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Current Status on Business Performance and Development Opportunities

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Current Status on Business Performance and Development Opportunities SEED PRODUCERS IN THE DRY ZONE OF MYANMAR Current status on business performance and development opportunities Abishkar Subedi, Thuzar Khin and Win Soe Integrated Seed Sector Development Programme, Myanmar – 35 35+ METHODOLOGY FIGURE 1 About ISSD Myanmar Programme Assessment framework Key performance areas used to analyse seed producer business performance in the dry zone of Myanmar The Integrated Seed Sector Development (ISSD) programme Four strategic aspects of seed business constitute the poor satisfactory envisions a vibrant and pluralistic seed sector that caters framework of this study. We looked at the extent to good for the quality seed needs of smallholder farmers in which seed producers were technically well-equipped, 1/ TECHNICALLY 3/good MARKET ORIENTED Myanmar’s dry zone. Started in 2017, ISSD is a four years professionally well organized, market oriented and WELL- EQUIPPED programme with a budget of Euro 1.5 million. It is imple- strategically linked. These are the four key performance mented by the Ministry of Agriculture, Livestock and Irriga- areas (KPAs) that we adapted in the context of Myanmar The scheme of evaluation of tion (MOALI) of Myanmar and Welthungerhilfe (WHH), (Figure 1). Each KPA was further analyzed, based on one overall seed business with technical support from the Wageningen Centre for or more Critical Success Factors (CSF) and scored with a performance Development Innovation (WCDI), Wageningen University four-points scale; one (lowest) indicating poor performance, 76–100% and Research, and Resilience BV. The programme is funded and four (highest) indicating excellent performance. excellent by the Directorate-General for International Coopera- 0–25% poor tion, Ministry of Foreign Affairs of the Kingdom of the The Critical Success Factors for each key performance 51–75% Netherlands. areas were as follows: good 26–50% The ISSD Myanmar programme operates in four regions Technically well-equipped – a crop and varieties portfolio satisfactory in the dry zone of Myanmar: Sagaing, Mandalay, Nay Pyi that fulfils local demand; easy access to the required Taw and East Bago regions. Rice, green gram, black gram, volume of Early Generation Seed (EGS); a substantial 1: 26% 2/ PROFESSIONALLY 2: 25% 4/ STRATEGICALLY LINKED pigeon peas, chick peas, sesame, groundnuts and sun- volume of quality seed production; pre-harvest and 3: 65% WELL-ORGANIZED 4: 82% flowers are the eight targeted crops of the ISSD Myanmar post-harvest seed production skills; the ability to pro- programme. duce quality seed guided by the seed quality assurance system. Interventions focus on: 1) improving seed sector coordi- nation, 2) increasing the business performance of early Professionally well-organised – easy access to seed produc- FIGURE 2 Map showing study sites generation seed producing seed farms, and 3) increasing tion land; easy access to supplementary irrigation and the local availability of quality seed at an affordable price physical assets; an effective seed business plan, along for smallholder farmers. The program is targeted to with proper finance and human resources management. reach 75,500 smallholder farmers with locally available quality seed of well adapted varieties of rice, food legume Market orientated – good market segmentation; effective and oilseed crops. product promotion; successful handling of customer Kachin feedback. About the study Strategically linked – good record of acquiring services; effective use of new technologies, information and capaci- INTRODUCTION The purpose of the study is twofold. It serves as a base- ties; membership of seed growers’ associations. Sagaing line study assessing the current status of seed producers Monywa Madaya in the dry zone of Myanmar in terms of their technical Myinmu Pathengyi Kyaukse The use of quality seed is a key driver for increasing skills, internal capacities, business models, operational Study sites Chaung-U the agricultural productivity of Myanmar’s farmers. The styles, partnerships and sustainability. It also serves as Shan inherent characteristics of varieties and the quality of the a key entry point to identify their challenges and support The study was organised in three townships from Sagaing Chin seed determine to a large extent the yield potential and needs. Based on the information and analysis provided region (Chaung U, Monywa and Myinmu) and three the capacity of the crop to adapt to a changing climate. by the study, the ISSD programme selects seed producers townships from Mandalay region (Kyaoukse, Madaya Mandalay In recent years, improved varieties of a large number of for further support, designing specific interventions and Pathengyi) (Figure 