Using sub-sector analysis for improving tree seed systems Jens-Peter Barnekow Lillesø.

Using sub-sector analysis for improving tree seed systems

Jens-Peter Barnekow Lillesø

Transforming

countriesUrbanizedcountries

Rural poor/total poor

Agriculture’s contributionto growth 1990 – 2005, %

3 CATEGORIES OF COUNTRIES

Agriculture-based

countries

Bringing developmentto the poor

PATHWAYS OUT OFPOVERTY

Farming -Labour - Migration

Enhance smallholdercompetitiveness.

Facilitate market entry

Improve marketaccess. Establish

efficient value chains

Increase employment inagriculture and the rural

non-farm economy

Improve livelihoods insubsistence agriculture andlow skill rural occupations

AGRICULTURE FOR DEVELOPMENT

World Development Report 2008

Price and marketing strategy

Value chainsSmallholder market entry

primaryproduction

processing

marketing

consumption

“Productive chains” integrate primary production with processing and marketing as links in a chain

“Value chain” implies generation of value added throughout the chain

The productive/value chain as a principal framework for the design and implementation of support programs

Productive chains and value chains


Chain and subsector:

The Subsector includes all productive/value chains involved in the production and marketing of one well-defined product or several closely related products

primaryproduction

processing

marketing

consumption

primaryproduction

processing

marketing

consumption

primaryproduction

processing

marketing

consumption

primaryproduction

processing

marketing

consumption

The Subsector also includes arrangements that govern their interaction and regular access to services, such as sectoral information, new technologies and products, as well as the definition and the management of quality standards


RoadsCreditInput supplyProcessingMarketingProducer organisations…..

Subsector analysis

The basic condition for success: competitiveness of the chain – the viability of the business in the long term, even without public subsidies

Without the intervention and support of the state and other support organizations - small and medium-sized producers rarely integrate into a value chain

PATHWAYS OUT OFPOVERTY

Farming -Labour - Migration

Enhance smallholdercompetitiveness.

Facilitate market entry

Improve marketaccess. Establish

efficient value chains

Increase employment inagriculture and the rural

non-farm economy

Improve livelihoods insubsistence agriculture andlow skill rural occupations

AGRICULTURE FOR DEVELOPMENT

World Development Report 2008

A tool for promoting smallholder value chains


So what about agroforestry?

An estimated 500 million to 1 billion smallholder farmers grow farm trees or manage remnant forests for subsistence

and income (Scherr, 2004)


Small family farms and plantations are the two contrasting systems of agricultural production (Hayami, 1996)

Small farms have the edge for less technologically advanced agriculture with low labour costs, but as an economy develops and wages and the use of capital intensive technology increase, then the advantage shifts to larger farms (IFPRI, 2007)

XxXxXxxXx

Smallholders Traders Retailers

Value chain of agroforestry products

Distributio

n

Procurement

Sources

Production speed and quality

Input supply chain

Two challenges:Output: Smallholders as efficient producers of qualityInput: How smallholders' access quality production machinery

Demand for input

Input supply and value chains in smallholder agroforestry

Cost efficiency of inputNumber of smallholders reached

Customers

© Lillesø & Moestrup ICRAF/FLD

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Smallholder market entryValue chainsInput supply chains



Distributio

n

Procurement

Sources

Production speed and quality

Input supply chain

Two challenges:Output: Smallholders as efficient producers of qualityInput: How smallholders' access quality production machinery

Demand for input

Input supply and value chains in smallholder agroforestry

Cost efficiency of inputNumber of smallholders reached

Customers


Smallholder market entryValue chainsInput supply chains



Overcoming constraints forsmallholders to participate in markets

Sub Sector review for smallholder agroforestry:Same approaches for Input supply chains and Value chains

Customers


Overcoming constraints forsmall-scale business to participate in markets

Smallholders'value chainsDistributionProcurement

Plantations

Support issues for small-scale entrepreneurs productionand distribution of quality

Tree seed input supply chains in smallholder agroforestry

Naturalforest

Vegetativepropagation

Farmlandsources

SeedOrchards

Species in sources

Owners of sourcesMarketing of sourcesDecentralised breedingAccessEconomy of scaleSS associationsBusiness skillsTechnical advisePlanting zone systemCertification/marketingCredit...

Organisationof collection

Organisation of collectionSeed dealer AssociationsTechnical informationDemand-supply informationTechnical capacityBusiness skillsMarketing of new speciesCustomer contactsCredit...

Distribution to nurseries

and direct users

Nursery associationsTechnical informationDemand-supply informationTechnical capacityBusiness skillsMarketing of new speciesCustomer contactsCredit...

Quality criteria seed:Quality declared seedTruth in labeling

Quality criteria sources:OECD rules counterproductiveand not applicable to mostseed source types

Plantations


Naturalforest


Farmlandsources

SeedOrchards

Species in sources Quality criteria seed:Quality declared seedTruth in labeling


Definitions of tree seed sources have been developed and applied in many countries, and standardised (slightly differently) by OECD, EU, FAO, DFSC, GTZ and others

These guidelines generally rank seed sources into unclassified and selected sources and for selected sources, into tested and untested reproductive material.

