May/June 1994 Agriculture _ Technology Notes The Agriculttural Technology an(d Services Division (AGRTN) The WATorld Bank National Seed Systems Getting High-Quality Seeds to Farmers National and international crop improvement programs have long sought to improve seed varieties. Thousands of cultivars have been bred around the world: they are of little value, however, unless placed in the hands of farmers. The gap between the few kilograms of seed made available by breeders and the thousands of tons that should reach farmers is the reason for development of in-country seed systems. This note explores how to design and support a sustainable national system for producing and distributing seeds. Support for Seed jects or components w7ere launcehed System Development . v the Bank betwveen 1985 anid Recogrnition of the urgency of 1989. Siince f989, the Bank has estal)lishiln see(d systems in devel- (levoted approximately $293 million oping countries began in the early- to 66 projects or project comipo- 1960s. whlent nationial and interna- nents devoted to seeds. tionla] sTpport for this activity was given m.ainly to the pobli sector. Public, Commercial, Facilities. eq(uiipmiient. training, and * ( and Informal (Farmer- technical assistance wvere pumlped I to-Farmer) Seed inito goverimnent ageicies to close Systems the gap between seedI variety Of' the total value of seeds nsed release an(l ifarmer uise. By the worldvide (about $o() bhillion in the 1980s. experieice showed thiLt pub- mnid-i 98(s), o0nly aout :30 pereenit lic-sector institiitional development is sold comomercially by private alone coiil(l n(ot develop a robust firmis. Farmer-save(d see(i accounts see(d svstem. Consequently, many for about 35 percenit of' this value, iiteritatiouial assistance iiistittitioiis and public-sector enterpises pro- hesitated to proNide funids for seedl uiiice tIme remaining :35 percent. systems. In the late ]980s and earIly Industrialized comiitries account lor 1 99(s there has been a gradual roghlyv 89 percent of seeds sol(d turnaroundlI balanced support for . comiierciallv and for more than pnblic- and( private-sector seedI half of hybrid see(s or crops. fruits development is xiewve(l as an alter- and vegetables, and grains. Even in native route. l . the United States, however, as Wiorld1 Bank fiim(Iiiig for the seed .in e - lmuc as 50f percent of' the seeds sub-sector goes back to the mi(l- - neede(d to plant self-pollinated Vvrl Bai2iuigfrtm ed.muha 0preto h ed 1960s. The first Bank free-standing -+ ' crops. sselI as wvheat and soybean, seed project Nvas in India in 1969. comes from stocks swv\ed by fiarm- Since then, the Bank's support for Farmer-saved seed is a m ajor component of national seen ers. (Jaf'fee S., asid J.P. Srivastava, free-stan(iii, seed projects or for systems, 1992). seed development as a component In contrast, more than 80 percent of amfricultiral and rural development pro- pirojeets or components of projects xvere of the crops eultivated in developing coun- jects has markedly increased. A total of 24 initiated betweeni 1965 and 1971: 37 pro- tries are planted wvith seeds saved from the f e & n Pt*! n ts4 AGRTN Technology Notes for seed technologyw ancl broadening the Table 1. General Seed Quality Standards Used in Many Countries, role of private-sector institutions. At the Factor Quality Standard for Certified Seeds same time, strategies shouil(d seek to Pure seed (minimum) 98.0%-i streamline and improve the pibllic enter- Inert matter (maximum) 2.0% prises of the formal seedI sector. Strategies - --se (xu0.1% for national seed systems should not be Ohrcrop seeds (maximum) 0 i/eed seeds (maximum) 0.1% rest ited to only a feew crops and( shouldd Objectionable weed seeds (maximum) 3-5 per kilogram of seed j over most of the seeds and planting Germination (minimum) 85.0% J needs of farmers. Strategies should( seek to establish a seed indusltrs that is open (iil termls oT sotircinig preceding season and from the informrlal production and supply systems also inflti- improved seeds), dylalic, inclusive. mar- farmer-to-farmer seed systems. For self- ences the developmnent of in-coinstry seed ket-oriented, and flexible. The system pollinatedl crops (siicl as rice and wheat) svstems. should also be collaborative, in tile seinse an(l for crops grownv pnmnarilv for subsis- that public and( private sectors slhoul(l each tence smmcll as dry heans. millet, and cassa- Criteria for Improvement perfomi the roles for xvhiclh they are best va). the proportion of farmer-saxved seed is In anv seed system, there are appropnate suited. For example the goverleiit generally exven hihger. These inforrnal svs- roles for both the public aLnd the pnivate slhould be involved in regulatimig the inilmis- temlls are stronlg evenI in (levelopilig Cosini- sectors. Privatization is not alxxaxs tile ti-v to some extent. The seed ssteysm shoul(d tries, such as India, Mexico, and Thailand, answer, however. Strategies for see(l be supported by public-sector ii stitiitiolls wlhich hlave relativel advanced seed industi-v improvement should focus in in the areas of research, extensioni, credit, inidlistries. general on poliey reformii, diversifking the anm (quality controll On the otller hand. sources of seed, strengthening the hybrid crops, low-voltume