Strengthening seed systems to
meet the challenges of food security
M. Larinde, P. Le Coënt, R.G. Guei & T. Osborn
Austria Room, 9 July 2009
Presentation outline
 World Food security and hunger
 Overview of global seed industry issues
 FAO’ s Contribution to strengthening seed systems in developing
countries:
 Seed policy, strategy and programmes formulation or review
 Strengthening local seed production and supply systems
Food security challenges
 Nine billion people to feed in 2050 in the
face of limited resources and climate
change.
 FAO’s food price index in March 2009 was
still 23 % higher than 2005
Food security challenges

There is a need to improve agricultural
productivity and food security in poor rural
communities.

Functional and efficient seed delivery
systems is critical to sustainable production
intensification and productivity increase
Overview of global seed
industry issues
Estimated size of global seed markets
Billion US$
ASIA
10
NAFTA
9,5
EU -27
9
CENTRAL & SOUTH AMERICA
3,5
AFRICA
1,1
REST OF THE WORLD
3,4
TOTAL
36,5
DISTRIBUTION OF SEED MARKET IN AFRICA
Market share in Million US$ (source ISF)
UGANDA, 10
MALAWI, 10
TANZANIA, 15
ZAMBIA, 20
LIBYA, 25
REST OF
AFRICA, 115
SOUTH AFRICA, 300
ZIMBABWE , 30
TUNISIA, 45
KENYA, 60
MOROCCO, 140
ALGERIA, 70
NIGERIA, 120
EGYPT, 140
Seed systems development: Key issues
 Policy and legislation ( norms, taxes, subsidy,
laws, IPR, international and regional cooperation)
 Science (genetics, technology, physiology,
entomology, pathology, agronomy, biodiversity....)
 Economy (management, marketing, investment,
finance, credit)
 Culture and social (livelihoods, traditions,
indigenous knowledge)
 Formal Versus Informal sectors
 Business competitiveness and return to investment
 Higher value crops with higher profit margin
(hybrid maize, hybrid millet and sorghum, vegetables)
Vs lower value crops - Self pollinated (rice, millet,
sorghum, cowpeas), open pollinated and vegetative
propagated crops (cassava, Plantain, yam ..)
Most companies deal with hybrid Maize
South Africa
 About 47 Distinct Seed
Companies.
Zimbabwe
Tanzania
Uganda
 70% have maize seed.
Zambia
 15 large seed companies in
ESA, most of which are in
Southern Africa.
Kenya
Swaziland
Malawi
Mozambique
Angola
Ethiopia
Botswana
Lesotho
0
2
4
6
8
10
12
14
Number of Maize Seed Companies
Cimmyt, 2006
16
 Cost of seed production and distribution and the need
for heavy investment in:
People
Land
Equipment
Infrastructure (drying, storage, treatment, bags)
Transport
Services (registration, certification, IPR)
FAO’ s contribution to strengthening
seed systems in developing countries
Assist countries and regions on request to
formulate conducive, flexible, coherent,
comprehensive, and integrated seed
sector development policies, strategies
and programmes in line with the IT and
the GPA;
Trends in countries requests
There is an increasing request for seed
policy and legislation reform by countries
and regions
From 2005-2009, 62 % of AGP projects
including emergencies have seed
components or seed officers as LTO
ISFP projects with strong seed components
(AGPS-LTU)
 79 TCPs ( $29,998,000)
 23 OSRO/GCP/UTP ( $52,359,414)
EC food Facility:
Afghanistan, Burkina Faso,CAR, DRC,
Guinea Bissau, Liberia, Mozambique, Nepal,
Pakistan, Zimbabwe
TOTAL : about $130,000,000
+ about 10 projects in finalization
Trends in countries requests
Countries want to improve the use of quality
seed and improved varieties
 Productivity increase
 Mitigate negative impact of the food crisis
 Climate change adaptation.
Need to invest in local seed production
 Local varieties more adapted and strategically
important for the national food security.
