Includes bibliographical references.Advanta, headquartered in the Netherlands, is the sixth largest seed company in the
world. It sells seeds for a broad range of field crops in many different regions. While the company is committed to applying biotechnology in plant breeding, it is faced with many uncertainties due to political reluctance on regulatory decisions and to low public acceptance in Europe

Bijman, J.

English

Name not available

Advanta: Worldwide challenges

Advanta, headquartered in the Netherlands, is the sixth largest seed company in the world. It sells seeds for a broad range of field crops in many different regions. While the company is committed to applying biotechnology in plant breeding, it is faced with many uncertainties due to political reluctance on regulatory decisions and to low public acceptance in Europe.Includes bibliographical reference

Bijman, Jos

University of Missouri: MOspace

Advanta : Worldwide Challenges

NARCIS 

Wageningen Yield 

AgBioForum – Volume 4, Number 1 – 2001 – Pages 34-39 
 
_________________________________________________ 
 1Jos Bijman is a Senior Researcher at the Agricultural Economics Research Institute (LEI), in the 
Netherlands. This article is based on a company monograph written as part of the PITA project. 
 © 2001 AgBioForum.   
 
 
 
 
ADVANTA: WORLDWIDE CHALLENGES    
 
 
 
Jos Bijman1 
 
 
Advanta, headquartered in the Netherlands, is the sixth largest seed company in the 
world. It sells seeds for a broad range of field crops in many different regions.  While the 
company is committed to applying biotechnology in plant breeding, it is faced with many 
uncertainties due to political reluctance on regulatory decisions and to low public 
acceptance in Europe. 
 
Key Words:  innovation; plant biotechnology; seeds; strategy. 
 
 
Advanta, headquartered in Kapelle, in the Netherlands, is one of the largest seed companies in 
the world. It was formed in 1996 by the merger of the Dutch company Royal VanderHave Group 
and the British company Zeneca Seeds. Advanta is a joint venture—50 percent owned by a Dutch 
farmer-owned co- perative called Cosun U.A. and 50 percent owned by the Swedish/British 
AstraZeneca Ltd. Cosun’s core activities lie in sugar beet processing (60% of Dutch sugar beets 
are processed by it), but it is expanding its activities in the food industry. AstraZeneca is one of 
the largest pharmaceutical companies of the world.1  
 
After its formation, the company has made the strategic choice to focus on field crops, both food 
crops like sugar beet, canola, soybeans, and sunflower, as well as fodder crops like maize, 
sorghum, and grasses. In Europe it has a particularly strong position in sugar beet and grasses; in 
Argentina and Australia it is the largest supplier of sunflower seed; in Canada the focus is on 
canola; and for its American subsidiaries maize and grasses are the main crops. Other crops in 
Advanta’s portfolio are soybeans, wheat, sorghum, onions, and rice. Overall, maize is the most 
important crop, accounting for one-third of turnover. 
 
In 1998, total turnover was 374 million Euros (see table 1). Europe is Advanta’s main area of 
operation, with North America being a good second. Growth of the company is mainly taking 
place outside of Europe, particularly in North America, where several seed companies have been 
acquired since the 1996 merger. 
 
Global Presence, Local Varieties 
 
The 1996 merger between VanderHave and Zeneca Seeds was inspired by the ability to obtain 
economies of scale both in marketing and in research and development (R&D). Critical mass in 
production and sales was needed to be able to continue substantial R&D investment, particularly 
in plant biotechnology. Although both companies had invested in biotechnology research, they 
considered themselves too small to be able to successfully compete in the long run. Global 
presence has become very important in the seed market for the main field crops like maize, 
sunflower, sugar beet and oilseed rape. The crops and geographical presence of VanderHave and 
J. Bijman – Advanta: Worldwide Challenges 
35 
Zeneca Seeds were complementary—Zeneca Seeds being more international, with a strong 
position in North America and Australia, and VanderHave being a more European company.  
 
Table 1:  Turnover by Region (Million Euro). 
 1997 1998 
Europe                     177                   168 
North America                     146                150 
South America                       31                     30
Australia, Asia, Africa                       30                     26
Total                     384                   374 
Note. From “Advanta Key Figures and Addresses 1997,” by Advanta, 1997. Kapelle, the 
Netherlands: Advanta; and “Advanta Key Figures and Addresses 1998,” by Advanta, 1998.  
Kapelle, the Netherlands: Advanta. 
 
According to Advanta’s intellectual property rights (IPR) manager, Kees Noome, a good base in 
germplasm combined with a marketing position in many countries around the world provides for 
a strong negotiating position in acquiring access to genes and techniques patented by other seed 
and biotechnology companies. For VanderHave, with its commitment to biotechnology research, 
it was important to obtain a stronger base in the North American market, the most important 
market for transgenic varieties. 
 
