funder_partner: Nepal's Ministry of Land Management, Cooperatives and Poverty Alleviation

From seed to feed

Written by Sarah McLaughlin on October 24, 2022. Posted in News.

In 2022, more than 2,000 households participated in CIMMYT’s Maize Commercial Model program, doubling the number of farmers and area of maize produced compared to data from 2021. (Photo: Aayush Niroula/CIMMYT)

Experts at the International Maize and Wheat Improvement Center (CIMMYT) are working with partners to drive self-sufficiency in poultry feed and achieve more sustainable maize systems in Nepal thanks to the Nepal Seed and Fertilizer (NSAF) project.

About 3,000 metric tons (t) of poultry feed is used in Nepal every day, with maize making up about half of feed ingredients. The Feed Association of Nepal estimates that more than 80% of maize for animal feed requirements are met through imports, which costs around $100 million a year. Maize imports are estimated to exceed $130 million in 2022.

Through the NSAF project — a project which facilitates sustainable increases in Nepal’s national crop productivity, income and household-level food and nutrition security across 20 districts — CIMMYT scientists have been supporting public private partnerships to increase commercial maize production and strengthen the “seed to feed” chain in the country.

In the Terai region, huge swaths of land lie fallow in the spring season. Experts estimate that enough maize grain could be produced on this land to substitute about 40% of maize imports to the country. Increasing spring maize production in these fallow lands has been one of the goals of the NSAF team, as well as improving coordination between public and private sectors. To do this, the team have designed a multi-stakeholder engagement initiative to strengthen the seed to feed chain.

In December 2020, CIMMYT experts began the initiative to scale up the use of new maize hybrid varieties and improved agronomic practices. In the spring of 2022, CIMMYT researchers partnered with public and private organizations in Banke, Bardiya and Kailali to help commercialize hybrid maize production and strengthen maize value chain coordination in the region. Partners included integrated agriculture and livestock development offices in Bardiya, agriculture knowledge centers in Banke and Kailali, local governments, farmer cooperatives, seed companies, agro-dealers and feed mills.

Working with these partners, CIMMYT scientists also advanced efforts to improve the capacity of actors to increase efficiency in supply chains, production and marketing, provide local employment and strengthen the market for domestically produced maize for poultry feed.

As of September 2022, the following milestones have been achieved:

Provincial governments have established multi-stakeholder maize commercial networks at sites where maize actors and stakeholders participate to coordinate commercial maize production, access to support services and to link farmers and grain buyers.
In 2022, more than 2,000 households from 19 local government units produced maize on 547 ha in Banke, Bardiya and Kailali. The total maize production increased from 1390t in 2021 to 3,232t in 2022. This was an increase of 61% in the number of farmers and 52% in area. The value of maize sold also tripled from USD 306,900 in 2021 to USD 915,700 in 2022.
The farm gate price of maize by 22% and the Government of Nepal invested $2.37 million to support access to quality seed, agriculture machinery and irrigation facilities.
Farmers sold 500t maize grains to feed mills in 2022, a huge jump from only 30t in 2021.
In partnership with the Government of Nepal, CIMMYT researchers organized training programs for farmers in maize commercial network sites on production, post-harvest, exposure visits and marketing to prepare them to produce maize as per buyers’ requirements. They also guided farmers on how to access credit, crop insurance, and digital advisory services to further improve their production and marketing.

Maize constitutes about half of all poultry feed products in Nepal and maize imports for feed are estimated to be worth around $130 million in 2022. (Photo: Aayush Niroula/CIMMYT)

Next steps

CIMMYT scientists plan to double the number of districts under the maize commercialization model from three to six in 2023. The Department of Agriculture under the Ministry of Agriculture and Livestock Development, and the local and provincial governments are keen to scale out the model to several maize production regions of Nepal.

In a joint assessment with the Government of Nepal and private sector partners, CIMMYT scientists identified a number of key areas for further development. These include supporting farmers to access high yielding, short duration and stress tolerant maize varieties, as well as best management practices for improving maize production. Other priorities include developing models for contractual arrangements between farmers groups and feed mills, encouraging public and private sector investment in village-level warehouses with drying facilities. Finally, CIMMYT and partners are eager to introduce incentives such as subsidies on grain produced and sold by farmers through cooperatives, develop national maize quality standards and update the 1976 Feed Act.

