ISSD Briefing Note April 2013 Zambia Seed Entrepreneurship Assessment

Transcription

1 ISSD Briefing Note April 2013 Zambia Seed Entrepreneurship Assessment How does ISSD approach seed entrepreneurship? In September of 2012, the Integrated Seed Sector Development (ISSD) programme in Africa published briefing notes assessing the seed sectors in eight countries 1, aimed at informing policy-makers and practitioners on the realities of farmers, with the intention of influencing seed policies and programmes in becoming more coherent with the practices of farmers, and thereby more effective in addressing the diverse range of demands among seed consumers. ISSD recognizes the relevance of informal seed systems. It aims to better link informal and formal seed systems, and balance public and private sector involvement. ISSD endorses and supports a pluralistic approach to seed sector development, by identifying and characterizing a range of seed systems and work within these systems according to the structure of the seed value chain. The aim is to promote market orientation and entrepreneurship, and foster an enabling environment for the emergence of a diversity of international, national, and local seed businesses to contribute their strengths and operate in their specific niches. The driving forces are food security, biodiversity management, economic development, and the promotion of agricultural entrepreneurship. Entrepreneurship is a strong incentive for investment and development in the seed sector, and can be a catalyst to improve the functioning and performance of seed value chains. Strengthening entrepreneurship in the seed sector requires an enabling environment for different types of seed systems, differing in operators and service providers. In order to support the design of seed programmes and policies that promote and/or strengthen entrepreneurship in a range of seed systems, decision-makers need to be able to recognize entrepreneurship in all its existing and potential forms. Assessing seed entrepreneurship in Africa Guided by the assessments of national seed sectors, experts from across all ISSD Africa countries were involved in the design of an approach to assess seed entrepreneurship in different clusters of seed systems, namely: the informal, intermediary and formal systems. In Zambia, the informal cluster involves the farmersaved seed system, with farmers producing, saving and exchanging seed amongst themselves. The intermediary NGOs support associations and/or cooperatives engaged in community-based and entrepreneurial forms of seed multiplication. The formal cluster involves national companies, international companies, and a closed system for export commodities. See the previous Zambia seed sector assessment briefing note for more details. In each cluster, two indicator crops were selected for identifying value chains through which opportunities for entrepreneurship emerge. An assessment of the strengths, weaknesses, opportunities and threats relevant to the different forms of entrepreneurship is then carried out; and finally, projects and programmes aimed at promoting and/or strengthening seed entrepreneurship are evaluated according to the specific requirements of those entrepreneurs identified. 2 Accordingly, this note presents the seed entrepreneurship assessment in Zambia. Defining seed entrepreneurship For the formal system cluster, the definition that most reflects the Zambian view on seed entrepreneurship is the functioning of the seed sector from a business perspective. This considers the entire seed value chain (from breeding, to seed production and marketing). The quality of seed is fundamental for the formal system, in which a high corporate image and trust among buyers of seed is maintained, enabling maximum seed sales. 1 Briefing notes on Burundi, Ethiopia, Ghana, Malawi, Mali, Mozambique, Uganda and Zambia are available at: 2 For further details on the assessment and the methodologies applied, reports are available upon request. See also, ISSD Africa Newsletter 3, December 2012, available at: Briefing Note: page 1

2 The definition of seed entrepreneurship for the intermediary seed system cluster in Zambia can be captured as the sourcing and planting of quality seed; ensuring good production and management practices so that some of the produced seed can be sold at a profit to improve own household livelihoods and to make greater amounts of quality seed locally available at an affordable price. The definition of seed entrepreneurship for the informal system cluster reflects the same position as the intermediary system without the sales angle. This system does not have a market orientation, although in Zambia, seed from this cluster is accessed through cash or barter systems. To that effect, seed entrepreneurship in the informal system involves the sourcing and planting of quality seed, ensuring good production and management practices to ensure enough food for consumption and to improve household livelihoods. Key seed entrepreneurship topics common to all seed systems and programmes are that seed must be of good quality, and be accessible, available and affordable (reasonably priced). The degree of quality somewhat varies between the system types, with the formal cluster placing greater emphasis on this aspect in their work, as it is very much associated with making a profit out of seed services. Companies are profit-oriented, demand-driven, take more risks and have their own capital. The intermediary cluster has organised groups, producing both for market and for livelihood security, but it still depends quite substantially on external