Local Seed Business Project

Local Seed Business Newsletter Issue 3; January 2010 Editorial LSB development in Oromia South & West In December the five regional Local Seed Business (LSB) teams completed the base line studies of the 24 local seed production sites involved in the first phase of the project; this month we will share the results in regional stakeholder workshops and plan for the further development of the sites towards local seed businesses. The aim of the project is to develop good practices which may guide partners in the regions in promoting commercial approaches towards achieving durable economic development and seed security. This 3rd edition of the LSB Newsletter focuses on South and West Oromia region, where the programme is coordinated by the Oromia Seed Enterprise (OSE) and the Oromia Agricultural Research Institute (OARI). With the regional focus we want to share the regional diversity as well as commonalities on LSB development among the regions addressed through the LSB project. This issue is compiled by Kedir Nefo, Shemsu Baissa, Amsalu Ayana, Walter de Boef and Marja Thijssen. Outline of this issue In the first three articles of this issue, the editors provide some general background on seed supply in Oromia region and address current challenges; they describe the objectives, strategies and activities of the Oromia Seed Enterprise; and aprovide some details on the LSB project in Oromia South and West. The Oromia South West innovator team, consisting of Diriba Fufa, Abdo Woyema and Arfassa Kiross introduces itself in the next article. The members also give a more elaborate description of two innovation sites, i.e. the Dodola site, working with seed producer cooperatives on contractual seed multiplication of improved bread wheat varieties; and the Jeldu site, in which a farmer research group was the start of successful commercial potato seed production. Two students of Haramaya University introduce their research associated with the LSB project in Oromia. Megia Tolla wants to get a better insight in the commercial behaviour of farmers towards the use of different seed sources. Firaol Taressa s research also focuses on farmers seed sources; he looks at seed quality based on scientific and farmer perceptions. Other articles in the newsletter address more general topics. Joep van den Broek reports on the successful visit of H.E. Gerda Verburg, the Dutch Minister of Agriculture, Nature Management and Food Quality to Ethiopia in November 2009. Niels Louwaars shares the highlights of the results of a study last year on the formal seed sector in Ethiopia; how can its performance and impact be strengthened. Jim Woodhill introduces the Wageningen UR Center for Development Innovation; this centre is founded on the capacity building and institutional change programme of Wageningen International. Additionally, Dawit Tesgaye, Daniel Tilahun and Seid Mohammed, the innovator team of Amhara region, together with the Newsletter editors discuss the interesting and highly relevant book Seed business management in Africa as written by John MacRobert of CIMMYT. Finally, find in this issue a schedule with the LSB project activities for 2010. LSB project the LSB project is a joint effort of Bahir Dar University, Haramaya University, Hawassa University, Mekelle University, Oromia Agricultural Research Institute, Oromia Seed Enterprise and the Wageningen UR Centre for Development Innovation. Partners include several organizations within Regional Government (BoARD and RARIs), Federal Government (EIAR and ESE) and NGOs (EOSA, ORDA, REST, SHDI and several others). The project is funded by the Dutch Ministry of Agriculture, Nature Management and Food Quality and the Directorate International for International Cooperation through the Royal Netherlands Embassy in Addis Ababa. Contact and information Fore more information on the LSB project please approach one of the coordinators or visit the website: http://portals.wi.wur.nl/agrobiodiversity/ Local Seed Business Project

Seed supply in Oromia: necessities and options for innovations By Shemsu Baissa, Kedir Nefo and Amsalu Ayana Oromia: general background Oromia is the largest of the nine regional states of Ethiopia. It covers an area of approximately 353,690 km 2 in the central part of the country, representing 31.7% of Ethiopia. And with a population of 27 million Oromia is the largest region both in terms of area and population in the country. An agricultural economy Agriculture dominates the economy and livelihood of its rural communities. It accounts for 70% of the regional GDP. Farm size falls into two broad categories: large-scale state and private farms on the one hand and small-scale farms ranging from 1 to 3 ha on the other hand. Small-scale farmers to a large degree operate within a subsistence economy. Diversity among farming systems Farming systems vary considerably in Oromia, depending on the farming sector, the agro-ecology and farm size. Crop production, animal husbandry and mixed farming are the common practices. The main crops grown are maize, teff, wheat, barely, sorghum, millet, beans and groundnuts. Many other cereals, legumes, pulses and horticultural, herbal and forest crops (coffee, tea, sugar etc.) are grown. Livestock and fisheries are important components of the agricultural sector. Need for improved seeds Improved seeds (i.e. quality seed of improved varieties), more than any other agricultural input, hold key to enhance agricultural productivity and increase farmers capacities to generate income. In spite of decades of efforts by governments, the private sector and donors to strengthen the national seed sector, the seed situation in Ethiopia remains dismal. The table illustrates this situation for the year 2006/2007. About 9% of farmer households use improved seed and slightly more than 5% of the total arable land is planted with improved seed. In Oromia, improved varieties are only planted on 3.7% of the arable land under cultivation. The Ethiopian Seed Enterprise (ESE) is only able to a very limited degree to supply improved seed to the farming community. This restricted use of both improved varieties and quality seeds contributes to low productivity. Few crops and few varieties The limited improved seeds supplied are only of a few crops and varieties, with a small number of hybrid maize varieties and bread wheat varieties selected for a wide adaptation dominating. Improved seed of pulses is hardly supplied. The supply of improved seeds for oilseeds, vegetables, fruits, spices and forage crops is neglected. Area planted with improved seeds and fertilizers in Ethiopia (2006/2007) Crops Total area in ha Area covered with improved seeds ha % Cereals 8,463,080 335,369 4.0 Pulses 1,378,939 5,025 0.4 Oil crops 740,847 4,056 0.6 Vegetables 95,194 559 0.6 Root crops 188,917 2,114 1.1 Others 97,677 102 0.1 Total 10,964,654 347,225 3.2 Crops Area with fertilizer use ha % Cereals 4,330,710 51.2 Pulses 274,915 19.9 Oil crops 76,210 10.3 Vegetables 66,349 69.7 Root crops 118,229 62.6 Others 32,814 33.6 Total 4,899,227 44.7 Source: CSA, 2007 Private companies and seed prices Private seed companies operating in Oromia are dealing with profitable crops such as hybrid maize only. Pioneer Hi-breed Seed Company is one of the very few seed companies operating in the sector. The seed price of private companies is relatively high. For example, the private seed company Awasa Green Wood officially notified that the price of one quintal BH 600 hybrid maize seed at factory gate price is 1597 Birr in 2000 E.C. The cost of this seed at the farm field can be imagined. The price of ESE s seed of the same crop, variety and volume is 850 Birr. But even with this price difference the seed company is able to market its seed, illustrating the demand for quality seed. This demand does create room for private companies and others to complement the efforts of the public sector. Status of the formal seed sector In Oromia, the formal sector, constituting of ESE and private companies, accounts for a small proportion of overall annual seed used for planting. The above table shows that farmers hardly use certified seed from the formal sector. Only very few players operate in the seed market, most of them public entities, which results in lack of competition. Competition is required for a vital seed industry, serving the farmers demands. Local Seed Business Newsletter 3 (January 2010) 2

