Farmers sow the seeds of change

Nearly all seeds the company uses come from Israel, the Netherlands and Japan, and orders have been already placed for next spring's seedlings, he said. "Shouguang farmers think it pays off to buy such shoots, because better harvest and high-quality products are usually guaranteed."

Marketing matters

The situation in Shouguang has aroused intense discussions in Chinese newspapers, which claim in editorials that the country's greenhouse seed market "risks being monopolized by foreign firms" and that it has to reclaim "the losing battleground".

However, Zhang Zhenhe, chief specialist from the National Agro-Tech Extension and Service Center, said people needn't make too much fuss. "What happens in Shouguang is a special case; it is not representative."

Thanks to its well-developed marketing channels, Shouguang never needs to worry that its produce will be stockpiled even though farmers elsewhere fret about oversupply and price drops.

"Growers in Shouguang are much more market-oriented," Zhang said. "They choose foreign seeds with alacrity to pursue profits and reduce risks, and the benefits can always offset the cost of the seeds."

Foreign seeds are used less in other parts of the country where the market is not as mature, Zhang said. He estimated that the acreage sown with foreign seeds remained below 600,000 hectares a year in China from 2007 to 2010.

But adoption of foreign seeds has benefited growers and consumers, who increasingly care about the quality and safety of their vegetables. "Some varieties are not indigenous, so imports have enriched China's product portfolio," Zhang said.

Competitive boost

Shen Huolin of China Agricultural University said the presence of foreign seed companies has intensified competition in the vegetable sector, as in other industries.

"If you are competing with a heavyweight player, chances are that you will improve faster. If you compete with a weak player, you grow slowly, too," Shen said.

Sean Wang, chief of Syngenta China's corporate affairs, said: "Competition spurs innovation and investment and drives quality improvements to meet the needs of customers."

By co-existing with foreign rivals, Chinese companies are working hard to try to get closer to their level. They have even surpassed them in some areas, Shen said. "In this way, the seed market will not be monopolized by foreign firms."

China Agricultural University and the Shouguang government are running the Shouguang Vegetable Research Institute to help boost national vegetable seeds industry, Shen said.

Over the past five years, it has developed eight vegetable varieties - four sweet melons, two peppers and two towel gourds - that have reached international advanced level, according to Zhao Zhiwei, a manager with the institute's experimental base in Shouguang.