facilitation. The informal system cluster has no group organization, involves less risk-taking, and its operations are related to food security. In some cases, profit is not the sole objective of the intermediary and informal clusters. There is a social angle to them as well, in which production and multiplication of seed is carried out in a manner that promotes access to quality seed for everyone in the community. Seed value chains in the different clusters Through a transparent, rules-based legal and regulatory system, the Government of Zambia has put in place an enabling environment to support the seed sector that benefits both the formal and intermediary clusters. The government s national seed policy and various Acts have provided a strong basis for regulating and supporting the seed sector, encompassing seed testing, variety registration, the enforcement of seed quality standards, as well as seed marketing and trade facilitation. In addition, government institutions such as the Seed Control and Certification Institute (SCCI), which is responsible for seed quality management, certification and other regulatory duties; and the Zambia Agricultural Research Institute (ZARI), which is responsible for seed variety development and improvement for both hybrid and open-pollinated varieties (OPVs) suited to the different agro-ecological conditions; act as important catalysts and service providers to both clusters within this enabling environment. The formal cluster has a lot more skilled staff for specific activities than the intermediary cluster. The work of the former cluster is geared to ensuring that seed quality is maintained at all levels in the seed value chain to secure a good market share. It also has internal financial control systems and undertakes strategic planning. The formal actors have seed inventories and production plans. They establish their own farms; conduct strategic contracting of producers, and provide them with input loans and will monitor the seed in the field. Table 1: The value chain of the informal cluster Operators Variety source (Basic) seed source Seed production and multiplication Own, relatives or Own, relatives or Farmers neighbours, local market neighbours, local market Seed dissemination and marketing Own, relatives or neighbours, local market Often dominated by women Often dominated by women Often with an important role for women Improved varieties may reach the farmers through markets and exchange Services Own, local markets N/A None or very limited extension service provision Enabling environment Seed Policy and NAP encourage local germplasm conservation and utilization Indicator crops: local maize and beans 3 Type of seed quality: farmer-saved N/A Seed policy recognises co-existence of informal and formal seed systems Own, local markets Farmers are free to exchange seed 3 During the planning meeting for field visits, the Task Force swapped beans with groundnuts in the informal cluster and used groundnuts under the intermediary cluster (as a grain legume). In the field, during the study, sorghum had to be substituted by local maize for the informal cluster because in the study area of Katete and Chipata, farmers do not produce sorghum. Farmers grow a local maize variety for their own consumption. Briefing Note: page 2

3 Table 2: The value chain of the intermediary cluster Operators Services Variety source (Basic) seed source Seed production and multiplication Public research (such as National Research Individual farmers organized National Research Stations and in groups Stations (ZARI) and International Research international research Stations stations (ICRISAT) Information on varieties through ZARI, NGOs and ICRISAT Public research Quality management by extension and seed quality inspectors (Quality Declared Seed and certified seed) Input supply often by NGOs and development agents NGOs/cooperatives facilitate training in agronomic practices in collaboration with government extension and research staff that provide training on seed inspection for quality management Seed dissemination and marketing Seed is sold to NGOs, farmer groups, community, private seed buyers/ traders Dissemination through NGOs or development/ relief programmes Marketing information is facilitated by NGOs and extension services SCCI conducts seed certification (QDS and certified seed) Enabling environment Plant Variety and Seeds Act and Regulations are in place Variety release mechanism is in place Seed policy allows government to breed and produce basic seed at cost recovery rates to those who can t afford it Financial service providers Seed quality management (seed law) is in place Financial services (credit laws) Marketing licenses, Export permits, Phytosanitary certificates Licensing in seed sales (seed law) Existence of Plant Breeders Rights Act and regulations in place Seed law is in place Banking Financial Services Act (credit laws) is in place Indicator crops: groundnut and cassava Type of seed quality: Quality Declared Seed (QDS) and certified seed Distribution and marketing policies (agricultural policy, trade and seed laws) Financial services (credit laws) Intermediary seed systems are less innovative, have limited basic seed sources, markets and market information systems. ZARI is still biased towards conducting improvement activities for crops with a higher commercial value in which the private sector is involved, such as maize, wheat and soya bean. Restricted investment in a more diverse set of traditional crops, and limited access to materials developed by public research result in a shortage of quality seed and limited distribution of improved varieties