Dominance of the informal seed sector Hence, the bulk of seed used for planting in Oromia comes from the informal sector. This sector constitutes of farmers who produce and save their own seed and use traditional forms of exchange such as local trading and barter. It predominantly supplies seeds of local varieties that are of low yielding potential. Farmers produce the bulk of seed for the major food crops in Oromia; this contributes to the low agricultural productivity in Oromia. Another effect of this situation is that many improved varieties do not reach Oromia farmers. Research centres seed activities Agricultural research centres are producing and distributing improved seeds to some degree, even though this is not part of their formal mandate. In this way seed of improved varieties find its way to the market through the informal sector. This situation is quite common in agricultural areas close to agricultural research centres. Because improved seed multiplication at research centres operates in an informal setting beyond its mandate, it is not well planned, budgeted and staffed. Moreover, each centre is only multiplying seeds of mandated crops. The intentions of the centres are righteous as they respond to direct demands of farmers; however, their contribution takes place in a non-structured manner. Emergency seed: direct response but increased risks Non-governmental organizations are also engaged in seed supply, mainly during emergency situations. Such a system of seed supply is neither sustainable nor in agronomic terms recommendable because the seed may not be adapted to the area and of an unknown origin. Often the seed is an introduction from abroad without proper quarantine measure as emergency seed, which might lead to the introduction of devastating diseases, insect pests and noxious seeds. Experiences show that some of the problematic weeds, insect pests and diseases are associated with emergency seed distribution in Oromia. New players in the seed sector Increasingly, investors, state farms, community development organizations, farmers cooperatives and unions are becoming involved in the production of improved seed in Oromia. However, the production is often sporadic, seed quality is often poor and few varieties are produced. Hence farmers benefit from such initiatives to a limited degree only. This new subsector requires technical, institutional, financial and entrepreneurial support to enhance its performance responding to the demand for improved seed. Problems discouraging farmer seed cooperatives Over the past years, farmers have been organized in seed producers cooperatives which have become engaged in improved seed production in Oromia. A serious barrier to their effective contribution to increase seed availability is that Oromia Bureau of Agriculture and Rural Development (BoARD), now for several years, has not been able to obtain and supply those cooperatives with adequate amounts of basic seed. As a result, farmers were discouraged to continue seed production. Other problems posing barriers to the growth and effectiveness of production of improved seed and engagement of new stakeholders in the sector are the difficulty in timely supply and distribution, poor adaptation of varieties to local biophysical and socio-economic conditions, long period of seed refreshment/ replacement, and long period of putting recently released varieties to wide scale production. Need for strategic interventions The above analysis shows that the availability of, access to and use of improved seed in Oromia is very low due to several reasons. Not only the number of stakeholders and private sector players is limited, but also the scope in terms of the amount of seed produced, types of seeds produced (cereals, pulses, oilseeds and horticultural crops), geographical coverage, quality and effectiveness of services as provided by the sector is contributing to a serious need for attention and change. Strategic inputs: OSE and LSB The situation in Oromia justifies the establishment of a Regional Public Seed Enterprise, being Oromia Seed Enterprise (OSE). Another strategic input in strengthening the seed sector is the LSB project with its local and commercial orientation, and focus on transforming local initiatives in seed supply into local seed businesses. OSE and the LSB project in Oromia are further introduced in this Newsletter. Critical in the case of Oromia is that OSE in an integrated effort with Oromia Agricultural Research Institute (OARI) and Haramaya University coordinates the implementation of the LSB project in the region. Its contribution thereby uses complementary strategies that focus on the diversity of situations as encountered in Oromia region. This coordination of complementary efforts aims to result in increasing access to, and availability and use of seeds of improved varieties by farmers with a fair seed price that justifies the quality and potential increase in productivity. Ato Kedir Nefo is general manager of OSE and Ato Shemsu Baissa is manager of OSE s Seed Production and Quality Control Department. Dr Amsalu Ayana is Crop Director of OARI. Within the LSB Project, Ato Kedir and Dr Amsalu act as coordinators of West and South Oromia region. Ato Shemsu acts as assistant coordinator. Local Seed Business Newsletter 3 (January 2010) 3

Oromia Seed Enterprise By Kedir Nefo and Shemsu Baissa In order to address the situation as introduced in the previous article, the Oromia National Regional Government established its own Regional Public Seed Enterprise on March 2008, which is called Oromia Seed Enterprise by regulation No. 108/2008. Organizational profile, structure and staff The OSE is accountable to the Administrative Council of Oromia National Regional State (ONRS) and governed by a Board of Directors and a General Manager who is assigned by the President of ONRS. The Headquarters is located at Finfinne. OSE has two branches located at Nekemte (West Oromia Branch) and Asela (East Oromia Branch). The Enterprise has both technical and support staff under the three departments Seed Production and Quality Control, Marketing and Human Resource Development, Finance and Administration. OSE currently has 59 staff; the technical staff comprises 27 persons. Mission and objectives OSE in its mission follows agro-ecology-based standardized seed production procedures. It contributes to processing, marketing and distribution of seed of improved varieties of food and forage crops. As a public entity, OSE is to avail seed at the required time and place, and at a reasonable price, satisfying the demand of customers, considering the changing environment. It has to operate on a competitive basis and be profitable. In order to meet this demand, it needs to apply modern technology through its committed, trained and socially responsible team of professionals. The organizational objective of OSE is to ensure the satisfaction of seed demand of the region and contribute to increased production and productivity through seed supply. Seeds should be of the required variety type, seed quality and quantity, available at the right place and time at an affordable price. OSE values and beliefs OSE is imbued with its own set of values that collectively describe its culture. Those values include the following: Quality first Encouraging high level of professionalism among our staff Efficiency and effectiveness Advocating ethical standards, accountability and transparency Credibility and utilizing any opportunity for better achievements Fostering commitment to developing true partnership with collaborators Being responsive to the need of our customers Valuing creativity and innovation, team work, and a multidisciplinary and participatory planning approach Recognizing diversity in the work place Supporting an informal working environment in which effective vertical and horizontal communication is valued above hierarchy Maintaining a deep concern for the community in which we live and work Encouraging staff to have a sense of humor in the face of many challenges and make the enterprise an attractive place to work Learn by doing A commercial and public profile OSE is mandated to avail seed of appropriate varieties of food and forage crops released from domestic but also from foreign institutions, for the use by different categories of farmers in different agro-ecologies. In order to realize this, it is responsible to multiply, process and distribute different classes of seed of varieties highly demanded both at national and international markets. In order to promote the use of quality seed, it uses strategies like seed and variety demonstration, popularization and market promotion through farmers field days, public media and news paper. It further provides need-based training and consultancy services to farmers and others on seed production, multiplication, processing and the establishment and management of private small-scale seed businesses; within this category, its participation in the LSB project is most relevant. Seed multiplication activities OSE s seed multiplication activities are currently carried out on its own farms and through contracted seed growers. Contractual seed growers include large-scale agricultural development enterprises, Higher Learning Institutions, Private Agricultural Development PLCs, small-scale farmers and others. OSE seed crop area planted and expected seed production (2009/10) Crop type No. of varieties Area planted in ha Expected cleaned seed in qt Maize 4 2,411 40,980 Wheat 8 1,598 40,753 Malt barley 2 244 3,739 Food barley 2 35 535 Teff 1 56 766 Linseed 2 27 229 Chickpea 3 39 667 Haricot bean 1 53 903 Soya bean 1 133 2,261 Local Seed Business Newsletter 2 (November 2009) 4

