In Ethiopia, agriculture accounts for approximately 42% of the Gross Domestic Product (GDP), employs approximately 85% of the labor force and contributes around 90% of the total export earnings of the country. The sector is dominated by over 15 million smallholders, who produce approximately 95% of the national agricultural production (
CSA, 2018). This shows that the overall economy of the country and the food security of most of the population depend on small holder agriculture. The growth of the agricultural sector is considered an engine and the last resort to take-off the national economy. Put in perspective, Ethiopia’s key agricultural sector has grown at an annual rate of about 10% over the past decade; much faster than the population growth. Other important sectors are the service and industrial sectors, contributing 43% and 15.6%, respectively (
The World Fact Book, 2016).
Despite its importance, agriculture suffers from low productivity levels. Crops play a significant role and it is believed that the adoption of new agricultural technologies, such as high yielding varieties, could lead to significant increases in agricultural productivity and stimulate the transition from low productivity subsistence agriculture to a high productivity agro-industrial economy (
World Bank, 2008).
The use of improved agricultural technologies is crucial for increasing agricultural production and productivity. The use of improved technologies, such as chemical fertilizers, improved seeds, pesticides and irrigation is very low in Ethiopia. Improved seeds provide a significantly higher yield and better-quality crop products compared to locally produced varieties of seeds. The use of these seeds remains low. Compared to other inputs it has not been widely practiced by smallholder farmers. Only 13 per cent of the total cereal cropped area is covered by improved seed indicating that most smallholder farmers use indigenous seeds (
CSA, 2018).
Seeds are one of the most important sources of innovation, particularly in resource constrained small farm environments. It carries the genetic potential of the crops, determining the upper limit on yield and therefore, the ultimate productivity of other inputs (
Ellis, 1993). It is a key input for improving crop production and productivity in agriculture. Increasing the quality of seeds can significantly increase the yield potential of the crop and thus, is one of the most economical and efficient inputs to agricultural development
(Robinson et al., 2006).
To satisfy seed demand, improved seeds are supplied particularly by public organizations such as public seed enterprises, agricultural research institutes and universities (
Alemu, 2011: Thijssen et al., 2008). Private seed producers also supply seeds to the markets. Nevertheless, both public and private seed producers mainly concentrate on a few cereal crops and supply only a small portion of the total quantity of seeds demanded by farmers. Thus, they do not satisfy the diversified seed demand of farmers (
Bishaw and Louwaars, 2012). Most smallholders tackle seed shortage through farmer-to-farmer seed exchange or using saved seeds (
Alemu, 2011:
Thijssen et al., 2008).
To narrow the gap between seed demand and supply and support the Ethiopian growth and transformation principles of economic development, a concept note was jointly developed by the Ministry of Agriculture and Rural Development, Ethiopian Institute for Agricultural Research, Food and Agriculture Organizations of the United Nations and the Royal Netherlands Embassy in Ethiopia. The concept note was then named the Integrated Seed Sector Development (ISSD) programme. The ISSD programme in Ethiopia aims to strengthen the development of a vibrant, market-oriented and pluralistic seed sector in the country, where quality seeds of superior varieties are available and affordable for a larger number of farmers, thereby contributing to food security and economic development in Ethiopia. The program is a joint effort of Bahir Dar University, Haramaya University, Hawassa University, Mekelle University, Oromia Seed Enterprise, the Ethiopian Seed Association and the Centre for Development Innovation of Wageningen University and Research.
One of the means used to narrow the gap between the seed demand and supply of the country is organizing and supporting groups of farmers in seed producer cooperatives (SPCs) on a volunteer basis to produce and market quality seeds
(Ayana et al., 2013; Subedi and Borman, 2013). The government encourages SPCs to engage in seed production and supply. SPCs supply quality seeds of diversified crops and varieties based on farmers’ interests and local and beyond local demand. Thus, they contribute to the seed security of the country. The contribution of SPCs to the Ethiopian seed sector has received considerable attention from policymakers and development practitioners and is recognized in Ethiopian agricultural development strategies (
ATA, 2015;
MoA, 2015).
