LSB brochure 2015

ISSD Uganda Integrated Seed Sector Development Uganda Programme

Promoting Local Seed Businesses

Background The formal seed sector in Uganda mainly consists of seed companies with interest in seed of high profit margins with higher multiplication ratios such as hybrids and open pollinated crops like maize, sunflower and sorghum. The sector provides about 15% of seed needs for the country, with the rest coming from the informal sector. Self-pollinated crops, which are the major food crops for the country, are given low priority in seed companies’ investments. It is the informal seed sector that provides seeds for many of these crops.

ISSD Uganda looks at the opportunity of bridging the gaps between these two sector, by engaging farmers in seed entrepreneurship through the Local Seed Business (LSB) model. When farmers are supported through ISSD interventions and they become technically equipped, strategically linked, professionally organized and market oriented, they can sustainably provide quality seed to smallholders farmers at affordable prices.

The LSB can therefore, engage in multiplication of selfpollinated crops such as simsim, groundnut, beans, rice etc., on condition that research provides early genera-

starting point for quality seed production.

If linkages with the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) and the LSBs exist, LSBs can produce quality seed and market it after inspection and quality assurance procedures have been done.

Local Seed Business A Local seed business is a group of smallholder farmers that are able to produce and market quality seed of farmer-and market–preferred varieties, and

are able to sustain the business

through re-investing capital and efforts in the business. To be sustainable, an LSB needs to be commercially oriented and able to make the investment.

Vision of ISSD Uganda Through a vibrant and pluralistic seed sector, ensure that quality seed of superior varieties are available and affordable to a larger number of farmers, thereby contributing to agriculture for food security and economic development in Uganda.

tion materials (basic or foundation seed), which is the Supporting a vibrant, pluralistic and market oriented seed sector

www.issduganda.org

Email: info@ISSDuganda.org

3 This means that the ISSD programme does not provide free inputs to the groups but is rather based entirely

on capacity building provided by a seed

agronomist/expert on production aspects of seed, and an agribusiness expert for the market aspects.

Management

and

infrastructure.

general

organisation

making,

participation,

The

management

principles

include

communication,

of

decision

transparency,

task division, coordination and specialisation in the form of truly cross-functional teams (e.g. quality control

LSB building blocks

committee,

marketing

committee,

block

farm

management, monitoring and self-assessment).

Inward

Outward

Product

Technically well equiped

Market oriented

Organization

Professionally organised

Strategically linked

Strategically linked LSBs that are strategically linked benefit from the availability, accessibility,

reliability of input and service provision. An analysis of the availability, accessibility, efficiency, affordability and

Looking at the LSB from one angle (inward), it should be technically well-equipped to produce and add value to its seed, it should also be professionally organised, well

managed

and

with

access

to

appropriate

infrastructure. Looking at the LSB from another angle (outward), the product should have demand from the market, while the LSB should be strategically linked to important,

reliable

and

cost-effective

efficiency, affordability and

inputs

and

service provision.

reliability of the input or service should be critically reflected upon accordingly to the specific capacity needs and business plan of the LSB. Essential links include access to germ plasma, agronomic inputs (fertiliser and pesticides),

seed

technologies,

certification,

finance,

guidance/supervision,

information,

materials

and

machineries, administrative documentation, stationary and furniture, water and electricity, transport, licensing, legal rights, security, lobbying and other important institutional links.

Technically well equipped This

includes

having

the

capacity

for;

(1)

the

production of quality seed; which requires knowledge and skills for site selection, field clustering, land preparation, sowing, weeding, roughing, demarcating isolation

distances,

protection

and

fertiliser

harvesting

application, products;

crop

and

(2)

processing/adding value to those products. Capacity to

produce

includes

LSB

members

having

the

knowledge and skills for site selection, field clustering, land

preparation,

sowing,

weeding,

roughing,

demarcating isolation distances, fertiliser application, crop protection and harvesting.

LSB Success Factors It is common for some groups to exhibit lack of entrepreneurial spirit and eventually not able to become sustainable local seed businesses. Such groups needs to critically assessed and timely decisions made on whether to continue with them or not. “Success factors� are used to monitor whether the LSB is on the right track and are necessary to become successful in their seed business (figure below). The figure below shows the success factors that are used to

assess whether LSBSs are

commercially sustainable or not.

Market oriented

Commercially sustainable LSBS

Market orientation means the LSB has the marketing capacity, including assessing markets and developing products

that are demanded and are satisfying

customer’s need.

Marketing involves finding out what your customers want and supplying it to them at a profit. In order to do so, the LSB needs the capacity to collect and evaluate

market

information,

and

develop

a

marketing strategy as part of a business plan.

Building Blocks

Success factors

Technically equipped

Quality seed production Processing and value addition

Market oriented

Market strategy Customers feedback mechanism

Professionally organised

Governance Mobilization and use of resources Business orientation

Strategically linked

Access to inputs and services Markets

Professionally organized This looks at how well the business is organised following a basic distinction between both general

Supporting a vibrant, pluralistic and market oriented seed sector

www.issduganda.org

Email: info@ISSDuganda.org