FAO’s work: Seed policy and
legislation reform
Main Constraints
 Non conducive Government policies and regulatory
frameworks
 Import-export controls, tax, financial services
 National segmentation
 IPR (PVP)
 Overregulation in some countries not adapted to
farming structure
 Low level of agricultural development (rainfed
agric)
 Limited or no access to market
Main Constraints
 Poor infrastructure
 Cost of transport, utilities
 Small Market Size
 Low effective demand
 Small, dispersed clients
 Inefficient diffusion of technical
knowledge to end users
 Statistics on farming profiles and
seed markets not reliable
 Market disturbance due to seed
donations
Seed Policy Development Process
Identification of national priorities and
problems through, assessment,
stakeholders consultation/ field visits
Joint work with national counterparts
for elaboration of policy or legal texts
Endorsement of policy or legal text by
national policy makers
Elements of a Seed Policy
Establishment of institutional arrangements
(NSC, Seed Fund, Seed observatory)
Definition of roles of the various actors to
avoid unfair competition and maximize
efficiency
Definition of measures, rules and regulations
for tax incentives, seed IPR, other
measures to improve seed trade
Elements of a Seed Policy
Setting of national interests
Compulsory certification vs. true-tolabel approach
Acceptance of landraces in national
lists of varieties
Elements of a Seed Policy
Definition of measures or standards
Production-conditioning-storage-distributionmarketing
Import and Export,
Standards for certification
Requirements for variety release
Support to credit
Achievements
National level:
Seed policy reform in: Afghanistan, Iran, Sierra
Leone, The Gambia, Congo DRC, Cote D’
Ivoire, Burkina, Cameroon..
Lead to seed industry development in
Afghanistan and Iran
improvement in seed quality control in
Burkina and Cameroon
national seed association and stronger seed
institutions in Cote D’ Ivoire
Achievements
Regional level
Seed policy and programmes:
West and central Africa (1998);
 Near East & North Africa (1999);
 Asia and the pacific (1999);
 Latin America and the Caribbean (2000);
 Central and Eastern Europe (2001)
Achievements
Regional seed programme for Central
Africa (CEMAC) – adopted in 2009
 Africa wide: African seed and
biotechnology programme (ASBP) for the
African Union- adopted in 2007
Achievements
Harmonizing seed rules and regulations
Harmonization of seed rules and regulations in
Africa
West Africa (ECOWAS/UEMOA/CILSS)
(Adopted in 2008);
 Southern Africa (SADC);
 Eastern Africa (ASARECA/EAC)
 Central Africa (CEMAC)
 COMESA ( being initiated)
Harmonization in Central Asia ( Economic
Community Organization (ECO)
Key areas of harmonization
Variety release regulation
Plant breeder’s rights
 Quarantine pest lists- an phytosanitary
measures
 Seed trade regulations
 Seed certification and standards
Harmonizing in Africa
COMESA (19)
ECOWAS 15
countries
CEMAC
(6)
EAC/ASARECA
(6 )
SADC (14)
30
Strengthening local seed production
and supply systems
Presentation overview
– Current state of seed systems
– FAO strategy to strengthen local seed production
and supply systems.
– Examples of FAO projects to support local seed
production and supply
State of seed systems
In countries with market oriented agriculture
• Seed sector is dominated by the formal seed system.
• Huge development of the private seed sector since 1950
(variety development, seed production and distribution)
• Consequence: farmers are using high quality seed of improved
varieties and agricultural productivity is high.
State of seed systems
In countries dominated by subsistence agriculture
• Farmers’ seed systems largely dominate.
• Predominance of landraces and old varieties (in Africa less than
20% of the land is planted with improved varieties) and a variable
seed quality.
• In these countries, formal seed systems are weak :
• Limited private sector involvement
• Public sector involved in early generation seed
multiplication, sometimes certified seed multiplication with
poor results
• Inefficient seed quality control systems and extension
services.
State of seed systems
In countries dominated by subsistence agriculture
This situation is mainly due to:
• Limited investments in seed sector development
• Limited market for seed because :
• Most staple crops are self pollinated, vegetatively
propagated or dominated by open pollinated varieties
• Weak connection of farmers with output markets which
limits their revenues and capacity to invest in inputs
• Lack of access to credit
• Limited access to information
• Limited farmers’ use of improved varieties and low agricultural
productivity.
Shifting paradigm of seed sector development
Constant objective: improve farmers’ access to
quality seed of adapted varieties.
• FAO Seed Industry Development Programme umbrella:
strong investment in public sector seed production.
• System failed because too costly. Transfer to the private
sector, but in many countries the private sector never
developed.
• Current strategy is to facilitate the development of
local private sector seed enterprises
Elements to be considered to develop a national seed
production and supply system
Farmers’ seed
system
Formal seed
system
Variety development and variety release
Seed multiplication
Seed policy
and
regulation
Seed processing and transportation
Seed distribution
Seed Market
Output market
Elements to be considered to develop a national seed
production and supply system
• Strategy must be adapted to the type of crop and to the
agricultural system in place.
• Low volume – high value crops (Hybrid Maize, vegetables...).
High profitability of seed activities
Seed production for this type of crop can be easily managed by the
private sector
• High volume - low value crops (wheat, rice, groundnut,
cassava...). Low profitability of those activities.