The University of Gondar is one of the partner organizations for the ISSD program in Ethiopia. The University of Gondar has been supporting four legalized SPCs in collaboration with Bahir Dar University and the respective district agricultural and cooperative promotion offices since 2012. The aim of this program is to help SPCs become more autonomous, business oriented, consumer focused and professional. Thus, this study provides an overview of the status, achievements and challenges of SPCs in northwestern Ethiopia from 2012 to 2018 regarding to meeting their objective. The sources of data used for this review were obtained from documentation, annual reports, meetings and discussion forums with SPCs management bodies and members.
This review employed a documentary analysis and participatory approach to assess the status, achievements and challenges of SPCs in Northwestern Ethiopia between 2012 and 2018. The methodology consisted of the following steps.
Data sources
Information was collected from multiple sources, including the annual reports of SPCs, meeting minutes, cooperative promotion office records, University of Gondar project documentation and published literature on seed sector development in Ethiopia.
Selection criteria
Four SPCs (Abay, Daber Nigat, Tana and Tsehay Eger) were purposively selected based on their legal establishment, geographic distribution, crop diversity and continuous support from the University of Gondar and its partners.
Time frame
The review covered activities from 2012 to 2018, aligning with the period of the University of Gondar’s direct involvement in supporting SPCs.
Data collection methods
o Documentary review of cooperative records, reports and ISSD programme documents.
o Key informant discussions were held with SPC management committees, members and district-level agricultural officers.
o Observation of seed multiplication sites and cooperative infrastructure.
Analytical approach
Data were synthesized using thematic analysis, focusing on three dimensions: (i) organizational status, (ii) achievements in seed production and marketing and (iii) challenges in governance, finance and technical capacity. Quantitative data (
e.g., membership size and seed volumes) were tabulated and compared across years, while qualitative insights were coded into thematic categories.
Validation
The findings were triangulated by cross-checking documentary evidence, interviews and field observations to ensure reliability and accuracy.
Current status of SPCs
Diversity in SPCs
The number of SPCs is increasing in various parts of the country with the support of federal and regional organizations (cooperative promotion agency, bureau of agriculture, higher education and learning institutes and research institutes) and NGOs
(Sisay et al., 2017). Currently the total number of SPCs in Ethiopia engaged in seed production and marketing has reached 327 (
FCA, 2016). Table 1 displays the distribution of the four SPCs in northwestern Ethiopia. All these SPCs are legalized by their respective cooperative promotion offices by passing through the formal procedures. SPCs are called Seed Multiplication and Marketing Cooperatives. These SPCs are located across four agriculturally important districts in northwestern Ethiopia. The University of Gondar started working with two SPCs, Abay and Daber Nigat, in 2012. In 2013, two more farmer groups were added, making it four. The two recently organized farmer groups passed through certification processes and were legally established in 2014 as Tana and Tsehaye Eger SPCs. To realize the potential of these SPCs, the University of Gondar has been working in close collaboration with partners such as district agricultural offices, district cooperative promotion offices, Tsehay multipurpose union, zonal quarantine offices and Amhara region ISSD cooperation office.
Membership size of SPCs
The number of members varies among the SPCs. There is no common rule across the country on the minimum number of members required to establish SPC
(Sisay et al., 2017). Fig 1 shows the member size (aggregated by gender) in the four SPCs. Although the number of members varies among SPCs, all of them satisfy the minimum requirement of the Amhara regional state to establish cooperative which is 40 (
ANRS/CPA, 2012). The main criteria employed to join as a member of the cooperative are interest, ownership of farmland and suitability of the farmland for clustering. Abay has a large member size of 676 members, whereas Tsehay Eger has a relatively low member size of 78 members. Of the members of these SPCs, only 21% are women, showing less involvement of females. ISSD observation favors a small member size per SPCs for quality seed production
(Ayana et al., 2013). As the membership size increases, quality control becomes more difficult. However, to have a shared resource, such as a cleaning machine, the member size should be large enough to contribute to their share. Therefore, as a small holder farmer to satisfy their equipment needs by contributing their share, the size of these cooperatives needs to be large enough.
