutch vegetable seeds. And the domestic small producer is tied to short-term profits, lowering the price he risks falling into ruin.
Leading Dutch companies
Import of leading Dutch seed companies provides seed for almost half of the Russian wholesale market. The leading role belongs to two monopolies: Nunhems and Seminis, Rijk Zwaan is slightly behind them. Moreover, the name "Dutch" is often conditional. Indeed, the majority of the seeds associated with the name of this country are grown outside the territory of the Netherlands.
However, then they are delivered to its territory, where they are finalized, packaged and shipped. (According to statistics of the modern seed market, half of the enterprises in it are engaged in sorting and packaging.)
The total seed export of this small European country is impressive, amounting to about 475 million dollars. This fact can at the same time answer the question: “Is it worth developing a business based on seed production?”
The secret to the success of the "flying Dutch"
How is the quality achieved due to which the seeds of Dutch selection vegetables so popular? Thanks to systematic investments in the industry and (no offense to the agricultural industry will be said) orientation of the selection specifically on the climatic features of Russia.
In addition, workaholics from a small country in northern Europe managed to create an effective infrastructure on the territory of the state, occupying 1/6 of the land. As an illustration of the above, the Internet positioning of Bejo Zaden, which has offices in all regions of Russia and presents 230 varieties in the State Register of Selection Achievements, looks like.
Seed quality control
Not only the yield of a summer cottage plot depends on the quality of the seeds, but also the overall efficiency of crop production in the agricultural sector, its profitability. Therefore, this seemingly agronomic indicator is seriously considered at the highest state level. To regulate this important guideline for the development of crop production, special GOST No. 52171-2003 has been developed.
It defines the general sowing and varietal qualities, as well as the technical conditions for vegetable crops. According to his requirements, seeds that do not withstand the prescribed average qualities are not allowed on the Russian market. Therefore, the best vegetable seeds should be planted.
The regulatory function of seed production is also fulfilled by the Federal Law of the Russian Federation “On Technical Regulation”, which prohibits planting seeds with pathogens in plants, with pests.
Seasonality of the vegetable seed business and ways to overcome it
An entrepreneur is always a realist. He knows: seeds of Dutch breeding vegetables will bring him tangible income only in the spring and summer. Therefore, he will try to diversify the assortment of goods in every way in order to effectively smooth out the difference in seasonal revenues throughout the year. The latter is achieved through the sale of seeds of other groups of plants, as well as the sale of related products - planting materials and stock.
In particular, many plant growing stores sell seeds of vegetables and flowers at the same time. According to statistics, in their turnover only 40% belongs to vegetables, and the remaining 60% to flowers. Indeed, experts believe that floristry is somewhat more cost-effective than vegetable growing.
However, if you look strictly at the sale of flower seeds, then flower sales, which optimally meet the well-known price / quality criterion, can give the greatest income. Take, for example, the problem of planting flowers directly in urban lawns.
As you know, the land there is not first-rate, flower care is often minimal. However, the arrangement of the city involves bright, flowering lawns. And how is this achieved? Floristics has found a way out - professional flower seeds. If the entrepreneur manages to establish their implementation, he will be successful.
Other diversification methods
Throughout the year, the sale of seeds of exotic and indoor plants and, accordingly, pots and soils for them is more uniform. Astute shopkeepers adjust their assortment.
Recently, sales of lawn grass have been growing. The middle class, having private homes, seems to be beginning to take an interest in this British way of organizing the landscape. Experienced store employees help with advice. After all, the buyer should choose the type of lawn for himself adequately to the climatic features: drought-tolerant, meadow, park-garden, shady, ground.
Mini seed shop. How to organize?
This business is considered quite profitable.Investments in it (5 - 7 thousand dollars) are relatively small and pay off a year after the foundation.
If you decide to sell the seeds of vegetables and flowers, then you should conclude a contract, rent a small department in a store, or a store. It is enough to rent an area of 5 m2.
Briefly describe the entire registration procedure. First, registration with the state register and acquisition of IP status, then tax registration, registration with a pension fund and social insurance fund. Since these formalities are standard for all private entrepreneurs (not only for those involved in seeds), we will not dwell on them in more detail. With regard to taxation, usually the owners of such small stores choose its simplified system.
It is also worth noting that in order to open a seed-based business, it is, of course, highly desirable for an entrepreneur to have personal professional agronomic and floristic knowledge to consult buyers and to comply with the seasonality of procurement. Furnishing a room will require commercial furniture and equipment: shelving, shelves, tables, cash registers.
Repair allowed is minimal. It is also worth adding the mandatory costs of security and fire alarms. It is welcome if you have sufficient knowledge to maintain a simplified accounting system. Otherwise, we recommend hiring an incoming accountant (for autosourcing).
Seed Online Trading
It is noteworthy that the advanced sharks of Internet commerce, for their part, adequately appreciated the profitability of the seed business. Now even experienced gardeners and gardeners spend time finding and buying new vegetable seeds in the online store.
Unfortunately, the older generation, on the shoulders of which in most cases lies the summer house, often ignores the Internet.
It should be clarified that the organization of a separate online seed store does not make much sense. They open on the Internet, as a rule, one of the branches of a large online supermarket. Particularly popular in them are flower seeds, rare varietal vegetables, as well as seeds for decorative indoor plants suitable for bonsai.
Conclusion
Further development of the Russian seed market depends on many factors. Experience shows that growing the best vegetable seeds is not enough for commercial success. Although investment in this industry should be increased. What the Dutch agribusiness teaches us is the promptness of the promotion of the bred progressive varieties, its advertising based on the real harvest in the pilot plots.
In addition, this type of business has a real growth prospect: experts predict in the near future the redistribution of sown areas in favor of vegetable crops by 10-15%. Accordingly, the demand for seeds will increase.
