ISSD Briefing Note – April 2013
Mozambique Seed Entrepreneurship Assessment
How does ISSD approach seed entrepreneurship?
In September of 2012, the Integrated Seed Sector
Development (ISSD) programme in Africa published
briefing notes assessing the seed sectors in eight
countries1, aimed at informing policy-makers and
practitioners on the realities of farmers, with the
intention of influencing seed policies and programmes in
becoming more coherent with the practices of farmers,
and thereby more effective in addressing the diverse
range of demands among seed consumers.
ISSD recognizes the relevance of informal seed
systems. It aims to better link informal and formal seed
systems, and balance public and private sector
involvement. ISSD endorses and supports a pluralistic
approach to seed sector development, by identifying
and characterizing a range of seed systems and work
within these systems according to the structure of the
seed value chain. The aim is to promote market
orientation and entrepreneurship, and foster an enabling
environment for the emergence of a diversity of
international, national, and local seed businesses to
contribute their strengths and operate in their specific
niches. The driving forces are food security, biodiversity
management,
economic
development,
and
the
promotion of agricultural entrepreneurship.
Entrepreneurship is a strong incentive for investment
and development in the seed sector, and can be a
catalyst to improve the functioning and performance of
seed value chains. Strengthening entrepreneurship in
the seed sector requires an enabling environment for
different types of seed systems, differing in operators
and service providers. In order to support the design of
seed programmes and policies that promote and/or
strengthen entrepreneurship in a range of seed
systems, decision-makers need to be able to recognize
entrepreneurship in all its existing and potential forms.
1 Briefing notes on Burundi, Ethiopia, Ghana, Malawi, Mali,
Mozambique, Uganda and Zambia are available at:
http://www.wageningenur.nl/en/show/Integrated-seed-sectordevelopment-in-Africa.htm.
Briefing Note: page 1
ISSD Seed Entrepreneurship Assessment Mozambique
Assessing seed entrepreneurship in Africa
Guided by the assessments of national seed sectors,
experts from across all ISSD Africa countries were
involved in the design of an approach to assess seed
entrepreneurship in different clusters of seed systems,
namely: the informal, intermediary and formal systems.
In Mozambique, the informal cluster involves the
farmer-saved seed system and the community-based
seed system. The intermediary cluster consists of the
emergency seed system and the NGO seed system. The
formal cluster involves public, large- and small-scale
private, and value chain systems. See the previous
Mozambique seed sector assessment briefing note for
more details. In each cluster, two indicator crops were
selected for identifying value chains through which
opportunities
for
entrepreneurship
emerge.
An
assessment of the strengths, weaknesses, opportunities
and threats relevant to the different forms of
entrepreneurship is then carried out; and finally,
projects and programmes aimed at promoting and/or
strengthening seed entrepreneurship are evaluated
according to the specific requirements of those
entrepreneurs identified.2 Accordingly this note presents
the seed entrepreneurship assessment in Mozambique.
The National Agricultural Development Strategic plan
(PEDSA) foresees the focusing on agricultural growth
corridors. Based on the ISSD assessment in
Mozambique three of these corridors were selected for
the seed entrepreneurship assessment. These are: The
Nacala Corridor (Northern Region), the Zambezi valley
and the Beira Corridor (Central Region). The clusters of
seed systems and the corresponding main seed value
chains, the reference crops for each of the three clusters
and the priority corridors have been indicated in bold
(see Table 1).
2 For further details on the assessment and the methodologies
applied, reports are available upon request. See also, ISSD Africa
Newsletter 3, December 2012, available at:
http://www.wageningenur.nl/en/show/Integrated-seed-sectordevelopment-in-Africa.htm.