– Importance of public sector involvement in plant breeding, early
generation seed multiplication and quality control
– Limit overhead costs and develop community based seed
entities.
– Improve connections between seed producers, farmers and the
food industry to increase investment capacity of farmers.
Examples of seed production and supply projects Ethiopia
• Objective : Strengthening
the “Farmer Based Seed
Production and Marketing
Scheme” in the Oromiya
region.
• Principle: formal public
system is not able to meet
seed demand.
Improve farmer’s seed
systems to ensure local
seed production.
• Main crop : wheat
Examples of seed production and supply projects : Ethiopia
Principles:
• Providing basic seed of improved varieties and inputs to farmers
groups on a credit basis
• Seed production by farmers groups
• Seed collected by cooperatives, processed and sold to farmers on
a credit basis.
• Quality control and technical support from local extension service
Project activities:
• Linkages with research and make variety demonstrations
• Training of farmers on seed production technologies
• Provide equipment to farmers’ cooperatives
• Training and equipment to local extension services to improve
technical support to seed production activities and seed quality
control
Examples of seed production and supply projects : Ethiopia
Strengths
• Farmers involvement, knowledge and work in a high potential
region
• Strong grain cooperatives need seed activities to improve overall
profitability
• Active extension services at the community level
• Demand for quality seed and improved varieties
• Market for wheat.
Weaknesses
• Limited quantities of basic seed available
• Limited profits from seed production = limited interest of
cooperatives.
• Weak seed quality assurance system
• Weak seed policy
Examples of seed production and supply projects :
Afghanistan
Since 2003, FAO seed programme focuses on the development
of the national seed sector.
Activities :
•
•
•
•
•
Seed policy and seed legislation
Variety testing and variety maintenance
Early generation seed multiplication
Quality assurance systems
Support to private seed enterprises
Examples of seed production and supply projects :
Afghanistan
• Principle: Private entrepreneurs buy raw seed from
contracting seed growers and then process and sell seed
• A critical problem for seed enterprises is the cash need to
purchase seed from seed growers at harvest time
Grain
sales
Growing season n +1
Growing season n
November
Basic
seed
June
Inputs
Seed
Sales
Seed
processing
November
June
Examples of seed production and supply projects :
Afghanistan
To tackle this problem, an
innovative approach is being
undertaken in Afghanistan:
•
Principle:
make loan funds available to
eligible enterprises for buying raw
seed from growers
•
enterprises payback all loans
received for procuring raw seed;
and
•
repaid loans deposited in a special
fund of the Afghanistan National
Seed Association (ANSA).
Examples of seed production and supply projects : Sierra
Leone
Seed project in Sierra Leone: an input / output approach
• Weak seed demand is a major reason for the lack of
sustainability of seed production projects.
• Farmers are able to buy seed if they can market their
crops at a better price
• Principle: vertical integration of seed production activities
and activities to improve value addition of crop outputs
• In the Sierra Leone project: create rice milling facilities in
the seed enterprise.
What the examples illustrate?
• Ethiopia:
Strengthening farmer’s seed system can be an efficient way to
establish a sustainable seed production system for self pollinated
crops if appropriate support services are available.
• Afghanistan:
Access to credit is a critical issue for the development of seed
enterprises.
• Sierra Leone:
Integrated input/ouput approach is a way to increase seed demand
and strengthen seed production activities.
General conclusion
• Formulation and implementation of national and
regional seed policies and regulations are key to
the development of seed systems in developing
countries
• Both the public and the private seed sectors need to
be supported
• Investing in small scale seed enterprises, including
farmer organizations with an input/ouput market
approach
• Development strategies must be adapted to the type of
crops, market opportunities, ie specific country
conditions
• Importance of linking farmer’s seed systems with formal
seed systems
• Strengthening seed systems is part of sustainable
production intensification.
Develop
irrigation
facilities
Technology transfer and
good extension approaches
Upgraded farmer’s
Development
of the
input
supply sector
technical knowledge
Increased input
access and use (seed,
fertilizer,water)
Better infrastructure
FARMERS
Vibrant input supply
sector
Support
to the seed
Improved food
production
Investment
capacity
production sector
Better income
Improve
credit
access
Improve storage
capacity
and access to markets
More structured
food marketing
sector
Improved
food
availability
Lower food
prices
Strengthening local seed
production and seed supply
systems
Contract
Grower
Contract
Grower
Seed
Enterprise
Seed
Buying Farmer
Grain
Market
(Transport, processing, etc.)
($ 230)
$103 (61%)
Cost Price
($168)
13%
18%
31%
$103 (38%)
Raw Seed Price
($271)
Cost Price
($374)
($420)