DETERMINANTS AND ROLE OF FARMERS’ SEED AND SEEDLING MULTIPLICATION IN THE SNNP REGION SEED SYSTEM M.Sc. Thesis GEZAHAGN WALELIGN April 2008 Haramaya University DETERMINANTS AND ROLE OF FARMERS’ SEED AND SEEDLING MULTIPLICATION IN THE SNNP REGION SEED SYSTEM A Thesis Submitted to the Department of Agricultural Economics, School of Graduate Studies Haramaya University In Partial Fulfillment of the Requirements for the Degree of MASTER OF SCIENCE IN AGRICULTURE (AGRICULTURAL ECONOMICS) By GEZAHAGN WALELIGN April 2008 Haramaya University ii School of Graduate Studies Haramaya University As Thesis Research advisor, I here by certify that I have read and evaluated this thesis prepared, under my guidance, by Gezahagn Walelign, entitled Determinants and Role of Farmers’ Seed and Seedling Multiplication in the SNNP Regional Seed System. I recommend that it be submitted as fulfillment of the Thesis requirement. Dawit Alemu(Ph D) ________________ _______________ Major Advisor Signature Date R.S.L.Srivastava (prof.) _________________ _______________ Co-advisor Signature Date As member of the Board of Examiners of the MSc Thesis Open Defense Examination, We certify that we have read, evaluated the Thesis prepared by Gezahagn Walelign and examined the candidate. We recommended that the Thesis is accepted as fulfilling the Thesis requirement for the Degree of Master of Science in Agriculture (Agricultural Economics). ______________________ _________________ _______________ Chairperson Signature Date ______________________ _________________ _______________ Internal Examiner Signature Date ______________________ _________________ _______________ External Examiner Signature Date iii DEDICATION I dedicated this thesis manuscript to my late wife Serkalem Chalachew whom I lost during my stay here for MSc. course and my beloved children Ruth and Tewodrose Gezahagn iv STATEMENT OF AUTHOR First, I declare that this thesis is the result of my own work and that all sources or materials used for this thesis have been duly acknowledged. This thesis is submitted in partial fulfillment of the requirements for MSc. degree at Haramaya University and to be made available at the University’s Library under the rules of the Library. I confidently declare that this thesis has not been submitted to any other institutions anywhere for the award of any academic degree, diploma, or certificate. Brief quotations from this thesis are allowable without special permission, provided that accurate acknowledgement of source is made. Requests for permission for extended quotation from or reproduction of this manuscript in whole or in part may be granted by Dean of the School of Graduate Studies when in his or her judgment the proposed use of the material is in the interests of scholarship. In all other instances, however, permission must be obtained from the author. Name: Gezahagn Walelign Signature: …………………… Place: Haramaya University Date of Submission: June, 2008 v BIOGRAPHY The author was born in Deder Woreda, Eastern Hararge in 1968. He attended his primary and secondary school at Abera Gizaw primary school and Deder Senior Secondary School that are located in Deder town. He then joined Haramaya University in September 1987 and graduated with BSc Degree in Agricultural Economics in November 1991. After getting His BSc., he was employed in the Ministry of Coffee and Tea Development from 1991 to 1994. From 1994 to 2000 worked in Kembata Tembaro zone Agricultural Department as Input Distribution Coordinator and Cooperative Promoter. Starting from 2000 until he joined the school of graduate studies at Haramaya University, he had been working in SNNPR Bureau of Agricultural and Rural Development with different responsibilities. vi ACKNOWLEDGEMENTS I am indebted to the almighty God with whose grace: I could satisfactorily complete my graduate study. My sincere gratitude goes to my major advisor Dawit Alemu (PhD) Ethiopian Agricultural Research Institute (EARI) for his concern, kindness, professional guidance and his encouragement from the beginning to finalization of this research. The contribution of Belaineh Legesse (PhD) is highly appreciated. I also would like also to extend heart-felt thanks to IRLI (IPMS) for sponsoring this research and SNNPR Agricultural and Rural Development Bureau to their support for the accomplishment of my work. I wish to acknowledge the valuable assistance of Metasebia Wubshet, Ato Meskele Ayele, Ato Fissha Gizachew, Ato Usman Surure, Ato Abera Germame, W/ro Bisrate Gunta, and Ato Teklu Deresse. I am very grateful to my family who were with me in the difficult situation which I face during my graduate study, and unlimited support in all aspect for the successful accomplishment of this thesis. vii ABBREVIATIONS AND ACRONYMS ADLI