Table 1: Selection of main target corridors and indicator crops for the Seed Entrepreneurship assessment
Main Agricultural Growth
Corridors
Informal systems (Farmersaved; Community-based)
Intermediary systems
(Emergency; NGO)
South (Limpopo Corridor)
Cowpeas
Cassava, rice, groundnuts
Centre (Beira and Zambezi
Valley)
North (Nacala Corridor)
Sorghum and cowpeas
Programme associated to
cluster
PRODEZA
Rice (Zambezi valley)
Cassava (Dondo)
Groundnuts and cassava
Rice
IKURU and OLIPA
Sorghum and cowpeas
Formal systems (Public;
private large scale and
private small-scale
Hybrid and OPV maize
Hybrid and OPV Maize
Hybrid and OPV Maize
Soya beans
Technoserve, Nzara Yapera,
(INOVAGRO)
A total of five Focus Group Discussions (FGD) were
organized in the locations of Chimoio (formal cluster,
Central Region); Quelimane (intermediary cluster,
Central Region), and Nampula (all three clusters,
Northern Region). In relation to the original proposal,
some changes were made by the ISSD Task Force
(mainly caused by the differences in corridors): (i) The
rice seed value chain in the centre and north is part of
the intermediary cluster of systems (was formal); (ii)
Maize OPV is largely part of the formal cluster of
systems (was intermediary); (iii) Groundnut was added
to the intermediary cluster of systems, as it its
becoming a commercial crop in the North; and
traditional legumes are many in Mozambique, hence the
focus on cowpeas which is firmly in the informal system.
clusters of seed systems, entrepreneurship was defined
in terms of a particular mind-set (business orientation;
innovativeness; perseverance) and a set of skills (trust
building;
communication,
business
management,
market and demand analysis) and in relation to seed
specific knowledge (seed processing, technology). These
in combination with identified opportunities (demands,
markets, partners, and context) and resources (capital,
quality seed, inputs) can lead to seed businesses. The
main differences between the seed system clusters were
the importance of trust (informal), communication
(formal), risk-taking (formal) and access to resources
(formal and intermediary), as well as relations with
research and access to germplasm (formal and
intermediary).
In correspondence with the five FGDs five interviews
were
held
with
entrepreneurship
enhancement
programmes (see Table 1). An additional interview with
INOVAGRO,
a
Swiss
Development
Cooperation
supported
project,
was
held
for
testing
the
questionnaire.
Seed
entrepreneurship
programmes
defined
entrepreneurship more as farmer integration in seed
value chains (informal), innovativeness and resultsorientation (intermediary), market and business
planning, and chain development. The resulting
approaches by the different programmes focused on:
the facilitation of seed value chain development,
cooperative development with market and financial
services links. There was an overall emphasis on
capacity development from training (technical and
business planning) to organizational development
(cooperatives,
associations)
and
institutional
development (agribusiness forum, market information
system and communication, trust-building and contract
arrangements with seed sources and markets, i.e. seed
value chain development). Different programmes have
in
common
that
association
and
cooperative
development are seen as important building blocks for
production, marketing and actual use of seed. Key
words are multi-stakeholder interaction and innovation.
Defining seed entrepreneurship
The
informal
seed
system
cluster
defines
entrepreneurship as a combination of mindset, skills and
access to resources, but dominated by being able to
build community trust, a market and demand
orientation and good use of opportunities, as well as
access to knowledge and financial resources. The
intermediary systems representatives identified again
mindset and attitude (perseverance, innovativeness) as
key, as well as strategic use of resources (land, capital
and
knowledge)
to
address
emerging
market
opportunities and contexts. Central here are market
intelligence, the capacity to compete and innovative
resource use. The formal seed system cluster
emphasized mindset, skills and access to resources as
main elements defining entrepreneurship and in
particular, management capacity, skills and creative
talents, as well as market intelligence, and profit and
employment generation.
The emerging definition was that entrepreneurship is
the capacity to create a sustainable business with profit
orientation and based on local opportunities, which
generates employment and contributes to the
community at large (Formal, Nampula). For all three
Briefing Note: page 2
ISSD Seed Entrepreneurship Assessment Mozambique
Seed value chains in the different clusters
The informal seed value chains involve only local
households with male and female roles, and the
corresponding communities. Some communities can
start interacting with others based on trust and a
reputation for having quality seed. Some new varieties
of the indicator crops for this cluster (sorghum and
cowpeas) are being introduced and adopted by these
communities for specific reasons (e.g. for sorghum
brewing and early-maturing cowpeas), but most
varieties are local for these two endemic African crops.
The main difference with the intermediary system is the
interaction with other actors in the seed value chain,
notably the public sector and NGOs for seed
multiplication and distribution. Also, more new varieties
of cassava, rice and groundnuts are introduced into a
system still dominated by local varieties. In the formal
system, the emphasis is strongly placed on introduced
varieties of soybeans and maize. The formal seed value
chain involves formal basic seed production and
marketing of certified seed, it includes roles held by the
public sector (variety source, basic seed production and
marketing by institutional buyers) as well as by the
private sector (for the actual seed production and
marketing).
