Profile 7 Marketing

Rationale:

Seed distribution and marketing connects the long effort of crop improvement, seed multiplication and conditioning to the demand and use of the finished product by farmers who must produce from it the quantities of crop that consumers will require. Therefore, seed marketing determines, to a great extent, the effectiveness of the seed industry. In the past decades of public operated seed programmes as pertained in most African countries, seed distribution was largely in the hands of seed parastatals, extension outfits etc. Although the strategy ensured reasonable and affordable seed prices and relatively wider coverage in terms of locations and crops, it was characterized by very high public budgets, quality deterioration and heavy losses due to the latter, as well as unplanned carryovers. The current picture of seed marketing and distribution across Africa shows some improvement. Along with the other pillars of seed reforms, which are being brought into function with the introduction of the private sector, seed marketing and distribution is a prime area for the private seed sector.

In spite of the encouraging trends in privatization, there is lack of collaboration, consultation and harmonization at the regional and continental levels concerning the development, movement and use of high-yielding seeds and planting materials. This has been also contributed to by unduly restrictive seed certification and variety release requirements, which differ from country to country, and which, together with excessive phytosanitary and foreign currency regulations, function as non-tariff barriers that hamper seed exchange. Better coordination and capacity building are needed at the national, regional and continental levels to overcome the constraints related to seed trade through harmonization of seed rules and improved policies and regulations.

Several studies suggest that currently less than 20 per cent of the cropped area in Africa, as a whole, is planted with high-yielding varieties. Improvements in seed marketing and distribution should lead to a significant improvement in this situation. The main hindrances to seed marketing and distribution include the following:

• Poorly developed infrastructure: Long distances between farmers and seed outlets and poor roads results in high transportations costs; poor storage arrangements impact on seed quality, especially with lengthy transport periods.

• Inadequate extension services: Farmers often need extension services and demonstration programmes to help them understand the expected benefits of improved seed usage, and to encourage them to use new varieties.

• Inadequate seed policies: While in some countries enabling seed policies are encouraging investments, particularly in seed distribution, in many others, either there are inadequate policies related to the seed sector, or current policies are acting as disincentives to further seed development.

• Inadequate support for small-scale seed entrepreneurs: Often government support for small scale seed entrepreneurs is not adequate. They often have no access to rural credit and marketing opportunities for agricultural products in general, and seed retailing systems in particular are weak. The result is that smallholder farmers cannot access higher quality seed as it is not available in their area, or the seed is too expensive for most farmers to purchase.

A strategic approach is essential to address the barriers that are impeding farmer access to higher quality seeds. For example, improved linkage between the formal and informal seed sectors in the several countries will ensure that seed development programmes fully consider farmers’ needs and the diversity of crops being employed including major, minor and women’s crops and to bring to seed marketing the relevant advantages from both sectors.

Objective:

The objective of the project is to enhance farmers’ access to and use of improved seeds through improvements in seed marketing and distribution at continental, regional and national levels, in partnership with the private seed sector.

Activities:

Activities will occur at continental, regional and national levels and will comprise studies, expert consultations, formulation of action plans, development of operational manuals, training, assistance to national efforts in facility construction, programme planning and implementation etc. These activities are summarized as follows:

At national level,

• Establish a policy and regulatory framework to facilitate the establishment of small seed enterprises.
• Develop and provide technical training to farmers and farmer groups for quality seed production and marketing, including how to gain access to appropriate germplasm, technologies, and information.
• Organize training courses for farmers and farmer groups concerning establishment and management of small seed businesses, including group formation, access to micro-credit etc.
• Support the poor and especially women seed entrepreneurs, so that they are empowered and not marginalized.
• Facilitate access to micro credit schemes by small seed enterprises

At regional level,

• Conduct surveys to establish current status of marketing and distribution and develop strategies as basis for an expert consultation.
• Organize an expert consultation to develop and validate strategies to overcome constraints in regional trade, and disseminate results to the private sector and regional organizations.
• Identify sources of information, establish contacts and set up and maintain databases.

At continental level,

• Conduct surveys to establish the current status of marketing and distribution strategies.
• Organize an expert consultation to develop and validate strategies to overcome constraints in continental and inter-regional trade, and widely disseminate the results to the private sector and regional organizations.
• Establish and maintain a country-based information system for seed trade to assist further development of the seed sector.

Expected Results and Outputs:

The project is expected to improve seed marketing at all levels. Particularly, it should enhance private sector role and empower more small scale seed entrepreneurs to play a greater role as main seed sources in their communities. The project will also contribute to minimizing barriers to transboundary seed trade. By the close of the project the following general outputs should have been realized:

• Small scale seed enterprises established or further developed within both the informal and formal seed sectors, to meet local farmer needs, and to support distant market development where feasible. Information system established and tracking developed for regional seed trade.
• Strategies developed for improved marketing and distribution.
• Information on seed trade within Africa significantly improved