2). Rakhaing crops have been developed or tested and released in to develop scalable and sustainable local seed business Magwe Myanmar; however, not all of them have reached farmers. models in the dry zone of Myanmar. Kayah Access to good quality seed at an affordable price remains Sampling Bago a major issue for smallholder farmers in Myanmar. Seed producers in this study include existing ‘contact farmers’ or ‘individual farmers’ in the dry zone who are A cluster sampling method was used to select seed Improved access to good quality seed of a wide portfolio involved in quality seed production of improved or officially producers. Data were collected from 18 clusters, nine in Kayin of varieties contributes to food and nutrition security, released varieties. They are often linked with the Depart- the Sagaing region and nine in the Mandalay region. The Ayeyarwady Yangon income generation, and climate resilience for men and ment of Agriculture (MOALI), and produce quality seed survey consisted of a total of 130 seed producers, chosen women farmers in Myanmar. In addition, seed sector for local market. We have excluded domestic private from producers from six townships that were growing development is a business opportunity that in itself seed companies in this report; these have been studied the eight crops targeted by the programme. Mon creates economic growth, jobs and exports. separately. Survey design A semi-structured questionnaire was used to interview the seed producers. Data collection took place from Tanintharyi November 2017 to December 2017. The data collection software KoBoToolbox was used to administer the survey. Developed in English, the questionnaire was pre-tested and finally administered in the Myanmar language. 0 500 km 2 3 RESULTS: BUSINESS PERFORMANCE ASSESSMENT OF SEED PRODUCERS CRITICAL SUCCESS FACTORS: 1. Variety portfolio and early generation seed CRITICAL SUCCESS FACTORS: 1. Market segmentation 2. Quantity of seed produced 2. Product promotion 1/ TECHNICALLY WELL-EQUIPPED 3. Seed production Skills 3. Customer feedback 3/ MARKET ORIENTED 4. Seed quality management Kyaukse Madaya Patheingyi The study suggests that the overall market orientation 83% of seed producers show a satisfactory perfor- Kyaukse Madaya Patheingyi 1: 66% 1: 58% 1: 65% mance in being technically well equipped, while no 2: 34% 2: 35% 2: 35% of seed producers is satisfactory in 78% of cases, while 1: 42% 1: 26% 1: 31% 3: 35% 3: 45% 3: 34% 2: 24% 2: 25% 2: 25% 23% of respondents show a good performance. producers were found to be poor (scoring below 25%) 3: 53% 3: 65% 3: 49% or excellent (scoring above 75%). 4: 46% 4: 37% 4: 44% Mandalay Region With regard to specific CSFs, seed producers show a satisfac- With regards with critical success factors, the study shows that Mandalay Region tory performance both in product promotion and in customer seed producers both in Mandalay and Sagaing region score Chaung U Monywa Myinmu feedback management. However, it is in the way seed lowest in quantity of seed produced, having a poor perfor- Chaung U Monywa Myinmu 1: 59% 1: 62% 1: 59% producers diversify their customer portfolio (market segmen- 2: 35% 2: 36% 2: 33% tation) that the performance score is the highest, reaching mance (score below 25%). This is the area of performance 1: 34% 1: 38% 1: 43% 3: 38% 3: 35% 3: 37% 2: 25% 2: 25% 2: 25% the level of good. Moreover, the data indicates that Nat Sein where most support is needed. On the other hand, the area 3: 64% 3: 55% 3: 52% of performance in which seed producers are best technically 4: 59% 4: 42% 4: 37% village, in Mandalay Region, performs best (score: excellent) equipped is production skills, with four out of six townships Sagaing Region in market segmentation, as their seed producers manage to scoring good. Sagaing Region comply with 78% of requirements. Analyzing the data at village level, the study shows that two Seed producers in Inn Tine village and Kyawt Min village, both villages score particularly high on the CSF of seed quality in Sagaing Region, require the greatest attention by the pro- management. Kyar Kar, in Mandalay Region, and Thaunt Pan gramme as their score is just on the threshold between poor Hla, in Sagaing Region, respectively meet 88% and 80% of the OVERALL and satisfactory in the CFS of customer feedback management. requirements for this CSF, indicating that their performance is excellent. On the other hand, two villages in Kyaukse township Overall seed business performance for all KPAs We assessed the (% of producers per performance category) require the closest attention by the programme, being the overall performance of seed producers, villages with the lowest level of seed quality management 130 seed producers 5.56% poor 84.72% satisfactory taking into account (25% score). interviewed 9.72% good all KPAs: data shows over half are located
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