Logo image
The impact of patent durations and plant breeders’ rights on competition in South Africa’s maize seed industry
Thesis   Open access

The impact of patent durations and plant breeders’ rights on competition in South Africa’s maize seed industry

Mara Lehlohonolo Lefalatsa
MCom, University of Johannesburg
2025
Handle:
https://hdl.handle.net/10210/521227

Abstract

The study examines how intellectual property rights (IPRs), particularly patent duration and plant breeders’ rights (PBRs) influence competition in South Africa’s maize seed market. It is grounded in innovation and competition theory, which highlights the dual role of IPRs in promoting technological development while potentially reinforcing market concentration. Within this framework, patents and PBRs are conceptualised as institutional arrangements that shape entry barriers, access to technology, and firm behaviour, providing the theoretical basis for a qualitative assessment of competitive dynamics in the maize seed market. Using a qualitative case study design, the research maps the evolution of global and local consolidation, legal frameworks, and variety registration between 1996 and 2024. It assesses the effects of these frameworks on market structure, variety registrations, and seed pricing in South Africa. The analysis is structured across three key periods: pre-2008, marked by early mergers and acquisitions activities and the introduction of genetically modified (GM) traits; 2008-2017, defined by global mega-mergers and heightened concentration; and post-2018, characterised by local consolidation and legal harmonisation under the UPOV 1991, which coincided with the expansion of GM seed dominance. By 2024, GM varieties accounted for nearly 60% of all maize seed registrations, with three multinational corporations, Corteva, Bayer, and ChemChina, controlling over 77% of these varieties. The study found that persistent seed price premiums, high levels of variety registration patterns by incumbents, and licencing practices are consistent with the strategic use of IPRs to entrench market power in highly concentrated markets. Notably, the study reveals that local consolidation, through domestic mergers and acquisitions and the development of processing infrastructure, deepens incumbency and further limits competition. The study concludes with targeted policy recommendations to strengthen competition oversight, limit excessive IPR layering, and reinvigorate public breeding initiatives.
pdf
Lefalatsa ML-Final UJ Library Submission1.57 MBDownloadView
Open Access

Metrics

1 Record Views

Details

Logo image