Since the merger, two subsidiaries have been divested, and further acquisitions have been made. 
Two vegetable seed companies, Leen de Mos in the Netherlands and Shamrock in the United 
States (US), were sold. These divestments emphasize Advanta’s strategic focus on field crops. In 
1998, further acquisitions were made in the US. AgriPro Seeds, of Shawnee Mission, Kansas, wa  
acquired to strengthen Advanta’s position in maize, wheat, sorghum, and soybeans. AgriPro was 
integrated into Garst, Advanta’s main subsidiary in the US. In addition, the sunflower breeding 
program of Eureka Seeds, of Woodland, California, was bought. The latter shows Advanta’s 
strategy to strengthen its leading position in the world sunflower seed market. 
 
Advanta uses a rather decentralized organizational structure. It is organized as a kind of holding 
company, with subsidiaries receiving financial targets. Subsidiaries have significant freedom in 
making their own commercial and innovation decisions. Table 2 presents the main operational 
companies that have their own breeding programs (subsidiaries that are only sales offices are left 
out). This organization of stand-alone companies was taken from Zeneca Seeds. Although the 
headquarters is located in Kapelle, the Netherlands, the structure of the company is more Anglo-
Saxon than continental European. The current board of directors also mirrors this influence, with 
four out of five members coming from the former Zeneca organization. 
 
Biotechnology Strategy 
 
Advanta spends about 55 million Euros per year on R&D. This is 15% of turnover, which is the 
average among agricultural seed companies. About one quarter of the R&D budget is spent in the 
Netherlands, at the Rilland-B th research station. The total employment in R&D is about 600 
people. 
 
Although the company is committed to biotechnology—in the Netherlands it has long been the 
largest investor in plant biotechnology—most of the R&D budget is still spent on conventional 
breeding. Out of the R&D budget of Advanta VanderHave, about 80% is spend on classical plant 
breeding, 10% on genetic marker technology and 10% on transformation technology.  While 
genetic engineering is the most spectacular (and most controversial) application of biotechnology, 
the company sees real growth in applying biotechnology techniques in marker-assisted selection. 
J. Bijman – Advanta: Worldwide Challenges 
 
36 
Table 2:  Major Subsidiaries and Crops. 
Subsidiary Location (Main) Crops 
Advanta Seeds (formerly 
Zeneca Seeds) 
Winnipeg, Canada 
            
Canola, maize, sunflower 
     
Advanta Seeds Pacific Albany, Oregon, USA Grasses 
Advanta Seeds UK Lincolnshire, UK Maize, cereals, oil seed rape, 
peas and grasses 
Advanta VanderHave Kapelle, NL Maize, sugar beet, grasses, 
onions 
Garst Seed Company (incl. 
AgriPro and Interstate) 
Slater, Iowa, USA Maize, soybeans, sorghum, 
wheat, alfalfa 
Pacific Seeds Toowoomba, Australia Sorghum, sunflower, maize, 
soybeans, canola 
SES Europe Tienen, Belgium Sugar beet 
Note. From “Advanta Company Monograph,” by J. Bijman and M.J. Bogaardt, 2000.  The 
Netherlands: Agriculture Economics Research Institute. Available on the World Wide Web:  
http://technology.open.ac.uk/cts/pita/AnnC3-mo o-advanta.pdf.  
 
Advanta managers emphasize that classical breeding is still the starting point in developing new 
crop varieties. If there is a demand from a customer that cannot be met by classical br eding 
methods, the biotechnology experts are asked to find a solution. This solution can be a license 
from another company to apply a certain technique or to insert a gene, or it can be in-house
biotechnology research to find the proper solution. The commercial prospect of a new variety 
with the desired trait determines whether and how much investment in biotechnology research 
will be done. Thus, biotechnology is considered as a set of enabling tools for plant breeding. 
Plant breeders, and other employees who have direct contact with clients and food processors, are 
directing those engaged in biotechnology. 
 
Advanta strongly believes in the benefits of biotechnology. It is already using genetic marker 
technology in most its breeding programs. However, due to the low public acceptance of 
biotechnology in Europe, it expects that it will take several years before transgenic varieties can 
be introduced in the European market. For decisions on what varieties to develop and produce, the 
current legislative and market situation in Europe leads to great uncertainty for the company. As 
R&D decisions in a seed company are taken with a long-term perspective, the current uncertain 
regulatory situation makes innovation decision making extremely difficult. 
 
