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