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FAO-Crop Diversification and Marketing Development Project Seed Value Chain Analysis as a means for Sustainable Seed System: A case of farmers based seed production and marketing in Arsi Zone, Oromia Region FAO-Crop Diversification and Marketing Development Project Asella, Ethiopia Seed Value Chain Analysis as a means for Sustainable Seed System: A case of farmers based seed production and marketing in Arsi Zone, Oromia Region By: Fikre Mulugeta (M.Sc, Agronomist, National Project Manager) Jemberu Eshetu (M.Sc ,Agricultural Economist, National consultant) Olani Nikus ((M.Sc, Agronomist, National Consultant,) ©FAO-CDMDP, 2010 All rights reserved. Reproduction and distribution of material in this publication for educational and non commercial purposes are authorized prior permission of the authors provided the source is fully acknowledged. No part of this publication is reprinted or reproduced or utilized in any form or by any means for commercial purposes without prior written permission from copyright holder. Cover photo: wheat pre- basic seed multiplied on farmer’s field, by Olani Nikus Printed in Ethiopia May 2010 i Table of Contents Page ©FAO-CDMDP, 2010 List of Tables and Figures .................................................................................................. iii All rights reserved. Reproduction and distribution of material in this publication for Abbreviations ...................................................................................................................... v educational and non commercial purposes are authorized prior permission of the authors provided the source is fully acknowledged. No part of this publication is reprinted or Executive Summary ........................................................................................................... vi reproduced or utilized in any form or by any means for commercial purposes without prior written permission from copyright holder. Chapter 1 General Introduction ........................................................................................... 1 1.1 Background ............................................................................................................... 1 1.2 Overview of Study Area ............................................................................................ 3 Cover photo: wheat pre- basic seed multiplied on farmer’s field, by Olani Nikus 1.3. Objectives and Methodology ................................................................................... 5 Printed in Ethiopia May 2010 Chapter 2 Seed Supply Systems and Viability of Seed Production in Arsi ........................ 6 2.1 Seed Supply Systems in Arsi .................................................................................... 6 2.2 Viability of Seed Production in Arsi ....................................................................... 10 Chapter 3 Seed Chain Analysis ......................................................................................... 15 3.1 Enabling Environment ............................................................................................. 15 3.2. Seed Supply Chain ................................................................................................. 16 3.3. Seed Marketing and Distribution ........................................................................... 23 Chapter 4 Sector Constraints and SWOT Analysis ........................................................... 29 4.1. Constraint analysis ................................................................................................. 29 4.2. The sub sector SWOT analysis .............................................................................. 30 Chapter 5 Conclusion and Recommendation .................................................................... 33 References ......................................................................................................................... 35 i ii List of Tables and Figures Table 1 Land use pattern Table 2 Cost benefit analysis for wheat and barley seed production (N=76 wheat and N=32 barley) Figure 1 Map of Arsi and the project seed intervention target woredas. Figure 2 Yearly total seed sales and distribution record for major crops (cereals, oils and pulse crops) and wheat produced by ESE at national level over the years (2000-2007) Figure 3 Share of major crop varieties produced by ESE at national level in terms of seed production area over the years (2003-2006) Figure 4 Sales share of the two major crops produced by ESE at national level in quintals over the years (2000-2007) Figure 5 Share of wheat and barley in terms of area cultivated in the seed project woredas Figure 6 Improved seed and fertilizer utilization in Arsi zone, 2007 Figure 7 Improved seed and fertilizer