high-value Seed System Assessment research and development (R&D) base crops, and see(d processing and milarketing In assessing an existing nationial see(I sys tenm, there are several kev indications of the state of the overall svstem. These Usul- ally- conicern eitller ylie quanltity of sceed of improved varieties or the quality (If that see(d isee table I . Basic indicators ofi (juantitxv are: * The unmber ol' vxarieties released by crop irnproveinienit prograiims in the past five to ten vears * The percenitage of farmners using iiniprovxed varieties * The quiantity of foindatio(n or basic lii(licators of iuality are: * Fariiier seeding rates per crop com- pared xwith recomnlllenlded seeding rates * \Varietal imixtiures in seedl p-oduictioiii fields or mnarketed seed lots (or both) * The lev el of wee(d seeds in iiiarketed see(l lists. In a(ldlition, there are many policy and institntional factors that influence a seedl system, suchl as governisilent subsidy, pric- ing policies, policies regarding impoIrt and export of seecls an(l private-sector see(I idilistry policies regar(ling p1ublic- sector seed instititioims. The level of development of seed technology and access to it lby vxarious par ticipants in seed Nationol seed systems encompass rnany vaneties of seeds. page b AIla/Juolte 1994 can best be handled by the private sector. Insofar as possible. the seed system Peru has made a quantum leap from public should be fiin anciall1 self-stustainin g. There to private seed enterprise. are several meanis available to reachi this goal: crop improvement programs can In the late 1980s, the govemment of Peru, with the support of the United States receive royalties based on seed sales, foun- Agency for International Development, initiated a development project wvith a seed dation seed units can sell basic seed at component that aimed at iniereasing private-sector production and distribution of prices above cost, anid seed testing andl seeds and at establishing a non-government quality-control svstem. certification laboratories can charg,c The first two years of the project were dedicated to bringing the public an(l private appropriate fees for their services. In addi- sectors together and tion, private companies shoul(d be allowed (a) delineating the basis for a national seed svstem, (b) training personnel, (c) estab- to market seed on a commercial basis. All lishing regional seed associations, and (e) creating "seed awareness' among farmers to of these meanis are being employed cur- promote seed use and to increase demand. A new government in 1991 further empha- rentlv in developing countries. sized( the adlvantages of private-sector participation. The seed svstem prograTr lhas had the following results: Phasing of Reforms . Growvth of the private seed industry from seven to 61 enterprises by 1994 Reforms to existinig seed systems should * Grouping of the private sector into associations of private seed enterprises be targetedl in termls of both crops (type * An increase in seed production from 12,000 tons in 1990/91 to 17,500 tons in and propagation mechanisms) ancd time. 1991/91; all seed in tlte project was prodluced by private enterprises Reformis that can be accomplished over * Inspection and laboratory testing of all seed by regional seed associations (per- the short-term w ith minlimal disturbance formned at the request of seed companies, even though certification is non-manda- to crop agriculture should be initiated tory) inmmediatelv, while those that re(lqtire con- * Financial autonomy wvas achieved by six of the eight regional seed associations by siderable reorganiization, transfer, and 1994 reassignment of personnel. disposal of * Regional training coturses on seed production and quality control assets. and start-up tiine for new players * Installation of seed diying and processing facilities in two key areas, managed by should be approached cautiously with a regional seed associations and open to any fairmer wishing to estabhsh a seed mecdiumii-terml horizon. enterprise Major reform measures aimle(d at a * Provision of on-site technical assistance to new seed entrepreneurs robust national seed systeml inclucde: * Annual seed meetings among representatives of the governament, private seed com- Puhlic-sector wvithdrawal from the panies, and regional seed associations to identify constraints aml propose solutions business of seed production and distii- Son rcee Cortes, 19.92. bution for most crops-The need for withdrawal, however, as well as its pace, wNill var, bv crop. For vegetalsie, forage, for agricultural research and extension investinent, credit facilities. and informal andc specialty crops andI for hybrid seeds as a -whole. or educationLatl incenitives to enlist smlall (all of whici have good profit potenitial), * Liberalizing acqluisition. entry, and uiti- local seed producers in commercial actixi- public-sector divestiture coulld be undler- lization of breeding lines ancd tv. Table 2 outlines the needs of various taken first. Non-hybrid an(d self-polliniated improved seed pro(lucts of foreign oin- categories of' seed produltcers: these needs cereal grain, grain legumle. and( oilseed gin (some of which arc ineludcke(d in the gener- crops shotul(d be privatized to the extent * Creatinlg a favorable legal and