Agricultural Development Lead Industrialization AISCO Agricultural Input Supply Corporation ARDO Agricultural and Rural Development Office BoARD Bureau of Agriculture and Rural Development BoFED Bureau of Finance and Economic Development CADU Chilalo Agricultural Development Unit CC Contingency coefficient CSA Central Statistics Authority CTA Technical center for Agriculture and Rural cooperation DA Development Agent EARI Ethiopian Agricultural Research institute ESE Ethiopian Seed Enterprise ESIA Ethiopian Seed Industry Agency FAO Food and Agricultural Organization FBSPMS Farmers Based Seed Production and Marketing Scheme FSE Farmers Seed Enterprise GNP Gross National Product GTZ Deutsche Gesellschaft für Technische Zusammenarbeit IDA International Development Agency IFAD International Fund for Agricultural Development IFPRI International Food Policy Institute ILRI International Livestock Research Institute Masl meter above sea level MoA Ministry of Agriculture MV Modern Variety viii ABBREVIATIONS AND ACRONYMS (Continued) PASDEP A Plan For Accelerated and Sustained Development to End Poverty RCA Regional Cooperative Agency SARI Southern Agricultural Research institute SMIP Sorghum and Millet Development Program SNNPR Southern Nations Nationalities and Peoples’ Regional State SSA Sub Saharan Africa VOCA Volunteers Overseas Cooperative Assistance USAID United State Agency for International Development WARDO Woreda Agriculture and Rural Development Office WBG World Bank Group WTC Wondo Trading Company WVE World Vision Ethiopia ix TABLE OF CONTENTS Page STATEMENT OF AUTHOR v BIOGRAPHY vi ACKNOWLEDGEMENTS vii ABBREVIATIONS AND ACRONYMS viii LIST OF TABLES xiv LIST OF FIGURES xvi LIST OF TABLES IN THE APPENDICES xvii ABSTRACT xviii 1.INTRODUCTION 1 1.1.Background 1 1.2.Statement of the Problem 4 1.3.Objectives of the Study 7 1.4.Significance of the Study 7 1.5.Scope and Limitation of the Study 7 2.LITERATURE REVIEW 8 2.1.Definition of Concepts and the Theoretical Framework 8 2.1.1.Seed 8 2.1.2.Seed system 9 2.1.3.Formal seed system 10 2.1.4.Informal seed system 12 2.2.The Potentials and Limitations of Farmers Based Seed Multiplication 12 x TABLE OF CONTENTS (Continued) 2.3.Seed Development, Production and Distribution in Ethiopia 15 2.4.Adoption of New Technologies 18 2.5.Partnership in Farmers Based Seed Multiplication 21 2.6.Seed Market 23 2.6.1.Nature of seed marketing 23 2.6.2.The role of quality control and certification with respect to farmers multiplied seed 25 3.METHODOLOGY 27 3.1.Description of the Study Area 27 3.1.1..SNNPR 27 3.1.1.1. Physical feature 27 3.1.1.2. Population 29 3.1.1.3. Agriculture 29 3.1.1.4. Input distribution 30 3.1.1.5. Institutional service 31 3.1.1.6. Infrastructure 32 3.1.2. Description of the specific study areas (Sample Woredas) 32 3.1.2.1. Angacha Woreda 32 3.1.2.2. Chencha Woreda 34 3.1.2.3. Dale Woreda 35 3.1.2.4. Hula Woreda 36 3.2. Sampling Techniques 36 3.3. Methods of Data Collection 38 3.4. Methods of Data Analysis and Econometric Model 39 3.4.1 Model specification 39 3.4.2. Test of multicollinearity and heteroskedasticity 42 xi TABLE OF CONTENTS (Continued) 3.5. Description of Variables and Working Hypothesis 43 4.RESULT AND DESCUSSION 49 4.1.Household Characteristics 49 4.1.1.Distributions of household by sex and marital status 49 4.1.2.Distribution of household by age and family size 50 4.1.3.Household farming experience 51 4.1.4.Distributions of household by educational status 51 4.1.5.Ownership of radio 52 4.2.Farm Resource Characteristics 53 4.2.1.Land Holding 53 4.2.2.Livestock holding of the sample households 54 4.2.3.Oxen ownership 55 4.3.Access to Service and Institutions 56 4.3.1.Extension service 56 4.3.2.Training on seed production technology 57 4.3.3.Distance from market and main road 58 4.3.4.Access to credit 59 4.4.Farmers Attitude and Perception about Seed Multiplication Technology 60 4.4.1.Farmers perception about the benefit of farmers’ multiplied seed 60 4.4.2.Opinion on capacities of farmers to produce quality seed 62 4.4.3.Opinion of farmers on problems that discourage to involve or continue in seed production 63 4.5.Partners Involvement and Coordination 64 4.5.1.Regional bureau of Agriculture and Rural Development 65 4.5.2.Southern Agricultural Research Institute (SARI) 65 4.5.3.Farmers Marketing Cooperatives and Unions 66 xii TABLE OF CONTENTS (Continued) 4.5.4.Ethiopian Seed Enterprise (ESE) 66 4.5.5.Non-governmental organizations (NGOs) 67 4.6.Situation of Seed Marketing in the Region and Market Margin 70 4.6.1.Seed marketing in the region to farmers multiplied seed 70 4.6.2.Gross Marketing Margin of farmers multiplied seed in the region 73 4.6.3.Quality control and certification 75 4.7.Determinants of Farmers’ Participation in Seed Multiplication