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Location: Nepal

For more information, contact CIMMYT’s Nepal office.

Q&A: Expanding CIMMYT’s research agenda on markets and business

TEXCOCO, Mexico (CIMMYT) — Food security is heavily dependent on seed security. Sustainable seed systems ensure that a variety of quality seeds are available to farming communities at affordable prices. In many developing countries, however, farmers still lack access to the right seeds at the right time.

In the past, governments played a major role in getting improved seed to poor farmers. These days, however, the private sector plays a leading role, often with strong support from governments and NGOs.

“Interventions in formal seed systems in maize have tended to focus on improving the capacity of seed producing companies, which are often locally owned small-scale operations, to produce and distribute quality germplasm,” says Jason Donovan, Senior Economist at International Maize and Wheat Improvement Center (CIMMYT). “These local seed companies are expected to maintain, reproduce and sell seed to underserved farmers. That’s a pretty tall order, especially because private seed businesses themselves are a fairly new thing in many countries.”

Prior to the early 2000s, Donovan explains, many seed businesses were partially or wholly state-owned. In Mexico, for example, the Instituto Nacional de Investigaciones Forestales, Agrícolas y Pecuarias (INIFAP) produced seed and supplied it to a market-oriented entity which was responsible for distribution. “What we’re seeing now is locally owned private seed businesses carving out their space in the maize seed market, sometimes in direct competition with multinational seed companies,” he says. In Mexico, around 80 locally owned maize seed producing businesses currently exist, most of which have been involved in CIMMYT’s MasAgro Maize project. These are mostly small businesses selling between 150,000 and 500,000 kg of hybrid maize per year.

In the following Q&A, Donovan discusses new directions in research on value chains, the challenges facing private seed companies, and how new studies could help understand their capacities and needs.

Seed storage warehouse at seed company Bidasem in Celaya, Guanajato state, México. (Photo: X. Fonseca/CIMMYT)
Seed storage warehouse at seed company Bidasem in Celaya, Guanajato state, México. (Photo: X. Fonseca/CIMMYT)

How does research on markets and value chains contribute to CIMMYT’s mission?

We’re interested in the people, businesses and organizations that influence improved maize and wheat seed adoption, production, and the availability and quality of maize and wheat-based foods. This focus perfectly complements the efforts of those in CIMMYT and elsewhere working to improve seed quality and increase maize and wheat productivity in the developing world.

We are also interested in the nutrition and diets of urban and rural consumers. Much of the work around improved diets has centered on understanding fruit and vegetable consumption and options to stimulate greater consumption of these foods. While there are good reasons to include those food groups, the reality is that those aren’t the segments of the food market that are immediately available to or able to feed the masses. Processed maize and wheat, however, are rapidly growing in popularity in both rural and urban areas because that’s what people want and need to eat first. So the question becomes, how can governments, NGOs and others promote the consumption of healthier processed wheat and maize products in places where incomes are growing and tastes are changing?

This year, CIMMYT started a new area of research in collaboration with A4NH, looking at the availability of processed maize and wheat products in Mexico City — one of the world’s largest cities. We’re working in collaboration with researchers form the National Institute of Public Health to find out what types of wheat- and maize-based products the food industry is selling, to whom, and at what cost. At the end of the day, we want to better understand the variation in access to healthier wheat- and maize-based foods across differences in purchasing power. Part of that involves looking at what processed products are available in different neighborhoods and thinking about the dietary implications of that.

Your team has also recently started looking at formal seed systems in various locations. What direction is the research taking so far?

Our team’s current priority is to advance learning around the private sector’s role in scaling improved maize varieties. We are engaged with three large projects: MasAgro Maize in Mexico, Stress Tolerant Maize for Africa (STMA) and the Nepal Seed and Fertilizer Project (NSFP). We are looking to shed light on the productive and marketing capacities of the privately owned seed producing businesses and their ability to get more seed to more farmers at a lower cost. This implies a better understanding of options to better link seed demand and supply, and the business models that link seed companies with agro-dealers, seed producing farmers, and seed consumers.

We are also looking at the role of agro-dealers — shops that sell agricultural inputs and services (including seed) to farmers — in scaling improved maize seed.

At the end of the day, we want to provide evidence-based recommendations for future interventions in seed sectors that achieve even more impact with fewer resources.

Farmers purchase seed from an agro-dealer in Machakos, Kenya. (Photo: Market Matters Inc.)
Farmers purchase seed from an agro-dealer in Machakos, Kenya. (Photo: Market Matters Inc.)

This research is still in its initial stages, but do you already have an idea of what some of the key limiting factors are?

I think one of the main challenges facing small-scale seed producing businesses is the considerable expense entailed in simultaneously building their productive capacities and their market share. Many businesses simply don’t have a lot of capital. There’s also a lack of access to specialized business support.

In Mexico, for example, a lot of people in the industry are actually ex-breeders from government agencies, so they’re very familiar with the seed production process, but less so with options for building viable businesses and growing markets for new varieties of seed.

This is a critical issue if we expect locally owned seed businesses to be the primary vehicle by which improved seeds are delivered to farmers at scale. We’re currently in the assessment phase, examining what the challenges and capacities are, and hopefully this information will feed into new approaches to designing our interventions.

Is the study being replicated in other regions as well?

Yes, in East Africa, under the Stress Tolerant Maize for Africa (STMA) project. We’re working with seed producing businesses and agro-dealers in Ethiopia, Kenya, Tanzania, and Uganda to understand their strategies, capacities, and needs in terms of providing improved seed to more farmers. We’re using the same basic research design in Mexico, and there is also ongoing work in the Nepal Seed and Fertilizer Project. Given that we are a fairly small team within CIMMYT, comparable cross-regional research is one way to punch above our weight.

Why is this research timely or important?

The research is critical as CIMMYT’s impact relies, in part, on partnerships. In the case of improved maize seed, that revolves around viable seed businesses.

Although critical, no one else is actually engaged in this type of seed sector research. There have been a number of studies on seed production, seed systems and the adoption of improved seed by poor farmers. A few have focused on the emergence of the private sector in formal seed systems and the implications for seed systems development, but most have been pretty broad, examining the overall business environment in which these companies operate but not much beyond that. We’re trying to deepen the discussion. While we don’t expect to have all the answers at the end of this study, we hope we can shift the conversation about options for better support to seed companies and agro-dealers.

