Chinese regulations on biomass raw materials include requirements for seed production and distribution under the Seed Production and Operation License (SP&O License), which integrates seed production and distribution licenses and mandates specific standards for facilities, equipment, and personnel. The Ministry of Agriculture and Rural Affairs issues Breed-Produce-Distribute Vertically-Integrated Crop Seed Distribution Licenses (BPDVI License). Beijing Origin was among the first 32 companies to receive the BPDVI License. In 2023, BC-TID partially acquired Beijing Origin, and the associated licenses are being transferred to Hainan Aoyu and Origin Agriculture. Recent revisions to the law have reduced the number of seed types requiring pre-sale approval from 28 to five major seeds: rice, corn, wheat, soybean, and cotton. Seeds approved at the provincial level may be distributed within ecologically similar provinces, while national approval permits nationwide distribution. The approval process includes monitored growth tests conducted by government-designated institutes, with limits on the number of products a company may submit for testing due to capacity constraints.
Origin Agritech Limited's Comment on Supply Chain
Chinese regulations on biomass raw materials include requirements for seed production and distribution under the Seed Production and Operation License (SP&O License), which integrates seed production and distribution licenses and mandates specific standards for facilities, equipment, and personnel. The Ministry of Agriculture and Rural Affairs issues Breed-Produce-Distribute Vertically-Integrated Crop Seed Distribution Licenses (BPDVI License). Beijing Origin was among the first 32 companies to receive the BPDVI License. In 2023, BC-TID partially acquired Beijing Origin, and the associated licenses are being transferred to Hainan Aoyu and Origin Agriculture. Recent revisions to the law have reduced the number of seed types requiring pre-sale approval from 28 to five major seeds: rice, corn, wheat, soybean, and cotton. Seeds approved at the provincial level may be distributed within ecologically similar provinces, while national approval permits nationwide distribution. The approval process includes monitored growth tests conducted by government-designated institutes, with limits on the number of products a company may submit for testing due to capacity constraints.
Sources:
Origin Agritech Limited's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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