Crops and varieties addressed by SPCs
SPCs engage in the diversified production of crops and varieties (
ISSD, 2016). Table 2 provides an overview of the crops and varieties grown in the four SPCs since 2012. The major crops grown by farmers include potato, malt barley, food barley, wheat, tef and chickpea. Chickpea and tef producer cooperatives mainly engaged in contractual arrangements with the Tsehay multipurpose union. Malt barley production is mainly sold to the Gondar malt factory. Wheat, food barley and potato are mostly sold directly to neighboring villages and districts end users. The crops and varieties produced by SPCs have increased in both number and type. Before the establishment of the SPCs, farmers did not have access to a variety of crops. Thus, SPCs make a significant contribution to ensuring local food security by providing options for farmers to select varieties better suited to their local agro-ecologies and market preferences
(Ayana et al., 2013).
Quantity of improved seeds used by SPCs
The total amount of seed produced by SPCs has not increased from year to year (Table 3). This is attributed to the inaccessibility of improved seeds by farmers although there was an increase in the membership of SPCs from 2012 to 2018. Farmers are not even multiplying the seeds of potato, wheat, tef and food barley continuously. The main reason farmers of Tana and Tsehay Eger SPCs are not multiplying the improved variety of tef, particularly the dukem variety, is associated with the deterioration of the quality of the seed since it reached certified and above. To solve this problem, there is a breeder seed multiplication taking place at Tseda campus of University of Gondar. In addition to the shortage of improved seeds, the lack of a sustainable market and the perishable nature of the crop are pushing farmers not to multiply potato tubers continuously.
Achievements of SPCs
Increment of member size
The total number of members of the four SPCs increased from 678 in 2012 to 1277 in 2018 with an increase of 188% (Fig 2). This is an encouraging indicating satisfaction among the members regarding the service which motivates others to join them. However, the increment is not on a constant basis and the management of Tana and Tsehay Eger need to work hard to satisfy their members and increase their membership further.
Clustering farms
Clustering adjacent farmlands serves as a best practice for adequately responding to the complexities arising from small landholdings and fragmentation in the production of quality seed. Member farmers were trained in the need to cluster their farmlands. The clustered farming plots contribute to far greater economies of scale in seed production and are easier for inspection, field management, maintenance of isolation distances and for technical supervision by organized sub-committees for internal seed quality control. Clustering also facilitates demonstrations of seed quality during organized field days, which in turn promote the demand for SPCs products. Currently, farmers are fully aware that every seed multiplication site occurs on a cluster basis.
Technically well-equipped
Due to the frequent capacity building activities conducted so far by development agents and agricultural experts, the SPC members are technically equipped with regard to seed multiplication by cluster, knowhow of isolation distance between various crops as well as different varieties of the same crops, frequency of cultivation, frequency of weeding as well as knowing the right type, amount and time of fertilizer application. The major limitation of technical efficiency is concerned is the fact that although they know the type, amount and time of application of fertilizer, they do not apply the right amount of fertilizer. This limits the potential yield that can be obtained. The reason forwarded by farmers is that fertilizer costs are increasing from time to time and the government is not appreciating loans for fertilizers.
Infrastructure
All the four SPCs have sufficient storage for their products, which are well managed. Abay and Daber Nigat cooperatives have diffused light stores for their potato tubers although they are not functional now since they are not multiplying potato these days due to sustainable market linkage problem. Regarding offices, they do not have well-furnished offices. Two of the SPCs (Tana and Tsehay Eger) have yet to finalize the construction of their offices.
Market orientation and seed price setting
The volume of seed produced by Ethiopian SPCs has increased the recent years. The total volume of seed produced by SPCs has increased from 3,952.4 tons in 2010 to 29,675.6 tons in 2014
(Sisay et al., 2017). In our case, the total amount of seed produced was 7,270 quintals, whereas in 2018 it was 2550 quintals showing fluctuations in the quantity of seed produced (Table 4). The SPCs multiply market-oriented crops like malt barley, chickpea and tef. They identify their client ahead of multiplying their seed by accessing market information through their executive committee and district cooperative promotion office. They also communicate with their potential buyers ahead of sowing the seed. Due to this, there were no left-over seeds for the crops they multiplied (Table 4).