Jason Donovan joined CIMMYT in 2017 and leads CIMMYT’s research team on markets and value chains, based in Mexico. He has some 15 years of experience working and living in Latin America. Prior to joining CIMMYT he worked at the Peru office of the World Agroforestry Center (ICRAF), where his research focused on business development, rural livelihoods, gender equity and certification. He has a PhD in development economics from the University of London’s School of Oriental and African Studies (SOAS).

Comparing apples with apples: Farm economic analysis in Kathmandu

KATHMANDU, Nepal (CIMMYT) — Clear and consistent communication is important in any work, and no less so when you are collaborating to improve farmer livelihoods. CIMMYT and partners in South Asia are therefore facilitating Farm Economic Analysis workshops to ensure that stakeholders from a variety of professions are on the same page when it comes to the terminology of agricultural economics. Fay Rola-Rubzen and Roy Murray-Prior from the University of Western Australia presented the first full day workshop at the National Agricultural Research Council (NARC) campus in Kathmandu on November 1, 2018. Deepak Bhandari and Yuga Nath Ghimire of NARC officiated the event. More than thirty participants from CIMMYT, the Department of Agriculture and NARC attended the training, which included agronomists, agricultural economists, extension officers and research associates.

The workshop series is part of CIMMYT’s Sustainable and Resilient Farming Systems Intensification (SRFSI) project, which aims to reduce poverty in the Eastern Gangetic Plains of Nepal, India and Bangladesh by making smallholder agriculture more productive, profitable and sustainable while safeguarding the environment and involving women.

Murray-Prior and Rola-Rubzen pose for a group photo with SRFSI training participants in Kathmandu, Nepal.
Murray-Prior and Rola-Rubzen pose for a group photo with SRFSI training participants in Kathmandu, Nepal.

“The main objective [of the workshops] is to make sure we have the same language and understanding of what we are measuring,” said Rola-Rubzen. “When we go to the field, usually, it may not be the economists gathering the data. It is critical for both economists and non-economists to understand what we are talking about so that we are comparing apples with apples, not apples with oranges.”

Rola-Rubzen and Murray-Prior facilitated a highly specific and tailored training, including engaging the participants in the practical analysis of data collected by SRFSI in the Sunsari district in the eastern Terai of Nepal. Topics covered in the training included gross margin, net revenue and sensitivity analyses, as well as matching analyses to data types.

The workshop was well-received by participants, and will also be conducted in India and Bangladesh to ensure further consistency in communication and to facilitate the cross-country analysis and comparison of data “When we work with economists, it will be easier to understand how they are analyzing their data and making their arguments,” said Sofina Maharjan, assistant research associate for the SRFSI project.

The Sustainable and Resilient Farming Systems Intensification project is funded by the Australian Centre for International Agricultural Research.

The feminizing face of wheat farming in South Asia

In wheat systems throughout South Asia, the gender myth that “wheat is a man’s crop” is still pervasive. To debunk this myth, the International Maize and Wheat Improvement Center (CIMMYT) is combatting stereotypical norms of women in agriculture through GENNOVATE, a project carried out by 11 CGIAR Research Programs. Led by CIMMYT, this global comparative research initiative strives to address the questions of how gender norms influence men, women and youth to adopt innovative practices and technologies in agriculture and natural resource management.

Surprisingly, there was little knowledge and little literature on the intersection of wheat farming and gender before 2013. What was peculiar about the narrative of women wheat farmers in South Asia was that they were described — by rural advisory services, research organizations and even farmers themselves — as if they had never set foot in a field. On the ground, however, the local reality has long been different. Women, typically from particular castes and income groups, are involved in field operations.

South Asia is experiencing a rise in innovative undertakings by women in agriculture. This change, fueled by strong male outmigration in some locations, has been promoted by equality narratives created through social and women’s movements, NGOs and education. They have all contributed to strengthen women’s desire to have a voice in decision-making. “The face of agriculture in South Asia, particularly wheat farming, is feminizing,” says Cathy Rozel Farnworth. She is a social inclusion, gender and agriculture expert working with CIMMYT’s Gender Research Unit to analyze interactions between changing gender norms and agricultural innovation.

This shift was one of the findings in a series of comparative studies conducted through GENNOVATE in three research hotspots in South Asia: Bangladesh, India and Nepal. Farnworth and co-authors from the region, CIMMYT and Glasgow Caledonian University analyzed the similarities and distinctions in each country.

In the village of Nalma, Lamjung District, Nepal, most of the adult male population has gone abroad for work, leaving only children, women and the elderly. (Photo: Mokhamad Edliadi/CIFOR)
In the village of Nalma, Lamjung District, Nepal, most of the adult male population has gone abroad for work. (Photo: Mokhamad Edliadi/CIFOR)

Shifting rules

In Nepal, women are traditionally seen as destitute and far from equals in the farming community. However, migration of men to urban areas and to other countries has given way to more opportunities in agriculture for women in rural communities. “This translates to a fundamental change in the social structure of communities and the roles of men and women, due to the absence of men,” says Farnworth. Women in the community are increasingly taking on the challenging managerial roles that men once occupied. While women in Nepal support themselves and their families, they rarely have institutional support from rural advisory services, for example, training on new wheat technologies. On occasion, support comes from individual male extension workers, and women report that NGOs have been critical to building their sense of empowerment and entitlement. Learning networks between women farmers are also important. Overall, the gender myth that “wheat is a man’s crop” is shifting in Nepal, but extension services, researchers, the private sector and others need to catch up quickly with this new reality to help provide women with adequate support.

Wheat is also increasingly becoming a women’s crop in India, despite limited institutional support and neglect. In some locations, women are responding to male outmigration not only by increasing their work in the field, but also taking key decisions, for example on hiring labor and machinery. Some women are also driving machinery themselves. In other locations, women, though not involved in fieldwork, are trying to strengthen their participation in decision-making around wheat technologies. They have an understandable interest in what happens on the farm and in how investments will impact family income. Overall, the GENNOVATE data shows that, “Women are limited by, working with and increasingly renegotiating gender and caste identities,” says Farnworth.