for such crops. The intermediary cluster has organised groups, produces both for market and for livelihood security, but depends on external facilitation (supported by NGOs and other actors), bringing concerns about sustainability. The informal systems are less risk-taking, and its operations are related to food security. Here, innovation is more related to the management of local varieties. Public research and the provision of extension services are dependent on government funding, which is currently inadequate. This situation has resulted in reduced output in terms of crop varieties, and other agronomic training services provided by government extension and research are also limited. Seed entrepreneurship incentives Seed companies in the formal cluster and some intermediary organisations buy seed from seed producers at the farm gate, some on a cash basis, to encourage farmers to produce for them and build linkages that ensure a reliable source of produce. Commission or prices are paid to lead farmers who do well in terms of quality and quantity of the tonnage of seed bought on behalf of formal cluster companies/ intermediary organisations. Prices have been in the form of small ruminants such as goats, but can also be in the form of ploughs, ridges, and fertilisers based on the preferences shown by lead farmers. Each company holds workshops to train seed stockists how to maintain quality of seed in their custody and to explain the characteristics of each variety of seed. Sometimes company trainers get reinforced by Ministry of Agriculture and Livestock staff. Briefing Note: page 3

4 Table 3: The value chain of the formal cluster Operators Service providers Variety source (Basic) Seed source Seed production and multiplication Public research (such as Research, specialized Seed companies from the national government (inputs, training, seed research institute ZARI, departments or inspection and financial and the international companies institutions) research institute ICRISAT) provides companies access to improved varieties Private research and development programmes within the company Information on varieties through ZARI, NGOs and private seed companies Private seed companies Quality management by seed quality inspectors (certified seed) Seed companies provide inputs, seed inspection for quality management training, and develop financial institutions for credit provision SCCI conducts seed certification (certified seed) Seed dissemination and marketing Agro-dealers sourcing seed from companies Companies through retailer networks Government distribution/marketing programmes Quality certificates (SCCI) Marketing licenses (SCCI) Export permits (Agribusiness) Phytosanitary certificates (ZARI) Agro dealer registration (PACRA & SCCI) Financial institutions for credit provision Enabling environment Plant Variety and Seeds Act and Regulations are in place Variety release mechanism is in place Existence of Plant Breeders Rights Act and regulations in place Basic seed production and seed quality management (seed law) Financial services (credit laws) Seed quality management (seed law) Financial services (credit laws) Extension and promotion of quality seed and varieties (seed companies) Marketing licenses, Export/import permits Phytosanitary certificates Licensing in seed trade & sales (seed law) Distribution and marketing policies (agricultural policy, trade and seed laws) Indicator crops: maize and soybean Type of seed quality: certified Throughout the country, stockists use the information to provide advice to farmers on the type of seed varieties to buy for them to be able to make informed decisions when purchasing. The companies require the seed stockists to inform them as early as possible about any issues farmers are incurring so that companies can solve the problems. All seed companies from the formal cluster offer free seed transportation services to and from stockists and pay a predetermined commission or discount on all seed sold. All seed companies in the formal cluster and some intermediary organisations which are not running seed multiplication programmes with food security as the primary goal provide inputs on a loan basis at planting Financial services (credit laws) time and recover the loans during the marketing season. An effective communications strategy is essential for smallholder seed enterprises to thrive in a competitive world and to ensure a sustained market for their products. Seed companies are able to advertise the availability and characteristics of various improved seed varieties in the newspapers, on TV as well as on rural radio. Improving seed production through entrepreneurship The existence of a sustained demand for quality seed is seen as key to ensure the development and long-term commercial survival of seed enterprises. In smallholder farming systems, farmers tend to use farm-saved seed for self-pollinating crops, rarely purchasing seed. This Briefing Note: page 4