Tana and Tsehay Eger multiply tef and chickpea on a contract basis with the Tsehay Multipurpose Farmers Union. The price is set by a committee consisting of representatives from the SPCs executive committee, district agriculture office, district promotion office and the contracting party. The seed price is typically set at 15-20% above the grain price, which is often established at the time of harvesting when demand has not yet been fully realized. Hence, the price of seeds is arguably suboptimal, putting seed growers at a disadvantage. Abay and Daber Nigat mainly multiply malted barley. They sell it either to the Gondar malting factory or locally to other farmers and urban dwellers. When they sell their seeds directly to farmers the executive committee, in consultation with its members, sets the seed price based on real market demand.
Challenges of SPCs
Value addition
Although SPCs use clean areas for separating their products from straw and use the traditional way of cleaning their seeds, they do not have standardized cleaning machines, labeling machines, packaging bags and machine for their product. This hinders their competitiveness in the seed market and the possible income they can earn if value is added. This shows the support needed to link them with other partners and service providers such as finance institutions to add value and market their seeds directly.
Management of the SPCs
Internal organization and management of SPCs is one of the critical issues for them to be successful in the seed business. Leadership capability of the SPCs is one factor (
Borda-Rodriguez et al., 2016). SPCs require highly committed, skilled and well-experienced leaders. All four SPCs in this regard are led by executive committees selected from members. The SPCs are not professionally well organized since they do not have hired specialized and trained professionals. They are supported by village level development agents and cooperative promoters as well as district agricultural offices and cooperative promotion offices. This is a key challenge for SPCs in their dynamic and competitive business environments. The absence of professional cooperative managers and the low literacy level of the existing leaders are key problems in many of the Ethiopian cooperatives (
Awoke, 2014). Committee members have better understanding of their seed business due to frequent exposure to workshops and training.
Financial capabilities
These SPCs have very limited financial capacities to run their business. This hinders them in responding to their members as well as customer needs. Financial capabilities are very important to collect market information, purchase inputs like seeds and chemicals, train members, share experiences of other similar cooperatives, fulfill the required facilities, perform seed processing,
etc. The two recently established SPCs (Tana and Tsehay Eger) are yet to fulfill their fixed assets like office due to their financial limitations. University of Gondar and its partners supported SPCs in the preparation of business plans through capacity building where members participated actively. Business plans are very important in conducting their operations. But they are not implementing this business plan in their routine tasks.
Commitment of members
The SPCs degree of success is measured partly by the members’ commitment toward their organizations and members’ trust in the board of directors (
Österberg and Nilsson, 2009). Although they have agreement with their cooperative to sell back the produce, there are members that sell to other markets for better price. Even some of them took seed by credit and that credit will be deducted when they sell back their product. So, even if the cooperative gives better prices to their members they become reluctant to sell to the cooperative in order not to pay their credit. The members’ commitment is also reflected in their willingness to participate in meetings. Members are more interested in participating if interest their personal benefit like dividend, input access, credit access rather than their organizational benefit.
Weak linkage among partners
District level agricultural offices and cooperative promotion offices are those that are directly responsible for supporting farmers. There are also other governmental and non-governmental organizations involved. Since supporting seed producing cooperatives is not mentioned in their offices’ job description, they believe that supporting cooperative is by choice rather than a must do activity for their office. Even if they are interested in supporting them, believing that it will benefit the farmers, they lack the required skill and knowledge to do so. Because of this and related problems, SPCs are constrained by limited support from partners. In government offices, shortage of professionals and associated facilities limit the support to and regular monitoring of, cooperatives (
Veerakumaran, 2007). Although there are awareness workshops and capacity building training for the offices concerned by University of Gondar, frequent staff turnover, especially head of the offices, is a headache for the seed business.
Availability of basic seed
Farmers of the SPCs are mostly getting below their need regarding the number of seeds they require in each production season. This is affecting their members’ satisfaction. The level of the seed class they get is another issue for them. Suppliers have limited capacity to satisfy the seed demand of the country. Thus, basic seed shortage is a bottleneck
(Ojiewo et al., 2013). The seed shortage hinders SPCs in multiplying and supplying large quantities of seed to the market, despite the huge demand for a particular crop seed. Nowadays, few members are questioning their membership since it does not satisfy their seed demand at the expected level.