In Bangladesh, a women-only agricultural organization dominated by the Santal indigenous community is strongly innovating in wheat. Interestingly, the organization is drawing in and supporting low-income Muslim women innovators as well. This case study is particularly valuable in relation to achieving Sustainable Development Goals because it shows that even though Santal women are truly “left behind” in Bangladesh, very small institutional modifications have enabled them to take charge of the organization and inspire a whole community.

Taking decisions and innovating

Women use a mini-tiller for direct seeding in Ramghat, Surkhet, Nepal. (Photo: P. Lowe/CIMMYT)
Women use a mini-tiller for direct seeding in Ramghat, Surkhet, Nepal. (Photo: P. Lowe/CIMMYT)

The driving force surrounding these cases in South Asia is the gender equality narrative. The narrative is not driven by men or external partners; rather, it is being transformed by women from within. Women have been long working in the fields; they have always been part of the wheat story. Now many women are demonstrably taking more decisions about wheat, giving them more control over their own lives and households.

GENNOVATE researchers are now looking for ways to work with women themselves, with their partners, with rural advisory sectors, the private sector, community leaders and others to address the demand for technological advances to improve their wheat harvest, including machinery. The starting point is that women need to be seen as capable farmers. Partners need to get on board and start working the new realities of “who does what,” “who decides” and “who benefits,” rather than continue subscribing to old myths. Rural women farmers have critical interests in wheat, whether they farm in the field or not. Women want and are seeking inclusion. Women are collectively expressing, “We have the right to be interested, and participate in innovating around wheat,” Farnworth states.

The comparative studies are available for download:

CHALLENGING GENDER MYTHS: Promoting inclusive wheat and maize research for development in Nepal

LEAVING NO ONE BEHIND: Supporting women, poor people, and indigenous people in wheat-maize innovations in Bangladesh

STRENGTHENING WOMEN IN WHEAT FARMING IN INDIA: Old challenges, new realities, new opportunities

Cathy Rozel Farnworth is a social inclusion, gender and agriculture expert. She holds a PhD in Rural Development Studies from the Swedish University of Agricultural Sciences and an MA in Gender Analysis. Farnworth collaborates with CIMMYT on the CGIAR GENNOVATE global research project, among others. Farnworth trained and mentored the Ethiopian GENNOVATE research teams and has also supported CIMMYT’s gender research under the CGIAR research program on Climate Change, Agriculture and Food Security (CCAFS).

CIMMYT projects working to enhance business agility of South Asian seed companies

Participants of the international training. Photo: S.Thapa/CIMMYT-Nepal
Participants of the international training. Photo: S.Thapa/CIMMYT-Nepal

Improved seed with proper management practices is an important agricultural input which can boost crop productivity by more than 50 percent. This gain is necessary to achieve food security and alleviate poverty in many developing countries. However, it can be challenging for farmers to find high-quality seeds as availability, affordability and accessibility remain hurdles to improved seed distribution.  In Nepal, the majority of rural farmers use farm-saved seeds of inferior quality leading to low productivity and subsistence livelihood.

The seed industry in Nepal, as in most developing countries, is still emerging and largely untapped. Lack of availability of start-up working capital, business incentives in the sector, new technologies and required technical expertise limit the current seed value chain.

To address this, the Nepal Seed and Fertilizer (NSAF) project is engaging Nepalese seed companies in a business mentoring process to enhance their ability to test and deploy new products, develop business and marketing plans and sustain a viable, competitive seed business, particularly in hybrid seeds.

The NSAF project, in collaboration with the Nepal Agricultural Research Council (NARC) & the Seed Entrepreneurs Association of Nepal (SEAN) organized an “International Training Workshop on Seed Business Management” for senior-level seed company managers and business owners representing 15 private seed companies from Nepal and Pakistan. Held from April 23 to 25 in Kathmandu, the training aimed to develop market-oriented seed businesses that emphasize hybrid seed. The training focused on increasing the technical, financial and market management capacities of senior managers and conveying the requirements of a competitive seed business using case studies from Africa and Asia.

Navin Hada, AID project development specialist at the United States Agency for International Development (USAID)-Nepal highlighted the timeliness of the training and congratulated the NSAF team for bringing south Asian seed companies and international experts together for experience sharing and collaborations.

“SEAN has more than 2000 registered members in Nepal and business-oriented training like this help our members to enhance their efficiency,” said Laxmi Kant Dhakal, chairman of SEAN and president of the Unique Seed Co Plc.

Suma Karki from Seed Quality Control Center (SQCC) of Nepal receiving certification of participation Photo: E. Kohkar/CIMMYT-Pakistan.
Suma Karki from Seed Quality Control Center (SQCC) of Nepal receiving certification of participation Photo: E. Kohkar/CIMMYT-Pakistan.

The training was facilitated by John MacRobert, a consultant for business mentoring of Nepalese seed companies and former principal seed system specialist for CIMMYT with the support of the NSAF team. The training workshop included lectures, discussions and customized exercises to develop business plans; marketing, production and financial strategies; seed quality control; and research and development plans.

During the reflection session to close the training, Dyutiman Choudhary, NSAF project coordinator, appreciated the professional interaction and experience sharing among Nepalese and Pakistani seed companies and acknowledged the role of MacRobert in bringing diverse experiences from Africa and other regions.

At the closing ceremony, Yubak Dhoj G.C, secretary, Ministry of Agriculture, Land Management and Co-operative, emphasized the importance of hybrid seed self-sufficiency for Government of Nepal initiatives for attaining food security and alleviating poverty.

The Nepal Seed and Fertilizer project is funded by the United States Agency for International Development (USAID) and is a flagship project in Nepal. NSAF aims to build a competitive and synergistic seed and fertilizer systems for inclusive and sustainable growth in agricultural productivity, business development, and income generation in Nepal. The International Maize and Wheat Improvement Center (CIMMYT)-led, USAID-funded, Agricultural Innovation Program (AIP) for Pakistan supported the participation of Pakistani seed companies to the training. 