5 was noted as a particular constraint for a number of crops in Zambia. Even if farmers do purchase seed of a new variety that meets their needs, they then start keeping their own seed, leading to few repeat purchases. With maize, efforts have been put in place around demonstration plots to raise awareness of farmers about the benefits on production of using highquality seed. Through work from NGOs, community-based seed enterprises (CBSE) in the intermediate cluster interested in commercialising varieties have been linked with public sector breeding programmes and extension services for access to new varieties and even source seed (basic and pre-basic seed). This form of stimulating public-private partnership is seen as key. The development and efficiency of CBSEs is promoted as they are often better able to handle less profitable crop varieties ( low-value crops) than larger companies, and they can make seed of these varieties accessible and affordable to remote farmers with limited purchasing power. Increasingly and with support from NGOs, public-sector breeding and extension programmes look at participatory variety selection (PVS) to complement existing seed programmes. PVS engages farmers in field-testing by having them assess and select crop lines from a range of fixed (stable) lines on their farm according to their appropriateness for their own uses. These new seed programmes are being recommended for generating new varieties of low-value crops better suited to smallholder production systems so as to enhance adoption by farmers. Farmer s varieties or landraces have a tendency to have lower yields but are often more resistant/ tolerant of sub-optimal growing conditions than are more improved varieties. Unfortunately, there is a lack of knowledge and data from researchers and extension staff about the special attributes of such landraces. An existing seed programme, from a collaboration between civil society actors and government research institutes, has set up a trial pilot initiative to generate knowledge and safeguard in-situ conservation of common bean (Phaseolus vulgaris) landraces and to also evaluate potential commercialisation prospects with SCCI. Case study 1: Forging linkages and collaboration to increase access to early generation seed Access to early generation seed (EGS) (pre-basic and basic seed) is a key restrictive factor for farmer engagement in seed multiplication. At present, smallholder farmers who are interested in commercialising varieties have limited access to improved varieties due to weak linkages and poor interactions among actors in the seed value chain. A Self Help Africa project on improving access to EGS looked at building partnerships between researchers/ breeders on one hand and the farmers/ seed growers on the other. By establishing the necessary links and by opening the policy space for experimenting with relevant partners, Self Help Africa has built up a body of evidence to show that it is possible for farmers to produce certified seed to relieve the current bottlenecks that exist. Through a well-targeted cost-effective training programme involving the services of a specialist breeder from Misamfu Research station engaged to coach lead farmers on specific requirements of foundation seed multiplication, SHA was able to train both male and female farmers with some experience as seed growers, to produce a sufficient quality and quantity of certified basic seed for the market. Through work that was rolled out for two successive growing seasons in Zambia, the initiative targeted 34 common bean (Phaseolus vulgaris) farmers that have produced a total of about four tonnes of certified 1 st generation Class 1 seed tested by the Seed Control and Certification Institute (SCCI). This production has been critical and has contributed to meeting the huge demand in the community. In the Northern province, for example, there has been an increase of 60 % availability of improved certified common bean seed for purchase to meet smallholder farmer requirements. Self Help Africa also provided some investment in the form of storage sheds/ seed stores to enable bulking to take place and minimise post-harvest loss of seed. Farmers using improved seed generally recorded yields double to those traditionally used making the period of own production last significantly longer. In addition, the work has resulted in a significant rise in income for the participating seed growers, to two to three times the average household income. This collaborative work has been extremely well received by both Misamfu and SCCI. This growing season (2012/13) will continue this work, to involve more farmers in multiplying not only the common bean but also in multiplying basic seeds (Code B) to produce certified seed 1 st generation C1 groundnut (Arachis hypogaea), with next year the prospect of expanding the work further to include soya bean (Glycine max), rice and an open-pollinated variety of maize (Zea mays). Improving service provision to seed value chains through entrepreneurship Technical and entrepreneurial support for seed production is essential during early stages of development of seed enterprises to ensure long-term commercial viability. To various degrees, both formal and intermediate clusters benefit from extension service providers training designed to improve farmers knowledge: from planning and management of seed production, farm operations, post-harvest handling and Briefing Note: page 5

6 conditioning, quality and certification, through to marketing. Improving farmers skills in seed production does much to enhance uptake and spread of new varieties and improved practices. Considerable efforts are being placed by NGOs, particularly in support of the intermediate cluster, into developing business and entrepreneurial skills from the outset, and not just technical skills. Seed production must be viewed as a business rather than as a technical or development activity if it is to succeed. Entrepreneurial skills must enable seed businesses to among other things, exploit business opportunities, identify potential seed demand and behaviour (market research), improve business planning (physical, financial and human inputs required for producing seed), and to achieve better business management (record-keeping). Information has been noted by