In the 2009/10 agricultural season, OSE is multiplying 24 varieties of nine food crops on 4,597 ha. More than 50% of the seed multiplication activities are carried out on the fields of small-scale farmers who are organized as seed grower cooperatives, grouping in different zones and districts of the region. OSE targets to harvest about 106,867 quintal of raw seed. It plans to distribute about 90,838 quintals of cleaned seed with 85% recovery of raw seed. The table above illustrates the seed production plan. Ato Kedir Nefo is the general manager and Ato Shemsu Baissa is the manager of the Seed Production and Quality Control Department of OSE. Within the LSB Project Ato Kedir acts as coordinator and Ato Shemsu as assistant coordinator of the Oromia West and South component. Local Seed Business Project in Oromia South and West By Shemsu Baissa, Kedir Nefo and Amsalu Ayana In the LSB project Oromia Seed Enterprise (OSE) and Oromia Agricultural Research Institute (OARI) work in collaboration with the Centre for Development Innovation (CDI) of Wageningen University and Research Center in the Netherlands. The initial phase of the project focuses on an assessment of the organizational and market aspects of seven seed innovation sites. The assessment serves to develop for each site an appropriate strategy that will facilitate its development into an autonomous and commercially operating local seed business. The innovation sites are situated in seven districts of Oromia and located in dissimilar agro-ecological zones. The seed producer cooperatives in the sites are specialized in the production of seeds of several food crops. The table below shows some details on the seven sites in West and South Oromia. Find a more elaborate description of the Dodola and the Jeldu site elsewhere in the Newsletter. Future direction The ultimate goal of the LSB project is to support the selected innovation sites with their seed producer cooperatives to develop into autonomous seed business entities that will operate in the local market district that is defined at the zonal level. OSE has keen interest to support these new LSBs with supply of basic seed, technical capacity building, business management and market facilitation if the seed produced will be beyond the local demand. OARI is committed to develop new crop varieties and supply initial seeds such as Breeder and Pre-Basic Seed. In its strategy to use complementary approaches to satisfy the demand among farmers for improved seed, the realization of small-scale and local seed businesses in Oromia is a top priority for OSE and OARI. To succeed joint support of other stakeholders like Oromia BoARD, the private sector, Farmers Cooperative Unions, donors and NGOs is essential. Thereby, we can attain the ultimate goal which is quality life via agricultural development led industrialization (ADLI) policy of the country. Innovation sites in Oromia South and West (2009) Seed Grower Cooperative District, zone Seed production crops 1 Anano Shisho A. Tullu, E. Shewa Maize composite 2 Shiba Mikael Lemu-Bilbilo, Arsi Barley, field pea 3 Wirtu Quacama Dodola, W. Arsi Wheat 4 Dureti Tullu Sinana, Bale Durum wheat 5 Biftu Lume, E. Shewa Lentil, durum wheat 6 Derara Jeldu, W. Shewa Potato 7 Boyena Omo Nada Hybrid maize, Soybean Focus and institutional setting 1 Market linkage; supported by EIAR/ MARC 2 Contractual seed multiplication with ESE 3 Established cooperative supported by SHA and other stakeholders 4 Established cooperatives supported by SHA; now working with OSE on contractual seed production 5 Community seed bank organized as cooperative; initial seed production activities supported by EOSA and other partners 6 Established cooperative with experience in potato seed production supported by EIAR/ HARC 7 Established cooperative with experience in hybrid maize and soybean seed production in a contractual arrangement with OSE and World Vision-Ethiopia EIAR: Ethiopian Institute of Agricultural Research; MARC: Melkasa Agricultural Research Center; ESE: Ethiopia Seed Enterprise; SHA: Self Help Africa; OSE: Oromia Seed Enterprise; EOSA: Ethio Organic Seed Action; HARC:Holeta Agricultural Research Center Local Seed Business Newsletter 2 (November 2009) 5

Oromia South and West Innovator Team Diriba Fufa Tore was born in Wollega, Oromia Region. He graduated with BSc in Agriculture (Plant Production and Dry Land Farming) from Debub University, now University of Hawassa and MSc in Plant Sciences (Seed Science and Technology) from Haramaya University. He is pursuing Bachelor of Science in disaster risk management and sustainable development. He was working as director and teacher in a private school, agronomist, extensionist, farmers based seed multiplication expert, vertisol development expert and anti corruption officer in Oromia BoARD. He has a good experience in crop production, seed production and survey. Diriba is working as seed expert in the LSB project in South and West Oromia. Arfassa Kiross was born in Kelem Wellega zone, Oromia region. He is BSc holder in Agricultural Resource Economics and Management, and has a Diploma in Plant Sciences and Technology from Hawassa University. He has been working as researcher and research technician in Oromia Agricultural Research Institute at Sinana Agricultural Research Center for many years. He has good experience in socio-economic research, plant pathology laboratory work, breeding and seed multiplication activities. Arfassa is working as Agribusiness expert in the LSB project in South and West Oromia. Abdo Woyema was born in Arsi zone, Oromia Region. He earned his BSc degree in Plant Sciences from the then named Alemaya University and MSc in Agronomy from Haramaya University. He has been working as coffee quality control expert in the Agricultural and Rural Development Office in Oromia region and as an instructor at Woreta and Agarfa Agricultural and Vocational Educational Colleges. He worked in the Oromia Agricultural Research Institute at Sinana Research Center as researcher and was Head of the Department of Agronomy and Crop Physiology Research Division. He participated in various regional and national research reviews. Abdo is working as seed expert in the LSB project in South and West Oromia. The Oromia South and West innovator team (back: Diriba Fufa, Arfassa Kiros and Abdo Woyema) and coordination team (front: Amsalu Ayana, Kedir Nefo and Shemsu Baissa) Dodola site, Oromia Region Seed producers cooperatives experienced in contractual seed production By Abdo Woyema, Arfassa Kiross and Diriba Fufa Dodola: small cereal based district Dodola is located in the West Arsi zone of Oromia Regional State at a distance of 327 km from Addis Ababa to the south eastern part of the country. The nearest town is Shashamane, the capital of the zone at 72 km. The altitude ranges from 2300 and 3500 masl. 95% of the district falls under high altitude agro-ecology, locally referred to as Baddaa ; the remaining part of the district is classified as mid altitude, Badda dare. The rainfall of the district is bi-modal with a short rainy season during the months of April and May and a long rainy season during the months of June until August; the average annual rainfall ranges between 805 to 1260 mm. The area is suitable for the production of a variety of crops including bread and emmer wheat, barley, field pea, faba bean, teff, linseed, lentil and maize. Various stakeholders support inception of cooperatives Up till 2006, few farmers in Dodola were engaged in seed multiplication activities as designed and implemented by the District Agricultural and Rural Development Office. Since 2007, two seed producer cooperatives were supported in their establishment. Their names are Wirtu Kechema Seed Producer Cooperative and Welta i Tullu Seed Producer Cooperative. Stakeholders supporting the establishment of the cooperatives were the above mentioned District Office, Self Help Development International (SHDI) and the District Cooperative Promotion Office. The two cooperatives are licensed to produce seed of improved wheat varieties. Wirtu Kechema Seed Producer Cooperatives unites 75 farmers (68 males and 7 females) in their engagement in seed business. Local Seed Business Newsletter 2 (November 2009) 6