Overcoming gender gaps in rural mechanization

A new publication suggests strategies to improve rural women's access to agricultural machinery. Photo: CIMMYT/ Martin Ranak
A new publication suggests strategies to improve rural women’s access to agricultural machinery. Photo: CIMMYT/ Martin Ranak

A new research note published for International Women’s Day, details current gender gaps in rural mechanization in Bangladesh, and outlines plans to overcome these challenges.

Using simple technologies, such as multi-crop reaper-harvesters can reduce the time farmers spend harvesting by up to 80 percent and can reduce the costs of hiring field labor by up to 60 percent. The problem is that women may face cultural constraints to working in the field, running machinery service provision businesses, and do not have equal access to financing, which is a huge barrier, as the technologies can cost $500-2000 up front.

The authors suggest a number of gender-balanced approaches to scaling-out technologies such as use of targeted, selective and smart subsidies and access to finance to women-headed households, methods to spread investment risks, and prioritizing joint learning, with husbands and wives attending field courses together and jointly developing business plans.

View the new research note here.

The research note is a result of joint efforts between the USAID/Washington and Bill and Melinda Gates Foundation supported Cereal Systems Initiative for South Asia (CSISA), the USAID/Bangladesh CSISA – Mechanization and Irrigation Project, and the the USAID/Washington funded USAID funded Gender, Climate Change, and Nutrition Integration Initiative (GCAN) project, all of which involve collaborations between the International Maize and Wheat Improvement Center, the International Food Policy Research Institute, International Development Enterprises, the International Rice Research Institute and the CGIAR Research Program on Climate Change, Agriculture and Food Security.

USAID’s Feed the Future Nepal Seed and Fertilizer Project supports NGLRP to foster lentil productivity and profitability

Nepal’s National Grain Legumes Research Program (NGLRP), in collaboration with USAID’s Feed the Future Nepal Seed and Fertilizer Project, led by The International Maize and Wheat Improvement Center (CIMMYT), began a two-day workshop to foster lentil productivity and profitability Tuesday. Engaging both public and private stakeholders involved in lentil research and development activities, the workshop will examine the intricate challenges and tap into potential opportunities for lentil interventions and innovations in Nepal. During the workshop, a newly formed lentil working committee will define a strategic roadmap which will be used to strengthen the lentil market system.

Speaking at the workshop, NGLRP national coordinator Rajendra Darai remarked, “there is high demand for the product globally, but we need to enhance competitiveness and reinforce the lentil value chain.” A lentil seed producer and farmer from Kapilvastu added that “improved variety of seeds, combined with best management practices and technology, will be the key to achieving higher yields.”

Lentils have emerged as an important agricultural export commodity for Nepal. The country is the second largest lentil producer in South Asia and the fifth in the world. However,  there is a huge yield gap of almost a ton per hectare between the national average and the achievable yield.

The major constraint to boosting output at the farm level is the limited availability of improved varieties and low quality of seeds and fertilizers. Farmers and lentil seed producers are also impacted by weak market linkages, limited access to new technologies and lack of access to finance. Low-profit margin and price fluctuation of lentil seed hinders companies from selling improved seeds in the market. Meanwhile, export growth is constrained by the lack of proper linkages with international buyers, compatible policies and quality standards.

To enhance Nepal’s lentil productivity and profitability, NGLRP is collaborating with the CGIAR Centers to develop improved varieties and production technologies to better suit different ecological regions. USAID’s Feed the Future Nepal Seed and Fertilizer Project, implemented by CIMMYT, supports the NGLRP by building linkages with private seed companies to develop new varieties of seeds best suited for Nepal’s geography.

CIMMYT’s AbduRahman Beshir, the seed system lead for USAID’s Feed the Future Nepal Seed and Fertilizer Project, said, “we are working with partners to enhance the lentil value chain in Nepal and to ensure that farmers have access to improved farming inputs and technologies. This will result in increased lentil productivity and reel in more earnings for the farmers and the suppliers.”

USAID’s Nepal Seed and Fertilizer Project is made possible thanks to the generous support of the American people through the United States Agency for International Development (USAID).

For further inquiries, please contact: AbduRahman Beshir, Seed System Lead – CIMMYT a.issa@cgiar.org

Local businesses boost farmer access to quality seed in Nepal

NSAF field research technician showing a demonstration variety of maize to farmers in Kailali, Nepal. Photo: D. Joshi/CIMMYT
NSAF field research technician showing a demonstration variety of maize to farmers in Kailali, Nepal. Photo: D. Joshi/CIMMYT

KHATMANDHU, Nepal (CIMMYT) — In Nepal, nearly 20 local seed companies are involved in producing and marketing seed, contributing to about 50 percent of the country’s formal seed supply system.

Maximizing crop yields requires quality seed production and the development of new varieties locally. Adopting improved quality seed alone has shown to increase crop production up to 30 percent.

However, seed production practices are currently not standardized in Nepal and seeds of inconsistent quality are produced by various sources. To ensure farmers adopt new varieties, the Nepal Seed and Fertilizer project (NSAF) is working with seed companies to build their capacity for both seed production and distribution by providing technical guidance and resources to strengthen local seed production, seed producers’ network and market linkages by adopting new technology and business approaches.

NSAF also helps seed companies hold seed production demonstrations for newly released crop varieties to test, analyze and promote the best agronomic practices for achieving high yield. As a result, several farmers have shown interest in adopting improved practices in seed production.

A NSAF seed partner company was recently presented an award from Nepal’s Ministry of Agricultural Development and the Food and Agriculture Organization of the United Nations for World Food Day 2017. Global Agri-Tech Nepal Private Limited (GATE Nepal), the awardee, was recognized for their excellent contribution in seed production and distribution network for seed supply.

“Over the span of seven years, the company’s yearly portfolio of seed trading has increased from 40 tons to 800 tons by 2017,” said Tikaram Rijal, Managing Director of GATE Nepal.

GATE Nepal has been engaged in the production, processing and marketing of government-registered high quality improved cereal, legume, oil and vegetable seeds. NSAF is supporting the company by training and providing newly released seed varieties to growers, which have resulted in 20 percent production growth by participating farmers.

Learn more about the Nepal Seed and Fertilizer project (NSAF) through this infographic and fact sheet from the U.S. government’s Feed the Future initiative.

