Efficiency Evaluation of the World’s Top Ten Seed Companies: Static and Dynamic Analysis in the Context of Global Consolidation and Sustainability Challenges

This study evaluated the efficiency performance of the world’s top ten seed-producing companies from 2016 to 2022, exploring the interplay between asset scale, technological innovation, and resource allocation in the context of the third global wave of seed industry mergers and growing external uncertainties. Against the backdrop of rising sustainability demands and low-carbon transitions, optimizing firm-level efficiency has become central in balancing economic performance with environmental responsibility. Using Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI), in this study, we conducted a comprehensive static and dynamic assessment of firm efficiency. The results reveal considerable heterogeneity across firms and over time. Corteva’s overall technical efficiency (OTE) rose from 0.57 in 2018 to 0.91 in 2022, reflecting successful post-merger integration and digital innovation. DLF achieved an OTE = 1.00 in 2020 and 2022, indicating stable specialization on an optimal scale. In contrast, Bayer’s OTE dropped from 0.72 in 2016 to 0.36 in 2022, underscoring the challenges of resource integration after large-scale mergers. In terms of productivity dynamics, Corteva exhibited a sharp EFFCH surge to 1.7041 in 2018–2019, reflecting a phase of rapid efficiency recovery following its post-merger restructuring. Syngenta also demonstrated strong managerial improvement, with its EFFCH reaching 1.3759 in 2017–2018 and maintaining positive momentum thereafter. Over the entire period, Syngenta recorded the highest cumulative growth in efficiency (up 40.76%), while Bayer showed a significant decline (−28.33%), highlighting contrasting integration outcomes. On the technological front, DLF stood out with a TECHCH increase of 34.67%, suggesting that innovation remained the key driver of long-term productivity gains, particularly among firms that avoided aggressive mergers. These findings emphasize the importance of aligning technological investment with scalable and resilient operational structures to achieve sustainable efficiency. This study offers empirical guidance for policymakers and strategic planners seeking to strengthen the seed industry’s role in green transformation, while also providing a framework applicable to other capital-intensive sectors undergoing structural transition.

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Journal
Sustainability
Published
2025-04-09
DOI
https://doi.org/10.3390/su17083346
Primary Topic
Efficiency Analysis Using DEA
Type
article
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article

Efficiency Evaluation of the World’s Top Ten Seed Companies: Static and Dynamic Analysis in the Context of Global Consolidation and Sustainability Challenges

Yunning Ma, Yongrok Choi, Nan Wang, Seungho Kang
Sustainability
Efficiency Analysis Using DEA
article

Efficiency Evaluation of the World’s Top Ten Seed Companies: Static and Dynamic Analysis in the Context of Global Consolidation and Sustainability Challenges

Yunning Ma, Yongrok Choi, Nan Wang, Seungho Kang
article en

Abstract

This study evaluated the efficiency performance of the world’s top ten seed-producing companies from 2016 to 2022, exploring the interplay between asset scale, technological innovation, and resource allocation in the context of the third global wave of seed industry mergers and growing external uncertainties. Against the backdrop of rising sustainability demands and low-carbon transitions, optimizing firm-level efficiency has become central in balancing economic performance with environmental responsibility. Using Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI), in this study, we conducted a comprehensive static and dynamic assessment of firm efficiency. The results reveal considerable heterogeneity across firms and over time. Corteva’s overall technical efficiency (OTE) rose from 0.57 in 2018 to 0.91 in 2022, reflecting successful post-merger integration and digital innovation. DLF achieved an OTE = 1.00 in 2020 and 2022, indicating stable specialization on an optimal scale. In contrast, Bayer’s OTE dropped from 0.72 in 2016 to 0.36 in 2022, underscoring the challenges of resource integration after large-scale mergers. In terms of productivity dynamics, Corteva exhibited a sharp EFFCH surge to 1.7041 in 2018–2019, reflecting a phase of rapid efficiency recovery following its post-merger restructuring. Syngenta also demonstrated strong managerial improvement, with its EFFCH reaching 1.3759 in 2017–2018 and maintaining positive momentum thereafter. Over the entire period, Syngenta recorded the highest cumulative growth in efficiency (up 40.76%), while Bayer showed a significant decline (−28.33%), highlighting contrasting integration outcomes. On the technological front, DLF stood out with a TECHCH increase of 34.67%, suggesting that innovation remained the key driver of long-term productivity gains, particularly among firms that avoided aggressive mergers. These findings emphasize the importance of aligning technological investment with scalable and resilient operational structures to achieve sustainable efficiency. This study offers empirical guidance for policymakers and strategic planners seeking to strengthen the seed industry’s role in green transformation, while also providing a framework applicable to other capital-intensive sectors undergoing structural transition.

SustainabilityVol. 17(8)
Gangneung–Wonju National University (KR), Inha University (KR)
Openalex Percentile: Top 92%
Efficiency Analysis Using DEA
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