Seed production The seed producer cooperatives multiply seed of the following improved bread wheat varieties: HAR 1685 (Kubsaa), HAR 1407 (Tuse), HAR 1868 (Shina), Millennium (Bar kume), Madda Walabu and Dure. The farmers in the district use both traditional and modern technologies such as herbicides and fungicides. In seed production, they use on rental basis a combine harvester. Bread wheat monocropping is expanding in the Dodola district. Reasons are the existing seed market demand and its yield potential compared with other crops. This is exclusively for seed producers. Its suitability for combine harvesting partially contributes to the expansion of wheat monocropping. This holds true both for grain grower farmers in the district and seed producer cooperatives. To avoid the problems associated with monocropping, farmers show a willingness to include other crops for seed production. Improved varieties of Faba bean could be introduced for seed production; they can be used as break crop and can be marketed in the communities in the district. This is because nowadays farmers in the district scrutinize the negative impact of monocropping especially in terms of yield penalty and weed competition. Discussions with farmers at Dodola innovation site Contractual seed production: an initial step towards LSB In the past three years, SHDI provided through Raya Wakena Farmers Union 200, 381 and 284 qt of basic seed of several wheat varieties to seed producer cooperatives in the district. District Agents in Dodola have supported seed production facilitating the selection of sites and potential seed producer farmers to join in clusters. Furthermore, seed experts in the district support those cooperatives during the selection of sites for seed production and field inspection at different stages. Seed quality is assessed and monitored by a technical committee of the district. This technical committee comprises experts from District Agricultural and Rural Development Office, District Cooperative Promotion Office and Raya Wakena Farmers Cooperative Union. The seed producer cooperatives produce the seed on contractual basis for Raya Wakena Farmer s Cooperative Union, which takes responsibility for processing, storage and marketing. The contract determines the price for the seed based on the existing grain price at the local market during harvest with 15% addition on top. This prizing policy is usual in the commonly known farmer based seed production schemes as operated by ESE, OSE and BoARD. Since 2009, the seed producer cooperatives started to produce seed under a similar contractual agreement with OSE. In general the commitment, and technical seed production capacity and organizational skills are indicators of the seed producer farmers to engage on the business. And to run its business independently, among other factors strong capacity building/ training on cooperative basic principles and availability of sufficient working capital is indispensable. Strengthening the capacities of partner organizations involved in seed supply is a key to empowering farmers in availing and accessing quality seed of improved varieties. Jeldu LSB site, Oromia Region Potato farmer research group evolving towards commercial seed producers By Diriba Fufa, Arfassa Kiross and Abdo Woyema Jeldu: Potential district for potato production Jeldu is one of the innovation sites in Oromia Region. It is located at a distance of 150 km west of Addis Ababa. It is highland with an average elevation of 2800 masl and receives a rainfall around 1200 mm. The area is known for the crops cultivated which include potato, wheat, barley, linseed, field pea and faba bean, but also for its livestock, which includes cattle, sheep, mules, donkey, horses, goats and poultry. The adoption of seed production technology Until recently, farmers in the district did not use seed production technology for potato seed production. But some years ago, Holeta Agriculture Research Center (HARC) started to support improved seed potato production in a Farmers Research Group (FRG) and through time many farmers have joined. These days, the technology is highly dispersed and many farmers in the District are being involved in potato production. It has resulted in Local Seed Business Newsletter 2 (November 2009) 7

a booming seed potato business. A large number of farmers have organized themselves in farmer cooperatives to produce and market seed potatoes as commodity. Farmers organization and seed production Currently, four different potato seed producer cooperatives (Mose Darara, Mose Roba, Gammachis Galan and Galan) are producing improved potato seed (tubers). The four cooperatives have 432 male and 12 female members. The farmers have taken an action of organizing themselves in cooperatives to tackle the existing poor market access. Some of the farmers were working with HARC for many years; the early adopters of the technology have trained other farmers on seed production. Generally, the members of the cooperatives have good experience and seed production skills in pre- and post-harvest handling. Seed tuber marketing After production, processing and certification, seed tubers have to be sold as soon as possible as a consequence of their short shelf life. The issue of marketing is challenging because of unbalanced buyers and seed supply, little or no seed promotion, and insufficient understanding of the cooperative members of market mechanisms. Due to these reasons, only 50% or below of the produce is currently reaching the market. Consequently, the cooperatives are struggling to overcome the problem and designed their own marketing strategies; it should however be realized that these strategies do not stand full by themselves. Darara Improved Potato Seed Producer (DIPSP) cooperative, located in the Jeldu, uses the following market strategy. It has divided its members into eight zones; each zone consists of thirteen members. The zonal groups have made an agreement to sell their seed turn by turn. Based on the available customers, the seller (zone) is identified per lot. Again members within the zone are identified using the same technique (lot). The members who get the chance to sell their seed notify the proportion of their produce and the selling is carried out according to their product proportion. Benefits obtained from seed production The introduction of the technology benefited the members in various ways such as household income, a good life status, investment of resources in the construction of houses, and satisfying family needs, in addition to acting as seed source locally and nationally. For example, last year one of the cooperative members in the district sold his produce for more than 250,000 ETB. With the profits, he established three electric grain mills as means to diversify sources of income. Opportunity for evolvement to LSB Farmers in the district have already started to get various benefits besides their technical knowledge and experience. Therefore, they have the potential and are ready to evolve as LSB unit. The site with its focus on commercial seed potato production shows how technical, organizational and commercial aspects shape LSB development. It further shows that for example an important potential seed commodity as potatoes can be a driver for such a process. Potato and groundnut seed systems: study of seed use and commercial behaviour in East Hararghe Student: Mergia Tolla Justification of the study Seed is considered to be basic to agricultural production and a vital input to enhancing productivity. Seed is accessed by farmers through formal and informal systems. The formal seed sector in Ethiopia owes its origin to the establishment of the Alemaya College of Agriculture in the mid-fifties and the Institute of Agricultural Research (IAR) in the mid-sixties. The informal seed sector is found to be effective in quickly reaching out to the difficult, inaccessible, small holder pockets and would be a fertile ground for a more entrepreneurial style of seed production. One of the alternative measures to improve seed supply sustainably is based on small holders seed multiplication. Objectives of the study The study aims to diagnose the existing seed systems and obtain an understanding of farmers seed sourcing behaviour in order to develop appropriate interventions for seed delivery based on existing practices. The major focus of the study is an assessment of the existing seed system of both potatoes and groundnut; assess farmers participation in the seed systems and their commercial behaviour towards improved seed. Location and methodology This study is conducted in Haramaya and Babile districts of East Hararge Zone, in the Eastern part of Oromia National Regional State. Haramaya district was selected for potato and Babile for groundnut; both are cash crops. This study makes use of data from primary and secondary sources. Secondary sources of data are collected from several institutions. Data from primary sources are collected through formal interviews using a Local Seed Business Newsletter 2 (November 2009) 8