many companies as being crucial for uptake of improved varieties in the country. Seed enterprises need to be able to assess accurately the likely demand for seed, and farmers need to be able to find information about varieties that meet their needs and where to obtain them. An effective communications strategy is therefore essential for the formal and intermediate clusters to thrive in a competitive world and to ensure a sustained market for their products. Seed companies advertise the availability and characteristics of various improved seed varieties in the newspapers, on TV as well as on rural radio. Case study 2: Credit service and training to agrodealers Agro-dealers/ market traders/ stockists are also key sources of both information and seed in many remote areas, and need to be linked with seed sources and information providers. Each company holds workshops to train seed stockists on how to maintain the quality of seed in their custody and to explain the characteristics of each variety, and on technical issues such as fertilizer requirements and other agronomic factors. Sometimes company trainers are reinforced by Ministry of Agriculture and Livestock staff. Throughout the country, stockists use the information to provide advice to farmers on the type of varieties to buy for them to be able to make informed decisions when purchasing seed. The company emphasises that the seed stockist should inform the company as early as possible about any problems farmers are incurring so that the companies can solve them. The agro-dealers have the advantage of buying the seed at a wholesale price from the seed companies and in turn sell them at a retail price, thereby making a profit. An example of a successful agro-dealer who has received support from private seed companies, such as Zambia Seed company (Zamseed), Seed co, MRI and Pioneer, is Joseph Barn. Joseph has been working in the business of selling seed and other agro inputs in Zambia for more than 15 years. Over the years, Joseph has forged strong links with Zamseed and has been able to stock and sale both open-pollinated and hybrid seed varieites which have been produced by the seed company for more than 10 years. On an annual basis, Joseph is now able to sell more than 60 tonnes of seed provided by Zamseed. Other than buying the seed at a wholesale price, he has now been granted the status of a Consignee stockist, implying that he can now get the seed from Zamseed on a credit basis, paying for it after it is sold. Impact of the enabling environment on seed entrepreneurship The Seed Law provides five different quality categories of seed and the conditions to be met for each category. This includes Quality Declared Seed (QDS). QDS reduces costs to the certifier, i.e. SCCI. For QDS, the field visits for a crop like a legume can be brought down to one, and the crop sample can be as low as 10% of the seed produced by farmers in the intermediary cluster. In more isolated areas of the country where farmers with resources and capacity to multiply seed may not be easily accessed, this has had a positive impact on seed entrepreneurship. Access to credit is vital to the development of seed enterprises, especially for businesses in the intermediate cluster when purchasing inputs, field and seed-handling equipment. All seed companies provide inputs for seed production on credit to their identified seed producers and seed to seed stockists on credit to facilitate the engagement of these actors in seed production or marketing. Zambia has a legal and regulatory framework for the start-up and registration of a seed business. Cooperatives or seed grower associations (SGAs) in the intermediary cluster are allowed to be involved in seed production and trade for as long as they meet the requirements for seed production and have a trading license. Unfortunately, some start-up costs can make it prohibitive for SGAs to venture into the industry, particularly in requirements linked to storage facilities. Anyone with a seed seller licence can be involved in seed distribution if he/ she satisfies the requirements of the seed company. The government has set up procedures that regulate the seed trade law. Through SCCI, it provides marketing and export/ import licenses, issuing these permits through the Agribusiness Department of the Ministry of Agriculture and Livestock. All requirements dealing with quarantine pests and pathogens and the issuance of phytosanitary certificates are dealt with through ZARI. Zambia is a member of both the Southern African Development Community (SADC) and COMESA. SCCI has finished drafting legislation to guide the Briefing Note: page 6

7 implementation of the harmonised seed policy which will initially be piloted in Zambia, Malawi, Swaziland and Zimbabwe. The harmonisation of seed policies will among other things mean that if a particular variety is released in two SADC countries, it can be exported to and released in a third country without subjecting it to further trials. This allows for reducing time and associated costs in variety testing. Case study 3: Building effective public-private partnership in seed certification Seed quality has been mentioned as a key consideration in all clusters, and striding for quality control was given as a key success factor in promoting entrepreneurship in the study. Seed quality is a major determinant of seed acquisition behaviour and it is vital that quality standards and control are implemented in seed enterprises to ensure they meet farmers demands. There are strong arguments for devising strict legal and regulatory requirements on the seed industry, that serve to set and monitor