Reconciling Legumes Seed Supply and Demand: Unsustainable Seed Delivery System that works. Siambi M, E. Monyo and R. B. Jones.

Reconciling Legumes Seed Supply and Demand:

Unsustainable Seed Delivery System that works.

Siambi M, E. Monyo and R. B. Jones

Globalization and its consequences

• ‘De-commodification’ of commodities– Multiple uses of same crop but with different

traits

• Producers need to:– Meet Grades and Standards– Track minor product innovations– Keep up with change to remain competitive

Seeds and Productivity

• Improved varieties increase yield - biotic and abiotic tolerance and response to inputs

• Seed production requires systematic and coordinated effort – identifying weaknesses in the chain

• Public and Private sector roles must be defined• Quality can only be guaranteed by using

improved seed

ICRISAT’s Revolving Seed Fund

• Farmers interested in seed production apply to ICRISAT

• Applicants with satisfactory land are Registered with the Seed Services

• Contracts are signed and seed is collected

• The crop is monitored by ICRISAT• Inspection and Certification is done by

Seed Services Unit.

Seed Delivery

• Seed processing done by Farmers - delivered to ICRISAT premises at Chitedze.

• A sample is drawn for Germination and Purity tests.

• Once Certified, payment is made as per agreed price

Contributing to productivity in Malawi

2009 Seed`sales  Subsidy Market Other Markets

Pigeon peas (Kgs) 15,020 10,706

Groundnuts (Kgs) 370,587 67,457

Total volume sold (Kgs) 385,607 78,163

A New Approach

Current Seed Production and Distribution in Malawi

ICRISATSeed Stock

Seed Revolving Fund

Seed Companies

NGOs

Agro-dealers

Farmers

Government of Malawi

ContractGrowers(producers) 1

2

35

4

6

7

8

8

9

10

11

1213

Proposed route to the market

Agro-dealers “common Brand”

• Seed identification• Enhances quick purchase

decisions by farmers• Well positioned seed brand

reassures farmers of expected brand attributes

• Helps define seed source• Customer retention and

repeat purchase• Legal protection• Seed differentiation from

competitors• Enhances corporate image

Challenges to Agro-dealers

• Lack substantial financial resources to support production and marketing

• Seed business ethics – may put grain in “branded” packets to make greater profits

• Quality management – Training needed

• Business management – pricing and customer management (among others)

Project supporting with more trainings

Putting it all together

• Coordinated approach required– Public investments in Crop improvement– Pre-financing of source seed production

• Forward contracting

– Minimize seed market distortions• Avoid free distribution

• Private-sector marketing should be facilitated

Capacity Incentives

Supply Demand

Seeds

Crop mgmt technologies

InputsFinancial support

Market linkages

Grades and standards

Supply chain coordination

Profitable market opportunities

Estrada and Siambi, 2004

Some Myths

• Seed systems for “Orphan crops” MUST always be SUSTAINABLE - UNTRUE

• Seed Certification “DENIES” farmers access to improved seed - UNTRUE

• We do not know “ENOUGH” about Seed systems in the region - UNTRUE

• Seed is the “MOST important” component of the production system – for Food security??

• Legume seed is available WHENEVER you need it – Forward planning is necessary