The enabling environment for informal systems is less
relevant, except for the possible threats of reduction of
farmers’ rights and the free distribution (relief and other
programmes) of alien varieties. In the intermediary seed
value chains, the implementation and recognition of the
guaranteed seed quality (i.e. Quality Declared Seed)
arrangement in the legislation is a constraint. For all
systems, the enforcement and operationalization of the
seed legislation is a general constraint. Options for
involvement of the private sector in breeding, basic seed
production and seed certification are not being
adequately used. On the other hand, the private sector
development is stifled by the subsidized seed
distribution, as well as by the lack of variety protection.
Similarly, there is limited involvement of service
providers in the informal systems (mainly only some
extension). Developing quality control services is
important in the intermediary systems (technical
support by NGOs and extension, quality control through
these NGOs). The formal system involves formal
breeding (mostly public, but also some private,
registration), basic seed inspection and different kinds
of services for seed production and marketing (financial,
input supply and certification, extension services). The
formal system has an increasing number of examples of
public-private
partnerships
in
service
provision
(breeding, basic seed production, and certification),
apart from the seed distribution.
Seed entrepreneurship across the three clusters is
strongly influenced by value chain development. This is
in particular visible in the intermediary systems in which
new opportunities for cassava (beer brewing and
biofuel), groundnuts (export) and rice (developing local
quality rice processing, despite the problems with
imported cheap rice) lead to demand for quality seed
and hence many local initiatives. In the formal seed
systems of maize and soya bean, the number of
established private actors is rapidly increasing, including
a rising number of international seed companies.
Table 2: The value chain of the informal cluster
Seed value chain
Variety source
(Basic) seed source
Operators
Mostly local selection
by women in farmers’
own fields, and locally
exchanged and
obtained from local
markets
Varieties maintained
by the community
No basic seed use
apart from local
selections
Services
Some limited cowpea
introductions (IT 18)
Enabling
environment
Strategies for the
maintenance of local
varieties
Some few collections
by research institutes
(IIAM, IITA), also for
comparison
No
Indicator crops: Sorghum and cowpeas
Type of seed quality: farmer-saved and trusted seed
Briefing Note: page 3
ISSD Seed Entrepreneurship Assessment Mozambique
Seed production and
multiplication
Some specialized
producers (individuals
and groups), as well as
associations producing
for the community
Communities recognize
importance of local
varieties
Some limited support
by extension
New varieties are
actively being
introduced in the local
systems
Seed dissemination
and marketing
Exchange in kind or
through local markets,
some introduction of
new varieties through
seed fairs and relief
operations
Some promotion
support through local
seed fairs by NGO and
public extension
Seed exchange is freely
permitted
Table 3: The value chain of the intermediary cluster
Seed value chain
Variety source
(Basic) seed source
Seed production and
multiplication
Seed dissemination
and marketing
Operators
Local varieties (mainly
in the North), as well
as public research
institutes (groundnuts,
cassava, rice)
Community seed
selected and locally
distributed
Basic seed also from
research institutes
Some groups/
associations/
individuals contracted
by local seed
companies and NGOs
Services
Local rice variety
collection not handled
properly by Semoc and
Seedco
Some quality
assessment by local
laboratories (e.g.
