Biotechnology and the Restructuring of the Agricultural Supply Chain

Abstract

A barrage of mergers and acquisitions (M&As) in the seed industry, executed by a few large biotechnology and agrochemical companies at sensational prices, has attracted much attention over the last three years. These M&As have coincided with the commercial introduction of first generation agrobiotechnology products which have been adopted at unprecedented rates. For some, the lofty acquisition prices and high adoption rates have raised expectations about the prospect value of agrobiotechnology. For others, the M&As have raised concerns about increasing market concentration and power. Interestingly, issues of value and structure are just the flip sides of the same coin. The introduction of new value possibilities in a supply chain tends to set in motion entrepreneurial efforts that typically result in structural change. After fifteen years in the making, agrobiotechnology has demonstrated that it can deliver value and has begun to have meaningful structural impacts on the agrifood chain.