KENYA SEED POTATO INDUSTRY DIAGNOSTIC Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions About IFC IFC, a member of the World Bank Group, creates the opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC commissioned this report. The conclusions and judgments contained in this report should not be attributed to, and do not necessarily represent the views of, IFC or its Board of Directors or the World Bank or its Executive Directors, or the countries they represent. IFC and the World Bank do not guarantee the accuracy of the data in this publication and accept no responsibility for any consequences of their use. For more information, visit www.ifc.org © International Finance Corporation 2019. 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Washington, D.C. 20433 www.ifc.org Photo credits: International Potato Center (CIP), Hugh Rutherford, Kenya Agricultural and Livestock Research Organization (KALRO), Raymond Jumah, Vivian Atakos and Agricultural Development Corporation (ADC) CONTENTS Acronyms................................................................................................................................................................................................................................................................. i Acknowledgements......................................................................................................................................................................................................................................... ii Operational Definitions.................................................................................................................................................................................................................................. iii At a Glance: Seed Potato Propagation in Kenya.............................................................................................................................................................................. v Summary of Issues and Recommendations...................................................................................................................................................................................... v Key Findings, Priority Actions and Investments.............................................................................................................................................................................. vii Introduction.................................................................................................................................................................................................................. 1 1. The Potato Industry in Kenya.............................................................................................................................................................................. 3 Overview of the Potato Industry in Kenya................................................................................................................................................................................... 3 The Seed Potato Industry in Kenya................................................................................................................................................................................................... 4 2. Seed Potato Multiplication and Certification in Kenya............................................................................................................................ 7 Models of Seed Potato Multiplication ........................................................................................................................................................................................... 7 Seed Potato Multiplication and Certification Challenges................................................................................................................................................... 10 Emerging Opportunities, Best Practices and Trends in Seed Multiplication and Certification................................................................... 11 Recommendations..................................................................................................................................................................................................................................... 13 3. Seed Potato Importation Sanitary and Phytosanitary Issues ................................................................................................................. 15 Overview of Sanitary and Phytosanitary Aspects in Seed Potato Importation in Kenya................................................................................ 15 Opportunities and Recommendations for Enhancing in Seed Potato Importation SPS in Kenya........................................................... 20 4. Seed Potato Marketing and Distribution....................................................................................................................................................... 25 Overview of Seed Potato Marketing and Distribution Challenges in Kenya.......................................................................................................... 25 Opportunities and Recommendations for Streamlining Seed Potato Marketing and Distribution........................................................ 25 Conclusion..................................................................................................................................................................................................................... 27 References...................................................................................................................................................................................................................... 31 Annexes.......................................................................................................................................................................................................................... 33 LIST OF FIGURES Figure 1: Major Potato Producing Counties ...................................................................................................................................................................................... 3 Figure 2: Location of Seed Potato Companies ................................................................................................................................................................................ 5 Figure 3: Production of Seed Potato from Aeroponics and Hydroponics Systems .................................................................................................. 9 LIST OF BOXES Box 1: Seed Potato Cuttings Production by Private Sector Companies: Stokman Rozen Kenya Ltd....................................................... 14 Box 2: Egypt’s Robust Potato Industry: A Snapshot................................................................................................................................................................ 20 Box 3: Egypt’s Best Practices in Managing Seed Potato Pest and Diseases ............................................................................................................ 21 LIST OF ANNEXES Annex 1: Seed Potato Producing Companies in Kenya.............................................................................................................................................................. 34 Annex 2: Cuttings Production Cycle....................................................................................................................................................................................................... 35 Annex 3: Methods of Seed Multiplication........................................................................................................................................................................................... 36 Annex 4: Scotland’s Tolerance Levels for Basic Seed Potatoes for Export ...................................................................................................................... 37 Annex 5: Proposed EU Seed Potato Import Quality Assurance Protocol for Kenya.................................................................................................. 38 ACRONYMS ADC Agricultural Development Corporation C1 Certified third generation C2 Certified fourth generation C3 Certified fifth generation CIP International Potato Centre COMESA Common Market for Eastern and Southern Africa COMSHIP COMESA Seed Harmonization Implementation Program COPE Centre of Phytosanitary Excellence DUS Distinctiveness, Uniformity, and Stability EAC East African Community EGS Early Generation Seed ESWS Electronic Single Window System FAO Food and Agricultural Organization IPPC International Plant Protection Convention ISPM International Standards for Phytosanitary Measures ISTA International Seed Testing Association KALRO Kenya Agricultural and Livestock Research Organization KEPHIS Kenya Plants Health Inspectorate Services OSBPs One Stop Border Points NPPO National Plant Protection Organization NPT National Performance Trials OECD Organization for Economic Co–operation and Development PCN Potato Cyst Nematode PPP Public-Private Partnership PRA Pest Risk Analysis QDPM Quality Declared Planting Materials QDS Quality Declared Seed SADC Southern African Development Community SPS Sanitary and Phytosanitary UPOV International Union for the Protection of New Varieties of Plants VCU Value for Cultivation and Use Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions i ACKNOWLEDGEMENTS The Kenya Seed Potato Industry Diagnostic was led by Hans Shrader (Senior Private Sector Specialist, Finance, Competitiveness and Innovation Global Practice), Yosuke (Yo) Kotsuji (Senior Investment Officer, International Finance Corporation), and Anne Wangalachi (Private Sector Specialist, Finance, Competitiveness and Innovation Global Practice). The team would like to thank John Macharia (Alliance for a Green Revolution in Africa (AGRA), Julie Kariuki (TNS), Wachira Kaguongo (National Potato Council of Kenya and World Potato Council), Grant Brooke (Twiga Foods) and Moses Abukari (IFAD) for providing strategic guidance and peer review of the diagnostic. The team is also grateful to senior representatives from government, development finance, non-profit and private sector institutions who provided useful insights during the preparation of the diagnostic and subsequent stakeholder engagements. We thank you all for the invaluable inputs. ii KENYA SEED POTATO INDUSTRY DIAGNOSTIC OPERATIONAL DEFINITIONS Aeroponic System A method where plants are grown in air or mist environment without the use of soil or an aggregate medium. Apical Cutting The cutting of the tip of mother/ tissue culture plantlet to be grown for propagation. Basic Seed Also known as Foundation seed. The progeny of pre-basic seed, used as planting stock for registered and certified seed. Breeder Seed A seed which has been produced by a person or institution responsible for the maintenance of the cultivar or variety. Certified Seed A seed of a prescribed standard of quality, produced under a controlled multiplication scheme, either from basic seed or from a previous generation of certified seed. It is intended either for the production of a further generation of certified seed or for sowing to produce food or forage. Cultivar Synonymous with the term “variety”. Subdivision of any seed species which can be distinguished from other subdivisions of the species by growth, plant type, flower or other physiological characteristics. Cutting A seedling produced from a tissue culture plantlet by snipping, i.e. stem or apical tip used for propagation or production of ware potato. Distinctness Uniformity These are tests to determine whether a newly bred variety differs from existing varieties and Stability (DUS) within the same species (the Distinctness part), whether the characteristics used to establish Distinctness is expressed uniformly (the Uniformity part) and that these characteristics do not change over subsequent generations (the Stability part). Dormancy The condition in which a seed with a viable embryo fails to germinate in conditions conducive to plant growth. Early Generation Seed Seeds in the earlier production stages i.e. breeder and foundation seed. Farmer A person who owns works on or operates an agricultural enterprise that cultivates land for crops. Field Inspection Examination of a crop seed field including checking for effective isolation distance, hectarage of the seed field, off-types, foreign cultivars and diseased plants as part of the seed certification program. Hydroponic System A method of growing plants without soil by instead using mineral nutrient solutions in a water solvent. Isolation The separation of the field of seed crop from the field of other crops to prevent mechanical or genetic contamination of the seed to be harvested. Isolation could be in the form of distance, time and physical barriers. Labelling The process of KEPHIS or NPPO affixing a tag or mark of identification as an assurance of correct identification of any container seed to ascertain certification. Mini-tubers Progeny tubers used for propagation of production of ware potato. National Performance Also referred to as Value for Cultivation and Use (VCU). These are trials to establish in Trials (NPT) respect of other registered varieties, differences in productivity, biological characteristics, quality of the obtained produce, chemical and technological characteristics, resistance to pests and diseases, as well as other commercially important characteristics and growing suitability under local agro-climatic conditions. Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions iii Operational Definitions Off-type A plant in a seed crop that deviates from the typical description of the cultivar. Phytosanitary A certificate issued by a legally constituted authority of the federal or state government stating Certificate that a seed lot has been inspected and found to be free of quarantine diseases. These certificates are frequently used in international seed trade agreements to prevent the spreading of seed- borne diseases among countries. Positive Selection Choosing and marking of the best plants in a ware field as mother plants to provide for seed for subsequent seasons; done by ware potato farmers. Pre-basic Seed A progeny of breeder seed. Propagation Breeding of specimens of a plant or animal by natural processes from the parent/mother plant. Quality Declared Seed A seed that meets at a minimum agreed-upon standard of quality. It may entail some inspection by the official seed certification system or ministry of agriculture officials. Its use is usually regulated and restricted to a given locality in a country. Quarantine The restriction on the movement of seed to prevent the spread of disease or pests. Registered Seed A class of seed in a certified seed scheme that is produced from foundation seed and planted to produce certified seed. Registered Seed A person or institution or firm officially recognized by the seed regulation committee as Merchant suitable to produce, process or sell seed potato. Sampling The method by which a representative sample is taken from a seed lot to a laboratory for analysis. Seed That part of a plant used for propagation. It includes any cutting or tubers. Seed Class A stage in seed multiplication system well defined in respect of parental seed standards of cultivations and seed quality. Seed Inspector A suitable qualified person on the staff of the official inspection station. Seed Lot A quantity of seed of one cultivar, of known origin and history, and controlled under one reference number. Seed Quality The potential performance of a seed lot with characteristics based on trueness to variety. Seed Testing The examination of a sample of seed to determine its quality to produce a specific commercial crop. Seed Certification The act of ascertaining whether seed has met required minimum standards. Smallholder Farmer A farmer owns or cultivates a small piece of land on which they grow subsistence crops and one or two cash crops relying almost exclusively on family labour. In Kenya, smallholdings classify as being below 5 hectares; the average is 2 hectares for ware potato farmers. Vegetative Propagation Growing new plants from parts of the parent plant; for this study: tubers and cuttings. Zero-Tolerance Zero-tolerance in seed potato refers to the total ban of any planting material with the globally recognized pathogens for bacterial wilt, potato cyst nematode and other significant pests and diseases. iv KENYA SEED POTATO INDUSTRY DIAGNOSTIC AT A GLANCE: SEED POTATO PROPAGATION IN KENYA Summary of Issues and Recommendations Propagation Seed Multiplication Seed Seed Material See pages 15-20 Certi cation Distribution Issue Issue Issue Issue • Low funding levels for R & D to develop • Initial set up costs are high; requires high levels of • Costly inspection and labelling • Poor distribution channels and long distances enough breeder seed technical expertise between farmers and seed companies KALRO Hydro Key Recommendations: Key Recommendations: Key Recommendations: ponic • Reduce the inspection costs per ha Key Recommendations: • Increase participation/collaboration of • KEPHIS, seed companies to recruit TC experts and private seed companies in production • Limit labelling of seed classes to tradeable seed • Set up seed companies in production extension agents locations only, i.e. above C3 class • Similar to those of basic seed • Leverage investments and capacity to increase TC seed • Expand decentralized seed multiplier systems potato through PPPs • Adopt digital seed inspection and certi cation Issue schemes to e ectively reach farmers Hydro • Similar to those of hydroponics • Pests and diseases ponic • Harmonize with COMESA best practices, i.e. use • Explore and scale disruptive agritech Key Recommendations: NPT data from one season for a or the new aggregation and logistics platforms to reach Issue farmers with seed at the farmgate at lower • Consider the application