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Tag: agrodealers

Buying into new seed

Mary Nzau enters a mock agrodealer shop set up on a field on the outskirts of Tala town in Machakos County, Kenya. On display are nine 2kg bags of hybrid maize seed. She picks one. By the look of it, her mind is made up. After a quick scan of the shelf, she has in her hand the variety that she has been purchasing for years.

Regina Mbaika Mutua is less lucky. The variety she always buys is not on display in the mock shop. As part of the experiment, the research team has removed from the shelf the variety she indicated she usually buys. The team’s goal is to observe what factors influence her seed purchase decision in the absence of the variety she was expecting to purchase.

“Although I did not find the variety I was looking for, I picked an alternative as I have seen it perform well on a neighboring farm,” Mutua says, adding that she will plant it this season alongside recycled (farm-saved) seed on her one-acre farm.

Michael Mutua passes up the popular variety he has been planting for the previous two years. He picks one that has been advertised extensively on local radio. “I have heard about it severally on radio. I would like to experiment with this new seed and see how it performs on my farm. Should I like the results, I will give it a chance in ensuing seasons,” he says.

Pieter Rutsaert explains the study setup at a mock agrodealer shop. (Photo: Joshua Masinde/CIMMYT)
Pieter Rutsaert explains the study setup at a mock agrodealer shop. (Photo: Joshua Masinde/CIMMYT)

The big adoption conundrum

The goal of the out-of-stock study is to improve an understanding of how farmers make their maize seed choices, says Pieter Rutsaert, Markets and Value Chain Specialist at the International Maize and Wheat Improvement Center (CIMMYT).

“We do this by inviting farmers to a mock agrodealer store that we set up in their villages and give them a small budget to purchase a bag of seed. However, not all farmers walk into the same store: some will find their preferred variety, others won’t. Some will have access to additional trait information or see some varieties with price promotions while others don’t.”

Rutsaert acknowledges that breeding programs and their partner seed companies have done a great job at giving farmers access to maize hybrids with priority traits such as drought tolerance and high yield. CIMMYT then works closely with local seed companies to get varieties into the hands of farmers. “We want to extend that support by providing insights to companies and public breeding programs on how to get new varieties more quickly into the hands of farmers,” he says.

Pauline Muindi (left), gender research associate with CIMMYT, acts as a mock agrodealer clerk and attends a farmer. (Photo: CIMMYT)
Pauline Muindi (left), gender research associate with CIMMYT, acts as a mock agrodealer clerk and attends a farmer. (Photo: CIMMYT)

The hybrid maize seed sector in Kenya is highly competitive. Amid intensifying competition, new varieties face a daunting task breaking into the market, independent of their quality. While farmers now have more options to pick from, a major challenge has been how to get them to adopt new varieties.

“Moving farmers from something they know to something they don’t is not easy. They tend to stick with what they know and have been growing for years,” Rutsaert says.

Pauline Muindi, gender research associate with CIMMYT, acted as the stand-in clerk at the mock store. She noticed that farmers tend to spend very little time in the shop when their preferred variety is available. However, this all changes in the out-of-stock situation, pushing farmers to step out of their comfort zone and explore new options.

The first step to overcoming this challenge is to entice maize farmers to try a new seed variety, even just once, Rutsaert observes. If it is a good variety, farmers will see that and then the market will work in its favor: farmers will come back to that variety in subsequent years and tell others about it.

“The good news is that many of the varieties we are currently seeing on the market have performed well — that’s why they’re popular. But there are newer varieties that are even better, especially in terms of attributes like drought tolerance. We would like to understand how farmers can be convinced to try out these newer varieties. Is it about the need for more awareness on varietal traits? Can we use price promotions? Or are there other factors?” he says.

A researcher interviews Mary Nzau (right), a farmer from Tala town in Machakos County, after her mock purchase. (Photo: Joshua Masinde/CIMMYT)
A researcher interviews Mary Nzau (right), a farmer from Tala town in Machakos County, after her mock purchase. (Photo: Joshua Masinde/CIMMYT)

Does seed price matter?

