Focus on the Customer Louise Sperling PURDUE, Discussion notes - PowerPoint PPT Presentation

SEED MARKETS : REACHING SMALLHOLDERS IN AFRICA Focus on the Customer Louise Sperling PURDUE, Discussion notes 9/26/2018

Clients in drought-prone zones In Drought Zones Low harvest • High incidence of ‘ disaster ’ • Remote •

C lients: malnourished-/undernourished Undernourished Mostly small-scale farmers /plots • Low purchasing power • Diets geared to ‘cheap’ calories •

Where so smallholders actually source their seed ?

Seed System Security Assessments : Global N=15,744 transactions Africa N=10,684 transactions SSSA Country (Africa only) Date Malawi 2011 Kenya 2011 DR Congo (Katanga) 2012 South Sudan 2010 Zimbabwe 2009 Zambia 2013 Madagascar 2013 Ethiopia 2016 DR Congo 2017 (Kasai Oriental) Burundi 2017 Zimbabwe 2017

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Seed sources of all crops: Africa N transactions = NGO / FAO 9.0% 10,489 Government 6.2% CB Seed 0.5% Agro-dealer 2.8% 51 % Own stock 35.6% Local market 29.7% Social networks 16.2%

Seed markets Informal/local seed markets Agro-dealers/ seed companies Maize, vegetable seed Many crops : cereals , legumes

Seed sources of key crop groups at African sites (kg-basis) 60% 50% Total kg = 142,386 Own stock 40% Friend, neighbor, relative 30% Local market 20% Agro-dealer CB Seed 10% Government, 0% NGO/FAO Maize Other cereals Legumes VPCs

Seed sources of key legumes 60% Total kg = 38,970 50% 40% Own stock 30% Local market 20% Agro-dealer Government, NGO/FAO 10% 0% Groundnut Common bean Cowpea

Means of seed access (transactions) All crops Excluding VPCs Means of seed access N % N % Saved from own stock 3,732 35.1% 3,176 33.9% Exchange 110 1.0% 105 1.1% Gift 1,360 12.8% 940 10.0% Buy 3,824 36.0% 3,654 39.0% Vouchers 141 1.3% 133 1.4% Direct seed distribution 1,117 10.5% 1,054 11.2% Seed loan 223 2.1% 200 2.1% Food aid 23 0.2% 20 0.2% Money credit 9 0.1% 8 0.1% Other 21 0.2% 20 0.2% Casual labor 60 0.6% 60 0.6% Total 10,620 100.0% 9,370 100.0%

Main sources of purchased seed Social Agro-dealer networks 7.4% 5.4% N Seed sources transactions % Social networks 191 5.4% Local market 3,079 87.2% Subtotal 3,270 92.6% Agro-dealer 260 7.4% Total kg 3,530 100.0% Local market 87.2%

Sources of new varieties (n=2518) Social networks 9.4% Local market 17.2% Government and NGO/FAO 63.9% Agro-dealer 6.2% CB Seed 2.2% % of households receiving new variety = 52.2%

Seed purchased from agrodealers: Crops Crop N transactions % 174 Maize 66.9% Cotton 23 8.8% 12 Green Grams 4.6% Mustard 12 4.6% 11 Cowpea 4.2% 6 Common beans 2.3% Sunflower 6 2.3% 3 Sorghum 1.2% 3 Soya bean 1.2% Wheat 3 1.2% Groundnut/peanut 2 0.8% Bok choi 2 0.8% 1 Millets 0.4% 1 Sesame 0.4% Barley 1 0.4%

Seed sourced from an agro-dealer, stratified by land area under cultivation 70% 62.2% % seed sourced from an agro-dealer 60% 50% 40% 30% 22.0% 20% 12.5% 10% 3.3% 0% < 0.5 ha 0.5 - 1 ha > 1 - 2 ha > 2 ha Land area under cultivation Total kg=4,377

Market-based seed sources, stratified by sex of the household head 100% 88.7% 90% 77.7% 80% 70% 60% 50% 40% 30% 22.3% 20% 11.3% 10% 0% Agro-dealer Local market Agro-dealer kg=4,627 Lock market kg=40,941

SUMMARY Smallholder Seed Data (2) Sources  Main sources across crops: own stocks and local markets  Community-based--- ‘invisible’  Agro-dealers- 2.8% overall - only real impact- maize  Local markets- key for most crops, especially legumes  Need differentiated seed sector source strategy, depending on crop --------------------------------------------- Transactions Buying ! Most common way to get seed- buying !  Current buying source: #1 local market;#2 neighbors #3 agrodealers  --------------------------------------------------------------------------------------------- New varieties  Over 50% HH got new varieties  Free!

SUMMARY Smallholder Seed Data (2) Agro-dealers/ (Seed Companies)  Overwhelming used for maize  Overwhelming used by those with larger land areas  Possible (??) bias linked to use of household head by gender  We need to do much better (crop by crop)  There is LOTS of opportunity. Farmers ARE buying

Moving forward toward reaching more smallholders key questions What are the options for extending ‘Last Mile Delivery’ (sale) 1. Bundling (other products)? 1. Non-seed outlets (rural kiosks?) 2. Private service providers ? 3. What are specific strategies for moving climate-smart 2. crops/varieties (‘to stressed areas’) What are specific strategies for moving nutritionally-enhanced 3. crops/varieties (‘to malnourished’)

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