structured questionnaire. A total of 160 farmers has been randomly selected; 80 are from Haramaya district and 80 are from Babile district. A pretested questionnaire is currently used to collect data from the selected farmers. It addresses demographic characteristics, topics related to production and use of groundnut or potato seed, farmers behaviour buying and selling seed, marketing and related issues. The questionnaire has been translated into Oromifa to ease data collection and enumerators understanding. Data collection was started in the mid of December and is in progress. Further information is collected with the help of focus group discussions using check lists. This technique is used to understand farmers organizations and the existing seed systems, their functioning and their constraints. Preliminary results: diverse seed sources Data entry and analysis is not completed yet. Preliminary results are based on focus group discussions in Tinike innovation site. In this site farmers are producing, selling and purchasing potato seed of both improved and local varieties. Haramaya University is in this site the major source of improved potato seed. Potato seed is multiplied through a contractual arrangement. Potato seed produced is sold to farmers in the district through facilitation of the agricultural office. There are also NGOs who purchase seed from this area and distribute it to other districts. During the discussion dissimilar types of commercial behaviour were identified: i.e. farmers who purchase potato seed from several sources, farmers who produce seed and sell locally to other farmers, and farmers who use farm saved potato seed. Both improved and local varieties of potato, sorghum and maize are available. Eight varieties of potato, three varieties of sorghum and more than two varieties of maize are found in the area. In Babile, farmers mainly use purchased and farm saved seeds. More than two varieties of groundnut, eight varieties of sorghum and two varieties of maize are found in the area. Reasons for farmers preference to dissimilar varieties will be analyzed further in the study. Preliminary results: farmers preferences for locally produced seed In Bishan-Babile, the Jalala multi-purpose cooperative has been established in 2003. The cooperative has 37 female and 273 male members. Currently it provides fertilizer and seed, and purchases from farmers the groundnut produce and seed for further marketing. Based on the information from its leaders, the purchase of seed from local farmers is a profitable business for the cooperative due to low transaction cost. Locally produced seed is preferred by farmers since they have seen the material in the farmers field, thus following the principle of know the seed you grow. The study and LSB development The study by Mergia will provide information on the commercial behaviour of farmers towards the use of seed of both improved and local varieties. Farmers can be grouped as those who either purchase seeds, or produce improved seeds and sell those to other farmers, or neither buy nor sell seed. The study seeks to investigate the farmers commercial behaviour, and explore factors that affect a household s probability of choosing the commercial behaviour. Identification of sources and factors that influence seed purchase from dissimilar sources may provide relevant information for seed business development, particularly at the local level. The result of Mergia s study may be important for the design of interventions supporting such local seed marketing of the two cash crops as studied in East Haraghe. Mergia Tolla is conducting his MSc study within the Post Graduate Programme of Agricultural Economics Haramaya University. His adviser is Dr Dawit Alemu. Analysis of the seed system and quality analysis of lentil in Gimbichu Woreda, Central Ethiopia Student: Firaol Taressa Lentils: a new cash crop in Gimbichu The grain legumes that are consumed in Gimbichu woreda include lentil, grass pea and faba bean. Other food legumes of minor importance are the field pea and haricot bean. Lentil is the second most important crop in the woreda following wheat. Time series data from 2003 to 2008 demonstrate that lentil as a crop is an upward trend. Previously, lentils were grown in the highlands of Gimbichu. The crop was introduced to the lowlands to be cultivated under rainfed conditions. All cultural practices are manual and based on traditional production system. A local and improved variety which is referred to as Alemaya are cultivated. Preferred lentils are those with red color seeds, large seeds, stable production and resistance to biotic and a biotic stress factors. Lentils are used for human consumption and its Local Seed Business Newsletter 2 (November 2009) 9

straw is used for animal feed. The variety Alemaya is used as cash crop. Interviewed farmers said our eyes opened after this variety was introduced. Objectives of the study The study aims to identify key characteristics of the farmers seed system in Gimbichu LSB innovation site. Preliminary outputs: seed sources Farmers lentil seed sources were assessed for the 2009 cropping season. The seed system includes both formal and informal systems. The seed system survey conducted included 90 farmers. It demonstrated that the informal system is dominant as it accounts for about 68% of the seed sources. These sources include farmers saved seed (63%) and seed purchased from the local market (5%). The formal seed system (improved seed) accounts for 32%, with seed originating from ESE (9%) and Yerer Farmer Union (23%). Informant farmers, agricultural experts and researchers indicate that farmer to farmer seed exchange is more effective. During the interviews several respondents indicated that exchanged seed has better yield, resistance to stress and better quality than seed from other sources. Laboratory analysis of lentil seed Seed samples collected from different seed sources for the dominant varieties were used to perform seed quality test. A 0.6 kilogram seed sample was obtained from each respondent (n = 90). The seed was bulked based on the following sources: ESE, Yerer union, farmers own saved, and market purchased. One working sample was drawn from every bulk of seed. Laboratory tests with four replicates were performed for purity, vigor and seed health. Each sample was sorted to four components that include: pure seed, other species seed, weed seed and inert matter, and infected/ damaged seeds. Physical purity and standard germination were assessed in accordance with the International Seed Testing Association (ISTA) "Rules for Testing Seeds". The viability was assessed based on the speed of germination, for which for each replicate 25 seeds were planted in a noble germinator and were assessed for the presence of normal seedlings starting from day 5. Field emergence was assessed as a second indicator of viability and germination speed. 400 seeds were sown per plot using RCBD in the field. Percentage emergence was determined at 10 and 14 days after planting by counting. Firaol is currently concluding the data collection and is starting with the data analysis, so that data cannot yet be shared in this issue of the Newsletter. Linkage with LSB The research of Firaol will assess the quality of lentil seed used by farmers in Gimbichu according to scientific criteria and in terms of farmer perceptions. His study may identify potentials and constraints of the informal seed system; he may identify ways to improve informal practices of seed production. In an indirect manner, Firaol may provide inputs in matters of farmers demands and perceptions, but also technical seed quality aspects, to local seed producers opting to enter the business of commercial lentil seed production. Firaol Taressa is a MSc student of the Post Graduate Programme on Seed Science and Technology of Haramaya University. His supervisors are Dr Kindie Tesfaya and Dr Dereje Gorfu. Dutch Minister of Agriculture visits Ethiopia By Joep van den Broek Promoting Dutch-Ethiopian collaboration The Dutch Minister of Agriculture, Nature and Food Quality, H.E. Mrs Gerda Verburg, visited Ethiopia in November to discuss issues of food security, climate change and agricultural growth and get further acquainted with the country. In her presentations during the two-day visit, she emphasized that sustainable development of agriculture is the main recipe to counter the threats of food insecurity and climate change in Ethiopia. In addition, she commended the joint Dutch-Ethiopian efforts in the horticulture, oilseeds and seed sectors. Agriculture and climate change H.E. Verburg indicated that under her chairmanship of the UN Committee for Sustainable Development (CSD) the relation between agriculture and climate change, both from a mitigation and adaptation point of view necessitates much more attention. In discussions with the Ethiopian Prime Minister, H.E. Meles Zenawi, this issue was reaffirmed and taken up for concrete action in the Copenhagen Summit. Role of the seed sector The seed sector can contribute importantly to this challenge by developing new (e.g. drought resistant) varieties and conserving Local Seed Business Newsletter 2 (November 2009) 10