of Positive • Inadequate farmer skills in seed production variety testing and certi cation; reform law to risk-based seed import licenses. Seed support. See page 2 for details costs Selection Review and revise zero-tolerance Key Recommendations: • Set up a PPP on seed storage with county Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions policies Seed • PPP on improving extension and farmer training on the Issue governments, donors, and seed companies. Plot use of Positive Seed Selection and Seed Plot • Low numbers and capacity of seed inspectors See page 6 for details • Set up of laboratories and Technology Imports Technology to increase seed potato availability quarantine facilities for seed and Key Recommendations: ware imports for fast-tracking Issue • Reform policy to allow private seed certi cation inspection • Low volumes of basic seed for bulking; unavailability of and support private testing laboratories •Training of inspectors on emerging pathogen-free land for seed multiplication • KEPHIS to enhance seed inspection and pest risk best practices like the use of Loop Basic Seed Clean Land assessment capabilities for imported seed mediated isothermal ampli cation Key Recommendations: potato. See page 26 for details (LAMP) and genome sequencing • Reform law to allow for increased private sector basic (PCR) seed production • Purchase of modern high-speed • Use university and ADC farms for seed multiplication seed inspection equipment. See Issue pages 27-30 for details • Not recognized by MOALF and KEPHIS Key Recommendations: Quality Declared • Recognition of QDS by MOALF and KEPHIS Seed • Establishment of standards and guidelines on QDS • Build capacity of farmers on how to e ectively produce and use QDS. It will also need support to ensure the standards are observed. See page 5 for details v Kenya’s North Rift region is emerging as an important potato production region. Here, Samuel Sugut, a seed multiplier in his seed store in Nandi County, Kenya. Credit: Hugh Rutherford (CIP) vi KENYA SEED POTATO INDUSTRY DIAGNOSTIC KEY FINDINGS, PRIORITY ACTIONS AND INVESTMENTS T he seed potato industry study generated many useful recommendations with the focus on increasing the quality and availability of potato seed in for seed potato once the data from a pilot pest risk analysis confirms prevalence of critical potato pests and diseases. This data will inform the revision of the Kenya. These recommendations are grouped into those quarantine pest and diseases list. impacting on importation, multiplication, certification The pilot pest risk assessment is undertaken jointly and distribution. The sections below provide additional with KEPHIS and CABI in two counties; mainly for pest details, followed by the top five priority areas for action cyst nematode and bacterial wilt. and investments. • Kenya, like Egypt, has an opportunity to IMPORTATION collaborate with the European Union scientific • Kenya should consider streamlining and shortening and technical counterparts in strengthening its seed import inspection processes at the port of pest risk assessment capabilities through sharing entry. Kenya imports seed potato to meet a shortfall of technical data, joint pest risk assessments in seed quality available. The imported seed is of and extensive field-based research in Kenya to processing varieties, supplied mainly by Dutch, French, determine the performance of major pests (known Scottish and Irish exporters. The exporter loads the and unknown) in Kenya’s agro-ecologies. Egypt, seed potato tubers onto a ship which travels to the like Kenya, imports seed potato from the EU and has port of Mombasa. At the port of Mombasa, KEPHIS built a robust potato industry; with ware exports to inspectors sample the seed once the container is Europe. Egypt succeeded in developing a robust offloaded. On visual inspection, seed samples are program for the management of bacterial wilt taken to KEPHIS laboratories in Nairobi or Muguga (brown rot) through a technical collaboration with EU for further quality tests. The seed that is suspected scientific, technical and seed exporter communities. of containing harmful pathogens is planted in a • Egypt’s pre-shipment seed potato inspection and quarantine field for 3 – 4 months. The laboratory tests certification offers a benchmarking opportunity take 14 days. If the seed fails the laboratory test or for increasing traceability and quality. Egypt has a quarantine field test, then the entire imported seed system of double inspection (in both Egypt and the lot is destroyed. In all this time (whether 14 days or exporting EU country) involving designated Egyptian 3-4 months), the seed importer cannot trade in the seed potato inspectors visiting seed production farms, seed, and the seed undergoes quality deterioration. packhouses and ports to certify the seed as meeting Industry stakeholders recommend that KEPHIS Egypt’s import standards before the seed leaving the should streamline the seed import inspection process EU. On arrival in Egypt, the seed is sampled, analyzed and fast track it, to release results in near-real time to and evaluated for compliance. If Kenya was to adopt facilitate trade. this system then there would be increased assurance • Kenya should consider applying a risk-based seed in the seed potato quality based on scientifically importation policy for potato. Kenya does not have backed traceability of the seed imports right from the baseline data on existing pests and diseases of global field to the packhouse and port. significance and this creates challenges in instituting • Kenya should incentivize importation of tissue zero-tolerance standards to prevent the introduction culture material for multiplication. It is easier to of these pests and diseases through imports. meet infection-free standards for material produced Industry stakeholders recommend that KEPHIS from tissue culture, i.e. minitubers, than it is for tubers; should consider applying a risk-based import policy since the soil-less production process ensures that Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions vii Key Findings, Priority Actions and Investments soilborne pathogens are absent. The government increasing availability of EGS succeeded in crowding should provide tax rebates to incentivize seed in the private sector to create a 10-fold increase in the importers to use minitubers to ramp up availability availability of EGS from 80 tons to 850 tons. Similarly, of seed potato and support initiatives in increasing minituber production was increased from 30,000 to access to blended finance for seed companies using 1,000, 000 minitubers in 3.5 years. KALRO is working the imported minitubers starter seed to meet the on EGS public-private partnerships that can be scaled initial capital outlays. to increase the availability of seed potato. In South Africa and Zambia, the private sector produces EGS. If MULTIPLICATION the government were to revise its laws, and allow the • Seed potato production from tissue culture1 is private sector to produce EGS on the available public a promising innovation with the potential to land; this would significantly increase seed potato rapidly reduce the time for seed multiplication availability. and enhance diseases control. The use of mini- • Kenya can benchmark with Egypt and Japan in use tubers and apical cuttings are being promoted in of ‘Pest Free Areas’ for seed potato production. One Kenya by CIP, KEPHIS and the Dutch government to of the main challenges to seed potato availability increase the availability of seed potato. For instance, in Kenya is the lack of clean, pest-free land for seed Kisima Farm piloted the use of cuttings to introduce multiplication since potato requires a 5-year rotation ware potato farmers in Meru to quality propagation period. Designated pest-free areas can increase material. KEPHIS is working with KALRO and the availability of seed potato, especially to combat government to increase multiplication of seed potato effect of bacterial wilt and potato cyst nematode through aeroponics at the National Youth Service (PCN) infestation in the main seed potato producing (NYS) Tumaini Farm in Nyandarua County. Industry areas. These two pathogens can persist in soil stakeholders recommend sublicensing of imported for up to 30 years, reducing yields by up to 100% varieties for multiplication to produce apical cuttings and are largely responsible for reduced yields in that can dramatically increase the availability of seed central and eastern Kenya, where potato has been of high-value processing varieties currently imported. produced often without crop rotation. Japan uses • Encourage government collaboration with pest-free isolated production fields surrounded the private sector in the production of Early by “shelterbelts” while Egypt uses designated Generation Seed (EGS) like in South Africa, to Pest Free Areas (PFAs) developed in collaboration increase availability of seed potato of processing with the EU, according to the United National varieties. Kenya imports ware potato of in-demand Commission for Europe (UNECE) guidelines for processing varieties from Egypt and South Africa, pest-free areas. In Japan, “shelterbelts” are treated yet these could be grown locally by Kenyan farmers. to prevent the entry of aphids and other flying Only 5% of varieties from KALRO and KEPHIS are insects that can transmit viral diseases. Egypt uses suitable for processing, yet KALRO does not have these PFAs for both seed potato multiplication and the capacity to multiply enough seed of these top ware production. Agricultural universities and the varieties, even when operating at full capacity. The Agricultural Development Corporation (ADC) land private sector can effectively fill this gap through can be converted into seed potato production zones. leveraging financial, research and development • Promoting decentralized seed multiplication by capabilities. In Kenya, a pilot funded by USAID on clusters of farmer groups can increase uptake of quality seed potato. In Kenya, through USAID 1 Plant tissue culture involves removing a vegetative part of a plant and growing it in the laboratory for multiplication. funding, CIP is supporting clustering of seed potato It offers alternative methods of propagation by in vitro multiplication in key potato producing regions in techniques that provide production and multiplication of material with high quality and disease-free status. From tissue Kenya and this has been successful in increasing culture, techniques such as aeroponics, hydroponics and availability of seed potato and boosting yields of ware apical cuttings can yield seed potato. viii KENYA SEED POTATO INDUSTRY DIAGNOSTIC Key Findings, Priority Actions and Investments potato. According to stakeholder feedback, Ethiopia to revocation of seed inspection authority if any is effectively using this model of seed multiplication; violation is committed. Kenya would do well to draw and Kenya too, can scale this across the country. lessons from Zambia where private certification has Private seed companies could contract farmer been extensively implemented. In Zambia, private groups organized into seed multiplying business inspectors are held to the minimum qualifications units, to produce seed on their behalf and work with as government seed inspectors, i.e. should have a county governments to enforce the seed production minimum of a diploma in seed certification. contracts. • KEPHIS should lower National Performance Trials’ costs and timelines; currently at $3,563 for two CERTIFICATION seasons. Recommendations include using data for • C2 limit for multiplication (based on disease only one season, and also considering trial data from threshold) increases the ultimate unit cost of varieties registered in 2 COMESA or SADC countries. In seed. Until mid-2018, KEPHIS had imposed a limit for South Africa, the variety testing and release processes multiplication on the second certified seed class or on seed potato include only Distinctiveness, C2; since the higher the seed class. The higher the Uniformity, and Stability (DUS) and not Value for vulnerability to pest and disease attack. Through the Cultivation and Use (VCU) data, provided the variety National Potato Council of Kenya, seed companies meets the DUS criteria. This shortens the process and successfully lobbied for this to be increased to C3. eliminates additional costs. As highlighted earlier, KEPHIS recently raised the multiplication threshold there is an opportunity for private seed certification to C3 allowing seed potato companies to bulk and inspection by KEPHIS to ease the backlog of enough seed potato (both tubers and cuttings) for seed inspection demands by seed companies. This commercial viability, provided they can manage model works very effectively in South Africa and pests and diseases effectively. Stakeholders Zambia, where it supports training and certification recommend that KEPHIS should accommodate this of seed inspectors; and regular auditing of both C3 certification limit on a long-term basis since seed private inspectors and laboratories for continued classes below C3 moving within the same seed farm compliance. do not pose any biosecurity threat. Certifying seed class C1 and C2 on the same farm where they will be DISTRIBUTION used to produce C3 seed only serves to increase seed • Kenya should explore and scale disruptive agritech multiplication costs ultimately passed on to ware aggregation and logistics platforms to reach potato farmers. farmers with seed at the farmgate at lower costs. • Reviewing the certification policy to allow for Seed potato mini-tubers are bulky; seed producers private certification can increase the availability are mainly located long distances from ware of seed potato by improving Kenya’s capacity potato growing zones. This situation contributes to effectively meet the industry’s demands for significantly to transportation costs and the overall seed certification: KEPHIS has already developed cost of using certified seed potato material; thereby a framework for accreditation of private seed further lowering farmers’ incentives to use certified inspectors to address its understaffing challenges. seed potato each season. Digital technologies offer It is also rolling out a comprehensive training opportunities to explore and scale disruptive agritech program, and authorization of the qualified private aggregation and logistics platforms to reach farmers seed inspectors are commendable though requires with seed at the farmgate at lower costs. These further investments. So far 28 inspectors from private innovations will contribute significantly to increasing seed companies and county governments have been both affordability and accessibility (see below for trained and authorized. The private seed inspectors more details). are bound by KEPHIS regulations and are subject Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions ix Key Findings, Priority Actions and Investments • Considerable investments in mechanization, tons. KEPHIS has developed certification guidelines for irrigation and storage infrastructure are critical apical cuttings and is working with the government for attaining year-round seed potato production and private sector to increase the availability of apical to increase seed availability. Research by TNS and cuttings for use by smallholder ware potato farmers. stakeholder engagement confirm that year-round Apical cuttings offer farmers the opportunity to seed availability could mitigate seed price volatility. effectively and safely produce quality seed that they can Promoting Dutch - or Irish origin varieties with use for one or two seasons, starting with clean, certified higher yields and longer dormancy may considerably seed potato. increase demand from ware potato farmers and justify storage investments. Another promising A basic comparator analysis of cuttings to mini-tubers is venture is the co-financing of storage warehouses contained in Table 1 below. in potato growing counties through public-private partnerships involving farmers, county governments Assuming the cost of production per year of $ 1.5 million and development partners. for a 100-ha farm2, the use of cuttings would produce on average 45.7 million seed tubers, while for a similar cost, PRIORITY INVESTMENTS AND POLICY ACTIONS tubers would produce 30.8 million seed tubers. Cuttings TO CREATE A STEP-CHANGE IN SEED POTATO yield 1.48 times more seed than tubers. AVAILABILITY IN KENYA Based on the analysis of Kenya’s seed potato value The bigger the seed potato farm, the higher the return chain, five priority areas are identified for investment but this will be dependent on other variables like soil and policy reform action to create a step change in health. the availability of seed potato from both production and importation. These value proposition outline immediate -, b. Reform policy to allow private seed certification medium - and long-term horizons. and support private testing laboratories Stakeholders blame KEPHIS for being slow in seed a. Support production and use of apical cuttings as inspection and certification due to a persistent shortage seed potato of seed potato inspectors with adequate skills in high- Production of seed from apical cuttings by seed potato speed, modern seed inspection techniques. KEPHIS companies offers a two-fold increase in yield over the inspectors cover the entire country with responsibility use of mini-tubers. Not only are they cheaper per unit for more than 400 varieties of diverse crops. Efforts but also reduce susceptibility to and proliferation of to enhance private inspection by KEPHIS are seed potato pests and diseases. This offers a promising commendable. KEPHIS is rolling out a comprehensive route for accelerated seed potato production. A major training program and has trained and authorized drawback is the need for plenty of water for irrigation 28 qualified private seed inspectors from private during propagation as the plantlets are very fragile. seed companies and county governments. KEPHIS Seed from apical cuttings can be further multiplied for through its