Many years are needed to create, test and build a market for seed products, and we have used the past 35 years to breed and build awareness of the seed varieties we market and sell. Accordingly, we believe we enjoy high barriers to entry because of the length of time required to develop competitive alfalfa seed varieties (typically 5 years). The plant breeders at S&W Seed Company have ensured that our seeds are disease and pest resistant to the most common challenges plaguing alfalfa, as well as producing high yields. With the population expanding and arable land decreasing, the market for certified high yielding alfalfa seed varieties is poised for growth. S&W Seed Company offers investment opportunities to capture this market.
The management team of S&W Seed Company and S&W’s subsidiary, SV Genetics, conducted an executive series interview discussing S&W’s recent acquisition of SV Genetics, and its outlook for the sorghum and sunflower industry.
According to this May 2015 article: “The 2013-2015 California drought has brought much public attention to the amount of water used in agriculture, and particularly which crops use the most water. Contrary to some popular views, alfalfa has a range of positive biological characteristics that should be quite useful when facing water-short conditions. These characteristics include a high degree of flexibility to ‘deficit irrigate’ the crop, ability to survive drought periods, high water-use efficiency, deep rootedness, salinity tolerance, and the ability to utilize degraded water. It is additionally very valuable to wildlife, which also suffers during a drought. Oh, and by the way, it is also very valuable to the millions of consumers who depend upon the milk, cheese, yogurt, and yes ice cream, produced from alfalfa.”
2016 Annual Report