How smarter financing can boost Nepal’s seed sector

Support from Nepal’s banking sector has the potential to benefit seed companies across the country. Photo: P. Lowe/CIMMYT
Support from Nepal’s banking sector has the potential to benefit seed companies across the country. Photo: P. Lowe/CIMMYT

KATHMANDU, Nepal (CIMMYT) – Nepal’s push to grow its seed sector is expanding to banking, with new financial measures expected to benefit seed companies across the country.

Nepal launched its National Seed Vision 2013-2025 to improve food security by increasing its domestic production of high quality seeds, and make them available and affordable to farmers. The seed replacement rate, or the percentage of area using certified quality seeds rather than the farm saved seed, is set to increase up to 30 percent for cereal crops and over 90 percent for vegetables.

However, there is a lack of financing from formal sources across agricultural value chains, which led the country to mandate that banks allocate 10 percent of their lending – around NPR 1.3 billion ($12.7 million) – to agriculture in 2017.

A value chain is the full set of activities businesses go through to bring a product or service from conception to delivery, in agriculture, this could involve everything from the development of plant genetic material to selling the final crop at market.

Value chain finance refers to financial products and services that flow to or through any point in a value chain that enables investments that increase actors’ returns, as well as the growth and competitiveness of the chain. This could dramatically improve Nepal’s seed sector by giving farmers, seed companies and banks access to more resources to grow.

In fact, if banks financed just 30 percent of seed company working capital, it would give an extra $2 million to invest in research and development activities, such as variety development, quality improvement, maintenance breeding and other vital functions that are currently not carried out by Nepali seed companies. These funds could also be invested in infrastructure development such as storage and seed processing facilities.

Participants concluded at a recent consultative meeting on financing seed business in Nepal that soft loans – loans that have lenient terms like low interest rates or extended grace periods – to seed companies that charge a government-mandated 5 percent interest rate are an ideal way to provide this extra working capital. The commercial banks offering these loans would benefit by reaching more farmers, thereby expanding their customer base and would reach the government-mandated agricultural financing target.

The Nepal Seed and Fertilizer (NSAF) project provided a platform to banks and seed companies to share information and identify business opportunities to support NSAF’s seed system development approach during the meeting. Nearly 40 participants from national banks, seed companies and other governmental and non-governmental organizations participated.

Dyutiman Choudhary, NSAF coordinator, shared the overall seed system development approach of NSAF and the role of finance in seed business. An overview of successful cases and models of bank-seed company partnerships adopted in Asia and Africa was also given.

Banks requested additional information about risks in the seed business and sought guidance to assess and reduce risks associated to their loans. It was agreed that value chain finance through three-party agreements between banks, farmers and seed companies could be a viable approach that could be initiated immediately.

“Through this sort of agreement, seed companies guarantee they will purchase seeds from farmers,” said the Seed Entrepreneurs Association of Nepal Chair. “This guarantees a market for seed, minimizing the risk of market failure for banks.”

Four national banks so far have shown interest in partnering with the NSAF seed companies to finance seed production with soft loans. A proposed working group comprised of banks, seed companies and the Government of Nepal will provide strategic direction to finance seed business. NSAF will lead the working group to guide strategic decisions on financing seed business by sharing evidence based information, providing a common platform and catalyzing innovations to ease access to finance by seed companies.

The Nepal Seed and Fertilizer project (NSAF) is funded by the United States Agency for International Development and led by the International Maize and Wheat Improvement Center in collaboration with Nepal’s Ministry of Agricultural Development and private sector. Learn more about NSAF through this infographic and fact sheet from the U.S. government’s Feed the Future initiative.

New USAID seed and fertilizer initiative launched in Nepal

Farmer Kausila Chanara direct dry seeding rice in Ramghat, Surkhet, Nepal. Photo: P.Lowe/CIMMYT
Farmer Kausila Chanara direct dry seeding rice in Ramghat, Surkhet, Nepal. Photo: P.Lowe/CIMMYT

KATHMANDU, Nepal (CIMMYT) — Nepal will benefit from a new project that will strengthen the country’s seed and fertilizer sectors, boost farmer income and increase the country’s food security through 2021.

More than 70 percent of Nepal’s population works in agriculture, yet a profound lack of resources, infrastructure and networks have weakened rural economies, increased urban and international migration and strained the ability of families to avoid malnutrition. Two out of every three Nepalese suffer from food insecurity at some time during the year and the prevalence of stunting is nearly 40 percent.

“With right seeds, resources and practices Nepalese farmers could produce 50 percent more food on their land, enough to not only eliminate domestic food insecurity but even become a food surplus country,” said Dyutiman Choudhary, coordinator and market development specialist for the five-year Nepal Seed and Fertilizer project (NSAF).

Research has shown the better application of fertilizer and planting improved hybrid seeds are the two most impactful steps Nepalese maize farmers can take to boost income and grain yields in their fields. Adopting just these two practices can increase grain yields 1.8 and 1.4 tons per hectare, respectively.

Launched on August 1, NSAF will build competitive and vibrant seed and fertilizer systems that significantly expand seed production, marketing and distribution by enhancing the capacity and role of public, private and community sectors in seed and fertilizer value chains. It is funded by the United States Agency for International Development (USAID) and led by the International Maize and Wheat Improvement Center (CIMMYT) in collaboration with the Ministry of Agricultural Development (MOAD) and private sector.

During an event for the project’s launch in Kathmandu, Choudhary presented an overview of the project’s overarching strategy and key approaches being implemented to increase adoption of quality seed and integrated soil fertility management technologies for more than 100,000 smallholder farmers in 25 of Nepal’s 75 districts.

MOAD Secretary and Program Chair Suroj Pokharel and Deputy Chief of Mission to the United States Embassy in Nepal Michael C. Gonzales also acknowledged the contribution of robust agriculture projects that support the Government of Nepal’s Agriculture Development Strategy through the promotion of innovations in digital technology and market research development to improve farming practices. Other event invitees included government representatives, the U.S Embassy, USAID, partner organizations, local media, project beneficiaries and other private stakeholders.