regsila- al reformiis menitionie(l above, can be incor- feasible. basecl on conducive policies and tory environmiient regarding phytosaini- porated into specific reformiis to suipport incentixes. Public-sector seed pro(luctioni tarv re(quiremtienits an(l plant (qlaran- and encourage these pro(lucers. ancd mnarketing shotul be limited to resid- tine. variety, registration, and certifica- ual crops mnd areas for Nwhieh there is tion Experience with Seed insuifficienit private-seetor interest. Seed * Making reasonable and enforceable System Reform processing anid imarketing are re-lativelyj arrangements for the secuirit- aid pro- Recent experiences in Thailand, Inidia, easy to privatize. tection of intellectual property irlhts Peru (see box), and Turkey illustrate the Government policy, regulatory, and related to crop agriculture potential imnpact that poliev refoniss can budget measures-These inelude the * Permitting the entry of international have on private-sector participation in followinga: seecl comiipanies unider reasonable seed prodluctioni and distribution. In all of * Phasing O(it all public subsidies on arran1gemenits concerninlg equity own- these comntries, poliev changes in the miId- seed p-ices except in marginal areas. A ership, joint ventures, access to hardl ]980s allowed private firms to obtain more efficient ancd appropriate public currency, and repatriation of capital. breeder seed fromii public institutionis in subsidy would b be for crop research or Incentives-can iiiecltde assorted the couintries and overseas. Together xvith page c AGRTN Tech olo-yrX Notes sul)se(l ient changes in in(ldistrial licensing Checklist for Project Preparation policies, foieignl investmcent regulations. for Different Seed Production Systems aTnd policies oll see(d imipor-t an(l expor-t lhave contribu)te(l to a significant increase Subsistence Farmers Who Save Domestic Seed Enterprise in private-sector see(l activities. Their Own Seeds * Most suitable variety * Easy access to improved varieties/ hybrids (breeder/foundation seed) Recommended Additional m Improved techniques for on-farm from national research institutions Reading seed selection * Easy flow of improved germplasm Dalovnple, D. and J.P. Srivastava. 1991. * Improved harvest, cleaning, and dry- from outside sources Technology Transfer in Plant Cultivars ing methods using local materials in Developing Countries: Seeds, * Elard currency to purchase improved Sectors, and Society. Waslhington, D.C.: * Improved storage and seed treat- germplasm, specialized seed equip- The World( Bank. ments using local materials ment, external assistance, and training Dougglas J. 1980. Successful Seed * Access to seed and trained extension * Credit in local eurrency to pay contract Programs: A Planning and M\1anagement staff Small farmer/seed producer -- growers and cover operating costs Guide. Bouller-, Colo.: \Nest\iew Press. * Training in seed production of spe- * Market pricing and demand for Garav, A.P., P. Pattie, J. Landivar, and J. cific crops improved seeds Rosales. 1990. Setting a Seed Industry in Motion: A iNonconventional * Access to credit for input supplies, * Access to information on external Successful Approach in a Developing basic infrastructure (drying and stor- markets Country. Workinig Documtlenit 57. C,entro age) an(d carring costs of storing Internacional (le Agriculttura Tropical, seecl until next cropping season * Government policies to promote Colomhiia. Bogota?P seed export * Close links to domestic seed enter- Jaffee, S.. and J.P. Srivastava. 1992. Seed prises or public research institutions * Plant variety protection System Development: The Appropriate (or both) for access to information, Roles of the Private and Public Sectors. training, and certified seed * Government policies to encourage Discussion paper no. 1(7. Washington, R&D Multinational Seed companies D.C.: The World Bank. * Access to seed testing laboratorY -Minimal restriction on international movement of germplasm/see(ds Srivastava, J.P.. and S. Jalfee. 199:3. Best * Assistance in conducting on-farm Practicesfor MIoving Seed Technology: variety perfornance trials * Government policies and legal Newv Approaches to Doing Business. framework for joint ventures wvith Technical Paper 21:3. Washington, 1D.C.: * Organization of field days for adjoin- domestic companies ing farming commtnities * Ability to relocate profits * Policies encouraging participation of national seed companies References (Cortes J. 19t92. Fis)Ie ort. Acri, Tltraa ech moht9o Ta-roiotj J'r(?ject UJSAID. PeriI/ owa State Uiiiversit. lafIfee, S. ald I. P. Sriv'astava. 1992. Seed Systleimi Decelopitent: The Appropriate Rolesojthc PFrivtate atd P(I,blir Sectors. Discussi ou paper iio. Ifi, W97.as l ii 1)D.C.:TI ic 'A orld B3auik. Agriculture Technology Notes provide up-to-date information on selected agraultural topics to World Bank professionals. Forfitrther inform1uation about fisheries management, please contact J.P. Srivastava, x38975. To obtain copies of this or other notes, or to inquire about Technology Notes, please call 473-9406. Other Notes in this series are: "Provision of M1ineral Supplements,< "Integrated Pest Management", "Privatization of Animwl Health Se-ruices" and 'World Fisheries." Layout and design by Peter Wiant. page d