Nampula and
groundnuts)
NGOs and local seed
companies provide
support to seed
producers
Public sector
distribution (rice), as
well as NGOs (cassava)
and local (seed)
companies
(groundnuts)
Value chain companies
involved in seed
distribution (groundnut
exporters, cassava
beer brewers, and rice
millers)
Some rapid
multiplication of
cassava cuttings
Limited involvement of
research due to
priorities and costs
Enabling
environment
Limited support by
public extension
Rice research in the
Rice seed distribution
North not given due
affected by cheap rice
priority
imports for food
Indicator crops: groundnuts, rice and cassava
Type of seed quality: guaranteed (groundnuts and cassava) and quality seed (groundnuts), as well as certified (rice)
Table 4: The value chain of the formal cluster
Seed value chain
Variety source
(Basic) seed source
Operators
Local OPV varieties
from IIAM and CIMMYT
Basic seed from USEBA
(public sector) and
PANNAR (RSA import)
Maize hybrids from
IIAM, Mozseeds,
PANNAR and Seed Co
Breeder seed and
inbred lines from IIAM
Soya varieties from
IITA and ICRISAT
Services
IIAM breeding, CGIAR
and private seed
programmes (only
maize, soya bean and
rice)
Pre-basic seed
registration
Inspection and
certification as basic
seed (Seed
department)
Seed production and
multiplication
Specialized producers
(groups and
individuals) contracted
for maize and soya
production
Exclusive deals for
hybrids (IIAMMozseeds, Lozane
Farms, with support
from AGRA)
Accreditation of seed
companies
National seed variety
list
Import regulations not
fully applied
Seed permits private
basic seed production,
but not applied
Poor control on
imported varieties
Indicator crops: maize and soya bean
Type of seed quality: certified
Briefing Note: page 4
ISSD Seed Entrepreneurship Assessment Mozambique
Public sector distribution
system (PAPA, PEDSA)
Seed companies with
their outlets
Control and registering
of agro-dealers (Trade
Ministry)
Field inspection
Pre and post-harvest
inspection not done (all
SD)
Input supply services
(private)
Enabling
environment
Seed dissemination
and marketing
Individual agro-dealers
Financial services
limited
Legislation on seed
company accreditation
and seed quality
inspection not fully
implemented
Seed extension (public
and NGOs) promoting
certified seed (demos)
Some demonstration by
companies
Licences for seed sales
not controlled
Seed distribution policy
by MINAG outdated
Seed entrepreneurship incentives
A variety of incentives for seed entrepreneurship was
identified but the main ones all relate to the market,
directly or indirectly, for certified seed, quality declared
seed, and trusted seed, as well as service provision, all
depending on the type of seed system.
The government is a large institutional buyer of seed
(maize, rice and soya beans mainly), which is
subsequently distributed at attractive prices and
favourable credit conditions. Large companies such as
SEMOC and PANNAR, often in association with others,
tender for annual supply contracts. Their business model
is largely based on this and not the real seed market.
Smaller seed companies are hardly involved, and want
this system to be removed. The proposed change is
gradual in order for the sector not to collapse e.g.
government has now withdrawn from cash crop (e.g.
soya bean) seed distribution, but not from major urban
staples (maize, rice, potatoes).
Smaller seed companies are in spite of the subsidies
finding opportunities to start or increase their seed
business, as the seed market notably in the North and
Centre is improving, due to value chain development.
The national market demand for commodities such as
maize, rice, cassava, potatoes, and beans is increasing,
as well as an additional export demand for soya beans,
groundnuts, pigeon peas, sesame and others, all leading
to demand for quality seed.
Basic seed production and seed certification services are
in practice monopolized by the public sector, although
the seed legislation provides options for private sector
involvement. The Seed Department is a regular MINAG
department and cannot use fees for its services to
improve their provision; the previous National Seed
Services had more financial autonomy, also to involve
private sector services.
As indicated, a number of new market crops and
corresponding value chains are emerging, often of a
local nature (e.g. green grams, cassava, onions, and
vegetables). NGOs in general have reacted to this by
supporting farmer organizations interested in getting
involved in such chains, due to their flexibility and local
presence. This has led to various initiatives to produce
quality seed for such emerging value chains.
The government and national seed company strategies
for providing varieties which are stable over many
environments is challenged by small companies, farmer
organizations and NGOs, which see opportunities for
locally
adapted
varieties.
These
varieties
are
increasingly demanded by farmers, leading to local seed
businesses, gradually these are also using newly
introduced varieties.
Briefing Note: page 5
ISSD Seed Entrepreneurship Assessment Mozambique
At community level, the seed system is dominated by
relationships of trust. Farmers will acquire seed from
certain communities or associations (through barter,
mostly e.g. 2 kg grain for 1 kg seed) based on trusted
relationships developed over many years. Seed
extension in the seed multiplication programmes could
make better use of such traditional systems.