Centre of Phytosanitary Excellence (COPE) two more generations – meaning that the seed that should partner with agricultural universities, county farmers buy is equivalent to basic or certified third governments in potato growing areas and private seed generation (C1) seed and will produce high yielding companies to identify agriculture graduates who can be crops without risk of significant seed degeneration trained in large numbers to reduce the seed inspector and loss of yield potential. shortages. COPE already has a curriculum that covers all Increasing investments in apical cutting production over 2 From TNS Analysis and Stakeholder Interviews: Costs of running a 100-ha farm per year put at KES 150 million the medium to long term will increase the availability (equivalent to $ 1.5 million; assuming an exchange rate of KES of quality seed potato and contribute to reducing the 100 = $ 1). Assumes these costs: $ 450,000 for 1000-ton cold storage; $ 1 million for tractors, irrigation & equipment; and annual seed potato gap in demand of more than 300,000 $ 100,000 for packaging. x KENYA SEED POTATO INDUSTRY DIAGNOSTIC Key Findings, Priority Actions and Investments phytosanitary issues as well as seed certification. KEPHIS on quality seed standards to produce quality, clean could enrol 100 plus students annually, take them disease-free planting material from registered varieties. through the training program with practical internships A QDS system can complement certified seed systems in seed companies, certify and authorize them to in serving as a bridge between informal and formal conduct inspection and certification across the country. seed systems. QDS systems facilitate affordable access These graduates can also be attached to private and to quality seed for smallholder farmers while serving as county seed inspection and certification facilities, which a basis for the creation of future certified seed demand. would be inspected, audited and annually certified by QDS is formally recognized by FAO and some national KEPHIS and the International Seed Testing Association seed certification agencies in Africa. Ethiopia, Uganda, (ISTA). This would require an innovative PPP and policy Tanzania and Zambia formally recognize the production, advocacy to leverage investments, and to create the inspection and cultivation of QDS for potato. Generally, needed regulatory change to allow for extensive but the production and marketing of QDS are limited to a KEPHIS/ISTA accredited private seed certification. These specific jurisdiction, managed by local governments. are short- to medium-term initiatives. Investments and policy advocacy would be required c. Reform policy to allow for collaboration in in the immediate to medium term to support the line production of Early Generation Seed (EGS) by ministry, KEPHIS, county governments and smallholder government and private seed companies farmers in the move towards QDS systems. KEPHIS To ensure continuity of the gains made in creating a would be supported in the development of guidelines vibrant seed potato industry in Kenya, the government and inspection capabilities, while county governments could collaborate with the private sector in production would be supported in enforcing the QDS jurisdiction. of Early Generation Seed (EGS). This would not only Private seed companies would sell the certified starting increase availability of foundation and breeder seed seed potato material to county governments or farmer potato but would also ensure that seed companies producer organizations in these schemes. produce varieties with farmer-demanded attributes. Currently, production of early generation seed is the e. Explore and scale disruptive agritech aggregation sole mandate of the national research agency (Kenya and logistics platforms to reach farmers with seed Agricultural Research Organization (KALRO) that cannot at the farmgate at lower costs produce the quantities of breeder and foundation seed Currently, the newly emerging ware potato production required by the industry. Policy advocacy for reforming zones are geographically dispersed; with on average the current seed laws to recognize early generation seed more than 400 kilometres to be covered to the nearest production from the private sector is needed. Similarly, seed potato company, often located in another county. investments in KALRO should support the maintenance This situation has further impacted the lack of seed of public seed potato varieties where these have potato for ware farmers at the critical moments during significant market demand, and support a PPP on EGS planting seasons as seed is not available when and where production for in-demand high-value varieties. Lessons required. The bulky nature of seed potato propagation from EGS pilots should be leveraged for scaling up an materials coupled with the long distances to seed- EGS PPP. The private sector should lead new variety producing farms, increase the cost of transportation development where it has a competitive edge. and the overall cost of certified seed potato. d. Recognize Quality Declared Seed (QDS) system in There are opportunities for exploring and scaling Kenyan seed laws disruptive agritech aggregation and logistics platforms to A Quality Declared Seed (QDS) system is also known as a reach farmers with seed at the farmgate at lower costs. Quality Declared Planting Material (QDPM) system. QDS Existing Digital agritech solutions can be leveraged systems involve educating farmers and seed growers to simultaneously increase availability and reduce Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions xi Key Findings, Priority Actions and Investments transportation costs by facilitating the generation of The World Bank’s Agriculture Global Practice is working geo-located bulk orders, and combining smart logistics with agritech innovators who can be involved in to transport seed to farmers within specific localities. generating or scaling this solution. One such innovator Currently, seed companies post their seed inventory on is iProcure – a firm that is using data analytics to a members’ only dashboard such as ViaziSoko (managed aggregate demand and last-mile distribution networks by National Potato Council of Kenya) and farmers who to enhance agricultural supply chains in rural Kenya. need seed can communicate directly via phone with The Potato Council is also working with Viazi King - a the seed company. The seed company prepares the logistics company to develop the digital platform that order and once ready the farmer is required to collect it would leverage the power of data analytics and fintech immediately from the seed company’s farm due to the for payments. These innovations could be explored for highly perishable and bulky nature of seed tubers and lessons on adaptation and scaling to reach the 800,000 cuttings. This represents complex logistics that can be ware potato farmers in Kenya. mediated by agritech innovations. xii KENYA SEED POTATO INDUSTRY DIAGNOSTIC INTRODUCTION P otato is Kenya’s second most important food crop, after maize in Kenya. Its productivity is impacted by low availability of certified seed, persistent use by seed companies in Kenya and have been tested for adaptability to local conditions. Similarly, French, Irish and Scottish varieties have been introduced and of older varieties, poor soil fertility, high pest and tested in Kenya. These bilateral arrangements have disease incidence, and low knowledge levels of good included technical capacity building components to agricultural practices. Low yields result in low incomes increase the inspection and test capacity of the Kenya in a vicious cycle for the country’s potato farmers Plant Health Inspectorate Services (KEPHIS). Pests and whereas high-yielding, adapted and newer varieties are diseases of global significance in seed potato trade available from imported seed potato stocks. Varieties pose a potential threat to potato industries the world with origins in France, Ireland, the Netherlands, and over. They have to be mitigated by various sanitary and Scotland have a yield potential ranging from 40 - 100 phytosanitary measures including quarantine and zero- tons per hectare, compared to the commonly cultivated tolerance. Kenya is not alone in this and has had a zero- varieties with a yield potential 16-20 tons per hectare tolerance policy in place for decades. Recent quality under optimal conditions of irrigation, fertilizer use and plant health safety concerns over the importation and pest and disease control. Compared to Egypt and and use of seed potato tubers have prompted industry South Africa, Kenya’s potato industry lags, with these stakeholders to explore the possibility of developing two countries having robust industries supported by an evidence-based strategy for managing biosecurity high-yielding, highly demanded ware potato varieties risks while ensuring the long-term viability of Kenya’s suitable for both ware and processing. The average potato industry. yield per hectare in Egypt is 25 tons, and 35 tons in South Africa, respectively. Indeed, Kenyan processors From this industry need, IFC conducted a diagnostic supplying frozen chips to high-end hospitality chains study of Kenya’s seed potato industry to determine are importing ware potato from these two countries – the issues impacting the availability of quality seed locking out local farmers from this high-value industry. potato from importation and local production. The study undertook in-depth stakeholder interviews and To support the development of Kenya’s potato desk reviews of relevant secondary data. The study industry, over the last ten years, the Kenyan findings were validated through stakeholders’workshop government has entered into bilateral arrangements and further field-based stakeholder engagements. with the British, Dutch, Irish and French governments The diagnostic study highlights key issues, emerging on importation of seed potato to increase the opportunities, African and global best practices for availability of certified seed and ultimately the benchmarking and makes recommendations for farm-level yields of ware potato. More than 40 strategic priority policy reforms and investments. Dutch varieties have been introduced and adopted Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 1 WITH RISING DEMAND FOR POTATO, THE KENYAN GOVERNMENT HAS PRIORITIZED IT AS AN IMPORTANT FOOD AND CASH CROP IN THE NATIONAL DEVELOPMENT BLUEPRINT, THE BIG 4 AGENDA. Credit: International Potato Center (CIP) 1. The Potato Industry in Kenya OVERVIEW OF THE POTATO INDUSTRY IN KENYA vitamin C, B vitamins, zinc and iron to the diet. With a P otato is the second most important food in Kenya rising demand for potato, the Kenyan government has after maize and third globally, after rice and wheat prioritized it as an important food and cash crop in the (Devaux et al., 2014). It has a high-value per unit area national development blueprint, the Big 4 Agenda. of land and thrives in mid- to high altitude regions, Increasing potato productivity is core to the Food and with a short cropping cycle of 3 - 4 months; allowing Nutrition Security Pillar of the Big 4 Agenda. Employing for two production seasons per year under rain-fed 2 million people, and grown by 800,000 farmers, the systems. Harvestable tubers are available 60 days after potato sub-sector contributes $ 500 million per year to the onset of the rainy season – a significant advantage Kenya’s economy. The main potato growing counties over grains, which typically require 6 - 9 months. Potato include: Nakuru, Nyandarua, Kiambu and Meru counties is a low-cost but nutritionally rich staple food for the with newly emerging potato growing counties being rapidly urbanizing population: contributing protein, Bomet, Narok and Bungoma (see map below). Figure 1: Major Potato Producing Counties Source: TechnoServe (TNS) Analysis West Pokot Nyandarua Elgeyo-Marakwet Meru Trans Nzoia Nyeri Bungoma Kirinyaga Uasin Gishu Muranga Kericho Bomet Kiambu Nakuru Narok Major potatoe growing counties Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 3 The Potato Industry in Kenya In Kenya, total potato volumes are far below the There is a shortage of clean potato seed in Kenya and national 2022 target of 2.5 million tons per year, farmers depend on informal seed sources which include with 2017 data indicating that the country produced farm-saved (self-supply), local markets or neighbours. 1.5 million tons. Average yields per farmer are 6 - 10 Due to limited supply, the certified potato seeds are tons per hectare under rain-fed conditions, yet robust highly-priced (Ayieko & Tschirley, 2006). The informal Kenyan varieties can triple or quadruple this 30 - 40 tons system leads to the use of poor quality seeds which per hectare per year. Dutch, French, Irish and Scottish often accelerates the spread of seed-borne diseases varieties can yield as much as 60 tons per hectare under (Kinyua et al., 2001; Ng’ang’a et al., 2003). optimal irrigation, fertilizer and spray regimes. THE SEED POTATO INDUSTRY IN KENYA Challenges in raising average farm yields and Kenya’s annual seed potato demand is 320,000 tons consequently, the national volumes include: small against production of 6,700 tons3. Therefore, low farm sizes (less than 2 hectares), repeated cultivation accessibility and availability of certified seed potato of potato without crop rotation, use of farm-saved or is the most critical bottleneck in raising ware potato low-quality seed sourced informally, high pest and productivity in Kenya. disease build-up on farms, inadequate knowledge of good agricultural practices and low levels of As seen in Figure 1, 15 counties produce ware mechanization. To address these challenges, the potato but as Figure 2 shows, the major seed potato government, donors and the private sector have rolled companies are located in Kirinyaga, Meru, and Nakuru out initiatives to increase the availability of quality seed counties. This implies that farmers in Bomet, Bungoma, of high-yielding, disease-tolerant varieties to farmers. Kericho, Kirinyaga, Narok, Trans Nzoia and West Pokot These efforts have focused on the introduction of new have to travel over long distances to other counties varieties, breeding, seed multiplication, innovative seed to purchase certified seed potato directly from these distribution strategies the such as use of village-based companies, as there are no satellite distribution centres suppliers, and investments in seed storage. or licensed resale agents for seed potato, as there are in cereal or grain crops. Varieties grown in Kenya include Shangi, Dutch Robijn, Asante, Sherekea, Purple Gold, Kenya Mpya, Farmers have resorted to using uncertified planting Arnova, Connect, Rudolph, Sarpo Mira and others. materials: farm-saved, from neighbours or local Shangi, by far is the most dominant variety due to yield, markets. This has resulted in the proliferation of market demand, seed availability and cooking qualities. diseases, mainly bacterial wilt, viral diseases and Popular processing varieties include Markies, Manitou, nematodes – further decreasing potential yields, and Jelly, Dutch Robijn and Destiny. incomes from ware potato. It is worth noting that potato required for processing There are two main seed production systems in by high-end hotel and restaurant businesses is Kenya: formal (legally recognized) and informal (not imported from Egypt and South Africa. Though there legally recognized). Formal seed undergoes seed have been efforts to ramp up local production of the certification by KEPHIS, following Kenyan laws, and highly demanded processing varieties, the volumes involves KALRO, KEPHIS and certified seed growers. produced do not meet demand since these varieties Conversely, the informal seed system comprises all have not been widely adopted by farmers, they require activities producing seed outside the legal system. intensive agronomic practices and there is not enough planting material available. The government – through the Ministry of Agriculture and KEPHIS – is working together with other stakeholders to increase the supply 3 Analysis by CIP. Assuming 160,000 hectares and planting rates of quality seed of these varieties. of 2 tons per hectare. 4 KENYA SEED POTATO INDUSTRY DIAGNOSTIC The Potato Industry in Kenya Figure 2: Location of Seed Potato Companies Agrico (Nakuru) Kisima (Meru) • Seed imported (AgriCo) • Grown from breeder seed. Partner with HPZC • Focus on processing varieties, but expanding into table • Mix of local and imported varieties suitable for table and processing • Current annual seed production ~1800t on ~50 hectares • Current annual seed production ~1700t on ~100 hectares ADC Molo (Nakuru) Kirinyaga Seeds (Kirinyaga) • Grown from breeder seed • Grown from breeder seed. Partner with IPM for varities • Mostly local varieties suitable for table and processing • Mix of local and imported varieties suitable for table and processing • Current annual seed production ~1100t on ~70 hectares • Expected production in 2021 of ~2000t on ~100 hectares Major potatoe growing counties Source: TNS Analysis Recognizing that farmers need to be gradually These include bilateral agreements with the Dutch, moved from informal to formal seed systems, various French and British governments to avail modern, high- initiatives over the years have sought to improve yielding, and in-demand varieties to boost local efforts the quality of seed produced outside of the formal in breeding, multiplying and commercializing these seed system. These initiatives are driven mainly by varieties. Through these initiatives, more than 40 new the International Potato Center (CIP), donors, the Dutch varieties have been introduced into the country Kenyan government and non-profit organizations. while Irish varieties include: Fandango, Tornado and For instance, CIP pioneered the production of Imagine (imported in 2019). It is estimated that the seed by farmers through positive seed selection average production per hectare of the Irish varieties is - where farmers train on how to select the best 120 tons while the Dutch varieties can average 60 tons plants in the field, to keep as seed for use on their per hectare. These are varieties with promising potential farms in subsequent seasons. It is worth noting for curbing Kenya’s seed shortage of more than 300,000 that new varieties of seed potato are approved for tons per year (Maina, 2019). commercialization only after undergoing tests related to their adaptability and suitability for cultivation Agrico East Africa is the leading seed potato importer under the growing conditions in Kenya. These are the in Kenya; importing varieties such as Markies, Manitou, national performance trials (NPTs). Jelly, Rudolf and Manitou. The formal seed industry in Kenya currently There are currently two supply systems of certified comprises of 19 seed companies (see Annex 1) who seed produced in the formal system in Kenya. These either produce certified seed potato from basic seed supply systems are: obtained from KALRO or import and multiply pre-basic • Production of certified seed starting from mini-tubers seed. Pre-basic and basic seed are the starting materials or healthy mother plants produced in Kenya for certified seed production. • Production of certified seed through the multiplication Over the last ten years, the Kenyan government has of imported seed (e.g. from the Netherlands, Scotland, set up various initiatives and partnerships aimed at Ireland or France). increasing the availability of certified seed potato. Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 5 The Potato Industry in Kenya In the second system, pre-basic and basic seed is then exported to Kenya by private seed companies produced in the Netherlands, Scotland, Ireland or based on an import permit issued by KEPHIS. The basic France by specialized seed growers guided by strict seed is further multiplied in Kenya into certified seed European Union and national seed certification rules classes following KEPHIS regulations and certification and regulations. Basic seed (usually class E or SE) is standards. 6 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Credit: International Potato Center (CIP) 2. Seed Potato Multiplication and Certification in Kenya MODELS OF SEED POTATO MULTIPLICATION KALRO conducts the research and breeding while K enya’s formal seed industry is governed and the private sector multiplies the seed under the regulated by the Seeds and Plant Varieties Act supervision of KEPHIS and distributes the seed to (Cap 326) of 2012 which recognizes breeders, pre- farmers. basic, basic and certified seed classes (see page 14 • Closed value chains or fully private formal for details on these seed classes). KEPHIS registers all seed system: These are systems that are entirely seed multipliers operating in Kenya. controlled by the private sector from breeding and variety development to seed multiplication The formal sources of seed potato in Kenya are and distribution. There is minimal government public institutions (KALRO and ADC), private seed involvement except in seed quality control and companies and registered individual seed growers certification (KEPHIS). This system is applied by (see Annex 1). Such seed must have undergone private companies including Agrico E.A. Ltd, and certification by KEPHIS. Kisima Farm Ltd in close cooperation with their partners in the Netherlands. Similar systems are In Kenya, there are three main types of formal seed employed by companies multiplying and distributing systems: varieties with French, Irish and Scottish origins. • Public formal seed system: Here, the public There are three main business models for producing sector undertakes all activities involved in seed seed: development through to marketing. For example, KALRO carries out breeding and seed production • From breeder seed: Licensed local or international of new varieties, multiplication and distribution. companies grow seed from mini-tubers through to KEPHIS supervises seed multiplication. the second stage of certification, known as the C2. • Public-private formal seed system: This involves Kisima, ADC, and Kirinyaga Seeds use the breeder the participation of the public and private sector seed model and mix up local and imported varieties from variety development through to marketing. suitable for table use and processing. Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 7 Seed Potato Multiplication and Certification in Kenya • Buy basic seed: Agrico East Africa uses the direct hydroponics, aeroponics, positive seed selection and seed potato tuber importation model for further seed plot technology). multiplication, with their main focus being on processing varieties. Apical Cuttings • Clean seed multiplication: Seeds are purchased Apical cuttings are transplants produced from from certified producers before they are multiplied tissue culture plantlets in which the mother plant on a local scale. is maintained in a juvenile state throughout the production cycle. The mother plants are produced Seed multiplication requires large amounts of from shoots produced by the initial tissue culture disease-free land to allow for 4-year crop rotations plantlet and subsequent cuttings until 3-4 weeks (minimum 200 hectares) to reduce the accumulation when the first lot of cuttings is to be transplanted of pests and diseases. Pests and diseases are a major in the field. Once rooted, the cuttings can then be challenge to potato growers across the world. Tried transplanted into the field for seed tuber production. and tested methods of producing relatively disease- The high potential in productivity can be attributed free propagation materials include the use of tissue to the physiologically young tissue retained at the culture (aeroponics and hydroponics), positive simple leaf stage which results in high productivity per seed selection and seed plot technology. Tissue apical cutting in the field: 10-15+ tubers per cutting culture has a two-fold yield gain potential over seed — compared to 6-8 from seed potato tubers (Parker, tubers; while the two latter techniques can be used 2019). The resulting tubers are multiplied for a further at ware potato farmer level to meet on-farm seed season or two, and then harvested for on-farm use or tuber demand by producing ‘clean’ seed starting with sold as seed. certified seed potato. If successfully applied, using cuttings can reduce cost The seed potato production system starts with per hectare of sellable seed by approximately $ 300; completely virus-free plantlets produced from further increasing affordability and accessibility of tubers or tissue culture. In the case of tissue culture, quality propagation material. these plantlets are planted in an insect-proof screen house to produce clean propagation material. The seed KEPHIS has approved apical cuttings as seed potato resulting from this process is called starter seed potato. propagation materials. The starter seed potato is further multiplied as cuttings or mini-tubers by KALRO, ADC Farm, commercial seed Mini-tubers potato companies and potato grower organizations Mini-tubers are produced from tissue culture (see below for details on the use of apical cuttings plantlets but unlike apical cuttings, tissue culture and mini-tubers; and Annex 2 for details on the use of plantlets have to mature and produce mini-tubers. Table 1: Classification system of seed potato produced in Kenya Type of material Seed class Generation (maximum) Healthy mother plants (clonal selection) Breeders seed G0 in-vitro plants, mini-tubers Tubers Pre-basic G1 Tubers Basic G2 Tubers Certified 1 G3 Tubers Certified 2 G4 Tubers Certified 3 G5 Source: CAP 326 i.e. Seed and Plant Varieties Act of 2012 8 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Seed Potato Multiplication and Certification in Kenya Table 2: Classification system of seed potato imported from the Netherlands and multiplied in Kenya Generation Location of Type of material Seed class (maximum) production Healthy mother plants (clonal selection) in-vitro plants, Breeders seed G0 Netherlands mini-tubers Tubers Pre-basic 1 G1 Netherlands Tubers Pre-basic 2 G2 Netherlands Tubers Pre-basic 3 G3 Netherlands Tubers Pre-basic 4 G4 Netherlands Tubers S (basic 1) G5 Netherlands Tubers SE (basic 2) G6 Netherlands Tubers E (basic 3) G7 Netherlands Tubers Certified 1 G8 Kenya Tubers Certified 2 G9 Kenya Tubers Certified 3 G10 Kenya Source: KEPHIS and Dutch General Inspection Service (NAK) Mini-tubers can be produced under soil-less cultivation Both of these seed production systems would require systems, i.e. aeroponic and hydroponic setups, to a minimum capital outlay of $ 1.5 million, for a increase the availability of pathogen-free seed potatoes. 100-hectare farm with irrigation, mechanization and (Bisognin, Bandinelli, Kielse, & Fischer, 2015). cold seed stores (TNS Analysis). Figure 3: Production of Seed Potato from Aeroponics and Hydroponics Systems Picture 1. Depicting minituber production in aeroponics system (Courtesy of KALRO Tigoni) Picture 2. Depicting minituber production in a hydroponics system Picture 3. Depicting minituber production of variety Asante in an aeroponics system (Courtesy of ADC Sirikwa farm) (Courtesy of ADC Sirikwa farm) Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 9 Seed Potato Multiplication and Certification in Kenya Table 3: Comparative analysis for seed potato production using cuttings and seed tubers Cuttings Seed tubers Cost /Unit ($) 0.10 0.15 Spacing (m) (0.30 x 0.75) (0.30 x 0.75) Units/Ha (seed required) 44,000 44,000 Yield/unit 7 to 15 6 to 8 Yield (seed produced)/Ha (1000') 308 – 606 264 – 352 Source: IFC Analysis, 2019 The table below summarizes the business opportunity • Seed potato production processes are fairly long. for the use of apical cuttings as propagation material. The duration from multiplication to commercial seed production to certification is a minimum of 27 Assuming the cost of production per year of $ 1.5 months. In the process, there may be changes in the million for a 100-ha farm4, the use of cuttings would demand from smallholder farmers, rendering the produce on average 45.7 million seed tubers, while investments in seed production null. Stakeholders for a similar cost, tubers would produce 30.8 million advocate for data from 3 seasons (9 months) to be seed tubers. Cuttings yield 1.48 times more seed than considered as adequate. tubers. The bigger the seed potato farm, the higher the • Smallholder farmers recycle seed potato from return, but this will be dependent on other variables season to season. Their incentive to use certified like soil health. seed each season is low; compared to maize farmers who can only reuse the hybrid seed for one season SEED POTATO MULTIPLICATION AND with yield penalties. Establishing and running a seed CERTIFICATION CHALLENGES potato farms are capital intensive, and there is a lack Previous analysis and stakeholder interviews highlight of finance to support seed potato entrepreneurs, various seed potato multiplication and certification who must deal with this scenario. challenges, as summarized below. • There is limited disease-free land available for • Seed potato requires vegetative propagation large-scale seed multiplication. Land in the main methods is bulky and prone to attacks by pests potato growing areas, especially in Kirinyanga, and diseases, which compromises seed quality. Nyandarua, and Meru has been used for ware In the use of cuttings, investments in irrigation potato production for decades, with low crop are required since cuttings have high water rotation, repeated use of farm-saved seed and requirements. Most ware potato production is rain- poor agronomic practices that have led to the fed with farmers targeting the March -June, and accumulation of Potato Cyst Nematode (PCN) September -December planting seasons. With effects and bacterial wilt pathogens - two of the most of climate change decreasing rainfall certainty, seed serious pathogens in potato production. To be companies need to invest in irrigation to ensure effective, seed potato production should be seed potato productivity and to take advantage of done in ‘clean’ or ‘virgin’ land - on which potato seed market opportunities during the main planting or related crops have not been grown previously seasons. Investments in storage are also vital. to reduce the incidences of pests and diseases that can destroy between 30-100% of the seed 4 From TNS Analysis and Stakeholder Interviews: Costs of potato crop. running a 100-ha farm per year put at KES 150 million (equivalent to $ 1.5 million; assuming an exchange rate of KES • Large-scale certified seed multiplication requires 100 = $ 1). Assumes these costs: $ 450,000 for 1000-ton cold large farms and high levels of investment. For storage; $ 1 million for tractors, irrigation & equipment; and $ 100,000 for packaging. optimal seed potato multiplication operations, 10 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Seed Potato Multiplication and Certification in Kenya a minimum of 200 hectares5 of land for cropping pathogens to the seed potato during cropping. Seed is needed, together with associated investments in potato production can be expanded into new regions irrigation, production, mechanization, certification, using irrigation. packing and storage. For tissue culture-derived seed potato production models, seed companies Mechanization: Mechanization can be employed will generate revenue after two years. A major in cultivation, fertigation and harvesting. It reduces challenge cited by seed companies is that they human traffic in the seed potato farm, thereby setting cannot currently get access to adequate financing up the farm as a quarantine seed multiplication area for investments and operations. - with reduced incidences of seed contamination. • C2 limit for multiplication (based on disease Mechanization improves tuber quality by sorting to threshold) increases the unit cost of seed. get the right tuber sizes, minimizing cuts and bruises Until mid-2018, KEPHIS had imposed a limit for which increase susceptibility to postharvest pathogen multiplication on the second certified seed class or infestation in seed potato. C2; since the higher the seed class the higher the vulnerability to pest and disease attack. Through the Pest Free Areas (PFAs): Sanitary and phytosanitary National Potato Council of Kenya, seed companies (SPS) control is especially important in seed potato successfully lobbied for this to be increased to C3. multiplication considering the high susceptibility of KEPHIS recently raised the multiplication threshold potato to pests and diseases. In Japan, the National to C3. This allows seed potato companies to bulk Center for Seeds and Seedlings (NCSS) produces enough seed potato (both tubers and cuttings) for and distributes disease-free and high quality basic commercial viability, provided they can manage (foundation) seed. It strictly manages the seed pests and diseases effectively. Stakeholders potato production in isolated fields surrounded by recommend that KEPHIS should accommodate this ‘shelterbelts’ designed and treated to prevent the C3 certification limit on a longer-term basis since entry of aphids and other flying insects that can seed classes below C3 moving only within the seed transmit viral diseases. This is complemented by a farm do not pose any biosecurity threat. Certifying 5-year crop rotation. In Egypt, the country through seed class C1 and C2 that is used to produce C3 class EU support developed Pest Free Areas that were of seed on the same farm only serves to increase systematically managed to prevent contamination seed multiplication costs which are ultimately with pathogens especially the Pest Cyst Nematode passed on to ware potato farmers. (PCN) and bacteria responsible for Potato Brown Rot and Bacterial Wilt. These were developed according to EMERGING OPPORTUNITIES, BEST PRACTICES the United National Commission for Europe (UNECE) AND TRENDS IN SEED MULTIPLICATION AND guidelines for pest-free areas (see box 2 and 3S for CERTIFICATION details). Egypt uses these PFAs for both seed potato multiplication and ware production. Irrigation: This is a potential area for investment in the seed potato industry. Irrigation would help to Private Certification: KEPHIS has already developed a ensure year-round production of seed potato. Of framework for accreditation of private seed inspectors concern, however, is the availability of irrigation water to address its understaffing challenges. KEPHIS is rolling sources close to seed production farms, and the need out a comprehensive training program and has so far for farmer training on how to optimize irrigation. trained and authorized 28 inspectors from private seed Furthermore, the water quality of the irrigation should companies and county governments. These private be high to ensure that the water does not introduce seed inspectors are bound by KEPHIS regulations and are subject to revocation of seed inspection authority 5 Assumes production on 50 hectares and a 4-year rotation if any violation is committed. This is a commendable cycle, as recommended for managing pests and disease infestation. move and requires further investments. Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 11 Seed Potato Multiplication and Certification in Kenya Kenya would do well to draw lessons from Zambia QDS quality standards are defined by the regulatory where private certification has been extensively authority. Several COMESA region countries including implemented. In Zambia, private inspectors are held Ethiopia, Rwanda, Uganda, Tanzania and Zambia to the minimum qualifications as government seed formally recognize the production, inspection and inspectors. Zambia’s Seed Control and Certification cultivation of QDS for potato seed. Investments and Institute (SCCI) offers a diploma training course, a policy advocacy would be required in the immediate pre-requisite for accreditation as a private inspector to medium term to support the line ministry, KEPHIS, (Kuhlmann, Zhou, & Keating, 2019). county governments and smallholder farmers in the move towards QDS systems. KEPHIS would be KEPHIS through its Centre of Phytosanitary supported in the development of guidelines and Excellence (COPE) should partner with agricultural inspection capabilities, while county governments universities, county governments in potato growing would be supported in enforcing the QDS jurisdiction. areas and private seed companies to identify Private seed companies would sell the certified starting agriculture graduates who can be trained in large seed potato material to county governments or farmer numbers to reduce the seed inspector shortages. producer organizations in these schemes. COPE already has a curriculum that covers all phytosanitary issues as well as seed certification. COPE The OECD and FAO have stressed the importance of also runs a seed potato production course for seed QDS seed as a way to help transition farmers from the company staff and individuals. KEPHIS could enrol 100 informal sector to the formal sector and ensure that plus students annually, take them through the two the resulting seed from QDS systems is of satisfactory training programs with practical internships in seed quality (Kuhlmann, Zhou, & Keating, 2019). companies, certify and authorize them to conduct inspection and certification across the country. These In Ethiopia, the piloting of the concept encompassed graduates can also be attached to private and county intensive awareness creation and training, seed inspection and certification facilities, which would preparation of the guidelines, and labeling of be inspected, audited and annually certified by KEPHIS the Quality Declared Planting Materials (QDPM) and ISTA. This would require an innovative PPP and seed for traceability and enhanced credibility. The policy advocacy to leverage investments, and to create producers’ contact details were imprinted on labels the needed regulatory change to allow for extensive to facilitate queries by seed buyers. Seed movement but KEPHIS/ISTA accredited private seed certification. was limited to select zones unless it was subjected to formal certification. Positive feedback from the Quality Declared Seed (QDS): A Quality Declared pilot phase highlighted QDPM as an essential Seed (QDS) system also known as a Quality Declared tool for quality assurance and control among the Planting Material (QDPM) system is a quality assurance cooperative members in affirming constant quality scheme for seed production that is less demanding in seed production. Farmers were able to recognize comparison to the standard quality control systems. It the differences in seed quality between farm-saved is formally recognized by FAO and some national seed and QDS seed. The QDS (and QDPM) concept was certification agencies in Africa. QDS systems allow for officially recognized in February 2014 and updated less rigorous and low-cost inspection regimes while in the Ethiopian Seed Proclamation No 782/2013, but producing quality, clean disease-free planting material guidelines were yet to be developed by then (FAO, from registered varieties. QDS systems serve as a bridge 2015). In Tanzania, the production and use of QDS is for formal seed producers – facilitating access to quality localized to the ward level. The seed regulator involves seed for smallholder farmers while serving as a basis the local government authorities, extension agents for creation of future certified seed demand. Generally, and non-profits in building capacity of farmers in seed the production and marketing of QDS are limited to a production and in policing non-commercial use of specific jurisdiction, managed by local governments. QDS seed within the specified jurisdiction. 12 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Seed Potato Multiplication and Certification in Kenya Royalties: Royalties are an integral part of seed costs over three years. Learnings from this pilot could and represent a return on investment for breeders. be leveraged to design PPPs for EGS production, Breeders like KALRO need the money to maintain and crowd in the private sector who can invest in existing varieties and develop new ones. To keep quality control systems, breeding programs, and overall seed costs low, a dynamic and innovative staff training and development. mechanism of collection of royalty fees is needed. • Encourage farmers to grow certified seed, employ Stakeholder interviews unearthed several proposals. good agronomy and be linked to high-value One proposal from seed companies is for the ware potato markets. Promotion of cultivation government to pay royalty fees to breeders to ensure of non- Shangi varieties including imported ones smallholder farmers on less than 10 hectares do not would involve initiatives such as supporting ware pay royalties; this can reduce seed prices by as much potato farmers to secure firm contracts with price as 30%. Another one suggests that royalties be paid guarantees from high-end processors of chips and as a one-off fee during licensing as opposed to the crisps; promotion of royalty-free varieties such current annual arrangement of 2.5 % of overall seed as Dutch Robijn; increasing availability of seed sales. Stakeholders are also pushing for KALRO to stop of these varieties at the right price and time as charging royalties on varieties older than 20 years required by farmers as well as farmer education on old, such as Dutch Robijn. It remains to be seen what these varieties and agronomic support for ware deliberations by seed potato stakeholders will resolve production. Improved yields and income from ware on percentages and modalities for charging royalties. potato farming will increase their ability to afford quality seed, whether in the form of mini-tubers or Government-led joint venture on aeroponic seed cuttings. These steps would gradually move them production: A new potato production unit licensed toward demanding and purchasing certified seed by KEPHIS, was set up in Nyandarua County as a joint potato. venture between the National Youth Service (NYS) and the Prisons Service in February 2019. The seed Reform policy to allow private seed certification multiplication uses aeroponic technology and has a and support private testing laboratories capacity of 6,000 plants that can yield up to 429,000 • Kenya should consider reforming its seed tubers which can be further multiplied to millions of inspection and certification policies to streamline seed. The variety propagated is Shangi due to its high and fast-track these processes: provided there demand. This is contributing to meeting the shortfall is are no threats to the country’s biosecurity. KEPHIS seed but stakeholders call for similar facilities to be set should also consider reviewing its regulations to up for seed of highly-demanded processing varieties, benchmark with Zambia and South Africa in having whose seed is currently imported. satellite testing of seed, and private seed certification to increase speed and capacity. RECOMMENDATIONS • Use university and other government land as • Encourage private sector collaboration with the Pest Free Areas for seed potato multiplication. government in production of Early Generation Universities and the ADC Farm have access to large Seed (EGS). Public-private partnerships could tracts of unused, arable land that has previously not establish strong operational and institutional been used for seed or ware potato production. This foundations that facilitate ease of sharing of land is free from PCN and Bacterial Wilt. Like in Egypt technology and boost production capabilities of and Japan, these can be developed into profitable government facilities. Past pilots funded by USAID and sustainable seed potato production zones, and and involving KALRO and CIP were successful through a PPP avail the private sector of optimal in crowding in the private sector; resulting in a seed potato production zones, while universities 10-fold increase in the availability of basic seed would deepen their industry collaboration, raise Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 13 Seed Potato Multiplication and Certification in Kenya funds to maintain these farms and trigger training robust seed potato industry, and it imports tissue and postgraduate employment opportunities for culture starter material. their agriculture students. • Explore the potential of clustered seed • Conduct further research on compelling business multiplication. Seed companies and county models for incentivizing the private sector to governments should promote clustered seed use tissue culture instead of tuber basic seed. multiplication in isolated areas with large tracts Private sector companies interviewed do not of land in counties such as Samburu and Nakuru see a clear business case for investing in seed where land is available and suitable for potato potato multiplication from tissue culture, as it production. Through clustered seed multiplication, takes a minimum of four years to make money there will be aggregation of demand for farm inputs, compared bulking seed from mainly imported mechanization with the attendant advantages tubers as a starting material. Stokman Rozen is an of economies of scale. Through this model, there exception, and is making inroads in bulking seed would be site-specific extension on agronomy, seed potato through cuttings (see Box 16). Crowding inspection and certification. This system will facilitate in the private sector will significantly increase the crop rotation, effective enforcement of contracts availability of quality, disease-free seed, thereby by county governments and seed companies and reducing the current shortage. South Africa has a would yield high volumes of quality seed. Box 1: Seed Potato Cuttings Production by Private Sector Companies: Stokman Rozen Kenya Ltd Stokman Rozen Kenya Ltd (SRK) is one of the private sector companies involved in commercial production of rooted potato cuttings, following successful trial phases with CIP in Kenya. “We are pleased with the current pace that this technology has been introduced, trialled and is fast gaining acceptance by seed producers” says Simon Ndirangu of SRK. SRK has been in the young plants’ propagation business for the past 20 years, mainly in the flower industry. Recently, the company has chosen to diversify its enterprise to contribute to food security in Kenya and has embraced potato cuttings. The firm has experienced staff working in one of the best tissue culture laboratories in the country and can multiply any potato variety on behalf of a seed company client. Current varieties being multiplied by SRK include Dutch Robijn, Unica, Shangi, Konjo, Sherekea, Kenya Mpya, Asante and Desiree. In-vitro mother plants are grown in a restricted access net house that is designed to keep out sucking pests that can introduce viral diseases. Cuttings from the mother plants are harvested, rooted in cocopeat plugs and are generally ready for delivery to clients within four weeks having been grown under a strict hygienic environment. The growing environment and hygiene procedures serve to guarantee the quality of cuttings that meet and exceed all KEPHIS requirements for the production of clean healthy cuttings. The firm plans to multiply imported varieties and is looking for partnership opportunities with importers of highly-demanded processing varieties though royalties currently restricted this. Source: CIP website and stakeholder interviews 6 https://cipotato.org/potato-seed-for-africa/rooted-apical- cuttings-boost-potato-seed-systems-kenya/ 14 KENYA SEED POTATO INDUSTRY DIAGNOSTIC A seed potato screen house Credit: Vivian Atakos (CIP) 3. Seed Potato Importation Sanitary and Phytosanitary Issues OVERVIEW OF SANITARY AND of seed in international trade7. The International PHYTOSANITARY ASPECTS IN SEED POTATO Seed Testing Association (ISTA) developed globally IMPORTATION IN KENYA recognized standard procedures for seed sampling and A ll seed importers are required by law to have testing8. The International Union for the Protection of registered with KEPHIS as seed merchants. A Seed New Varieties of Plants (UPOV) provides breeders of new Import Permit and Plant Import Permit must be obtained plant varieties with intellectual property protection9, from KEPHIS before any importation is undertaken. Once while the International Seed Federation (ISF) provides the Seed Regulation Form (SR3) is filled and submitted seed companies with trade and arbitration rules. with a registration fee, KEPHIS inspectors visit the Complementary to these are international conventions applicant’s premises to verify the details provided in the and treaties hosted by the Food and Agriculture form. This visit informs the inspectors’ decision whether Organization of the United Nations (FAO) that provide to recommend an ‘approval’, ‘rejection’ or ‘holding for the international regulatory framework for seed trade, further investigation’ status. A valid Seed Merchant License allows for importation or export of seeds. The 7 The OECD Scheme for the Varietal Certification of Seed promotes the use of certified agriculture seed that is of Plant Import Permit (PIP) is obtained by completing and consistently high quality. The certification involves tests to establish seed quality; potential performance of a seed submitting Form SR14. The PIP contains information on lot with characteristics based on trueness to type. The harmful pests and diseases that are not known to occur characteristics include maturation and storability of the seed, minimum germination, limits of moisture content and limits in Kenya. of seed-borne diseases. Other quality aspects evaluated by a laboratory may include seed size and weight, seed vigour, seed viability and varietal quality assessment, which may Globally, several international organizations, include the detection of genetically modified organisms. conventions and treaties deal with the regulation 8 ISTA standards guarantee the identity of the seed lot with of seed trade. Together they provide an international a single reference; the traceability of the analysis; the competence of the laboratory that did the analysis; the use of regulatory framework by overseeing the interests of standard procedures, units and reporting languages breeders, producers and consumers. Among these 9 The rights granted to the breeder of a new plant variety that give the breeder exclusive control over the propagating and organizations are the Organization for Economic Co- harvested material. With these rights, the breeder can choose operation and Development (OECD), whose Seed to become the exclusive marketer of the variety, or to license the variety to others. To qualify for these exclusive rights, a Schemes are globally recognized for the certification variety must be new, distinct, uniform and stable. Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 15 Seed Potato Importation Sanitary and Phytosanitary Issues including plant health and phytosanitary measures, (IPPC), exporters of plant products are required to access and benefit-sharing for plant germplasm and use obtain a phytosanitary certificate from their NPPO. This of pesticides. contains information on the importing countries’ zero- tolerances for various pests and diseases risks; which ISTA standards govern Kenya’s international seed must be absent from the seed export consignment. trade. ISTA standards guide Kenya’s seed potato In addition to routine border inspections, for example, imports; specifying quality criteria based on seed class some importers will ask for pre-shipment samples from (pre-basic seed, basic seed, and certified seed). Before the exporting country two to three weeks before the seed is imported, it must meet ISTA standards’ limits for expected arrival date so that various types of analysis maximum percent of off-types, a minimum number of can be implemented. (Keyser, 2013). inspections, minimum germination per cent, minimum pure-seed by weight, and maximum per cent moisture. These internationally-recognized sanitary and For seed to be traded in it has to be accompanied by ISTA phytosanitary standards and procedures are important certificates: Orange International Seed Lot Certificate in regulating global seed trade and maintaining the (OIC) or a Blue International Seed Sample Certificate biosecurity of nations in the highly-interconnected (BIC).10 Regardless, even with an ISTA Certificate, seed global seed potato value chain. consignments undergo further analysis by the importing country’s National Plant Protection Organization (NPPO) Comparison of Tolerances Levels by Seed Class and standards body as a precautionary measure. The The EU is Kenya’s main source of seed potato imports. case of Kenya is similar to seven other African countries Its seed potato production, certification and trade governed by ISTA through accreditation of its testing standards are aligned with those of ISTA, UPOV, and laboratories. The other African countries include Egypt, UNECE. A comparison of the seed importation and Malawi, South Africa, Uganda, Zambia, and Zimbabwe. export standards and zero-tolerances for pests and (Keyser, 2013). diseases of global economic significance follows below (see tables 4 -6). Additionally, Kenya observes the UNECE Standards S-1 governing the marketing and commercial quality From tables 4 and 5 above, there are similarities control of seed potato11 and adheres to International between Kenya and the EU in terms of zero-tolerances Standards for Phytosanitary Measures (ISPM) 33 on pest for the major pests and diseases, those classified as free potato micro-propagative material and mini-tubers ‘quarantine’. Similarly, from table 6 below, these same intended for international trade. pests and diseases have zero-tolerance standards in Egypt, the EU, Kenya, Morocco, and Scotland. These Considering the high susceptibility of potato to pests pests and diseases have the potential to cause seed and diseases, phytosanitary control is vital. Under the potato losses of 30% - 100%. terms of the International Plant Protection Convention A comparison of zero-tolerances for seed potato pests 10 An ISTA accredited laboratory can only issue both certificates. OICs are issued when both sampling from the seed lot and diseases of global