Finance and Management of Small-scale Seed Enterprises

Abstract

One of the key changes taking place in many countries is the greater participation of the the private sector in seed production and supply, reflecting a general shift in economic policy. There is, therefore, a need to ensure that this change also promotes the growth of an indigenous seed sector, in which many different companies could participate to create a diversity of suppliers. The challenge is how to initiate this process and encourage new entrants to the seed business. ICARDA maintains a strong Seed Unit that serves the needs of the seed programs in countries of the Central and West Asia and North Africa (CWANA) region, with the ultimate objective of improving the supply of quality seed of improved varieties to farmers. The Unit has a wide range of activities, including seed production, training, information management, research, and consultancy. The Unit also looks ahead to the future needs of the seed sector in a changing global environment. A major obstacle to developing a strong indigenous seed sector is the lack of knowledge about organizing seed businesses, particularly at the local level. Producing and sell ing seed is complementary to other trading activities in the rural community, but it also involves some special risks that can deter entrepreneurs. Some entrepreneurs prefer only to sell seeds, and not get involved in their production. However, local production can offer substantial cost savings and other benefits from closer contact with farmers and understanding their real needs. There is, therefore, a need to look at the benefits from devolution of seed production to smaller enterprises that are in direct touch with farming communities. Against this background, ICARDA organized a workshop in Addis Ababa in 1998 to bring together the varied experience in the finance and management of small-scale seed enterprises. This was probably the first meeting of its kind in the region on this subject. These proceedings contain the text of presentations made at the meeting. It is hoped that this volume will help promote further interest among national programs, donors, and commercial enterprises in seed production and distribution.