Improving seed production through
entrepreneurship
Lobbying by seed companies, programmes and projects
(e.g. Technoserve, INOVAGRO) on seed sector
development has resulted in an opening by the Ministry
of Agriculture to reduce its seed subsidy programme,
which will therefore stop interfering with the soya bean
seed market. As a result of this, there is wide interest
from small seed companies and contracted seed
producers in soya bean seed production. Market
development, rather than development of institutional
buying contracts requires different seed business models
which interact strongly with the markets. Interventions
by market studies and market linkages (Agribusiness
Forum, facilitated by PRODEZA in Zambezia), are largely
in the formal and some intermediary seed value chains.
Local seed companies and businesses, as well as agrodealers in the intermediary systems are eager to
develop markets through variety demonstrations. This
requires attractive labelling of the seed and guaranteed
seed sales (e.g. supported by Ikuru). Agro-dealers are
going into seed production (contract growers mainly),
and are demanding better quality inspection services
and access to foundation seed and new locally adapted
varieties (some are available but not yet released).
The emerging value chains have led to a demand for
quality seed in the informal and intermediary value
chains. This has led to the recognition of the need for
local seed production. Different NGOs (Miruku)
concentrate on capacity development of farmer groups
for seed production, as well as linking them with
markets and district and provincial authorities.
In the informal and intermediary systems, farmer
organizations and networks are a driving force in quality
seed production for emerging value chains. Some
farmer organizations are also contracted by seed
companies for formal seed production; the latter is also
supported by larger projects such as INOVAGRO and
Technoserve on maize and soya bean production (also
PROSAVANA, AGRA) (see Case study 1).
Case study 1: Farmer organization networks
developing into cooperatives3
Through involvement of NGOs such as Oxfam, OlipaOdes and PRODEZA, different farmer association
networks have been developed in the intermediary
systems, resulting in strong Farmer Unions and Fora, as
well as cooperative enterprises in rice and groundnut
production, processing and marketing. These networks
have also been instrumental in organizing quality seed
production. Examples in Nampula are the Forum de
Nametil and Muatoa and the Muecate Farmer Union
(supported by Olipa-Odes/PPLS, local seed production
programme) and Ikuru Cooperative Society (with part of
the shares owned by 28 Farmer Fora with 254
associations, and other shares by NGOs). PRODEZA in
Zambezia is another example of a project that supports
the development of 11 Farmer Unions of ten
associations each with 25 members. A challenge is to
organize these networks for other commodities which
provide market opportunities, such as cassava; this has
been initiated with support from IFDC.
Other examples exist notably in the merging value
chains, such as groundnuts, soya beans for
smallholders, sesame and rice. The farmer networks,
facilitated by NGOs, are also becoming increasingly
articulate in demanding good quality foundation seed of
locally adapted varieties and access to seed quality
control services.
Improving service provision to seed value chains
through entrepreneurship
Many programmes provide special financial services for
seed value chains, notably in the formal systems. Some
analysis of the various mechanisms, such as matching
funds (AGRA), soft loans (INOVAGRO), vouchers (FAO),
and financial arrangements for agro-dealers, is needed.
A major dilemma is to design financial services which do
not unfairly compete with the local financial service
organizations, including banks. NGOs support farmer
savings and credit organizations as well as farmer
organizations to become shareholders in cooperatives
(Olipa-Odes, PRODEZA, etc.).
Seed value chain development requires more than some
seed extension. Some programmes are trying to
develop seed business services such as the agribusiness
centre in Mocuba, Zambezia, by PRODEZA. In other
cases, the private sector, notably the agro-dealers
themselves go into service delivery (see Case study 2)
or the seed companies such as Nzara Yapera, supporting
their outgrowers and providing seed market information
(AMISA in Manica). Ikuru, as a cooperative enterprise,
3 Source: This study and Kaarhus R. and Woodhouse P. 2012.
Development of National Producer Organizations and Specialized
Business Units in Mozambique. Noragric Report No. 63 January
2012. Department of International Environment and Development
Studies (Noragric), Norwegian University of Life Sciences, UMB.
http://www.umb.no/statisk/noragric/publications/reports/2012/nora
gricrep63.pdf
Briefing Note: page 6
ISSD Seed Entrepreneurship Assessment Mozambique
provides specific courses on price negotiation for farmer
associations. Local seed companies and agro-dealers are
increasingly organizing and paying for on-farm
demonstrations of varieties, though coordination with
public extension could be improved.