“With today’s climate uncertainty, it is better to stick to a variety that is adapted to such climate rather than banking on a variety one is oblivious of. The risk is not worth it,” Nzau says. She adds that she would rather buy a higher-priced seed packet she knows and trusts than a lower-priced one that she has not used in the past. Radio promotions of new or other varieties have limited sway over her decision to make the switch.

Faith Voni, another farmer, agrees. “It is better to purchase a higher-priced variety whose quality I can vouch for than risk purchasing a lower-priced one that I know little about. I do not wish to take such a risk.” Voni says she would also be more inclined to experiment with another variety that she had seen perform well on a neighbor’s farm.

Michael Mutua holds a different view. “If there is an option of an equally good but new variety that is lower-priced than the variety I prefer, my wallet decides,” he says.

Vivian Hoffmann, an economist at the International Food Policy Research Institute (IFPRI) and collaborator on the study, says price can be key for convincing consumers to try a new product. “Our previous research on maize flour choice found that a provisional 10 percent discount boosted sales tremendously,” Hoffmann says. “Of course, that only gets your foot in the door; after that, a new variety will need to win farmers over based on its merits.”

Hoffmann is interested in the extent to which drawing farmers’ attention to key varietal attributes influences their seed choice. “This information is generally already available on seed packets, but we live in a world of information overload. Promoting certain attributes through in-store signage is an approach that is widely used to help consumers make more healthier food choices. Doing the same for new seed varieties makes a lot of sense.”

Michael Mutua (left) responds to preliminary questions from one of the research team members before proceeding to make his seed selection at the mock agrodealer shop. (Photo: Joshua Masinde/CIMMYT)
Michael Mutua (left) responds to preliminary questions from one of the research team members before proceeding to make his seed selection at the mock agrodealer shop. (Photo: Joshua Masinde/CIMMYT)

The value of drought tolerance

Situated on Kenya’s eastern region, Machakos is characterized by persistent water stress. Climate change induced erratic rainfall has pushed traits that can tolerate the unfavorable weather conditions in the favorite’s corner. While other traits such as high yield and disease resistance are equally important, the seed, when planted, must first withstand the effects of droughts or water stress in some seasons and germinate. This is the most crucial step in the long journey to either a decent, bare minimum or no yield. A lot of farmers still plant recycled seed alongside hybrid varieties. But these are no match to water stress conditions, which decimate fields planted with farmer-saved seed.

“If a variety is not climate resilient, I will likely not harvest anything at all,” says Nzau. She has planted a drought-tolerant variety for ten years now. Prior to that, she had planted about three other varieties as well as recycled seed. “The only advantage with recycled seed is that given the right amount of rainfall, they mature fast — typically within two months. This provides my family with an opportunity to eat boiled or roast maize,” she notes.

However, varieties need to do more than just survive harsh weather conditions. Breeders face a daunting task of incorporating as many traits as possible to cater to the overarching and the specific interests of multiple farmers. As Murenga Mwimali, a maize breeder at the Kenya Agricultural and Livestock Research Organization (KALRO) and collaborator in this research says, innovations in breeding technologies are making breeding more efficient.

“It is better to have a diversity of product profiles as different market niches are captured within a particular agroecological zones. This is such that farmers may not just benefit from the minimum traits like drought tolerance, but also more specific traits they are looking for,” Mwimali says.

Smallholder farmers continue to play a central role in the seed development process. Capturing what happens at the point of purchase, for instance, at the agrodealer, and understanding how they purchase seed offers valuable insights on the traits that are deemed essential in the breeding process. This work contributes to CIMMYT’s focus on fast-tracking varietal turnover by turning the levers towards a demand-driven seed system.