Learn more about the Nepal Seed and Fertilizer project (NSAF) through this infographic and fact sheet from the U.S. government’s Feed the Future initiative.

Project to boost Nepal’s seed sector meets to discuss a way forward

KATHMANDU, Nepal (CIMMYT) – Members of the Nepal Seed and Fertilizer project (NSAF) met representatives from eleven seed companies at a recent meeting held in Kathmandu, Nepal. Representatives at the meeting discussed progress, challenges, lessons and implementation activities for 2016-17 and developed a work plan for 2107-18.

The discussion added to the Nepal Seed Vision 2013-2025 – a holistic, long-term vision for the country’s seed sector development – which calls for the local development of 40 hybrid vegetable, maize and rice seeds. The plan also encourages the development of products by the private sector and set a target to develop and promote an additional 20 hybrids by the end of 2025.

Nepal’s seed sector is dominated by an informal seed system where farmers produce, retain and exchange their own seeds for subsequent seasons planting. The formal seed system covers about 10 percent of seed transactions, and the country currently imports nearly all its hybrid maize and vegetable seed to meet the increasing demand for high-yielding crop varieties.

The NSAF, led by the International Maize and Wheat Improvement Center (CIMMYT) and funded by the United States Agency for International Development, will provide public and private seed companies with parental lines of hybrid maize and other crops that are uniquely adapted to Nepal’s environment. The project also assists local seed companies to have strong R&D as well as facilitates business and market opportunities.

Dyutiman Choudhary, NSAF project coordinator, highlighted the important role of the private sector in developing and disseminating NSAF products and services to farmers and other end users during the meeting.  Yagya Prasad Giri , director for crop and horticulture research at the Nepal Agricultural Research Council (NARC), emphasized the importance of collaboration between public and private partners to bridge the demand and supply gap in quality seed production and marketing.

“Enhancing the capacity of local seed institutions is critical in order for the country to achieve its 2025 seed vision,” said Giri while opening the meeting.

Various departments of NARC also discussed progress under NSAF. In addition, CIMMYT and other NSAF representatives travelled to various districts in Nepal to evaluate project activities with various stakeholders.

The Nepal Seed and Fertilizer project (NSAF) is a five year flagship project under the U.S. government’s Feed the Future initiative. NSAF aims to increase agricultural productivity and household income by helping farmers access improved seeds together with best management practices.  

Participants of NSAF seed company partners annual review and planning meeting, Kathmandu. Photo: K.Ram/CIMMYT-SARO
Participants of NSAF seed company partners annual review and planning meeting, Kathmandu. Photo: K.Ram/CIMMYT

Researchers set new climate services strategy in Bangladesh

CSRD workshop participants. Photo: M. Asaduzzaman/CIMMYT
CSRD workshop participants. Photo: M. Asaduzzaman/CIMMYT

DHAKA, Bangladesh (CIMMYT) – Scientists from across South and Southeast Asia launched a new agenda earlier this week to boost community involvement in developing climate information and extension messaging services across the region.

“Key to climate services is emphasis on the service,” said Timothy Krupnik, a systems agronomist at the International Maize and Wheat Improvement Center (CIMMYT) and South Asia project leader for Climate Services for Resilient Development (CSRD).

Researchers know how the region’s farmers will be affected by climate change thanks to the development of climate models and other analyses, but there still is a lack of a strong support system that allows farmers to practically use this information.

“We must be able to rapidly extend information to farmers and others who require climate information to inform their decision making, and to assure that research outputs are translated in an easy to understand way that communicates to farmers, extension workers and policy makers,” said Krupnik. “Equally important is feedback from farmers on the quality of climate services so they can be adapted and improved over time.”

The researchers, who gathered in Dhaka, Bangladesh for a three-day workshop from September 17-19, 2017, evaluated how climate and agricultural extension advisories are currently produced and conveyed, and identified opportunities on how to improve these services for farming communities across Bangladesh, India, Indonesia, Myanmar, Nepal, Philippines, Sri Lanka and Vietnam.

“CSRD’s activities are relevant to the U.S. government’s commitment to building resilience of smallholder farmers and to ensure increased production, as well bolster country resilience,” said David Westerling, acting economic growth office director and Feed the Future team leader for the United States Agency for International Development’s mission in Bangladesh. “That is why we are behind this effort.”

During the workshop, delegates assessed different ways to incorporate seasonal climate forecasts into farmer decision making, using several African countries as examples.  For example, participants learned how to simply but effectively depict probabilistic forecasts in graphs to farmers during a group work discussion.

There were also experience sharing sessions on information and communication technology (ICT) in agricultural climate services. Giriraj Amarnath, researcher at the International Water Management Institute, Ishwor Malla, service director for ICT at Agri Private Limited and Md. Nadirruzzaman, assistant professor at the Independent University, Bangladesh indicated that ICT can be a cost-effective approach to transfer information to farmers who can, in turn, improve crop productivity using climate information shared their observation and experiences.

While ICT can serve as an important tool, participants emphasized the need for more face-to-face extension and interaction with farming communities to build trust in forecasts that would otherwise not be fully understood by downloading a mobile application or receiving an SMS message.

An analysis to identify strengths, weaknesses, opportunities and threats for climate services in each country and across countries was completed to examine how participants can collaborate in south-south exchanges to support ongoing work in agricultural climate services.

On the last day of the workshop, climate index-based agricultural insurance was also discussed, after which participants proposed new institutional arrangements to improve agricultural climate information flow to farmers in each of their countries.

Elisabeth Simelton, climate change scientist at the World Agroforestry Centre in Vietnam and project manager at the Consortium Research Program on Climate Change, Agriculture, and Food Security (CCAFS), said the workshop provided an interesting platform where scientists and climate service providers from different countries were able to meet and exchange their experiences and ideas through interactive formats, so that everybody can take something new and useful back to their respective countries.

The Climate Services for Resilient Development (CSRD) is a global partnership that connects climate science, data streams, decision support tools, and training to decision-makers in developing countries.The workshop was sponsored by the United States Agency for International Development on behalf of CSRD and is collaboratively organized by CIMMYT and CSRD through the SERVIR Support Team. This work was also implemented as part of the CGIAR Research Program on CCAFS. Read more about the workshop, participants and sponsors here. 