seed quality standards; but in Zambia, their implementation is being increasingly shared with seed producers themselves. The government is fully aware that regulations, though necessary, bring a number of time-consuming processes to government agencies ill-equipped to handle the workload, and the time-sensitive nature of certifying varieties for the market. Through government investment, the Seed Control and Certification Institute (SCCI), a government-run seed certification agency, has embarked on building private sector capacity for seed certification through yearly training programmes on seed quality control and monitoring, as well as capacity to oversee and enforce standards. Training is crop specific and updated each year with new information for field inspections and laboratory testing. This also involves support in how to identify and report counterfeit seed. The training is followed by practical examinations that, if passed, certify the person s/organization s qualifications to conduct official seed inspection activities. The effort to date has been substantial. Since the launch of the programme in 1997, a number of private sector companies have staff members who can now certify seed, through an accreditation process. This has substantially lowered the burdens and increased the speed and efficiency of the seed certification process. The government has also invested in regionally located seed service centres which have the potential to assist seed companies in overcoming adoption constraints. Lack of locally-run support services and insufficient market awareness of farmer preferences all pose constraints to private sector development in a relatively large country such as Zambia. From the initial centre at SCCI national headquarters in Lusaka, the government, with support from the private and civil society sectors, including organisations such as Self Help Africa, now has seven functional centres all over the country. Three other seed service centres have been established by private seed companies such as Zamseed. Such seed service centres provide local and national businesses with support, including field inspections, seed labs, seed processing, and training for accreditation of third parties for seed certification. These decentralised services are proving very useful in avoiding bureaucratic and logistical delays, and contributing to the growth of an important local industry. Recommendations for making policies, programmes and practices more effective in promoting and strengthening entrepreneurship Promoting successful initiatives and incentive mechanisms in the practices of seed entrepreneurship Support the engagement of farmers in the intermediate and informal clusters in early generation seed multiplication through the fostering of linkages to public crop breeding programmes. This could in particular be for crops that do not offer adequate returns on private sector investment and be a way of making seed of these varieties accessible. Prices are also a major determinant of demand. Local businesses with low overheads can produce a diverse range of good quality seed at an affordable price to resource-poor farmers in remote areas with limited purchasing power. Therefore, encourage CBSE in the intermediate cluster or local farmers interested in commercialising varieties to develop seed businesses through support that can come as technical, financial and/ or packaging incentives. To facilitate promotion and awareness of farmers about the production benefits of using high-quality seed for a range of crops, make extension service provision more user friendly and responsive to needs, and design it to be able to provide the right technical interventions with regard to the seed sector, and facilitate knowledge and technology transfer through farmer-to-farmer training programmes. Approaches such as demonstration plots, farmer field days, exchange visits have all been documented as encouraging the uptake of improved varieties. Provide government incentives to encourage development of seed marketing channels (agro-input dealers) in more marginal/ remote areas While contractual out-grower arrangements between seed companies and identified seed producers are in place in Zambia, ensure better refinement and greater flexibility to allow market price fluctuations. For the benefit of seed enterprises, develop a government policy to support build-up of capital (e.g. Briefing Note: page 7

8 processing equipment, machinery and storage facilities) especially in the early stages of development, through soft loans and co-funding initiatives. Making investments in storage sheds/ seed stores, for example, enable bulking and minimise post-harvest loss of seed. Scaling-out and -up of successful initiatives and interventions of seed related programmes There are already a number of government institutions, civil society and private sector that are providing different entrepreneurship, technical and marketing skill development and other support services to seed enterprises. Therefore, encourage better coordination of these capacity-building programmes to improve synergies and complementarities between service providers and service users. Also, continue to put in place programmes that facilitate group and association formation, strengthen existing groups and associations, and enhance their agri-business skills by using a value chain viability capacity needs approach. Develop market for smallholders produce as an important measure to stimulate the demand for varieties being developed. Develop viable market chains to increase the purchasing power of farmers for inputs such as seed, which