Communities and associations involved in the informal
seed system can be assisted with seed extension on
production (seed production handbook), but in particular
for seed storage and conservation of local varieties
(cowpeas, sorghum, etc.). Examples can be found with
many NGOs, but also the public extension has local seed
multiplication programmes.
Some few examples exist of public-private partnerships
in seed certification (seed department contracts) and
foundation seed production (IIAM subcontracts). The
current seed certification services and seed quality
testing services (provincial) are largely inadequate. Use
should be made of opportunities such as private
laboratories (Unilurio Laboratory in Nampula) and
private inspection services. This can be stimulated by
granting the National Seed Department some financial
autonomy.
Case study 2: Private seed business services by
agro-dealer Insumos Agrícolas e Veterinários in
Manica4
Insumos Agrícolas e Veterinários (IAV) is a partner in
CIMMYT’s Simlesa (Sustainable intensification of maizelegume cropping systems for food security in eastern
and southern Africa ) programme. IAV supplies seed,
fertilizers, pesticides and equipment (ploughing,
spraying, etc.).
The company has noticed that the effective demand for
inputs, seed, fertilizers, but also herbicides has gone up.
More people come to the shop to buy these inputs. They
have basically sold out of Matuba (maize OPV), partly
because the government is not providing cheap seed
this year (no vouchers and no voucher schemes and
subsidy programmes (PAPA), which is good for their
business. So far they are not involved in buying, but
they have been looking, through the associations for
sesame and pearl millet seed. Most of the associations
informed them that they are still multiplying seed and
not yet ready for sale.
The challenge for IAV is to go to the communities
without facilitation. They have only recently acquired
some expertise in this, but they still need to build up a
relationship of trust with most associations, which is a
challenge. Some associations are however already
considered trustworthy and can get inputs from IAV on
short-term credit. The company has some good
experience with the previous input voucher scheme in
Bárue and Gondola Districts and 2010/2011 in District.
4 Source: Source: Interview November 2012 by Willem Heemskerk
with Sara Penicela, (co-)owner of IAV.
IAV considers the voucher scheme a good programme,
as it benefits the smallholders, and some of the
beneficiaries have found a way to its shop. Currently,
the Banco de Oportunidade has a support programme in
place, that guarantees the payment by associations for
seed they buy.
In the future, IAV would like to expand the number of
selling points, as it sees the demand for inputs
increasing. The company is even convinced about the
importance of the maize and herbicide trials, three of
which it will finance this year (Sussundenga, Gorongosa
and Gondola).
IAV staff has sufficient technical capacity and they also
accompany their input provision to farmers with an
explanation or advice about which variety or pesticide
they would need for their situation; they are therefore
also acting as extensionist agents. The public
extensionists do not come to the IAV’s shop as “they
think they know it all”.
The IAV staff have started to like being in the field with
farmers and will continue doing this. Some sort of
distribution has taken place between agro-dealers for
different districts. They see that the programme will be
successful now that the subsidies are being removed;
the subsidy programmes were bad for business, partly
because there was previously no coordination between
Simlesa and PAPA.
Impact of the enabling environment on seed
entrepreneurship
Some few examples exist of public-private partnerships
in seed certification (seed department contracts) and
foundation seed production (IIAM subcontracts). The
current seed certification services and seed quality
testing services (provincial) are largely inadequate. Use
should be made of opportunities such as private
laboratories (Unilurio Laboratory in Nampula) and
private inspection services. This can be stimulated by
granting the National Seed Department some financial
autonomy, as was the case in the past.
Seed companies, in particular the ones not benefiting
from the subsidies, complain about unfair competition
from organizations and projects that import seed and
distribute it at reduced rates (e.g. rice in Zambézia,
soya beans in Nampula). The larger problem is the
import of cheap, import tariff-free seed, making locally
produced rice uncompetitive and leading to reduced
seed demand. Recently, even Monsanto and Cargill
provided large (maize hybrids) seed donations for ‘relief’
programmes in the north of the country. In contrast,
local seed companies have to pay tax. Better
enforcement of the import regulations (rice seed is not
even allowed to be imported at all), could greatly
benefit local seed companies.
The national farmer organization, UNAC, is active in
promoting the rights of farmers to keep their own seed.
