Capítulo VI: Proyecciones Financieras
6.2. Presupuestos
6.2.2. Presupuesto de Ventas
Reliable production of high quality legumes requires a regular supply of quality seed. Most smallholder farmers rely on informal seed supplies (own-saved seed, purchases from local markets or donations from friends and relatives) of inconsistent quality and of old varieties. This results in the production of mixed grades of inconsistent grain quality, limiting farmers’ ability to target high-value niche markets. The limited development of commercial seed supply systems to market improved high quality seed of legume crops grown by smallholder farmers is a consequence of the low effective demand for seed. Private investment in new seeds, production methods and post-harvest systems is unlikely to come before the market is prepared to pay for these products and services. But introducing the market to new products and standards is difficult without adequate levels of production.
Legumes in Kenya are traditionally grown as subsistence crops; seed supply is primarily through the informal sector. They are characterized by low yields and subsequently low volumes of marketable surpluses are produced, making commercialization difficult. There are several production-related constraints which include the use of disease-susceptible and low quality seed, and poor crop management practices. Capacity building of producers, traders and processors and increased availability of high-yielding disease-tolerant varieties with traits acceptable to both farmer and the market is pivotal for sustained production.
Pilot scale research by the International Crops Research Institute for the Semi- Arid Tropics (ICRISAT) indicates that farmers are willing to pay for small packs of high quality seed.42 Smallholder farmers can produce high quality seed provided they
have access to initial seed stocks and are trained in seed production practices and internal quality control. Development of local seed companies that can produce and market high quality seed at affordable prices offers a viable alternative to informal seed supply of orphan crops. ICRISAT has developed pigeon pea, groundnut and chickpea varieties with desirable market traits that are tolerant to both the most prevalent diseases and drought. In addition to providing improved germplasm, ICRISAT was responsible for developing a sustainable seed supply system and building the capacity of farmers for improved crop husbandry.
The objective of the Lucrative Legumes Project (LLP) was to address identified constraints from production through to market, and to develop a seed supply system capable of sustaining innovation beyond the life of the project. The project, which was funded by the United States Department of Agriculture (USDA), ran from 2005 to 2007 and was implemented by TechnoServe (TNS) in partnership with Catholic Relief
Services (CRS), and ICRISAT. Individual partners collaborated with a range of private and public institutions.
Project implementation area
The project was implemented in five districts in Western Kenya within the Lake Victoria basin (Siaya, Busia, Teso, Homa Bay, Suba, and Bomet) and four districts in Eastern Kenya (Machakos, Makueni, Kitui, and Mbeere). The project involved over 17,800 farmers (65% of them women), formed into 679 farmer groups. Figure 2.1 shows the project area.
Figure 2.1 Map of Kenya showing project area
Groundnut and pigeon pea are important crops in western and eastern Kenya respectively while chickpea is grown in Bomet and parts of Mbeere. Eastern Kenya produces 99 % of the country’s pigeon pea (190,000 t) grain while Western Kenya (Nyanza and Western provinces) produces 59% of the national groundnut crop. Chickpea fits easily in the maize-based production systems of Mbeere and Bomet as a rotation crop that grows on residual soil moisture. Kenya is a net importer of chick pea; hence its promotion would take advantage of both local and export markets. Poverty levels are high (40-70%); over 50% of the households live below the poverty line in the target districts. Soils are infertile and most farms are low in soil organic matter, nitrogen and phosphorous. Legumes are mainly intercropped with cereals (maize or sorghum) with no external fertilizer inputs on small-sized farms (<2 ha). Collective action was the strategy used for seed distribution, capacity building and marketing with existing smallholder farmer groups. In the implementation process,
the project partners adopted a participatory multi-institutional and multisectoral approach, with several collaborators from public and private sector institutions.
Seed supply system model
The seed supply system used in the project for groundnuts is summarized in Figure 2.2. It includes farmers and their institutions i.e. groups and marketing associations, seed companies and research institutes (i.e. ICRISAT, Kenya Agricultural Research Institute) and quality regulatory bodies (i.e. Kenya Plant Health Inspectorate Services). The objective of the system is to create a demand-driven seed supply chain from the breeding and seed maintenance (by ICRISAT, Malawi) to a commercial seed company marketing certified seed to farmers through the Kenya Smallholder Farmer Investment Company (KESFIC), who in turn market seed to producer marketing groups (PMGs). KESFIC maintains two supply channels, one for seed and one for grain (not shown), which supply second and third generation seed to farmers. After this, fresh seed is once again purchased from the commercial seed company and the cycle is repeated. Groundnut is a bulky perishable crop with a low seed multiplication rate that makes it relatively unattractive for commercial seed companies, but if farmers are to access high-value markets there needs to be a system for renewing seed stocks – and changing varieties as these are developed by research – on a regular basis. The model developed combines elements of improved informal seed production for later seed generations with a formal system for earlier generations. A similar seed supply system model is used in the groundnut sector in Malawi.