At this year’s UN Climate Talks, CIMMYT is highlighting innovations in wheat and maize that can help farmers overcome climate change. Follow @CIMMYT on Twitter and Facebook for the latest updates.

Wheat forum builds partnerships for sustainable intensification in Nepal

KATHMANDU, Nepal (CIMMYT) — The Government of Nepal recently endorsed a new twenty-year agriculture development strategy that charts a progressive course of action to revitalize agriculture as an engine for economic growth and domestic food security.

At the center of this strategy is the recently launched the Prime Minister Agriculture Modernization Project (PMAMP). The project will be implemented over the next decade and has research and development mandates for productivity enhancement and commercialization of major cereals, fisheries, fruits and vegetables.

PMAMP emphasizes wheat production as a priority, especially in the Terai – a very productive agricultural area – in order to achieve national self-sufficiency in wheat production within the next three years. Meeting this extremely ambitious goal will require an unprecedented increase in average yields of 10 percent per year, and a high level of strategic coordination among organizations contributing to agricultural development in Nepal.

The PMAMP leadership has requested that the International Maize and Wheat Improvement Center (CIMMYT) through its Cereal Systems Initiative for South Asia (CSISA) act as a technical advisor and strategic partner to design and implement programs for staple crop production, including mechanization and seed systems.

On July 26-27 in Kathmandu, PMAMP and CSISA organized the first working group forum for wheat to begin to unite and coordinate efforts of 21 core public and private stakeholders working on extension, research and sector development.

Discussion at the forum emphasized the identification of proven best practices for sustainable intensification, consideration of scaling pathways for knowledge and technological innovations, knowledge gaps and areas for future research and joint work plan development for the 2017-2018 wheat season.

A four-member committee representing PMAMP, the Nepal Agricultural Research Council (NARC), CSISA and the private sector has been created to guide implementation of the collaborative work plan for wheat intensification across Nepal.

Rajan Dhakal, senior agriculture officer at PMAMP, remarked that the forum was instrumental in identifying technical priorities and clarifying how the efforts of diverse partners can contribute to the food security goals of the Government of Nepal.

Y.P. Giri, chair and director of crops and horticulture at NARC, said he appreciated CSISA’s efforts to facilitate discussion and coordination across a diverse set of stakeholders through a common and action-oriented platform.

Drawing on the success of the wheat forum, PMAMP will convene meetings for maize and rice with support from NARC, CSISA and private sector partners this fall.

CIMMYT launched the Cereal Systems Initiative for South Asia (CSISA) in 2009 to promote durable change at scale in South Asia’s cereal-based cropping systems. CIMMYT operates rural “innovation hubs” in Bangladesh, India and Nepal to increase the adoption of various resource-conserving and climate-resilient technologies, and to improve farmer access to market information and enterprise development. Learn more about CSISA’s impact here.

CIMMYT’s wheat working group will serve as a strategic partner and provide technical advice for Nepal’s Prime Minister Agriculture Modernization Project. Photo: CSISA Nepal
CIMMYT’s wheat working group will serve as a strategic partner and provide technical advice for Nepal’s Prime Minister Agriculture Modernization Project. Photo: CSISA Nepal

Entrepreneurship increases youth employment in Nepal

Dahit Traders founder Chullu Ram Chaudhary at his workshop in Bardiya district, Nepal. Photo: CIMMYT/CSISA/A.Khadka
Dahit Traders founder Chullu Ram Chaudhary at his workshop in Bardiya district, Nepal. Photo: CIMMYT/CSISA/A.Khadka

KATHMANDU, Nepal (CIMMYT) – In 2015 Chullu Ram Chaudhary started Dahit Traders, which sells small-scale agricultural machinery in the Bardiya district of mid-western Nepal.

Dahit provides year-round employment to 20 local youths as mechanics and machine operators, and hires an additional 35 mechanics during rice and wheat planting and harvesting seasons. Chaudhary was motivated to found his company in 2014 while attending a machinery training organized by the Cereal Systems Initiative for South Asia (CSISA).

Chaudhary began by focusing on two-wheel tractors and has since expanded his business to several nearby towns, now also providing machine repair services to surrounding districts. His core business has broadened to include a variety of attachments for power tillers, including seed drills, reapers and threshers, all of which are relevant and useful for small-scale farmers of Bardiya and surrounding districts.

Each expansion allows him to provide employment for local youth by creating sales, mechanic and support staff jobs, which has the added benefit of slowing migration from Nepal’s key agricultural production areas. About 1,500 Nepalese youth migrate for foreign employment daily due a lack of employment opportunity and capital constraints in their own communities, a phenomena that directly contributes to agricultural yield loss in Nepal, according to the Food and Agriculture Organization of the United Nations.

This absence of farm labor along with a lack of agricultural knowledge, irrigation and mechanization along with the inability to invest in new technology due to lack of capital also limits Nepal’s yield potential, despite having fertile soil and access to year-round farming. Many plots in Nepal are also very small, due to the traditional inheritance practice of splitting land between sons, further limiting production. Cereal and pulse yields are well below regional averages and present rates of increase won’t meet the long-term requirements.

Success for entrepreneurs like Chaudhary allows farming households to access innovative, scale-appropriate technology, increase employment for youth and boost cropping system productivity, all of which are needed to sufficiently and sustainably increase food production for future generations. In addition to providing training on machinery, CSISA linked Chaudhary with SKT Traders – a national-level importer of small-scale machinery – and provided technical support to Dahit Trader’s mechanics on machinery operation, repair and maintenance.

To increase awareness of scale-appropriate machinery, CSISA and Dahit Traders conducted joint demonstrations of equipment in farmers’ fields in order to help farmers see the potential for these machines to reduce drudgery, increase efficiency and enable them to establish micro enterprises based on custom-hired services.

The Cereal Systems Initiative for South Asia project is led by the International Maize and Wheat Improvement Center with partners the International Rice Research Institute and the International Food Policy Research Institute and funded by the U.S. Agency for International Development and the Bill & Melinda Gates Foundation.