In Zambézia province, farmers grow many local
aromatic rice varieties, which are preferred by local
consumers. Farmer organizations could be better
supported in legislation and by services to “resist”
introduced varieties and maintain the local quality
varieties.
The main enabling factor for seed entrepreneurship in
almost all systems is the market and notably the
developing value chains. Important in this is the
coordination
between
entrepreneurs
(companies,
traders, and including farmers), research and the
government, most notably at the local level (district,
province) (see Case study 3)
Case study 3: The Multi-stakeholder Oilseed
Innovation Platform in Nampula5
The vegetable oilseed sector has developed a multistakeholder oilseed platform, which is facilitated by SNV
(a Dutch NGO). Its main objective is to discuss
opportunities and constraints in the oilseed sector. The
platform aims at enhancing innovation in the oilseed
subsector. The platform involves producers, processors,
researchers, financial services, provincial departments
of agriculture, NGOs, and other main actors and support
services for the groundnut, soya bean and sesame
oilseed value chains. The platform focuses in particular
on the quality of the products in the chain, which
includes the use of quality seed and technical service
provision. The platform is part of the Agri-ProFocus
Network in Mozambique.
This platform is an important governance mechanism in
the subsector. The number of interventions in all three
of the vegetable oil commodities value chains is large,
especially since all three have become export crops. The
three commodities have a booming demand for quality
seed.
In the August 2012 platform meeting, an analysis of the
seed systems for the three chains led to the
development of an action plan (seed road map), agreed
upon between the main actors of the seed value chain:
the Zonal Research Centre in Nampula, seed producers,
the Provincial Seed Services, and the private sector. The
plan is supported by a number of NGOs and by the
industry, notably Olam, Coredor Agro, and Ikuru. The
platform is a coordination mechanism with SNV and
AgriHub as the secretariat.
Facilitation of the interaction of stakeholders in the
platform is continuing through SNV and AgriHub
Mozambique,
while
individual
actors
continue
implementing the agreed actions.
5 Source: http://apf-mozambique.ning.com/group/oleaginosas
Briefing Note: page 7
ISSD Seed Entrepreneurship Assessment Mozambique
Recommendations for making policies,
programmes and practices more effective in
promoting and strengthening entrepreneurship
Promoting successful initiatives and incentive
mechanisms in the practices of seed entrepreneurship
With support from UNAC, the small farmers
organization, the use and protection of local (aromatic)
rice varieties is being promoted. Value chain
development can be a threat for these varieties, but
also an opportunity if the urban population recognizes
the consumer value of these varieties. To support
commercialisation of local rice varieties, the government
should reduce imports of not only rice as such (both
high quality basmati rice and bulk low quality tax-free
rice), but should also enforce the 1992 import regulation
which prohibits the import of rice seed. Also, efforts
should be made to produce Quality Declared Seed
(guaranteed seed; QDS) for all local varieties (so not
only rice), and to use it (e.g. in the seed fairs).
Communities obtain seed on the basis of trust, which
was built over years, resulting in villages and individuals
being known locally for their quality seed. Seed
marketing should make use of these traditional seed
distribution systems and link them to local agro-dealers
and formal community seed outlet development
strategies.
The private sector (local seed companies and agrodealers) should continue to get more involved in general
seed advisory services, such as advice during seed
sales, variety on-farm demonstrations, and working with
community seed outlets for seed demand identification.
The seed business requires investment and timely pay
for seed production. To stimulate seed entrepreneurship
and further up- and outscaling of seed development
programmes, continue to build an inventory and
analysis of different financial service systems and
payment guarantee systems (e.g. by Olipa, Ikuru and
Banco de Oportunidade).
Seed businesses face large risks in their seed production
even before facing the marketing risks. Risks are
associated with climatic change and increasing dry spells
and floods, leading to the need for irrigation, drainage
and flood protection strategies. Another major risk is
quality (long-term) storage of seed. Seed advisory
service programmes must be enhanced, to help seed
businesses to confront all of these risks.
Scaling-out and –up of successful initiatives and
interventions of seed-related programmes
NGOs and other projects focus on seed business
development services to improve seed value chains, by
increasing an effective demand for quality seed.