Main Crops And Breeding Goals 
 
Maize is Advanta’s most import crop. Advanta’s maize varieties are for animal feed (fodder 
maize and grain maize) and for processing into starch products (grain maize). Maize breeding and 
research takes place in the Netherlands, US, Brazil, France, Chile, Thailand, and Germany. The 
breeding programs at Rilland (NL) are focused on agronomic traits like early maturing, herbicide 
resistance, and improved nutrient efficiency. The latter trait is a reaction to stricter environmental 
policies in the Netherlands. Developing genetic markers is an important part of biotechnology 
research on maize. Garst (US) has a strong position in using RFLPs in maize research, while 
Advanta VanderHave uses the AFLP technology of Keygene. 
 
In 1998, Garst has commercially introduced transgenic maize varieties in the US market. One of 
these varieties is a Liberty Link (LL) herbicide-resistant variety. Another is Star Link insect-
J. Bijman – Advanta: Worldwide Challenges 
 
37 
resistant maize (Bt-maize). For Europe, Advanta VanderHave has developed herbicide-resistant 
maize varieties, but has not yet been able to commercialize them. One these varieties was 
Chardon LL, resistant to the broad-spectrum herbicide Liberty (produced by Aventis 
CropsScience, that is also the patent holder for the glufosinate-resistance gene). Chardon LL was 
the first transgenic maize variety in the Dutch national list of field crop varieties; it had entered 
the list by January 2000. In May 2000, Advanta VanderHave sold the breeders rights of its 
Chardon LL (Liberty Link) maize variety to Aventis CropScience. Due to low public acceptance 
of biotechnology prospects for its commercial success are too low. Aventis is using it primarily in 
further field trials at this time. 
 
Advanta sells both fodder grasses and amenity grasses, each account for about 50% of grass 
turnover. Two third of all research takes place at Advanta VanderHave (NL), and one-third at 
Advanta Pacific Seeds (Oregon, US). The main breeding goals in the Dutch program are disease 
resistance (particularly crown rust) and nitrogen efficiency. Improved nitrogen efficiency is 
important because of Dutch environmental policy to reduce undesirable nitrogen emissions from 
extensive fertilizer use. Advanta VanderHave is developing fodder grass varieties that have the 
same yield and disease resistance as other varieties but need fewer fertilizers. 
 
Advanta is one of the three largest sugar beet seed companies, with approximately 25% of the 
world market. Its main competitors are Syngenta (Hilleshög brand) and KWS. In the United 
States, Advanta has a market share of 23 percent. In Europe, the company has two sugar beet 
breeding programs, one in the Netherlands (the old VanderHave program) and one in Belgium 
(the former SES program). Advanta has chosen not to integrate these two programs, b cause each 
breeding program has its own characteristics. Thus, diversity in germplasm is maintained and risk 
is shared. 
 
Breeding goals for sugar beet continue to be yield, particularly the content of easily recoverable 
sugar, and pest resistance (Rhizomania resistance, Cercospora resistance, and nematode 
resistance). In recent years, Rhizomania (a viral disease) has become more problematic for sugar 
beet growers in Europe, which has led to greater attention to resistance in the breeding programs. 
As sugar beet cultivation requires substantial amounts of herbicides, and environmental policies 
press farmers to diminish pesticide use, the development of herbicide-resistant vari ties has 
received a great deal of attention in Advanta’s breeding activities. Thecompany could have the 
first transgenic herbicide resistant (Liberty Link) sugar beet varieties in Europe available in 2002, 
if regulatory approval is obtained. 
 
Advanta is a world market leader in sunflower seed production. In Argentina, Advanta has 
approximately 60% of the market. Research is carried out in the Netherlands, Argentina, and the 
US. Recently, Advanta has experienced how the introduction of genetically modified (GM) crops 
can completely change the seed market for other crops. When Monsanto’s herbicide-resistant 
soybeans became available in Argentina, farmers shifted from growing sunflowers to soybeans. 
Being the main supplier of sunflower seeds, Advanta saw its market decline by 70% in just two 
years. 
 
Advanta’s canola activities are concentrated i  Canada. The canola-breeding program is located 
in the province of Manitoba, while production of canola seed is based in the province of Alberta. 
The focus of the breeding activities is on developing hybrid canola varieties. Advanta Seeds has 
introduced transgenic herbicide-resistant canola in Canada. 
 
Wheat is more important in the US than in Europe. With the acquisition of AgriPro, Garst has 
strengthened its wheat activities. In Europe, Advanta does only the breeding work, and then sells 
the varieti s to other seed companies who multiply them and sell the seed to farmers. Advanta 
receives royalties from these seed sales. Advanta collaborates with Zeneca Plant Sciences (one of 
the plant biotechnology units of Syngenta) to develop better wheat varietis.
 