The definitions originate from industrial plantation forestry and the criteria used cannot be utilised for ‘Natural forest’ and ‘Farmland’ sources

´One size fits all´

Plantations


Naturalforest


Farmlandsources

SeedOrchards

Species in sources Quality criteria seed:Quality declared seedTruth in labeling


Currently used definitions disregard options for applying simple principles that can widen the genetic quality considerably and minimise the risk of inbreeding

Furthermore the terms 'selected' and 'unclassified' sources presuppose that central authorities have the capacity to establish, maintain, protect and evaluate improved sources of relevance to the consumers (smallholders), which is very rarely the case

´One size fits all´

Common sense criteria <-> strict criteria that cannot be applied.

Plantations


Naturalforest


Farmlandsources

SeedOrchards

Species in sources Ownership

Except for ‘Natural Forest’, the other four types can equally well be handled by small enterprises

A major reason for the almost complete absence of seed orchards in agroforestry is that they are very costly to run on government land.

For small-scale entrepreneurs they are not costly, they are providing income

Natural forest is a special case – mobilising indigenous species has an economy of scale due to the large amount of seed collected for ensuring long term genetic quality

DistributionProcurement




and direct users

Quality criteria seed:Quality declared seedTruth in labeling

Applying criteria that all seed should be tested for germination quality by selected authorities is a serious barrier to development of smallholder agroforestry (unless such a rule is ignored)

An appropriate solution (for many countries) is

‘Quality Declared Seed’,and‘Truth in Labeling’

with spot checks by authorities

In crop seed systems the challenge of seed testingcontrol vs reaching many farmers have been solved

DistributionProcurement



Organisation of collectionSeed dealer AssociationsTechnical informationDemand-supply informationTechnical capacityBusiness skillsMarketing of new speciesCustomer contactsCredit...


and direct users

Nursery associationsTechnical informationDemand-supply informationTechnical capacityBusiness skillsMarketing of new speciesCustomer contactsCredit...

The challenges of the tree seed input supply chain are the same as in value chains – overcoming transaction costs for small-scale business

So instead of spending all efforts to provide seed to relatively few smallholders

Gvmnt and NGOs should spend their efforts in enabling small-scale entrepreneurs to provide quality to many smallholders




Farmlandsources

Species in sources Organisationof collection

NGOs

Distribution to NGO nurseries

NGOs

Distribution to NGO client farmers

NGOs


Farmlandsources


Nursery

Distribution to own nursery

Nursery

Sale to farmers

Seed and seedlings free of chargeExpensive administrative costsLimited impactQuality not knownOnly during NGO project period

Business on own initiativeSeedling sales undermined by NGOsLow administrative costsPotentially large impactQuality not knownNo support from NGOs and Gvmnt

A typical example from Eastern and Southern Africa, Nepal ... ?

In many countries there are two types of input supply chains,

The Aid funded channel through NGOs, and The private initiative channel of small-scale seed vendors and nurseries

ClientfarmersDistributionProcurement


Farmlandsources

Species in sources Organisationof collection

NGOs

Distribution to NGO nurseries

NGOs

Distribution to NGO client farmers

NGOs

Own use andcustomersDistributionProcurement

Farmlandsources


Nursery

Distribution to own nursery

Nursery

Sale to farmers

Seed and seedlings free of chargeExpensive administrative costsLimited impactQuality not knownOnly during NGO project period

Business on own initiativeSeedling sales undermined by NGOsLow administrative costsPotentially large impactQuality not knownNo support from NGOs and Gvmnt

MalawiNurseries

MalawiNGOs

THE BIG 3

3 competing tree seed suppliers toNGO ccccccc Land Resource Center

National Tree SeedCentreICRAF

Weak connection to markets

No support fromNGOs or governmentin enterprise developmentor proper sourcing

Malawi exampleCurrent nursery input supply chains


Farmlandsources


Nursery

Distribution toown nursery

Nursery

Sale to farmers

MalawiNurseries

MalawiNGOs

Weak connection to marketsSupport by '2 Big' SeedCentresNormative support :appropriate sourcing+ establishment of improved sources

ICRAFAgroforestry research information

NaturalForest

Breeding SeedOrchards

Small enterprisesources

MalawiNGOs

Enterprise support

Support to farmers' value chains

Malawi exampleMore efficient use of Aid moneyLarger impact

72 seed sources around Mt. Kenya - models used

Model typeModel

No

Count

CCC - Centralised government/large NGO model 1 21

CCC/ - Centralised government/large NGO modelCDD - Centralised seed sources, decentralised

enterprise model

1 & 3 2

CCC/ - Centralised government/large NGO modelCDC - Contract worker model

1 & 4 1

CDD - Centralised seed sources, decentralised enterprise model

3 1

CDC - Contract worker model 4 2

CDC/ - Contract worker modelCDD - Centralised seed sources, decentralised

enterprise model

4 & 3 4

DDD - Decentralised seed sources, decentralised enterprise model

5 31

DCC - Outgrower model, procurement done by distributor

6 1

DDC - Outgrower model, procurement done by producer

6 1

DDC/ - Outgrower model, procurement done by producer

DDD - Decentralised seed sources, decentralised enterprise model

6 & 5 1

DCC - Outgrower model, procurement done by distributor

7 3

Not producing None 4

28 donor models 8 mixed models32 enterprise models

Part of a study of 230 sources

In the same areaaround Mt. Kenya a nursery survey showed that 95% of nurseries’ procurement was from farmland

They apparently had no knowledge or access to the 230 sources

Using sub-sector analysis for improving tree seed systems Jens-Peter Barnekow Lillesø.

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Transcript of Using sub-sector analysis for improving tree seed systems Jens-Peter Barnekow Lillesø.