the agrobiodiversity of plant genetic resources. Through additional resources from the Ministry of Agriculture these objectives are now also being supported in Ethiopia by the Integrated Seed Sector Development Programme (a.o. promoting activities of Ethio-Organic Seed Action) and in a new project on Climate Change Adaptation Policy. Programme of the visit During her stay in Ethiopian, the Minister opened a new animal feed factory in Debre Zeit, she hosted a buffet dinner for the Dutch-Ethiopian agricultural community and visited two flower and vegetable farms near Holetta. In addition, she met with two small-scale farmers around Debre Zeit, of which one was a smallscale seed producer of fruit seedlings. In addition, she had discussions with the Prime Minister and State Ministers from MoARD and MoTI. Supporting sustainable production During these visits and meetings the Dutch Minister showed her admiration for the fast development of the agricultural sector in Ethiopia, especially in the horticulture sector. Specifically, she praised the development of a Code of Practice for the flower sector. This Code protects rights of employees and sets stringent standards for the use of pesticide and fertilizer. She emphasized that the challenge of the 21st century will be to produce more with less. With a still increasing world population, climatic change and other environmental hazards it is top priority to combine agricultural production growth with more sustainable production methods. During her visit H.E. Verburg, together with State Ministers H.E. Dr. Aberra and H.E. Yaekob Yalla, handed over the first copy of the Business Opportunities for the Ethiopian Oilseeds Sector to representatives of the Dutch and Ethiopian private sector; see the picture. Public-private cooperation Lastly, the Minister highlighted the importance of public-private cooperation. Good examples of this are the public private partnerships (PPPs) supported by the Netherlands. In the field of oilseeds this has resulted in a strong agenda to support activities along the chain of production, from increasing agricultural productivity, to improving trade relations and from supporting agricultural research to increasing oil quality at Ethiopian oil millers. Joint public private action is needed to seize the agricultural opportunities in Ethiopia! Mr. Joep van den Broek, is delegated advisor for the Royal Netherlands Embassy and programme leader for the Integrated Seed Sector Development Programme. E-mail: joep.vandenbroek@gmail.com In the picture from left to right: Dr. Mussie Yacob, President of the Ethiopian Pulses Oilseeds and Spices Processors and Exporters Association (EPOSPEA), Mr. Jaap Biersteker, representing the Dutch Product Board for Margarine, Fats and Oils (MVO), H.E. Dr. Aberra Deressa (State Minister for Agricultural and Rural Development), H.E. Gerda Verburg (the Netherlands Minister of Agriculture, Nature and Food Quality), H.E. Yaekob Yalla (State Minister for Agricultural and Rural Development), Geert Westenbrink (Agricultural Counsellor, Embassy of the Kingdom of the Netherlands). Local Seed Business Newsletter 2 (November 2009) 11

The formal seed sector in Ethiopia A study to strengthen its performance and impact By Niels Louwaars Aim of the study The Agricultural Growth Programme (AGP) Team, a joint effort of the Ethiopian government and development partners aims to improve extension, input supply, agribusiness and rural infrastructure. The envisaged US$300 million AGP has identified seed availability and quality as a key issue in agricultural growth. The World Bank commissioned an overall assessment of the performance of the formal seed sector, including a review of the basic elements in formal seed provision, identification of important constraints, and a proposal for actions to address those constraints. It explicitly excluded the informal sectors. In August 2009 a team consisting of foreign and Ethiopian specialists studied the current status of Ethiopia s formal seed system. Some features of the mission report are summarised here. Public and private seed sector It is widely realised that good quality seed of adapted crop varieties can make an immense contribution to agricultural productivity. The Ethiopian Government has a long history in supporting the formal seed sector in all its components. Currently, large quantities of especially maize and wheat seed are produced by national and regional parastatal companies. The private sector is concentrating on vegetable seeds; and some maize hybrid seed are produced by Pioneer and local companies. Government policy is to support the private sector. Three types of private sector may be distinguished: local branches of international companies, local companies vested by investors and local companies based on farmers initiatives. Demand for crops and varieties, and seed pricing Currently, policies concentrate on quantities of seed produced. It is important to get beyond crude statistics and examine what the system and its various stakeholders can contribute. One important gap is that the seed system is not being effectively used to deliver new varieties to farmers. Developing an effective farmer demand for new variety seeds is a joint task of the breeders, seed producers and extension workers, developing farmers knowledge of new varieties and supporting them to demand these in the market. Extension workers currently compile annual estimates of seed demand, which does little to help identify actual demands for specific crops and varieties, particularly because the figures are based on seed prices that are below those required to sustain a seed production enterprise. This pricing policy has high opportunity costs, diverts resources from other activities, and discourages any meaningful attempt at encouraging private sector seed supply. Seed marketing opportunities Another factor is the current marketing arrangement, where all seed is provided through cooperative unions and their member primary cooperatives. The cooperatives should develop their own business plans and become agribusinesses rather than distribution agents. Any significant private seed production in Ethiopia will not develop unless independent input dealers are part of a competitive marketing mix. However, some crops are much more likely candidates for formal seed supply than others. Self fertilizing food security crops (cereals, legumes) can only be included when overhead costs are minimised and new varieties become available at a regular basis. There are, however, emerging opportunities in specific markets where the demand for produce of a specific quality (e.g. beans and sesame for export and malting barley) would motivate farmers to frequently renew their seed. Source seed system The research institutes are responsible for breeder s seed and pre-basic seed production and sell these well below cost. Problems at this level must be addressed, including the use of such seed in Farmer Based Seed Multiplication Programmes. A better managed source seed system will also make an immense contribution to helping deliver the varieties that are developed by the research system. Rationalizing farmer based seed production Commercial seed is mostly in the hands of the Ethiopian Seed Enterprise (ESE) and emerging regional seed enterprises (RSEs). These need to be encouraged to rationalize their plans and policies. They are competing for many of the same resources and customers using public funds. The efficiency and rationale for many of the FBSM activities deserves attention; some may have viable prospects to develop into independent local seed enterprises; other groups may be able to produce seed on contract for private or public enterprises or cooperatives; and others should be phased out. Seed regulations With respect to seed regulation, three priority areas are variety release, plant variety protection (PVP) and seed certification. Procedures need to be in place that provide a level playing field for foreign and privately developed varieties. Resources need to be available to implement them efficiently and effectively. The Local Seed Business Newsletter 2 (November 2009) 12