in turn also increases the pull on the breeders to develop and make available new improved varieties. Promote deliberate government policies to provide market access to farmer products not only for maize, as it is at present in Zambia, but also for other important food crops such as legumes and cassava. As evidenced by the study, participatory breeding and on-farm testing programmes such as PVS are increasingly being used in the Zambian context as a mechanism for generating new varieties of low-value crops and encouraging their adoption by smallholder farmers. Therefore, develop these activities further and systematically include them in public-sector breeding and extension programmes, and encourage proper linkages to smallholder seed production systems to ensure success and availability of new seeds. Landraces should be seen as part of a mix of approaches to an integrated seed sector rather than be ignored. Landraces often have low yields but are more resistant/ tolerant to sub-optimal growing conditions than improved varieties; so they can have a role to play in ensuring food security in less favourable and marginal areas where production conditions are often complex and more risk prone. Reduce many farmers risk and improve food security overall by taking an integrated approach that conserves through use of local varieties and promotes the use of higher yielding improved varieties. However, the possibility of commercialising farmer-bred varieties depends on the policy environment. At present, the registration of farmer-bred varieties is not envisaged in the Plant Variety and Seed Act (PVSA). Addressing gaps in policies and the enabling environment The current study has demonstrated that seed enterprises cannot develop in the absence of comprehensive national seed policies. Therefore, create a policy framework to achieve a pluralistic seed sector that promotes the development of diverse sources of seed supply enterprises to deliver the seed farmers need. The key elements to address in the Zambian context are: 1. Availability of improved varieties and foundation seed: The sourcing of quality foundation seed for a range of crops other than maize is of concern in Zambia as its availability for both formal and informal clusters is erratic and informal. Therefore, it is essential for those interested in commercialising varieties to establish a more efficient system of distributing source seed of locally adapted varieties that match farmers needs. Also, make a wider range of affordably priced crops and varieties available in the market to increase farmers trust in the seed system. Improve breeders capacity to multiply breeder seed, and reduce the bottleneck of access to a wide range of foundation seed of locally adapted varieties by setting up a public or joint venture body with the mandate to multiply and disseminate or market early-generation seed. This foundation seed company would put in place a strong systematic mechanism to improve access to EGS by facilitating basic seed multiplication for a greater range of released crop varieties in collaboration with ZARI. It would take up breeder seed of released varieties and multiply them into pre-basic and basic seed that would then be accessible to the private sector, national companies, NGOs, programmes and seed grower associations. Provide government incentives to stimulate the involvement of intermediate and formal cluster actors in multiplying these seeds. Within the functions of the above structure, include responsibilities of dissemination market information on EGS (source, value) to promote transparency on the available crops that could be of interest to grower and consumers alike. 2. Incentives to breeders: This case also shows the importance of investing back into the sector to incentivise engagement in breeding programmes, which is still important to ensure the supply of breeder/pre-basic seed. In particular, public breeders need stronger incentives to breed new varieties which are then made available to everybody. Although the law in Zambia provides for breeders to apply for exclusive rights, the mechanisms to implement Briefing Note: page 8

9 this are still weak. In addition, at present the income realized from royalty charges when accessing public bred varieties goes to government. Therefore, develop a policy to allow for the royalties to go into a separate account, accessible only to ZARI. This funding would then assist crop improvement breeding programs and ensure the quality and quantities of basic seed required by private seed businesses. 3. Overcome constraints to regional harmonisation: The Government of Zambia should accelerate the amendment of PVSA so as to align it to the Technical Agreements on Harmonization of Seed Regulations in the SADC Region, already ratified by Zambia. This would considerably reduce the time and associated costs for regional variety release. The amended PVSA should include the recognition to register landrace to facilitate registration of farmer varieties. Authors: Elia Manda, Bethel Nakaponda and Pietro Chiappini Carpena Picture: Simone Stibbe ISSD Africa II Zambia task force and team: Nathan Phiri, representing the public sector Tobbi kamwale, representing the private sector Elia Manda, representing the NGO sector Elias Kuntashula, representing knowledge institutes Bethel Nakaponda, ISSD consultant ISSD Africa editorial team: Pietro Chiappini Carpena Self Help Africa Gareth Borman, Marja Thijssen, Elizabeth O Keeffe and Mundi Salm Centre for Development Innovation of Wageningen University and Research centre, the Netherlands ISSD Africa II is supported by: Briefing Note: page 9