Going forward, CIMMYT’s research on public private partnership for commercial maize production will focus on drivers of uptake of technology and institutional innovations, the role of aggregation models and contractual arrangements in maize market system coordination and impact assessment on farmers benefits.

Growing confidence in the maize business

Written by Aayush Niroula on August 11, 2022. Posted in Blogs.

Maize grain aggregator invests in developing storage for coping with increased grain production. (Credit: Aayush Niroula/CIMMYT)

Him Lal Neupane has been in the business of agriculture for more than a decade. His company Annupurna Suppliers, in Banke District, Nepal, trades in agri products and has an annual turnover of around $626,000, up from $195,000 eight years ago.

Recently, Neupane has been heavily investing in maize. He says involvement from the International Maize and Wheat Improvement Center (CIMMYT) in market strengthening has given him the confidence to go big on the crop. He encountered CIMMYT through the meetings led by the organization in the district, as part of its Nepal Seed and Fertilizer (NSAF) project. In the meetings, he was able to hear perspectives on maize production from leading market experts, as well as government officials. Getting direct access to high level government representatives and agricultural scientists was incredibly fruitful and raised his confidence to invest in maize. He also got to air his own grievances about the industry and learn more from other farmers.

“I learnt that the project was invested in training farmers to produce better quality maize,” said Neupane. “If we get quality products from farmers, I immediately deduced that there is a great chance that the product will keep doing well in the market.”

Neupane’s confidence in investing in maize has increased thanks to market strengthening from CIMMYT. (Credit: Aayush Niroula/CIMMYT)

In 2022, Neupane bought a truck and has been constructing a massive storage facility that can store up to 4 million kilograms of produce. He has plans for proper grading and drying of maize in the facility to sell to industrial buyers.

The majority maize in Nepal is used as feed for the poultry industry, so there is high value for the crop in the market. “Since Nepal is a big consumer of poultry products and will remain so, it is inevitable that locally produced maize will sell,” explained Neupane.

Neupane went into agriculture because he could not secure employment after completing higher education. He grew up learning and practicing farming, so he understood farmers’ plights and wanted to start a company that would improve their lives. He also wants to grow the industry to curb the country’s maize import dependence, which has been affected by recent disruptions like the Ukraine conflict and the pandemic. Annually, Nepal imports around $120 million worth of maize, which depletes the country’s foreign currency reserves.

CIMMYT’s efforts in developing the maize market through value chain coordination and private public partnerships intend to help stakeholders at every level of the industry, from farmers to suppliers like Neupane, whose company’s growth represents a strong reinforcement of confidence in domestic maize production.

Participants of the preliminary mid-term review of the National Seed Vision 2013-2025 workshop stand for a group photo. (Photo: Bandana Pradhan/CIMMYT)

Nepal’s seed sector partners join forces to realize the National Seed Vision 2013-2025

Written by Rodrigo Ordóñez on August 20, 2019. Posted in Features.

Access to affordable quality seed is one of the prerequisites to increase agricultural production and improve the livelihoods of Nepali farmers. However, there are significant challenges to boost Nepal’s seed industry and help sustainably feed a growing population.

Six years ago, Nepal launched its National Seed Vision 2013-2025. This strategic plan aims at fostering vibrant, resilient, market-oriented and inclusive seed systems in public-private partnership modalities, to boost crop productivity and enhance food security.

The Nepal Seed and Fertilizer (NSAF) project, led by the International Maize and Wheat Improvement Center (CIMMYT), is supporting the government to enhance national policies and guidelines, and private seed companies to build competitive seed businesses and hybrid seed production.

General view of a hybrid maize field from Lumbini Seed Company, a NSAF project partner, in Nepal’s Bhairahawa district. (Photo: Subhas Sapkota)

Quality seed can increase crop yield by 15-20%. However, there are critical challenges hindering the growth of Nepal’s seed industry. Existing seed replacement rate for major cereals is low, around 15%. About 85% of Nepali farmers are unable to access recently developed improved seeds — instead, they are cultivating decades-old varieties with low yield and low profits. Some of the factors limiting the development of seed systems are the high cost of seed production and processing, the limited reach of mechanization, and the low use of conservation agriculture practices.