seed certification system needs a re-think, and this will require considerable discussion. Farmer focus group discussions in Oromia region Seed policy The multiple opportunities to make the formal seed system more effective and sustainable requires a clear seed policy. The concept note on integrated seed systems agreed on in February 2009 provides an excellent basis. It needs implementation with respect to the formal seed system with respect to the seed demand statistics; an agreement that seed price should reflect production costs; and the recognition that competition in seed supply and marketing is healthy. It is important to realise that a transition towards private seed provision is a gradual one. Dr. Niels Louwaars is biopolicy expert with the Centre for Genetic Resources, the Netherlands (CGN). He was the leader of the formal seed sector study team. E-mail: niels.louwaars@wur.nl. New name, familiar face: Wageningen UR Centre for Development Innovation By Jim Woodhill In October 2009 CD&IC became part of the new Wageningen UR Centre for Development Innovation. The new Centre is founded on CD&IC s portfolio of work and group of staff. Closer to society For the last four years it went by the cumbersome name of Wageningen International Programme for Capacity Development and Institutional Change (CD&IC). You may have known it simply as Wageningen International. Wageningen UR established the Centre for Development Innovation (CDI) because of the importance it places on linking research and education activities with wider processes of innovation, change and capacity development in society. Strategic position The Centre for Development Innovation operates with a core staff of 50 and has a diverse portfolio of over 200 projects annually, involving partners and clients in more than 60 countries. The new Centre will develop a broader portfolio of work than CD&IC had, particularly in the area of innovation processes and knowledge brokering. It will also increase collaboration with other groups from across Wageningen UR s research institutes and university departments. To do this the CDI is strategically located within the Social Sciences Group (SSG) of Wageningen University and Research Centre. Innovation processes CDI s work is grounded in the innovation systems concept. This means supporting multi-stakeholder innovation processes and capacity development, with a special focus on linking these processes with Wageningen UR s research and expertise. The Centre complements fundamental and applied research and education activities by providing a range of knowledge services related to process facilitation, knowledge brokering and capacity development. It works with public, private and civil society actors and multi-stakeholder coalitions. Window Wageningen International will continue to exist, but as a separate entity. It will act as a window for international partners and clients to ensure they gain coordinated access to all of Wageningen UR and Van Hall Larenstein s research, education and capacity development work. Partner interest In part, what made the birth of CDI possible were the partner and client interest in and demand for the services and approach offered by CD&IC. The new arrangements will enable what CD&IC offered to be continued and strengthened. The official launch of the Centre will take place in February 2010. CDI looks forward to a continued fruitful collaboration with all partners in the LSB project in 2010. Dr. Jim Woodhill is Director of the Centre for Development Innovation. E-mail: jim.woodhill@wur.nl. Local Seed Business Newsletter 2 (November 2009) 13

Book discussion: Seed business management in Africa, by John MacRobert By Dawit Tesgaye, Daniel Tilahun, Seid Mohammed, Walter Simon de Boef and Marja Helen Thijssen Last year, two books were published that are extremely relevant for seed business development in Ethiopia. The first book is Seed business management in Africa, which is written by John MacRobert, seed system specialist of CIMMYT in Zimbabwe. John has a strong background in commercial maize seed production targeting small scale farmers through his previous jobs. Nowadays he is supporting several seed programmes through CIMMYT, which has also published this book. The second book is The African seed company toolbox written by Eline O Connor Funk and published supported by the Bill & Melinda Gates Foundation. In this issue of the Newsletter, we share a review of the book of John MacRobert and try to place it in the context of the LSB project. The following issue of the Newsletter will include a review of the toolbox. Scope: maize seed companies The book is published in the context of the increasing number of new seed companies being established in Sub-Saharan Africa. These companies explore new markets, avail seed of a more and more diverse set of varieties and crops and provide technical assistance to farmers. Their emergence and success is considered an important input to agricultural and economic development. The book targets the establishment of commercial seed companies. For its publisher CIMMYT, with its role in maize breeding in Africa, the book is instrumental for professionalization of the maize seed industry. Critical in the approach of John MacRobert is that he combines both technical and business aspects. He draws on his own wide experiences in the maize seed industry in particular in Southern and Eastern Africa working with small and large seed businesses in the diverse and complex market of African maize farmers. With the book, MacRobert tries to inform seed entrepreneurs with information answering to the following question: how to help the fledging and growing businesses to become profitable and sustainable? Structure: vision, strategies and operationals The first chapter provides background information on the development of the maize seed industry in Africa. Onwards, the book is structured according to a model of seed business development, first addressing a vision and elaborating further strategies in marketing, production and finance. The concluding part of the book addresses aspects of daily management including human resource management and more operational topics. Marketing strategy The first strategy being marketing, demonstrates that the market is crucial and vital in establishing a profitable and sustainable company. Basic components are to match the customer and the product, and to understand and compete with the competition. The book provides a lot of information and insights on how to deal with both components. Another chapter associated to marketing addresses the research or product development. The book s approach to marketing is extremely relevant to the situation in Ethiopia, where seed production with the public or semi-public sector is planned, and to a lesser degree structured by the market. At first this emphasis makes a distinction with the Ethiopian reality, but at the same time it demonstrates the great opportunity for the LSB project, to strengthen marketing capacities of seed producer cooperatives when developing towards local seed businesses (which is basically the aim of the project). Additionally, linking public research with specific seed companies for marketing varieties emerges as a specific option for LSB development. Seed production strategy The second strategy is seed production where planning and scaling up are vital components. Planning is closely tied to the marketing, the latter determining the production plan and not vice versa, a situation that is still encountered in public enterprises but also among seed producer cooperatives that work in a contractual arrangement with one client. The chapter on seed production is particularly relevant for the LSBs engaged in hybrid maize production. The chapter provides inputs to the debate in Ethiopia, whether farmers cooperatives should or should not be engaged in hybrid maize seed production. Basically the planning of production within a commercial or more contractual setting is similar; it follows the path of basic seed to certified 2 seed production. In that the book does not provide many new insights. In Ethiopia basic seed is produced by ESE or other public players. LSBs are not foreseen to be engaged in breeding. The LSB project is open to the production of various crops and local varieties; the book emphasizes on commercial maize production with a strong orientation to hybrid varieties. Financial management strategy The chapter draws upon business knowledge and expertise, but applied in the field of seed company development. MacRobert describes a financial management strategy as one that evaluates the financial requirements and viability of the marketing and production strategies, and puts in place means to monitor and Local Seed Business Newsletter 2 (November 2009) 14

