Making Legumes Lucrative: The Malawi Seed Industry Development Project

1. Making Legumes Lucrative: The Malawi Seed Industry Development Project Richard Jones, Moses Siambi and Felix Sichali

2. Outline Historical perspective What went wrong Structural readjustment Technology development Addressing the seed constraint Malawi input subsidy program Ensuring sustainability Conclusions

3. Historical perspective 1970s Malawi groundnut exports >50,000 tons/year Large-seeded Virginia variety �Chalimbana� Vertically integrated parastatal system Government controlled pricing Inputs (seed and fertilizer) Subsidized credit Outputs Groundnut seed a by-product of grain marketing

4. What went wrong? 1980s Groundnut exports ceased Groundnut area declined by two thirds Government pricing favored hybrid maize Lack of attention given to seed quality Loss of confidence by overseas buyers Processing equipment changed to accommodate alternative varieties

5. Structural readjustment Removal of parastatal monopoly Input supply Output marketing Collapse of smallholder credit system Maize-groundnut price differential re-established Groundnut area increases

6. Technology development SADC/ICRISAT Regional Groundnut Improvement Program established early 1980s Improved high-yielding Virginia variety �CG7� released in 1990 Market resistance from traders nostalgic for �Chalimbana� CG7 favored by farmers Higher yield Shorter maturity Little impact as improved seed unavailable

7. Addressing the seed constraint Establishment of a seed revolving account Use funds to support maintenance breeding Breeder seed production Foundation seed production Market seed on a full-cost recovery plus basis Integrity of fund maintained >10 years > 1,000 tons of foundation seed sold

9. Malawi input supply program Food shortage stimulates government intervention Selected farmers provided with vouchers Maize seed vouchers Fertilizer vouchers Vouchers redeemable through agro dealers Groundnut seed included in 2008 Where to source the seed?

10. Malawi Seed Industry Development Project Goal Increasing smallholder farmer yields and incomes through the competitive and reliable provision of high quality affordable seed Objectives Develop capacity of existing and potential local seed companies Improve the policy environment for seed trade Strengthen the commercial distribution network for improved seeds, complementary inputs, and resulting crop outputs

11. Partners National Smallholder Farmers� Association of Malawi (NASFAM) >100,000 members organized into associations Seed Trade Association of Malawi (STAM) Membership association representing interests of commercial seed companies Agro dealers Market inputs to farmers and provide extension advice Seed Services Unit (SSU) Government organization responsible for enforcing seed regulations

12. Project advisory committee Five members Special advisor to the President on agriculture Retired CEO of the National Seed Company of Malawi Head of the Seed Services Unit President of the Malawi Grain Traders and Processors Association ES of the Seed Trade Association of Malawi

13. Donor engagement Project funded by Irish Aid Member of project advisory committee (PAC) Chair of the Donor Committee on Agriculture and Food Security

14. Decentralized model Identify interested agro dealers � entrepreneurs Provide information and technical support Invest in awareness creation on benefits to using improved certified seed �MASA� Involve all stakeholders in planning the intervention

15. Branding Branding is about building a relationship with the customer

16. Malawi Seed Alliance Branding is about building a relationship with the customer Supporting local entrepreneurship Sustainable supply of quality foundation seed Technical support in certified seed production Marketing support under the MASA� brand Enhanced capacity of seed services Database development Improved mobility New equipment Policy advocacy Partnership with Seed Trade Association of Malawi Support to Irish Aid and the donor community

17. Advocacy Seed procured through tender Established seed quality standards ignored Seed Trade Association of Malawi objects To protect interests of members Ensure that farmers are provided with quality seed Government policy changed in support of certified seed Certified seed production increased

18. Ensuring sustainability Need to reduce cost of seed Need for improved quality Reduced damage in transport Additional research Genetic fingerprinting for quality control Database development to improve M&E New varieties to exploit market opportunities

19. Developing better groundnut varieties Transferring aphids Genetic fingerprinting

20. Genetic fingerprinting DNA source Identifying markers

21. Groundnut seed production

22. Technical support

23. Communication

24. Market linkages Fair trade Tesco supermarkets Ready to use therapeutic foods Valid Nutrition Healthy Foods Regional trade To take advantage of COMESA policies Linking farmers to high-value markets stimulates innovation

25. Conclusions Need a vision Need for informed decision making Flexibility to change direction Implementers Donor Need to take risks Learning essential to reform thinking and attitudes Avoid creating distorting incentives