Sunday, 5 November 2017

Giving Birth to Seed Enterprises


There is no greater blessing than giving birth. When a new life comes into existence, as people we rejoice. In some cultures, especially in Africa, the whole community is so happy they make a feast to celebrate the new life. By the same token it’s such a joy to see the birth of seed enterprises in the African continent, especially to smallholder farmers.

In his opening remarks, Robert Guei, Secretary of the Committee on Agriculture and Senior Technical Office, FAO, gave us some historical background and the current situation in the seed industry in Africa. He explained that seeds constitute the farmers’ precious resource and a very particular agricultural product. Seeds form the basis for food and nutrition security in Africa and indeed, all over the world. Unfortunately, in Africa, performance of seeds so far has been unsatisfactory. This is due to the fact that after independence, most African countries’ seed sector development was handled by parastatal enterprises.

In the absence of the private sector, government invested heavily in producing seed of their food security crops. The structural adjustment policies of the 1980 forced governments to abandon seed production and distribution. This was done without considering difficulties for the private sector to assume responsibility for producing the less profitable seeds of food security crops. Despite the fact that many countries have encouraged privatization in one way or another and withdrawn from commercial seed production, overall, private businesses did not fill the gap left by governments. 90% of crops grown in Africa are grown from farm-saved seeds.

Currently big companies concentrate more on big farmers with larger demands for seeds, especially hybrid maize and vegetable seed. They often ignore seed production with thin profit margins and where proprietary laws are missing or not enforced. They trade in high value crops seeds.
In the absence of big enterprises in producing and marketing all African seed crops, a viable solution would be smallholder seed enterprises. They provide a unique opportunity for non-hybrid, local and regional crops which big enterprises are not interested in.

Mr Guei further explained that there are a number of success factors for smallholders which amongst others include equipment and infrastructure. Policy support such as one that encourages research, seed certification and linking seed production to paddy production. Knowledge is also another critical factor, as most successful seed companies are those whose owners have the know-how to manage business and train their staff.

Devra I Jarvis, Principal Scientist at Bioversity International (IPGR) presented on promoting intra-specific crop diversity in local seed systems to improve productivity and resilience on the farm. She pointed out a number of portfolio options approaches. Among others is the classic approach which involves varieties promoted in isolation. This is done by making various varieties available to be cultivated together at different levels and in different scenarios. She continued to shed light on three other approaches: a portfolio of varieties for specific traits, of traits for a specific variety and a portfolio of suppliers for specific variety. These portfolios are complimentary to meet needs and feature redundancy to manage risk. In closing, Ms. Jarvis argued that the successful models of seed supply can rely on a combination of formal sources like public and private research institutes and seed organizations, while informal mechanisms of seed multiplication and distribution are community-based initiatives.

Dr, Stefano Padulosi, Senior Scientist at Bioversity International, presented on seed production and enterprises for neglected  and underutilized species, a case study of minor millet in Madhya Pradesh, India. These minor millets are generally suitable for dry and marginal lands. They are grown mostly on challenging slopping rocky soil where other crops cannot thrive. Low water requirements and early maturation help them escape drought. For this reason they are recognized as key assets to support farmers’ adaptation to climate change which is bringing ever greater drought pressure to eastern Madhya Pradesh. Production remains important among isolated farmers in sloping areas. According to Mr. Padulosi, despite their many values, their production has declined more than 50% in Madhya Pradesh in the last 20 years.

The low productivity, weak market channels and difficulty in processing bottlenecks is responsible for the decline. Low yields hamper economic value to minor millet. Even though they have higher nutrient content than rice and wheat, their low yields mean they actually deliver a lower nutritional yield per cultivated area. Key issues in local seed system for millets are common to other underutilized species.

 These include limited access to improved seeds from the public sector, limited private sector intervention on seed production, disorganized value chains for both seed and grains, heavy erosion of traditional knowledge regarding seed management, germ-plasm conservation, seed quality, storage and viability.

An initiative led by Bioversity International and Social Advancement (ASA) and supported by International Fund for Agricultural Development (IFAD), the European commission and CGIAR Research on Climate Change Agriculture and Food Security is underway in Mandla and Dindori districts of Madhya Pradesh. It is meant to increase the availability and use of high quality millet seed by producing and commercializing through farmer producer companies. It is linking agrobiodiversity value chains, climate adaptation and nutrition to empower the poor to manage risk. This has led to identification of the highest yielding and preferred kodo millet (Paspalum scrobiculatum) and little millets (Kutki, Panicum samatrense), which farmer producer companies are producing commercially.
The initiative has led to incomes from seed business and food security outcomes for the shareholder and wider community. The farmer producer companies procure seeds from local producers at their doorstep and pay within 3 -4 days, whereas other buyers have longer waits and delays in payment.

We also heard from Mr Paul Wagstaff, a Senior Agricultural advisor for Gorta -Self Help Africa. He explained that farmers need physical access to quality seed of sufficient quantity at the right time. The varieties must be well-suited to the local production environment and meet household and market preference. He pointed out that the majority of seeds used by African farmers are procured from local markets. Purchases from agro dealers are limited to hybrid maize and vegetable seed and the local market is supplying 30-80% of common beans, pigeon, mung beans, groundnuts, soya beans and Bambara nut seeds. The seeds purchased from local markets are produced by other local farmers indicating local capacity to produce seeds. The challenge is that only one quarter of Sub-Saharan African smallholders have their seed quality checked, meaning that three quarters of seed may produce poor yields. This represent an opportunity for farmers to specialize in quality seed production, particularly those that large companies have little interest in.

The birth of seed companies in Africa, particularly by smallholders, is an important one. It is an example of the value chain approach that accrues to the agricultural sector. Through it more diverse crops can be grown, especially the locally produced ones which are often neglected by big seed companies. This results in better nutritional values, and more income and jobs for the sector. It will also stimulate research and innovation within the agricultural sector. If handled right, small seed enterprises can be a real bundle of joy for Africa.

This blogpost covers the CFS44 side event “Strengthening Small-holder seed Enterprises for Food, Nutrition and Income Security”
Blogpost by Kenanao Moabi, #CFS44 Social Reporter – kenanaomoabi(at)gmail.com
Photo Credit: Neil Palmer (CIAT)

This post is part of the live coverage during the 44th Session of the Committee on World Food Security, a social media project supported by GFAR. This post is written by one of our social reporters, and represents the author’s views only.

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