economic significance is below and testing of the sample are carried out under the (see Table 6). responsibility of an ISTA accredited lab; BICs are issued when sampling from the seed lot is not under the responsibility of an ISTA accredited laboratory and the Analysis of Sanitary and PhytoSanitary accredited facility is only responsible for testing the sample as submitted. See: www.seedtest.org Variables Across Comparator Countries 11 United Nations Economic Commission for Europe (UNECE). The study analyzed the sanitary and phyto-sanitary (2014). UNECE Standards S-1 concerning the marketing and commercial quality control of seed potatoes. New York landscape of 12 countries including Kenya (see table 7). and Geneva: United Nations. Retrieved from https://www. Japan, though having different agro-ecological zones unece.org/fileadmin/DAM/trade/agr/promotion/Brochures/ SeedPotatoes/HighResolution_English.pdf from Kenya’s, was selected for benchmarking of best 16 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Seed Potato Importation Sanitary and Phytosanitary Issues Table 4: Individual Tolerances for Pests and Diseases in European Seed Potato Classes Individual Tolerance during Production in Europe Diseases, pests, damage and defects PB TC Class PB Class Basic Group 1 – Quarantine Pests and Diseases Wart Disease (Synchytrium endobioticum (Schilb.)) NIL NIL NIL Potato Tuber Eelworm (Ditylenchus destructor Thorne) NIL NIL NIL Potato Cyst Nematode (Globodera species infesting potatoes) NIL NIL NIL Ring Rot (Clavibacter michiganensis (Smith)) Davis et al. ssp. NIL NIL NIL NIL sepedonicus (Spieck & Kotth) Davis et al.) Brown Rot (Ralstonia solanacearum (Smith) Yabuuchi et al.) NIL NIL NIL Potato Tuber Moth (Phthorimaea operculella (Zell)) NIL NIL NIL Potato Spindle Tuber Viroid NIL NIL NIL Colorado Beetle (Leptinotarsa decemlineata (Say)) NIL NIL NIL Group 2 – Rots Dickeya spp NIL NIL NIL Blight (Phytophthora infestans (Mont.) de Bary) NIL 0.2% 0.5% Blackleg (Pectobacterium spp.) NIL NIL 0.5% Gangrene (Phoma species)/Dry Rot (Fusarium species)/Wet Rot NIL 0.2% 0.5% Frost damaged tubers NIL 0.2% 0.5% Group 3 – Surface Diseases Skin Spot (Polyscytalum pustulans (Owen & Wakefield) M.B. Ellis NIL 0.2% 2.0% Black Scurf (Rhizoctonia solani Kuhn) NIL 1.0% 3.0% Powdery Scab (Spongospora subterranea (Wallr) Lagerh) NIL 1.0% 3.0% Common Scab (Streptomyces species) NIL 5.0% 5.0% Group 4 – Defects and Damages Blemishes such as damaged or misshapen tubers 3% 3% 3% Group 5 – Soils Dirt or other extraneous matter 1% 1% 1% PB = Pre-basic PB TC = Pre-basic Tissue Culture Source: European Communities (Seed Potatoes) Regulations 2011 production practices12. The EU countries were selected agro-ecologies. The aspects considered include: since they are major seed potato exporters while • Certification based on OECD standards the African countries were considered since they have similar origins of seed potato imports and • Sanitary and phytosanitary standards based on ISTA standards13 12 Japan produces its foundation seed in strictly isolated fields surrounded by protected ‘shelterbelts’ – free from any • Variety release procedures based on UPOV standards14 pathogens, animal or non-staff traffic. The National Center for Seeds and Seedlings (NCSS) follows strict procedures that include: containing potato production around the farms; 13 For seed to be traded in the study countries that observe using vehicle washing facilities to disinfect them; observing the ISTA standards, they have to be accompanied by ISTA a 5-year crop rotation to maintain the soil fertility combined certificates. with rigorous periodic control of pests and diseases. See 14 UPOV membership provides for Plant breeders’ rights (PBR), https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4374560/ also known as plant variety rights (PVR). Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 17 Seed Potato Importation Sanitary and Phytosanitary Issues Table 5: Tolerance Levels of Seed-borne Potato Diseases in Kenyan Seed Potato Classes Breeder/ Potato diseases Minitubers Basic seed C1 C1 Minitubers Blackleg (Pectobacterium spp. and Dickeya spp.) NIL NIL NIL NIL NIL Severe virus disease e.g. PLRV, Y group of viruses, NIL 0.1% 0.4% 0.8% 1% severe mosaic Mild mosaic virus visible in the field (e.g. PVX, PVS) NIL 0.03% 0.03% 0.2% 0.5% Fusarium wilt NIL NIL NIL 0.2% 0.5% Verticillium wilt NIL NIL NIL 0.05% 0.1% Bacterial wilt or Brown Rot (Ralstonia NIL NIL NIL NIL NIL solanacearum) Wart disease (Synchtrium endobioticum) NIL NIL NIL NIL NIL Nematodes (Meloidogyne spp., Ditylenchus spp.) NIL NIL 0.2% 0.3% 0.4% Golden nematode (Globodera rostochiensis and NIL NIL NIL NIL NIL Globodera pallida) Ring rot (Clavibacter michiganensis subsp. NIL NIL NIL NIL NIL Sepedonicus) Potato spindle tuber viroid NIL NIL NIL NIL NIL Phytoplasma diseases e.g. Potato stolbur and NIL NIL NIL NIL NIL potato purple top Source: Seed Potato Production and Certification Guidelines. KEPHIS Table 6: Global Comparison of Zero-Tolerances in Seed for Major Potato Pests and Diseases Disease Kenya UNECE Egypt Scotland* Morocco Bacterial wilt or Brown rot (Ralstonia solanacearum) Wart disease (Synchytrium endobioticum) Golden nematode (Globoder rostochiensis) Ring Rot (Clavibacter michiganesis) Potato Spindle Tuber Viroid Mycoplasma Root rot nematode (Ditylenchus destructor) Root knot nematode (Meloidogyne spp Potato Tuber Moth (Phthorimaea operculella) Potato Cyst Nematode - PCN (Globodera spp (in production land) Colorado Beetle (Leptinotarsa decemlineata) Potato Tuber Eelworm (Meloidogyne chitwoodi, M. fallax) * Scotland observes a zero-tolerance during seed potato production and is restrictive on imports. Scotland is the only seed exporting country in Europe where potato brown rot has never been found: a great selling point for its seed industry. This analysis reveals that the majority of the countries which are difficult to mitigate. Lower classes of seed, have 2-3 seed certification classes. Therefore the push i.e. pre-basic and basic seed are required to have by Kenyan seed companies for the C3 seed class is greater purity and quality for multiplication; with validated by the practices of other countries. On SPS more stringent zero-tolerances. The higher the seed measures, all the countries analyzed have zero-tolerance class the greater the degeneration in quality, and the policies particularly for bacterial wilt, golden nematode, vulnerability to pests and disease. The analysis revealed wart disease, potato spindle tuber viroid, and ring rot that consequently, the threshold for certain pathogens 18 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Table 7: Analysis of Sanitary and Phyto-Sanitary Variables Across Comparator Countries Zimba- South Nether- Country Kenya Zambia Egypt Morocco Ethiopia Uganda Tanzania Scotland Japan bwe Africa lands Seed Certification Seed Generations 5 8 4 8 7 6 7 10 Certified Classes 3 4 1 2 2 - 3 Have QDS System X X Standard X X X X grade Private Certification X X X X Observes OECD Scheme X X Seed Potato Importation Sanitary and Phytosanitary Issues Members of OECD X X X X X X X X X X SPS Measures Zero-tolerance Policies Imports ISTA Accredited Labs X X Observe ISTA Standards Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions Have a Pest Free Zones/Sites X NPT, DUS & Variety Release Not NPT/VCU (Seasons) 2–3 2 2 2 needed 2 2-3 1 1 for variety release No of Sites VCU 5 6 5 - 3 DUS (Seasons) 2 2 1-2 years 2 years 1 2 2 2 No of Sites DUS 2 6 4 Variety Release duration After one (from application to release) 1-2 years season of 2 years 2 years 2.3 years 3 years DUS Uses Other Country’s data Members of UPOV X X X X X Plant Variety Protection (PVP) Draft Draft Source: IFC Analysis, 2019 19 Seed Potato Importation Sanitary and Phytosanitary Issues is lowered for certified seed classes. From this analysis certification agencies, these joint teams were able to and stakeholder views, it is proposed that zero-tolerance determine that the higher temperatures and tropical policies and standards be reviewed, and be applied conditions promoted the greater prevalence of some only to pre-basic and basic seed classes since invariably of the zero-tolerance pathogens and that zerotolerance the certified classes of seed may have some infection standards were to be revised in light of this. Egypt, like which may be undetectable during seed testing and Kenya, imports its seed potato from the EU including inspection shows that zero-tolerances. Scotland yet has managed to control major pathogens like bacterial wilt/brown rot due to technical, evidence- The zero-tolerances are more stringent for lower seed based, and scientific sanitary and phytosanitary classes (i.e. pre-basic seed), and Kenya like Egypt could approaches (see boxes 2 and 3 for details on Egypt’s obtain a scientific basis for revising its zero-tolerance best practices). on the traded seed classes which are basic seed. On average, for variety release, the VCU and DUS trials are OPPORTUNITIES AND RECOMMENDATIONS run for two seasons in two agro-ecological zones. In FOR ENHANCING IN SEED POTATO Kenya, the minimum period is two years under rain-fed IMPORTATION SPS IN KENYA conditions but KEPHIS allows for intensive NPTs under • KEPHIS should establish a robust mechanism and irrigation. The period is extended due to the time taken system for assessing the biosecurity threats of seed by the variety release committee to meet and deliberate imports. The Open Quarantine System together with on the variety release process and outcome for new laboratory and manual inspection are expensive varieties. The proposed strategies for improving and to administer and time-consuming in establishing benchmarking Kenya’s seed potato import SPS practices results from potential biosecurity threats. The Open are in the sections that follow. Quarantine System involves KEPHIS setting up a seed potato trial in an isolated area on suspecting EU seed exporters and scientists jointly reviewed the an imported seed potato shipment of having a behaviour of seed potato pathogens absent in the latent infection of pathogen not present in Kenya. EU but later found in seed once seed was planted in KEPHIS will sample the seed potato lots and based on Egyptian and Moroccan fields. Through extensive field laboratory test results, the sample will be planted in research conducted jointly with Egyptian and Moroccan the Open Quarantine site for one year. Box 2: Egypt’s Robust Potato Industry: A Snapshot Egypt is Africa’s largest potato producer and ranks 14th in the world in terms of ware potato production. It also produces about 700,000 – 800,000 tons of local seed potatoes from imports which go into crop production the following season. Egypt is largely dependent on seed potato imports for its domestic potato production. Imports in 2018 (January-October) reached roughly 120,000 metric tons. Imports originate mainly from the European Union (EU): the Netherlands (40,500 tons or 33.6 per cent), United Kingdom/Scotland (40,400 tons or 33.5 per cent), and France (18,900 tons or 16 per cent). Egypt’s yearly imports of seed potatoes average $85 million (from 2015-17). Egypt’s phytosanitary regulations require laboratory testing against Potato Brown Rot (Ralstonia sloanacearum) and ring rot diseases’ causal agents in all imports and exports of potato. Egyptian exports of ware potatoes to the Russian Federation, EU, Lebanon, and Jordan are permissible only if produced in Pest Free Areas (PFAs). Egypt’s enviable position as a key trading partner in EU’s food and agriculture is attributable to the systematic and scientific approach to mitigation of SPS risk factors. 20 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Seed Potato Importation Sanitary and Phytosanitary Issues Box 3: Egypt’s Best Practices in Managing Seed Potato Pest and Diseases Pest Free Areas (PFAs): For nearly 30 years, Egypt struggled with low potato production and trade due to infestations with Potato Brown Rot. Through EU financial and technical support, Egypt set up the Pest Free Areas (PFAs) for seed potato multiplication and ware potato production. Seed potato is also multiplied in these PFAs to ensure there is no cross-contamination between seed and ware potato. The government also set up the Potato Brown Rot Project (PBRP), through which the PFAs are managed under the aegis of the Ministry of Agriculture and Land Reclamation. The Potato Brown Rot Project (PBRP) is exclusively responsible for PFA establishment, inspection, monitoring, and maintenance, as well as for laboratory testing against brown rot disease’s causal agents. The PFA s were set up in accordance with the International Standard for Phytosanitary Measure (ISPM)- 4 “Requirements for the establishment of pest free areas.” A minimum rotation of 3 years is applied and seed potato crops can only be planted in recognized PFAs (free from Potato Brown Rot infestation). Double Seed Inspection: Egypt’s seed inspectors are stationed in the seed potato exporting countries to inspect and test the seed at all key stages. In Egypt, the country has designated seed potato inspectors who inspect seed potato at designated ports of entry for seed potato imports. These two ports are separate from each other to reduce any potential cross-contamination. This system has increased the capacity of Egypt’s seed potato inspectors in seed potato SPS matters while improving trade relations with major EU seed exporters by reducing the instances of seed consignment rejections and associated costs. Non-compliant seed lots are not issued with an import permit by the Egyptian authorities in the country of origin. EU Partnerships on Potato SPS: Egypt has collaborated with French, Dutch and Scottish seed potato SPS experts, trade ministries and seed potato trade agencies in setting up long-term partnerships that have: built capacity in joint pest risk assessments, provided technical and scientific data on performance of foreign pests and diseases under Egyptian conditions and lastly fostered greater trade ties. Through these collaborations, Egyptian SPS officials have visited the seed potato countries of origin to understand the growing conditions, observe and inspect the crops in the field, postharvest and just before shipment. These efforts have informed initiatives in mitigation of both known and unknown pests and diseases including Common Scab, Powdery Scab, Silver Scurf, Potato Mop Top Virus (PMTV) and Tobacco Rattle Virus (TRV). The KEPHIS team will observe the performance of the To prevent seed with potential quality issues seed potato and the emergence of the suspected pest landing at the port of entry, KEPHIS should explore or disease. If the pathogen does not emerge or manifest, mechanisms of conducting pest risk analysis (PRA) then the trial data is entered into the NPTs, and the seed in the country of origin. Current practice involves potato importer can continue with the multiplication collaborating under ISTA and OECD provisions for and related processes. However, if the sample turns out mutual SPS quality assurance. Egypt has found a way to be infested, then the whole shipment is destroyed. around this by using seed quality inspection officials The seed importer pays for the OQS assessments and based in its consular offices in the exporting country disposal of material if it is rejected. A new mechanism of to ascertain that the seed export documentation and effectively capturing all potential threats at ports of entry seed quality standards are at par with Egyptian and is needed since the costs and length associated with the international seed quality standards. Additionally, Egypt OQS are high and are borne by the seed importer. has deployed seed potato inspectors in key seed potato Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 21 Seed Potato Importation Sanitary and Phytosanitary Issues exporting countries, and these inspectors conduct in South Africa and Zambia, where it is supported potato inspections throughout the value chain: from by training and certification of seed inspectors; field production through to harvesting, processing, and and regular auditing of both private inspectors and packing to pre-export. Egyptian seed inspectors issue laboratories for continued compliance. an import permit (into Egypt) based on the inspection • KEPHIS should advocate for the importation of tissue outcome and conformity to standards for major pests culture material for multiplication. If commercially and disease, including zero-tolerances for the major viable, direct importation of tubers (pre-basic and ones (see Box 3 and Annex 5 on proposed seed basic seed) should be phased out gradually as importation protocol for Kenya). capacity and investments are leveraged to support • KEPHIS is encouraged to consider adopting a risk- tissue culture seed potato production. It is easier to based seed importation policy and to revise the meet infection-free standards for in vitro than it is for quarantine pest and diseases list based outcomes of tubers. The government should provide tax rebates the ongoing pest risk analysis. Kenya is conducting to incentivize seed importers to use tissue culture its first ever pest risk analysis (PRA) to establish the propagation material to ramp up availability of baseline situation regarding bacterial wilt and PCN. material and support initiatives in increasing access KEPHIS and CABI are jointly conducting the PRA with to blended finance for seed companies using the development partner support. The PRA data and a imported tissue culture starter seed to meet the initial risk-based approach will guide regulations, initiatives capital outlays. and investments in managing existing risks and • East Africa NPPOs can strengthen cross-border SPS controlling new ones. It will also guide the revision of capabilities through a regional program on capacity the quarantine pest and diseases list. There is also an building and awareness creation. There are three main opportunity to build a scientific basis for revision of regional entry points of seed potato into the country: zero-tolerance levels through technical and scientific Taveta, Malaba and