utilization in the seed project woredas, 2007 Figure 8 Basic and C1 seed supply chain map for farmers based seed production Figure 9 Major actors and activities in the chain for farmers based seed production and marketing Figure 10 Seed produced (t) by the farmers’ seed producers groups or coops by the FAO project and participation farmers over the years Figure 11 Farmers participated in malt barley and pulses seed production on contractual bases through ESE and quantity of C1 seed produced (t) over the years Figure 12 Farmers participated in seed production and seed produced (qt) over years in Arsi zone through the three institutions (ESE, FAO and OBoARD) Figure 13 Share of the three institutions in seed production (tones) from the farmers based seed production in the Arsi zone over the years Figure 14 Flow chart for marketing of seed produced through farmers based seed production Figure 15 Seed purchased and processed by the two unions (Hetosa and Galema farmers cooperative unions) and ESE from farmers based seed production in Arsi Figure 16 The proportion of seed collected (purchased) over years by the two unions and ESE from farmers based seed production in Arsi Figure 17 The proportion of seed collected over years by the ESE from farmers based seed production through contractual basis in Arsi ii iii Figure18 Farmer’s wheat seed production and utilization in 2007/08 in the seed project woredas Figure 19 Farmer’s malt barley seed production and utilization in 2007/08 in the seed List of Tables and Figures project woredas Figure 20 Wheat and barley price dynamics in months of a year (August 2007 to July 2008) in Asella Table 1 Land use pattern Table 2 Cost benefit analysis for wheat and barley seed production (N=76 wheat and N=32 barley) Figure 1 Map of Arsi and the project seed intervention target woredas. Figure 2 Yearly total seed sales and distribution record for major crops (cereals, oils and pulse crops) and wheat produced by ESE at national level over the years (2000-2007) Figure 3 Share of major crop varieties produced by ESE at national level in terms of seed production area over the years (2003-2006) Figure 4 Sales share of the two major crops produced by ESE at national level in quintals over the years (2000-2007) Figure 5 Share of wheat and barley in terms of area cultivated in the seed project woredas Figure 6 Improved seed and fertilizer utilization in Arsi zone, 2007 Figure 7 Improved seed and fertilizer utilization in the seed project woredas, 2007 Figure 8 Basic and C1 seed supply chain map for farmers based seed production Figure 9 Major actors and activities in the chain for farmers based seed production and marketing Figure 10 Seed produced (t) by the farmers’ seed producers groups or coops by the FAO project and participation farmers over the years Figure 11 Farmers participated in malt barley and pulses seed production on contractual bases through ESE and quantity of C1 seed produced (t) over the years Figure 12 Farmers participated in seed production and seed produced (qt) over years in Arsi zone through the three institutions (ESE, FAO and OBoARD) Figure 13 Share of the three institutions in seed production (tones) from the farmers based seed production in the Arsi zone over the years Figure 14 Flow chart for marketing of seed produced through farmers based seed production Figure 15 Seed purchased and processed by the two unions (Hetosa and Galema farmers cooperative unions) and ESE from farmers based seed production in Arsi Figure 16 The proportion of seed collected (purchased) over years by the two unions and ESE from farmers based seed production in Arsi Figure 17 The proportion of seed collected over years by the ESE from farmers based seed production through contractual basis in Arsi ii iii iv Abbreviations ABRDP Arsi Bale Rural Development Project ADLI Agricultural Development Led Industrialization AISE Agricultural Input Supply Enterprise ARDO Agriculture and Rural Development Office CADU Chilalo Agricultural Development Unit CDMDP Crop Diversification and Marketing Development Project CPO Cooperative Promotion Office EIAR Ethiopian Institute of Agricultural Research ESE Ethiopian Seed Enterprise FAO Food and Agriculture Organization of the United Nations FBSPMS Farmer Based Seed Production and Marketing Schemes KARC Kulumsa Agricultural Research Center MDC Market Development Component MoARD Ministry of Agriculture and Rural Development NGO Non-Governmental Organization NSIA National Seed Industry Agency PASDEP Plan for Accelerated and Sustainable Development to End Poverty OBoARD Oromia Bureau of Agriculture and Rural Development OCB Oromia Cooperative Bank OSE Oromia Seed Enterprise UAAIE Upper Awash Agro-Industry Enterprise iv v Executive Summary Abbreviations The Crop Diversification and Marketing Development
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