Examples include seed market information systems, and
the development of websites that inform about seed
Briefing Note: page 8
ISSD Seed Entrepreneurship Assessment Mozambique
prices in all stages of the value chain as well as for
different qualities and commodities. Other services are
specific training programmes on seed business
management, including seed production (planning,
contract farming, risk management), processing (seed
chain quality control), as well as financial services
(pluralist models, guarantees, bankable plans, seasonal
credit, record keeping, storage management) and
marketing management (packaging, posters, bulletins,
fairs, demos). These initiatives should be coordinated
with the public agricultural advisory services and public
seed extension.
Seed companies in the formal seed systems have long
been developing their businesses based on a model
which foresees selling to institutional buyers such as the
Ministry of Agriculture, donor projects and relief
organizations. This model is gradually changing from a
development orientation to a seed needs-and-demand
orientation, which will require different business models.
Build on programmes (such as INOVAGRO), to support
this business model reorientation process.
A number of NGO programmes (Olipa-Odes, SNV) are
supporting local seed business development as a
component of farmer association networks which
concentrate on certain subsectors (e.g. groundnuts,
sesame, rice and possibly cassava). These networks are
developing into cooperative enterprises (e.g. Alimi,
Ikuru and Apac) in which associations are shareholders.
Continue to build on strengthening of these networks,
emphasising innovation (e.g. by using annual SWOT
analysis of the networks seed business). The local
character of the association networks also leads to a
demand for locally adapted varieties, demanded by the
emerging market, challenging the one-variety-fits-all
principle.
Carry out a specific analysis of the Ikuru and Alimi (and
others) association shareholding model (for groundnuts,
sesame and soya beans) which is supported by NGOs
(Oxfam and others), to gather learnings on good seed
business development as well as options for outscaling
in other commodities.
Addressing gaps in policies and the enabling
environment
To strengthen the development of the seed sector, the
government needs to work on a new seed strategy
(outsourcing basic seed and inspection); establish
formal regulations and legislation operations in support
of its development; enforce rights and regulations
(breeders’ and farmers’ rights; import regulations; seed
sector governance; basic seed production; variety
release and seed inspection); and improve its seed
sector mechanisms (seed department).
The lack of the above is partly due to the governance
constraints of the sector. Recent workshops and
meetings across the sector (ISSD, MINAG, FAO,
INOVAGRO, etc.) have illustrated the demand for sector
governance strategies and mechanisms. The national
seed committee, foreseen in the seed law, has not met
for ten years (with the exception of the variety release
subcommittee), which has also resulted in the expiration
of the national seed development strategy in 2001. A
strategy which addresses all issues mentioned is
urgently needed, notably to address sector governance
(roles of the public and private sectors, importance of
informal seed systems and farmers’ rights, etc.) as well
as the mentioned enforcement of the seed legislation.
Pay specific attention to the role of the public sector in
seed development, such as the gradual removal of
subsidies (only for relief programmes, and seed demand
development), the release of market-based and local
seed systems’ demanded varieties, seed quality
certification (outsourcing services, quality declared seed
inspection, seed inspection autonomy). Clarify the role
of local governments in promoting local seed business
(seed extension and removal of obstacles, as well as
involvement of communities).
Within the overall relations between public and private
sector, give a stronger role to the private sector in
variety release (demand orientation, variety release
communication, and involvement in breeding), as well
as in foundation seed production, and seed certification
(outsourcing) to enhance the entrepreneurial dynamics
in the system.
Authors:
Inacio Pereira (Mozseeds) and Willem Heemskerk (KIT)
Picture credit: Peter Casier (CGIAR)
ISSD Africa II – Mozambique task force and team:
 Elsa Timana, National Seed Department, representing the public sector
 Maria Estrela Alberto, Mozseeds, representing the private sector
 Armando Amâncio, Mozambican Association for the Promotion of Modern Cooperatives, representing NGOs
 Rogerio Chiulele, Eduardo Mondlane University, representing knowledge institutions
 Inacio Pereira, ISSD consultant
 Willem Heemskerk, Karèn Verhoosel (process advisors)
ISSD Africa editorial team:
Gareth Borman, Marja Thijssen, Elizabeth O’Keeffe and Mundie Salm
Centre for Development Innovation of Wageningen University and Research centre, the Netherlands
ISSD Africa II is supported by:
Briefing Note: page 9
ISSD Seed Entrepreneurship Assessment Mozambique