Sales boost seed sector growth in Nepal

Sweeping "Aditya," an improved wheat variety, into the floor duct of a seed cleaning machine at Unique Seed Co. Pvt. Ltd near Dhangadhi, Kailali, Nepal. Photo: P. Lowe/CIMMYT
Sweeping “Aditya,” an improved wheat variety, into the floor duct of a seed cleaning machine at Unique Seed Co. Pvt. Ltd near Dhangadhi, Kailali, Nepal. Photo: P. Lowe/CIMMYT

KATHMANDU, Nepal (CIMMYT) – Four Nepalese seed companies are showing signs of significant growth, with seed sales increasing nearly 60 percent since 2014.

About 70 percent of Nepal’s population is employed in the agriculture and forestry sector, accounting for 34 percent of the country’s gross national product. While farmers still face many challenges in accessing new technology, market opportunities and other inputs, Nepal’s seed industry is beginning to grow thanks to new investments in seed company operations and facilities. There are currently 20 locally registered seed companies that provide about 50 % of the nation’s formal seed supply system.

The four  companies – New Shreeram, Lumbini Seed Company, GATE Nepal Pvt. Ltd. and Unique – are part of a group of 10 Nepalese companies that have worked with the International Maize and Wheat Improvement Center (CIMMYT) through the Cereal Systems Initiative for South Asia (CSISA) since 2014 to improve their marketing and sales strategies, business development, product range and quality.

This growth is notable in Nepal’s emerging cereal seed industry, which is composed primarily of small- to medium-scale enterprises that often lack business plans, have relatively low operating capital and have limited processing and storage facilities. These companies produce open-pollinated crop varieties, which are then released and registered by Nepal’s National Seed Board.

Half of the companies working with CIMMYT have so far been able to secure financial resources of up to $200,000 each from Nepal’s Ministry of Agricultural Development.

“These additional funds have allowed the seed companies to expand their facilities to include seed storage buildings, processing plants and laboratories,” said Upadhaya. “They have also included newly released iron- and zinc-rich varieties in their product lines.”

Some companies have also introduced innovative incentives for their producers by bearing the transportation costs of seed from the farmers’ fields to the company stores as a way to boost sales, according to Upadhaya.

The Seed Entrepreneurs’ Association of Nepal (SEAN) – the seed companies’ umbrella organization – has increased its membership from 600 in 2014 to 1,000 in 2016, formed three regional chapters and contributed a unified voice to discussions around agricultural policies of interest to the seed industry, said Laxmi Kanta Dhakal, SEAN Chairman.

Tons of seed sold from 2014 to 2016.
Tons of seed sold from 2014 to 2016.

As a result of these new technologies and investments, seed sold by these companies increased significantly and reached marginal areas of the country through new development networks and private sector traders.

New contractual agreements have since been signed between seed companies, informal groups and cooperatives for the production of seed. As outlined in Nepal’s Agricultural Development Strategy (2015-2025), these initiatives will help promote inclusive growth and an effective seed sector in Nepal.

CIMMYT launched the CSISA in 2009 to promote durable change at scale in South Asia’s cereal-based cropping systems. CIMMYT operates rural “innovation hubs” in Bangladesh, India and Nepal to increase the adoption of various resource-conserving and climate-resilient technologies, and to improve farmer access to market information and enterprise development. Learn more about CSISA’s impact here.

Breaking Ground: David Guerena transfers world-class science to smallholder farmers

TwitterBG_DavidGuerenaBreaking Ground is a regular series featuring staff at CIMMYT

EL BATAN, Mexico (CIMMYT) – David Guerena is fascinated by what he learns from smallholder farmers about the interactions between agriculture and the environment.

He recently joined the International Maize and Wheat Improvement Center (CIMMYT), where, as soil scientist-systems agronomist, he leads the soils/nutrient management activities for the Nepal Seed and Fertilizer Project, funded by the U.S. Agency for International Development’s (USAID) Feed the Future Program.

Guerena’s work involves the strategic planning and execution of multidisciplinary spatial agronomy programs across complex ecologies. In addition to strict biophysical work, which involves integrating chemistry, biology, and physics into agricultural systems, he also engages in socio-economic and market facilitation dynamics research.

“Humanity has been eking out a cultivated living from the earth for around 10,000 years,” Guerena said. “Smallholder farmers are the direct link to this collective knowledge, which has shaped and defined human history. I really enjoy witnessing farmers reap satisfying harvests from their own efforts, but via outputs from agronomic systems research of which I have been a part.”

“Agriculture is intensely satisfying. A seed, fertile soil, water and sunshine eventually turn into food. This is such a simple process, yet millions of people around the world don’t get enough to eat. I draw inspiration from being a part of positively changing this dynamic.”

Originally from Santa Barbara, California, Guerena has always been fascinated by the natural sciences and international travel. He decided to pursue a career in international agriculture by obtaining his Ph.D. from Cornell University, specializing in crop and soil science. Prior to joining CIMMYT, he worked as a soil scientist and agriculture innovations manager at One Acre Fund, served as an international research fellow with the World Agroforestry Center and a Borlaug Fellow in international food security.

CIMMYT provided a unique opportunity for Guerena to work on global food systems. “Together, maize and wheat make up a significant proportion of the global food supply – maize and wheat research is a globally important mandate,” he said. “CIMMYT has also left an indelible mark on human history through facilitating the Green Revolution.”

Currently, Guerena is working on spatial agronomy programs, focusing on questions such as how to move from blanketed to site-specific agronomic recommendations across complex agro-ecologies in the developing world. Guerena will also investigate how digital technologies like SMS, smartphones, image recognition, and remote sensing data can be used and integrated into agronomy programming for smallholder farmers living in poverty.

Precision agronomy, a farming management concept based on observing, measuring, and responding to inter- and intra-field variability in crops, is already transforming agricultural efficiency in the developed world, but these advancements have not yet reached the developing world.

This is of the utmost importance, as worldwide, the vast majority of farmers are smallholders producing most of the global food supply. CIMMYT is not only looking at ways to put its top-level science into the hands of farmers, but also at ways to use these technologies to turn farmers themselves into world-class agronomists. This approach may be a way to bypass cumbersome agricultural knowledge generation and dissemination systems and reach farmers directly, at scale.

The project receives support from the United States Agency for International Development (USAID).