evaluate financial performance of the seed business. This strategy requires development of budgets, accounting systems and analysis of accounts, and further includes management of risk, investments, equity and tax. He carefully translates these common business and financial mechanisms into the reality of a commercial seed business. Capacity development in financial management of those engaged in seed business development, people within LSB (or cooperatives) themselves, but in many cases even the persons supposed to provide support dealing with financial management is extremely important. With the emphasis given by MacRobert to this third strategy, he complements the focus on technical (production) and commercial aspects. Financial management is a vital and often ignored strategy in supporting the establishment or strengthening local companies. Choosing farmers joining commercial seed production The book tried to identify factors that should be taken into account in choosing farmers for seed business. Selection criteria significantly help LSBs to strategically identify the right farmers for seed production activities, from for example seed producer cooperatives. Factors mentioned in the book that can be considered in the context of LSBs are: location, size, environment and infrastructure of the farm, labour availability and farmers management and technical ability. Strategic planning Through our base line survey activity we understand that almost none of the innovation sites have a written and well organized business plan. Capacities related to business planning and business management are lacking. In the book lack of strategic planning is mentioned as one of the common areas of incompetence that may cause seed businesses to fail. Therefore, we have to provide practical training on business planning and management at least for the LSB leaders and assist them to develop a written and well organized business plan. Key issues for business planning and management as presented in the book may be used as inputs for the LSBs. Symbiotic relationship between company and seed producer farmers Normally seed companies contract seed production out to farmers. The relationship between the seed company and the farmers must be viewed as a symbiotic relationship, in which both parties are dependent upon and gain benefit from the relationship. MacRobert describes that the relationship among company and contract seed producers is initiated with making the right choice of contract farmers and is established by a clearly defined contract with those farmers. The relationship is continued through servicing the producer farmers so that the seed is produced to standard, received on time and paid for in a manner that pleases them. The discussion in the book, with for example its position in defining seed prices is not only relevant for LSBs or Seed producer Cooperatives and their members, but also for public seed companies that work in Ethiopia with contractual arrangements for seed production like ESE, Regional Seed Enterprises such as OSE and Amhara Seed Enterprise, and in several regions BoARD. Complaints registration formats An interesting topic addressed in the book is the relation between the company and customer. MacRobert describes several communication strategies to enforce this linkage. We understand that the seed producer cooperatives and LSBs do not yet have mechanisms to register complaints received from customers, neither have the mechanisms for responding in management decisions accordingly. In the appendices of the book the author presents formats for collecting and managing complaints from customers, that with some adjustments to the innovation site context may be very helpful to LSBs. The book and the LSB project The book is an excellent guide for managers of seed businesses, providing them with a structure to develop a vision and strategies, including more practical components. It helps in developing and formulating business plans. For the context of the LSB project, the technical chapters are particularly relevant for groups working with hybrid maize production. The chapters on marketing and financial management strategies are relevant to all partners and staff involved, even though the context of Ethiopia with the dominant role of the public sector and limited functioning of the market economy in the seed sector is quite different from many other countries in Southern and Eastern Africa, with completely liberalized markets and an enabling environment for private seed sector development. The LSB project differs from the focus of the book in that the project aims to facilitate the gradual development from primarily seed producer cooperatives towards seed enterprises; initially the project strongly focuses on the local seed market, being much broader than the market of hybrid maize seeds. Herewith, we find the book s strength, strongly building upon experiences, but also its limitation by solely addressing the business of hybrid maize seed. It is the experience of John MacRobert in combining technical, marketing and financial aspects that makes this book highly relevant for seed professionals with a commercial orientation, such as staff and partners in the LSB project. Dawit Tesgaye, Daniel Tilahun and Seid Mohammed are members of the LSB innovator team in Amhara region. Marja Helen Thijssen is Wageningen UR coordinator for the LSB project associated with the Centre for Development Innovation, Wageningen UR, the Netherlands; Walter Simon de Boef as advisor is associated as consultant with this organization. Local Seed Business Newsletter 2 (November 2009) 15

Overview of LSB activities in 2010 Dates Activity Area Description 20 January Regional workshop LSB Oromia South and Adama West 22 January Regional workshop LSB Oromia East Haramaya 22 January Regional workshop LSB SNNPR Hawassa 26 January Regional workshop LSB Amhara Bahar Dar 29 January Regional workshop LSB Tigray Mekelle Regional multi-stakeholder presentation of documentation and analysis of innovation sites and consultation on future planning 29 30 March National LSB workshop Adama National workshop with LSB staff, students and key partners 31 March National LSB seminar Adama Seminar sharing outputs and facilitating new partnerships 01 April LSB partnership meeting Adama Meeting exploring partnership with other seed programmes 12 30 April International training on plant genetic resources Wageningen, The Netherlands International training on participatory approaches in PGR management 3 7 May National training workshop Bahar Dar Training for LSB innovators and students June/July Regional partnership workshops 8 26 November International training on plant genetic resources and seeds Adama, Hawassa, Bahar Dar and Mekelle Chennai and Jeypore, India Series of 2-day workshops on new partnerships in the four regions International training on PGR management and seed sector development Contact persons LSB Project Organization Person Position within LSB E-mail Bahir Dar University Dr Tadesse Dessalegn Amhara regional coordinator tadesseyfb@yahoo.com Hawassa University Dr Hussein Mohammed SNNPR regional coordinator aaminaa68@yahoo.com Haramaya University Dr Nigussie Dechassa Oromia East regional coordinator ndechassa@yahoo.com Mekelle University Dr Fetien Abay Tigray regional coordinator fetien.abay@yahoo.com Oromia Seed Enterprise Ato Kedir Nefo Oromia South and West coordinator kedirnefobiftu@yahoo.com Oromia Agricultural Research Institute Dr Amsalu Ayana Oromia South and West coordinator ayana6a@yahoo.com Centre for Development Innovation Dr Marja Thijssen LSB Wageningen UR coordinator marja.thijssen@wur.nl Centre for Development Innovation Dr Walter de Boef LSB Advisor walterdeboef@gmail.com Royal Netherlands Embassy Mr Joep van den Broek ISSD coordinator joep.vandenbroek@gmail.com Local Seed Business Newsletter 2 (November 2009) 16