Lunga Lunga. KEPHIS is working collaboration with the major seed potato exporting on educating the public on the importance of these countries in Europe as was done in Egypt (see Box 3). border control points in safeguarding the country’s The collaboration would involve sharing of technical potato industry through minimizing or eliminating data, joint PRAs, and extensive field-based research in biosecurity threats. KEPHIS has also previously built Kenya to determine the performance of major pests the capacity of Tanzania’s seed inspectors on seed (known and unknown) in Kenya’s agro-ecologies. potato testing through targeted SPS training for • KEPHIS should lower National Performance Trials’ officials from the Tanzania Office of Seed Certification costs and timelines for imported seed, currently at and Inspection (TOSCI). KEPHIS has a robust training $3,563 for two seasons. Recommendations include program that can be adapted for training the EAC using data for only one season, and also considering region’s SPS teams to strengthen cross-border SPS trial data from varieties registered in 2 COMESA or capabilities. SADC countries. In South Africa, the variety testing • Regional collaboration on the strengthening of the and release processes on seed potato include only One Stop Border Points (OSBPs). Seed regulatory Distinctiveness, Uniformity, and Stability (DUS) agencies must clarify the procedures required at and not Value for Cultivation and Use (VCU) data, One Stop Border Points established to enhance EAC provided the variety meets the DUS criteria. This cross-border trade. KEPHIS has officials and testing shortens the process and eliminates additional costs. capabilities at six of these OSBPS. Efforts should be As highlighted earlier, there is an opportunity for made to improve the SPS capacity of the remaining private seed certification and inspection by KEPHIS border posts in Uganda and Tanzania in terms of to ease the backlog of seed inspection demands by infrastructure and human resource. seed companies. This model works very effectively 22 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Seed Potato Importation Sanitary and Phytosanitary Issues • The Electronic Single Window System (eSWS) has equipment for rapid identification of potato diseases. shortened the importation process and reduced The equipment should ensure accurate identification associated costs. However, there is a need for a strong of the diseases of concern from each of the trading human interface with the electronic system to ensure partners. Examples of such methods include that biosecurity is safeguarded effectively. Loop mediated isothermal amplification (LAMP), • The EAC governments should support the border Polymerase Chain Reaction (PCR), and genome point and the laboratories with more manpower and sequencing using the new technology. Potato is the second most important staple after maize in Kenya Credit: Hugh Rutherford (CIP) Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 23 SEED COMPANIES SHOULD SIMPLIFY INFORMATION, EDUCATION AND COMMUNICATIONS MATERIALS THAT INCLUDE PRODUCTION CALENDARS FOR EACH VARIETY TO ENABLE FARMERS TO PLANT DURING THE CORRECT SEASON TO GUARANTEE HIGH YIELDS. Using certified seed potato can dramatically increase ware potato yields Credit: V. Atakos (CIP-SSA) 4. Seed Potato Marketing and Distribution OVERVIEW OF SEED POTATO MARKETING investments, vertical integration of ware processing AND DISTRIBUTION CHALLENGES IN KENYA companies and leveraging agritech solutions for S takeholders shared their views15 on several marketing demand aggregation and distribution. and distribution challenges which include: the bulky and perishable nature of potato seed; mainly rainfed Extension seed production that cannot meet demand; lack of • Seed companies should invest in extension to demand data in terms of seasonality, varieties and stimulate demand for seed of high-value processing quantities of seed demanded; inadequate extension varieties through setting up of demo farms. messaging and marketing collaterals to accompany • Seed companies should effectively communicate seed sold to farmers; lack of controlled environment with farmers about breaking seed dormancy to storage in seed production zones to maintain quality ensure that seed germinates. They should prioritize and even out seed supplies. selling seed whose dormancy has been broken. This will encourage farmers to try new varieties, especially OPPORTUNITIES AND RECOMMENDATIONS those with high yields and excellent processing FOR STREAMLINING SEED POTATO qualities but have long dormancy periods. MARKETING AND DISTRIBUTION • Seed companies should highlight the agronomic The main recommendations made by stakeholders requirements of the intensive high-yielding imported were around: extension, decentralized seed companies, varieties; these include intensive spray regimes, high demand estimation and stimulation, warehouse fertilizer and irrigation requirements, and postharvest 15 IFC organized a stakeholders’ workshop to review the findings storage to avoid sprouting. of the analysis and to discuss emerging opportunities, required policy reform actions and needed investments to • Seed companies should simplify information, spur the potato industry’s end to end growth (seed to ware). education and communications materials that This workshop was followed by a farmer field day at NYS Tumaini Farm in Nyandarua to showcase the high-capacity include production calendars for each variety to aeroponics seed potato facility. The review of distribution and enable farmers to plant during the correct season to marketing was beyond the scope of this study; nonetheless the stakeholder engagements yielded valuable insights on guarantee high yields. Simple fliers, brochures and key recommendations. radio messages work best. Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 25 Seed Potato Marketing and Distribution • Processors should collaborate with seed companies can engage in PPPs to design and implement in setting up demos close to ware farmers, and during viable storage solutions that are fit-for-purpose for the demo field days, processors should exhibit ware smallholders, farmer groups and semi-commercial potatoes in high demand for processing; sharing seed multipliers to mitigate this challenge. characteristics and explaining market value. Demand Estimation and Stimulation Vertical Integration • There is a need for a mechanism for accurately • Processors should strengthen the ‘fork to farm’ estimating and communicating the active seed linkages by vertically integrating their operations potato demand in the country. Currently there a into ware and in some cases seed production, and disconnect between what varieties farmers want working closely with both ware and seed farmers and what seed companies are multiplying and to ensure adequate quantities and quality of the in- marketing. For instance, data on the volumes of seed demand processing varieties. demanded for the top 5 processing varieties is not readily available. This would be useful in guiding seed Decentralized Seed Companies companies and processor investments and open up • Satellite seed production sites and operations should new markets for varieties that are currently being be set closer to the main ware potato production imported for high-value frozen chips processing. zones to reduce the distance travelled to seed • Seed demand efforts will include the approaches companies, to lower overall seed costs by lowering highlighted above under extension in addition to costs associated with transportation of bulky seed processors offering attractive contracts to ware potato thereby stimulating purchases. Combined farmers who will in turn, invest in quality seed of the with decentralized seed testing, inspection and right varieties thereby stimulating demand. certification, this could be a gamechanger in promoting the use of quality certified seed by ware Disruptive Agritech Platforms for Aggregation farmers. and Logistics • Emerging opportunities such as digital agritech Warehouse Investments platforms for aggregation and logistics can enhance • Warehouses are vital for ensuring that seed quality farmers’ access to quality, affordable seed at their is maintained in the postharvest period at seed farmgate. companies, and in the pre-planting period by • Firms such as iProcure are working in rural Africa on ware farmers. Some cases of quality deterioration streamlining input supply chains with promising in seed purchased by ware farmers are reported digital agritech innovations (please see Conclusion to be attributable to poor storage in unsuitable section for details). stores. Counties, seed companies and other players 26 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Youth are finding profitability opportunities in seed potato production Credit: Hugh Rutherford (CIP) Conclusion K enya’s potato industry presents a multi-million-dollar opportunity for seed potato value chain actors. Reaching 40% of ware potato farmers (up from the government and private sector to increase availability of apical cuttings. Apical cuttings offer farmers the opportunity to effectively and safely produce quality current 4%) with certified seed potato would require seed that they can use for one or two seasons, starting strategic policy reform actions to streamline identified with clean, certified seed potato. seed multiplication and importation bottlenecks matched with investments in irrigation, seed cold Reform policy to allow private seed certification storage, mechanization and improvements to seed and support private testing laboratories inspection capabilities. Recently KEPHIS has enhanced speed of seed certification through training, authorizing and gazetting The study identifies five priority areas as outlined earlier 28 private seed inspectors from private seed companies and summarized below. and county governments. KEPHIS through its Centre of Phytosanitary Excellence (COPE) should partner with Support production and use of apical cuttings agricultural universities, county governments in potato as seed potato growing areas and private seed companies to identify Production of seed from apical cuttings by seed potato agriculture graduates who can be trained en mass to companies offer a two-fold increase in yield over use reduce the seed inspector shortages. COPE already of mini-tubers. Not only are they cheaper per unit but has a curriculum that covers seed potato production, also reduce susceptibility to and proliferation of seed phytosanitary issues and seed certification. Coupled potato pests and diseases. This offers a promising route with this, KEPHIS is encouraged to enhance the for accelerated seed potato production. Increasing authorization of private seed certification services and investments in apical cutting production over the facilities. These initiatives would require an innovative medium to long term will increase the availability PPP and policy advocacy to leverage investments, and of quality seed potato and contribute to reducing to create the needed regulatory change to allow for the annual seed potato gap in demand of more than KEPHIS-accredited private seed certification. These are 300,000 tons. KEPHIS has developed certification short- to medium-term initiatives. guidelines for apical cuttings and is working with the Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 27 Conclusion Reform policy to allow for collaboration in of QDS for potato. Investments and policy advocacy production of Early Generation Seed (EGS) by are required in the immediate to medium term to government and private seed companies support the line ministry, KEPHIS, county governments To ensure continuity of the gains made in creating a and smallholder farmers in the move towards QDS vibrant seed potato industry in Kenya, the government systems. Through a collaborative PPP, KEPHIS would could collaborate with the private sector in production be supported to develop guidelines and inspection of Early Generation Seed (EGS). This would not only capabilities, while county governments would be increase availability of foundation and breeder seed supported in enforcing the QDS jurisdiction. Private potato but would also ensure that seed companies seed companies would sell the certified starting seed produce varieties with farmer-demanded attributes. potato material to county governments or farmer Currently, production of early generation seed is the producer organizations in these schemes. sole mandate of the national research agency (Kenya Agricultural Research Organization (KALRO) that cannot Explore and scale disruptive agritech produce the quantities of breeder and foundation seed aggregation and logistics platforms to reach farmers with seed at the farmgate at lower costs required by the industry. Policy advocacy for reforming the current seed laws to recognize early generation seed Currently, the newly emerging ware potato production production from the private sector is needed. Similarly, zones are geographically dispersed; with on average investments in KALRO should support the maintenance more than 400 kilometres to be covered to the nearest of public seed potato varieties where these have seed potato company, which is often located in significant market demand, and support a PPP on EGS another county. This situation has further impacted production for in-demand high-value varieties. Lessons the lack of seed potato for ware farmers at the critical from EGS pilots should be leveraged for scaling up an moments during planting seasons as seed is not EGS PPP. The private sector should lead new variety available when and where required. The bulky nature development where it has a competitive edge. of seed potato propagation materials coupled with the long distances to seed producing farms, increase the Recognize Quality Declared Seed (QDS) system cost of transportation and the overall cost of certified in Kenyan seed laws seed potato. A Quality Declared Seed (QDS) system also known as a Quality Declared Planting Material (QDPM) system is There are opportunities for exploring and scaling a quality assurance scheme for seed production that is disruptive agritech aggregation and logistics platforms less demanding in comparison to the standard quality to reach farmers with seed at the farmgate at lower control systems. QDS is formally recognized by FAO and costs. some national seed certification agencies in Africa; with QDS quality standards being defined by the latter. QDS Digital agritech solutions exist that can be leveraged systems allow for less rigorous and low-cost inspection to simultaneously increase availability and reduce regimes while producing quality, clean disease-free transportation costs by facilitating the generation of planting material from registered varieties. QDS systems geo-located bulk orders, and combining smart logistics act as a bridge for formal seed producers: facilitating to transport seed to farmers within specific localities. access to quality seed for smallholder farmers while Currently, seed companies post their seed inventory on serving as a basis for creation of future certified seed a members’ only dashboard such as ViaziSoko (managed demand. Generally, the production and marketing of by National Potato Council of Kenya) and farmers who QDS is limited to a specific jurisdiction, managed by need seed can communicate directly via phone with local governments and may be traded on a limited scale. the seed company. The seed company prepares the Ethiopia, Uganda, Tanzania and Zambia formally order and once ready the farmer is required to collect it recognize the production, inspection and cultivation immediately from the seed company’s farm due to the 28 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Conclusion highly perishable and bulky nature of seed tubers and aggregate demand and last mile distribution networks cuttings. This represents complex logistics that can be to enhance agricultural supply chains in rural Kenya. mediated by agritech innovations. The Potato Council is also working with Viazi King - a logistics company to develop the digital platform that The World Bank’s Agriculture Global Practice is working would leverage the power of data analytics and fintech with agritech innovators who can be involved in for payments. These innovations could be explored for generating or scaling this solution. One such innovator lessons on adaptation and scaling to reach the 800,000 is iProcure – a firm that is using data analytics to ware potato farmers in Kenya. DATA-DRIVEN DISTRIBUTION STAY IN THE KNOW WAREHOUSING LAST MILE Through real-time business intelligence, Know who is buying, when and for how Our storage facilities are strategically Getting it there. Rapid order ful llment we provide an alternative distribution much; iProcure provides complete supply located to ensure extensive reach to the to wherever your customer is. channel that ensures your product gets chain visibility. rural consumer. Our predictive all the way to the end consumer. algorithms ensure that essential commodities are never in short supply. iProcure is an inputs supply firm operating in Africa to bridge last-mile access challenges by leveraging the power of data analytics. Such technologies have the potential for improving distribution channels for seed potato in Kenya. Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 29 Increasing potato productivity is core to the Food and Nutrition Security Pillar of the Big 4 Agenda. Credit: FIPS-Africa 30 KENYA SEED POTATO INDUSTRY DIAGNOSTIC REFERENCES Aheisibwe, A. R., Barekye, A., Namugga, P., & Byarugaba, A. A. (2015). Challenges and opportunities for quality seed potato availability. Uganda Journal of Agricultural Sciences, 149 - 159. Bisognin, D. A., Bandinelli, M. G., Kielse, P., & Fischer, H. (2015). Rooting Potential of Mini-Cuttings for the Production of Potato Plantlets. American Journal of Plant Sciences, 6, 366-371. CIP. (2011, November 22). Potato in East Africa. Retrieved from International Potato Center- https-//cipotato.org/ research/potato-in-east-africa/ COMESA. (2019). COMESA Sanitary and Phytosanitary Programme (SPS) - Annual Report 2018/9. COMESA. CTA. (2014). Seed Systems, Science and Policy in East and Central Africa. CTA. Dr. Soliman, A. (n.d.). Epidemiology of potato diseases especially on potato brown rot. Eljai, F., Slamini, M., Mzabri, I., Bekkouch, I., Kouddane, N. E., & Berrich, A. (2017). The Procedure of Seed Potato Certification in Morocco. Atlas Journal of Biology, 402-406. FAO. (2015). Improving Farmers’ Access to Quality Seed Potato. Strengthening linkages between small actors and buyers in the roots and tubers sector in Africa (p. 35). Kigali, Rwanda - FAO. FAO. (2018). Seeds Toolkit- Module 3 - Seed quality assurance. Rome - The Food and Agriculture Organization of the United Nation and Africa Seeds. FAO. (2019). FAOSTAT_data_9-29-2019. FAO. Gildemacher, P. R., Schulte-Geldermann, E., Borus, D., Demo, P., Kinyae, P., Mundia, P., & Struik, P. C. (2011). Seed Potato Quality Improvement through Positive Selection by Smallholder Farmers in Kenya. Potato Research 54- 253-266. Global Agricultural Information Network. (2016). Mexico- Food and Agricultural Import Regulations and Standards - Narrative. USDA Foreign Agricultural Services. Hegazy, E. (n.d.). Seed potato production in Egypt. Cairo, Egypt- Agrofood. Kahenda, M. (n.d.). Mechanisation Turns Fortune of Farmers. Retrieved from Farmers.co.ke- https-//www.farmers. co.ke/article/2001295737/mechanisation-turns-fortune-of-farmers Kawakami, T., Oohori, H., & Tajima, K. (2015). Seed potato production system in Japan, starting from foundation seed of potato. Keetch, D. P. (2016). The South African Seed Potato Certification Scheme. UNECE Bureau and Rapporteurs Meeting on Seed Potatoes. Kimberly, South Africa- Independent Certification Council for Seed Potatoes (ICCSP). Kentrade. (2019). Single Window System In Kenya. Retrieved from https-//www.kentrade.go.ke - https-//www. kentrade.go.ke/single-window-system Kenya Plant Health Inpsectorate Service (KEPHIS). (2019). Fast tracking of certified seed potato through improved diagnosis of bacterial wilt using Field Deployable LAMP Assay. Retrieved from Kenya Plant Health Inpsectorate Service:https://www.kephis.org/index.php/news-and-events/313-fast-tracking-of-certified-seed-potato- through-improved-diagnosis-of-bacterial-wilt-using-field-deployable-lamp-assay Keyser, J. C. (2013). Opening Up the Markets for Seed Trade in Africa. World Bank. Kuhlmann, K., Zhou, Y., & Keating, S. (2019). Seed Policy Harmonization in COMESA and SADC- The Case of Zambia. Syngenta Foundation for Sustainable Agriculture. Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 31 References Kuhlmann, K., Zhou, Y., & Keating, S. (2015). Seed Policy Harmonization in EAC and COMESA- The Case of Kenya. Syngenta Foundation for Sustainable Agriculture. Maina, W. (2019, April 22). Nyandarua potato farmers expect double yields. Business Daily. Minhas, J. S. (2016). Potato Seed Production Through Tissue Culture. Ludhiana, India- International Center for Agriculture Research in the Dry Areas and Punjab Agriculture University. Morsy, D. A. (n.d.). Variety Registration and Protection in Egypt. Retrieved from https-//www.unece.org/fileadmin/ DAM/trade/agr/meetings/ge.06/2009/Egypt_PPTs/S2_MohamedMorsy.pdf Mujaju, C. (2018). Identifying Leading Seed Companies in Eastern and Southern Africa. Harare, Zimbabwe- Access to Seeds Foundation. Parker, M. (2019). Accelerated value chain development (AVCD) program- Root crops component. Lima, Perú- International Potato Centre. Radhakrishnan, M., & Dawson, P. (2016). Markets for Western Australian seed potatoes. Western Australian Agriculture Authority. Schulte-Geldermann, E., Gildemacher, P. R., & Struik, P. C. (2012). Improving Seed Health and Seed Performance by Positive Selection in Three Kenyan Potato Varieties. Am. J. Pot Res 89-429-437. Smith, J. J. (2002). Promoting Potato Seed Tuber Management for Increased Ware Yields in Kenya, Uganda and the Republic of South Africa. CABI Bioscience. Summary of Environmental Law in Mexico. (2009, March). Retrieved from moose.cec.org- https-//moose.cec.org/ moose/lawdatabase/mxdoc.cfm?varlan=english&topic=11 Technoserve. (2018). Kenya Potato ISP. Technoserve. USAID. (2016). Feed the Future Enabling Environment for Food Security- Southern Africa Regional Seed Sector (SARSS) Assessment. USAID. Virtanen, E., & Tuomisto, J. (2017). Hydroponic Minituber Production in Growth Room Conditions and Carry-Over Effects of the Technique on Produced Minitubers. Journal of Agricultural Science; Vol. 9, No. 1, 41 - 48. Zhou, Y., & Kuhlmann, K. (2015). Seed Policy Harmonization in SADC and COMESA- The Case of Zimbabwe. Syngenta Foundation for Sustainable Agriculture. 32 KENYA SEED POTATO INDUSTRY DIAGNOSTIC ANNEXES Annexes Annex 1: Seed Potato Producing Companies in Kenya Seed Company Location Variety Shangi, Dutch Robijn, Unica, Asante, Kenya Aberdare Technology Ltd Muranga Karibu Shangi, Sherekea, Dutch Robijn, Kenya Karibu, ADC: Molo Nakuru Kenya Mpya, Bvumbwe, Asante, Desiree, Kenya Mavuno, Rolin Tana, Kenya Sifa, Tigoni Markies, Destiny, Manitou, Rudolph, Arizona, Agrico East Africa Nakuru Arnova, Carolus, Faluka, Zafira, Kuroda Baraka Agricultural College Nakuru-Molo Shangi Clabhan Investment Limited Nakuru Shangi, Dutch Robijn Gene Biotech Seeds Ltd Kajiado Shangi GTIL Nairobi Dutch Robijn, Shangi and Konjo IPM & Kevian Kenya seeds (Kirinyaga seeds) Kiambu Shangi, Unica and Dutch Robijn Shangi, Tigoni, Unica, Kenya Karibu, Sherekea, KALRO Tigoni Kiambu Kenya Mavuno, Wanjiku, Nyota, Lenana, Annet, Chulu, Dutch Robijn and Kenya Mpya Kenya Highland Seeds (Royal seed)/Danespo Nairobi Royal, Sarpo Mira Tigoni, Asante, Sherekea, Kenya Mpya, Shangi,Dutch Robijn, Unica, Farida, Derby, Kisima Farm Meru Sagitta, Taurus, Challenger, Evora, Panamera, Rodeo, Sifra, Voyager, Zarina Savannah Fresh Hort. Farmers’ Cooperative Society Ltd Meru Asante, Sherekea, Unica, Dutch Robijn and Konjo Seeds2B Africa Ltd Meru Shangi Elgeyo Sigen Hortipruse Ltd Shangi, Dutch Robijn Marakwet Singus Enterprises Nakuru:Molo Shangi, Dutch Robijn, Unica Spring Valley (Moiben) Uasin Gishu Shangi, Dutch Robijn Starlight Cooperative society Nakuru: Molo Shangi and Sherekea Naivasha Apical stem cuttings and mini-tubers of Shangi, Stockman Rozen Ltd Unica, Konjo, Dutch Robijn, Wanjiku, Asante Suera Farm/C. Meijer B.V Nyandarua Musica, Lady Amarilla, Acoustic, Lady Terra, Rock Wanfa Technologies Nyandarua Shangi, Unica Source: CAP 326 i.e. Seed and Plant Varieties Act of 2012 34 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Annexes Annex 2: Cuttings Production Cycle POTATO ROOTED CUTTINGS PATHWAY Farmers purchase rooted cuttings elite (generation 1) planting material. Farmers can save seed on farm over 4-5 seasons, then replenish seeds stocks SEED MULTIPLIERS PLANT ROOTED CUTTINGS TO MULTIPLY SEED 2 SEASONS IN THE FIELD Private sector produce rooted Seed potato cuttings in screenhouse multipliers purchase capacity >300,000 stems/year rooted potato cuttings Private sector produce 1st season: rooted 2nd season: seed tubers Farmers purchase seed tuber tissue culture (TC) cuttings grown in nursery grown in fields elite (generation 3) planting potato plantlets beds — seed tubers — bulked at a ratio material. Farmers can save seed bulked at a ratio of 1:10 of 1:10 on farm over 3-4 seasons, then replenish seeds stocks Seed potato multipliers purchase TC plantlets and produce rooted cuttings in net tunnels Copyright: Monica Parker, CIP Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 35 Annexes Annex 3: Methods of Seed Multiplication i. Hydroponic Production In hydroponic production, plant roots are freely suspended in nutrient solution from which they derive essential nutrients and trace elements. A plantlet can produce 9-13 minitubers (CIP, 2018). The method requires optimization of production conditions specifically, a balance between the nutrient ratios within the nutrient solution, electrical conductivity value, and pH as for potato production (Virtanen & Tuomisto, 2017). ii. Aeroponics Production Aeroponics production exploits vertical space to optimize the development of roots, tubers, and foliage through provision nutrient solutions. The system can produce impressive 37-47 mini-tubers per plantlet. This notwithstanding, it is more costly and risky as it needs continuous flow of electricity. It also requires more skills than the conventional technique and hydroponics, which are more resilient with less upfront and running costs. (CIP, 2011). This system reduces the impact of serious soil-borne disease constraints such as bacterial wilt. KALRO-Tigoni has an aeroponics facility for large scale productions. iii. Positive Seed Selection The positive seed selection principle designed by International Potato Centre, CIP, involves selection and marking of the best plants in a ware field as mother plants for seed generation. This methodology was developed to bridge the deficit of sufficient certified seed (Gildemacher, et al., 2011). The simple, low-cost technology enhances the quality of seed potato used by smallholder farmers. This technique works not only against viruses and bacterial wilt but also against other seed-borne diseases. Positive selection has been proven to be a promising complementary practice for smallholder farmers in Kenya. The fact that it has the potential to increase smallholder yields without monetary investment and it fits well into the prevailing seed sourcing strategy of smallholders, which is largely based on self- and neighbour supply makes it a valuable complementary practice. (Gildemacher, et al., 2011) iv. Seed Plot Technology This approach utilizes the principle of maximizing tuber production per unit area and disease-free land area through high-density planting in seed plots; 112,500 plants/ha. The tubers used in this method have to be of exceptional quality, preferably certified. The advantage of the seed-plot technique is that it provides a platform free infested and infected tubers through intensive management practices against bacterial wilt and other tuber-borne diseases. According to Kinyua et al. (2011), this technology can achieve 2.5 to 3 times higher land productivity for bacterial wilt-free seed potato, translating into a 50 per cent less land required to meet on-farm seed tuber demand. 36 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Annexes Annex 4: Scotland’s Tolerance Levels for Basic Seed Potatoes for Export Tuber Inspection Tolerances - Non-EU The following minimum tolerances are used for Basic seed potatoes produced in Scotland for export outside the EU (and to the Canary Island) unless the importing country’s requirements are stricter. Individual Collective Individual Tolerance for Group Tolerance Disease, Pest, Damage or Defect Tolerance1 surface area Tolerance1 groups cover II, III & IV1 Quarantine organisms (Group I) NIL Wart Disease (Synchytrium endobioticum) NIL Potato Tuber Eelworm (Meloidogyne chitwoodi, m fallax) NIL Potato Cyst Nematode (Globodera rostochiensis, G, Pallida) NIL Ring Rot (Clavibacter michiganensis ssp. sepadonicus) NIL Brown Rot (Ralstonia solanacearum) NIL Potato Tuber Moth (Phthorimaea operculella) NIL Potato Spindle Tuber Viroid NIL Colorado Beetle (Leptinotarsa decemlineata) NIL Rots (GROUP II) 0.2% Rots including blight (Phytrophtora infestans) 0.2% Blackleg/ bacterial soft rot (Pectobacterium ssp.) 0.2% Blackleg (Dickeya ssp.) 0.0% Gangrene (Phoma foveata), Dry rot (Fusarium), 0.2% Wet rot (Botrytis cinerea) Surface diseases (Group III) 1.5% Skin spot (Polyscytalum pustulans) 0.5% 12.5% Black scurf (Rhizoctonia solani) 1.5% 12.5% Common scab (Spongospora scabies) 1.5% 12.5% Powdery scab (Spongospora suterranea) 1.5% 12.5% Other defects and damages (Group IV) External blemished or atypically shaped tubers2 1.0% Superficial necrosis by PVY 0.1% External necrosis by other viruses 2.0% Total (Groups II, III & IV) 4.7% Soil 0.5% Dirt or other extraneous matter 0.5% Tolerances are by weight: 2 includes tubers wrinkled or dehydrated due to the silver scurf (Helminthosporium solani) Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 37 Annexes Annex 5: Proposed EU Seed Potato Import Quality Assurance Protocol for Kenya Proposed Protocol for Quality Assurance for Kenya’s Seed Potato Imports from the European Union Following a review of global seed importation standards and seed potato import protocols of Egypt, Scotland and Wales, the following protocol is proposed to enhance the sanitary and phytosanitary quality of EU seed potato imports to Kenya. The Ministry of Agriculture, Livestock and Fisheries, the Ministry of Trade and KEPHIS shall consultatively align Kenyan seed potato import requirements with the UNECE, ISTA and IPPC standards and build the capacity of Kenyan seed potato inspectors (dedicated KEPHIS officials) in identification, inspection and testing for seed potato pests and diseases of economic importance in global trade. This shall be through a collaborative arrangement with the EU, as was done for Egypt. Like Egypt, Kenya shall have seed potato inspectors stationed in main seed potato exporting countries to inspect seed during planting, after planting and at harvest to determine adherence to pest and disease tolerances as per the Kenyan, ISTA, UNECE, IPPC and individual EU country SPS standards. (i) The Kenyan seed potato inspectors shall collect these data: farm name, farm location, farmer registration number, variety name, area planted, lot number, intended/projected date of export to Kenya, and final destination in Kenya, including details of importing entity. (ii) Data on these seed potato production sites should be fed into a central digitally-accessible database for comparison and full traceability throughout the seed potato value chain. (iii) Kenyan seed potato inspectors shall inspect the seed potato in the pack houses, testing for any infestation from packing crates, machinery or facility. (iv) A pre-export inspection shall be conducted a minimum of 72 hours before the intended shipment date and the lot either certified as fit for export or declared unfit for shipment to Kenya, based on the aligned tolerance levels for seed potato pest and diseases, as well as seed potato quality standards (size of tubers, % off types, tuber firmness). The seed potato exporter shall be issued by KEPHIS, an export permit in addition to export permits from the EU, individual country and UNECE as applicable. Digital copies of these permits shall also be entered into the centralized digital database and shared together with the final seed inspection report, with KEPHIS seed potato inspectors based at the seed potato import port of entry In Kenya. Like Egypt, Kenya shall have a dedicated port of entry for all EU seed potato imports, with dedicated seed potato inspectors similarly skilled in rapid, near-real time seed inspection and testing techniques as their counterparts based in the EU. (v) KEPHIS shall demand that all exporters of seed from Britain, France, Ireland, and the Netherlands give a 48-hour written pre-notification of an incoming seed potato shipment, to alert KEPHIS officials in Kenya. (vi) The written notification must contain the following information: • time, date and means of introduction • point of entry • final destination • intended use (for example ware production, trial seed or seed production) • variety • quantity (in tons) • producer’s identification number (grower number as it appears on the label) • certified grade (for example PB, S, SE, E) 38 KENYA SEED POTATO INDUSTRY DIAGNOSTIC Annexes (vii) On arrival at the port of entry, no seed potato will be allowed off the shipping vessel before phytosanitary and quality tests have been conducted to determine pest and disease tolerance levels as per the agreed upon, harmonized standards. The seed potato inspectors will sample 200 tubers for each 25-ton container of seed. The presence of any pest or disease with a zero-tolerance will result in the seed shipment being returned to the country of origin. For pests and diseases on allowable quarantine lists (see pages 24-26), the rapid, near- real time techniques1 will be used to determine the levels of latent infestation and the biosecurity threats posed by the seed potato shipment. If the threat is serious then the seed shipment will either be returned to the country of origin or ordered destroyed at the expense of the seed exporter and sanctions imposed on the exporter such as missing two potato seasons. No infested seed should be allowed on Kenyan soil as it could destroy both the seed and ware potato industries through latent infection which can last up to 20 years depending on the pathogen. Notes: The costs incurred by the seed exporter/importer in conducting tests under quarantine conditions and condemning a seed lot after one season will be avoided. Advantages of the Proposed Protocol • The use of rapid, high-precision inspection and testing techniques will reduce the time taken to inspect seed import shipments from 14 days to just a few hours. • The quick turnaround of the seed inspection and testing in the country of origin will be useful in decision- making regarding whether or not to proceed with the shipment. • The double inspection, in the country of origin and in the destination (Kenya) will give added assurance of the rigour and credibility of the KEPHIS pest risk assessment protocol and process. 1 A best practice to include is the rapid, near-real time assessment of risk and infection using Loop-mediated isothermal amplification (LAMP), genome sequencing and similar modern seed inspection and testing technologies. Field deployable LAMP Assay has proved to be efficient and effective as it is sensitive, rapid (results in 20 minutes to 1 hour), and accurate and does not require sending samples to the lab for analysis. It is suitable for on-site, field-based diagnosis be it farmers’ fields or port of entry. It is cost-effective and can be used by non-laboratory staff: medium-to-large scale seed potato producers can easily integrate LAMP Assay into self- assessment of their seed quality. Increasing Seed Potato Availability in Kenya: Priority Investments and Policy Actions 39