The demand for hybrid seeds in Nepal is soaring but research in variety development is limited. Most of the country’s supply comes from imports.

In collaboration with the Nepal Agricultural Research Council (NARC), the NSAF project team is working with seed companies and cooperatives to scale hybrid seed production of maize, tomato and rice. Through this project, CIMMYT collaborated with the Seed Quality Control Center (SQCC) and national commodity programs of the NARC to draft the first hybrid seed production and certification guidelines for Nepal to help private seed companies produce and maintain standards of hybrid seeds.

Extension and promotion activities are essential to bring improved seed varieties to farmers. Standard labelling and packaging also needs to be strengthened.

Yubak Dhoj G.C., Secretary of Nepal’s Ministry of Agriculture and Livestock Development, explained the importance of seed stakeholders’ collaboration to achieve the National Seed Vision targets. (Photo: Bandana Pradhan/CIMMYT)

A joint effort

CIMMYT and its partners organized a two-day workshop to review the progress of the National Seed Vision. The event attracted 111 participants from government institutions, private companies and development organizations engaged in crop variety development, seed research, seed production and dissemination activities.

In the opening remarks, Yubak Dhoj G.C., Secretary of Nepal’s Ministry of Agriculture and Livestock Development, addressed the seed sector scenario and its challenges. He stressed the importance of collaboration among seed stakeholders to meet the targets of the National Seed Vision in the next six years.

During the technical sessions, Madan Thapa, Chief of the SQCC, analyzed the current status of the National Seed Vision and highlighted the challenges as well as the opportunities to realize it.

Laxmi Kant Dhakal, Chairperson of the Seed Entrepreneurs Association of Nepal (SEAN) emphasized the importance of private sector engagement and other support areas to strengthen seed production and marketing of open-pollinated varieties and hybrids.

Seed systems specialist AbduRahman Beshir shares CIMMYT’s experiences in hybrid testing and seed business promotion in Nepal. (Photo: Bandana Pradhan/CIMMYT)

Tara Bahadur Ghimire, Principal Scientist at NARC, gave an overview of the status of NARC varieties, source seed and resource allocation.

Dila Ram Bhandari, former Chief of SQCC, led a discussion around the assumptions and expectations that arose while developing the National Seed Vision.

Technical leads of maize, rice, wheat and vegetables presented a road map on hybrid variety development and seed production in line with the National Seed Vision’s targets for each crop.

“A large quantity of hybrid seeds, worth millions of dollars, is being imported into Nepal each year,” explained AbduRahman Beshir, Seed Systems Lead of CIMMYT’s NSAF project. “However, if stakeholders work together and strengthen the local seed system, there is a huge potential in Nepal not only to become self-sufficient but also to export good quality hybrid seeds in the foreseeable future. Under the NSAF project we are witnessing a few seed companies that have initiated hybrid seed production of maize and tomato.”

In one of the exercises, workshop participants were divided in groups and examined different topics related to the realization of the National Seed Vision. They looked at genetic resources, hybrid and open-pollinated variety development, source seed production and supply, private sector engagement and marketing, seed extension and varietal adoption by farmers, seed quality control services, and roles of research partners and other stakeholders. The groups presented some of the major challenges and opportunities related to these topics, as well as recommendations, which will be documented and shared.

The outcomes of this mid-term review workshop will inform policy and guide the discussions at the upcoming International Seed Conference to be held in early September 2019.

In one of the breakout sessions, a group discusses challenges and recommendation to improve private sector engagement. (Photo: Bandana Pradhan/CIMMYT)

Regulating hybrid seed production

At the workshop, participants thoroughly discussed the draft hybrid seed production and certification guidelines, developed under the NSAF project.

The guidelines are the first of their kind in Nepal and essential to achieve the targets of the National Seed Vision, by engaging the private sector in hybrid seed production.

Hari Kumar Shrestha, CIMMYT’s Seed Systems Officer, and other seed experts from the SQCC presented the main features and regulatory implications of the guidelines.

After the workshop, the guidelines were sent to the National Seed Board for approval.