Figure 2.2 Project seed supply system model
ICRISAT Malawi Seed Co.
KESFIC, Farmers’ Marketing Association
PMGs/FGs
Seed Growers Grain Producers
Source of basic seeds
Purchases basic seed, bulk, package, sell – KARI, KEPHIS involved
Buy certified seeds, store, sell, market needs identification, draw agreement with seed growers
Identify seed bulkers, buy certified seeds, distribute, keep records, monitor, sell
Production, post harvest handling, selling ICRISAT ICRISAT ICRISAT/CRS/TNS ICRISAT/ CRS
Notes: KESFIC: Kenya Smallholder Farmers Investment Company; PMGs: Producer Marketing Groups; FGs: Farmer Groups; CRS: Catholic Relief Services; TNS: TechnoServe; KARI: Kenya Agricultural Research Institute, KEPHIS: Kenya Plant Health Inspectorate.
Project outcomes
The Lucrative Legumes Project mobilized over 17,000 farmers and supplied improved legume seed to all of them over a period of two years. In turn, these farmers loaned, donated or sold the seed to non-participating farmers: a spill-over effect. The project trained over 50% of the participating farmers who demonstrated good crop
husbandry practices, value addition, group management and marketing. The farmers trained in seed production practices were contracted by a seed company to produce seed commercially. The groups were also trained in group management, which was appreciated, but the impact of the training is yet to be documented. Additionally, 11 postgraduate students participated in various aspects of crop productivity and marketing research. The farmers were able to collectively market their produce at competitive prices. They were also directly linked to grain traders. Table 2.8 presents a number of constraints and opportunities that were identified in the project.
Table 2.8 Constraints and opportunities identified in the project
Constraints Opportunities
• Inadequate seed supply – small
quantities of high quality seed initially available from ICRISAT and seed company;
• Unreasonable farmer price
expectation;
• Poor distinction between grain
and seed among farmers in the informal sector;
• Inadequate grain volumes to sell
through formal marketing channels due to home consumption;
• Documentation of actual
production and marketed produce difficult because farmers withhold information;
• High illiteracy levels among the
farmer group; members poor at record keeping;
• Seed consumption as food limits
expansion – however improves household food supply and saves on purchase;
• Terminal drought or excessive
rain necessitates fresh injection of fresh seed;
• Technological limitation i.e. few
groundnut shellers;
• Farmers lack of patience
especially when payments are delayed and when formal collective marketing is done
• Short project duration – hard to
consolidate the gains when the project suddenly ends;
• Seed strategically distributed to “expert” seed
farmers selected by each group, for multiplication under project supervision;
• The seed can spread through
the informal supply network among group members;
• Need to train farmers on market forces and
expose them to markets – through visits;
• Develop or link farmers to commercial seed
companies to produce certified seed;
• Farmers are ready to pay more for seed if
packed in small quantities and sold through formal channels;
• Increase production at household level to
increase volumes by increasing productivity through using improved technologies;
• Develop monitoring and evaluation strategies
right at the onset of the production process i.e. provide farmer-group owned record book coupled with on-farm yield assessment;
• Train farmers to keep simple records;
• Seed availability: capacity building can contribute
to increased production at household level to increase volumes;
• Commercial companies would have business
opportunity;
• Business opportunity to develop and market
shellers and to do shelling as a business (entrepreneur identified);
• Mentor and link entrepreneur to farmers and
their associations;
• Link farmer producer institutions to credit
providers to enable payment on delivery;
• Solicit donor funding to continue activities; • Link groups with public and private institutions
The way forward
An increased awareness exists among farmers of the performance of improved legume varieties. They are willing to purchase seed, which presents an opportunity for the commercialization of legume seed. The commercialization process requires interaction between the public and private sectors to formulate enabling policies for the informal seed sector, which accounts for the bulk of legume seed distribution. However a need remains to train farmers to understand business ethics, especially contractual agreements. The development of marketable legume seed, appropriate production and processing technology, and a knowledge base requires consistent investment in crop improvement research, capacity building and information distribution systems. A need exists for favourable policy and infrastructural support to improve productivity and promote the competitive commercialization of legumes.
Thijssen, M.H., Z. Bishaw, A. Beshir and W.S. de Boef, 2008 (Eds.). Farmers, seeds and varieties: supporting informal seed supply in Ethiopia. Wageningen, Wageningen International. 348 p.