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

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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


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SEED MARKETS : REACHING SMALLHOLDERS IN AFRICA Focus on the Customer

Louise Sperling

PURDUE, Discussion notes 9/26/2018

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Clients in drought-prone zones

In Drought Zones

  • Low harvest
  • High incidence of ‘disaster’
  • Remote
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Clients: malnourished-/undernourished

Undernourished

  • Mostly small-scale farmers /plots
  • Low purchasing power
  • Diets geared to ‘cheap’ calories
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Where so smallholders actually source their seed ?

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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 (Kasai Oriental) 2017 Burundi 2017 Zimbabwe 2017

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http://seedsystem.org

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51 %

Own stock 35.6% Social networks 16.2% Local market 29.7% Agro-dealer 2.8% CB Seed 0.5% Government 6.2% NGO / FAO 9.0%

N transactions = 10,489

Seed sources of all crops: Africa

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Seed markets

Informal/local seed markets Agro-dealers/ seed companies

Many crops: cereals , legumes Maize, vegetable seed

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Total kg = 142,386

0% 10% 20% 30% 40% 50% 60%

Maize Other cereals Legumes VPCs

Own stock Friend, neighbor, relative Local market Agro-dealer CB Seed Government, NGO/FAO

Seed sources of key crop groups at African sites (kg-basis)

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Total kg = 38,970 0% 10% 20% 30% 40% 50% 60%

Groundnut Common bean Cowpea

Own stock Local market Agro-dealer Government, NGO/FAO

Seed sources of key legumes

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Means of seed access (transactions)

Means of seed access All crops Excluding VPCs 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%

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Main sources of purchased seed

Social networks 5.4% Local market 87.2% Agro-dealer 7.4%

Seed sources N 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%

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Sources of new varieties

(n=2518)

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

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Seed purchased from agrodealers: Crops

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

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Seed sourced from an agro-dealer, stratified by land area under cultivation

3.3% 12.5% 22.0% 62.2% 0% 10% 20% 30% 40% 50% 60% 70%

< 0.5 ha 0.5 - 1 ha > 1 - 2 ha > 2 ha

% seed sourced from an agro-dealer

Land area under cultivation Total kg=4,377

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11.3% 22.3% 88.7% 77.7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Agro-dealer Local market

Agro-dealer kg=4,627 Lock market kg=40,941

Market-based seed sources, stratified by sex of the household head

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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!

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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

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1.

What are the options for extending ‘Last Mile Delivery’ (sale)

1.

Bundling (other products)?

2.

Non-seed outlets (rural kiosks?)

3.

Private service providers ?

2.

What are specific strategies for moving climate-smart crops/varieties (‘to stressed areas’)

3.

What are specific strategies for moving nutritionally-enhanced crops/varieties (‘to malnourished’) Moving forward toward reaching more smallholders key questions

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www.seedsystem.org