J. Bijman – Advanta: Worldwide Challenges 
 
38 
Table 3 summarizes Advanta’s main research aims for each crop. While there is much discussion 
about developing crop varieties with quality (or output) traits, Advanta’s main focus in crop 
breeding is still on agronomic traits. Advanta considers the farm  as its main customer. High 
yield and good disease resistance continue to be the most important targets in variety breeding, 
but since the early 1990s, relatively more emphasis has been given to disease resistance and less 
on yield. Pest resistance has become more important because of stricter environmental policies.  
 
Table 3:  Main Research Aims. 
 Fungus 
Resistance 
Virus 
Resistance 
Insect 
Resistance 
Flowering/ 
Hybrids 
Herbicide 
Resistance 
Product 
Quality 
Maize X  X X X X 
Sugar beet X X  X X X 
Oil Seed Rape X  X X X X 
Sunflower X     X 
Grasses X  X X X  
Cereals X   X X X 
Onion X  X  X X 
Note. From “Towards a Sustainable Agriculture,” by Advanta. Kapelle, the Netherlands: Advanta.  
 
Biotechnology Brings Increasing Uncertainty 
 
Both VanderHave and Zeneca Seeds, the constituents of the 1996 merger, had invested in 
biotechnology research. Advanta has continued along this route. Biotechnology is seen as an 
important tool in crop breeding, even when more than 80 percent of R&D funds are still spent on 
conventional breeding activities. In the North American market, Advanta’s subsidiaries are 
already selling transgenic varieties of maize and canola (with herbicide resistance and insect 
resistance). Also, for Europe and other parts of the world, Advanta strongly believes in the 
advantages of applying biotechnology. It is already using genetic marker technology in most of its 
breeding programs. However, due to the low public acceptance of biotechnology in Europe, the 
company expects that it will take several years before transgenic varieties can be introduced in the 
European market. 
 
The current legislative and market situation in Europe (and even in other parts of the world) leads 
to great uncertainty about what varieties to develop. As R&D decisions in any seed comp  are 
taken with a long-term perspective, the current uncertain regulatory situation makes innovation 
decision making extremely difficult. Even when the regulatory hurdles are overcome in the near 
future, and the de facto moratorium on introduction of GM crops is lifted, public attitudes may 
continue to be negative.  
 
With all the discussion and anxiety about GM food in Europe, food processors have become very 
reluctant to accept genetically modified ingredients. Even for fodder crops like maize and grasses, 
food processors have voices their concern about GM varieties. For instance, Dutch dairy 
processors have told seed companies, among them Advanta, that GM maize is only acceptable for 
dairy cows if the dairy companies give their approval (which is not likely with the current 
negative public attitude towards GM food). Once food processors have chosen a non-GM 
strategy, they will not easily change their position. Thus, we can conclude that prospects for seeds 
of GM crops in Europe are not very bright. 
 
J. Bijman – Advanta: Worldwide Challenges 
 
39 
International trade in seeds and agricultural products makes life for a seed company with 
production and commercial activities in several places of the world rather difficult. For instance, 
European refusal to accept GM products influenced farmer-planting decisions in North America 
in 1999. As a result, Advanta’s North American subsidiary, Garst, sold less of its transgenic seed 
it had in stock, and had to find other (more expensive) seed to supply its customers. In April 2000, 
it was found that canola seed sold by Advanta in several European countries was contaminated 
(0.4%) with seeds from genetically modified plants. As these plants were not approved in Europe, 
farmers could not use the seeds supplied to them by Advanta. Although the seed was from a non-
GM variety, the seed was produced in Canada where it was contaminated by pollen from GM 
varieties grown nearby. Advanta had to pay millions in compensation to the farmers affected. 
 
In conclusion, while Advanta is convinced that biotechnology has the future in plant breeding, it 
is struggling with the uncertainties that this new technology has brought to seed companies. While 
biotechnology has greatly expanded options in developing improved crop varieties, it has 
introduced more uncertainties in the comm r ialization of these new varieties. For Advanta the 
largest challenge lies in decision making on innovation: whether to go for GM crops in Europe or 
not. 
 
Endnotes 
 
1 In November 2000, when AstraZeneca merged its Agrochemicals Division with Novartis 
Agribusiness into Syngenta, Advanta was left out. 
 
 
References 
 
Bijman, J. and Bogaardt, M.J. (2000). Advanta Monograph. T e Netherlands: Agricultural 
Economics Research Institute. Available on the World Wide Web:     
             http://technology.open.ac.uk/cts/pita/AnnC3-mo o-advanta.pdf. 
 
 
 
 
 
 
 
 
 


Advanta Monograph. T e Netherlands: Agricultural Economics Research Institute. Available on the World Wide Web: http://technology.open.ac.uk/cts/pita/AnnC3-mo o-advanta.pdf.

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