Cover photo: Pauline Muindi, gender research associate with CIMMYT, at the mock agrodealer shop where she acted as a clerk. (Photo: CIMMYT)

Out with the old, in with the new

A shop attendant displays drought-tolerant maize seed at the Dryland Seed Company shop in Machakos, Kenya. (Photo: Florence Sipalla/CIMMYT)
A shop attendant displays drought-tolerant maize seed at the Dryland Seed Company shop in Machakos, Kenya. (Photo: Florence Sipalla/CIMMYT)

For several decades, the International Maize and Wheat Improvement Center (CIMMYT) has worked with partners and farmers to improve maize and wheat varieties. Packed with “upgrades” such as tolerance to environmental stresses, tolerance to diseases and pests, boosted nutrient content, higher yield potential and storage capabilities, and improved efficiency in using water and fertilizers, these seeds are rolled out by CIMMYT and its partners to create new opportunities for easier and better lives for farmers.

Together with national research partners, farmers, local governments and seed companies, CIMMYT’s work in seed systems has reaped results. Its experts are eager to put this experience into further action as CGIAR embarks on the next ten years of its journey to transform food, land, and water systems in a climate crisis. And rightly so: investments in CGIAR research — mainly through their contributions to enhancing yields of staple food crops — have returned ten-fold benefits and payoffs for poor people in terms of greater food abundance, lower prices of food, reduced food insecurity and poverty and reduced geographical footprint of agriculture. A large part of this impact is the result of CIMMYT’s day to day efforts to create a better world.

A Bangladeshi woman cuts up feed for her family's livestock. They did not previously have animals, but were able to buy them after her husband, Gopal Mohanta, attended a farmer training from CIMMYT and its partners, which gave him access to better seed, technologies, and practices. Mohanta planted a wider range of crops, and in 2005 he planted maize for the first time, using improved seed based on CIMMYT materials. (Photo: S. Mojumder/Drik/CIMMYT)
A Bangladeshi woman cuts up feed for her family’s livestock. They did not previously have animals, but were able to buy them after her husband, Gopal Mohanta, attended a farmer training from CIMMYT and its partners, which gave him access to better seed, technologies, and practices. Mohanta planted a wider range of crops, and in 2005 he planted maize for the first time, using improved seed based on CIMMYT materials. (Photo: S. Mojumder/Drik/CIMMYT)

Replacing old varieties, not as easy as it sounds

Slow variety turnover — that of more than ten years — makes farmers vulnerable to risks such as climate change and emerging biotic threats. On the other hand, planting improved varieties that match farmers’ needs and the geography they work in, can increase productivity gains and improve the nutritional status of smallholders and their families. This, in turn, contributes to increased household incomes. Indirectly, the benefits can reach the surrounding community by providing increased employment opportunities, wage increases and affordable access to food.

Despite its tremendous benefits, varietal turnover is no small feat.

When it comes to seeds, detailed multi-disciplinary research is behind every new variety and its deployment to farmers. Just as the production of a new snack, beverage or a car requires an in-depth study of what the customer wants, seed systems also must be demand-driven.

Socioeconomists have to work hand-in-hand with breeders and seed system specialists to understand the drivers and bottlenecks for improved varietal adoption, market needs, and gender and social inclusion in seed delivery. Bottlenecks include the lack of access by farmers — especially for resource-poor, socially-excluded ones — to reliable information about the advantages of new varieties. Even if farmers are aware of new varieties, seeds might not be available for sale where they live or they might be too expensive.

Possibly the most complex reason for slow variety turnover is risk vulnerability: some farmers simply can’t afford to take the risk of investing in something that might be good but could also disappoint. At the same time, seed companies also perceive a certain risk: they might not be interested in taking on an improved variety that trumps the seeds from older but more popular varieties they have on stock. For them, building and marketing a new brand of seeds requires significant investments.

Agricultural seed on sale by a vendor near Islamabad, Pakistan. For improved crop varieties to reach farmers, they usually must first reach local vendors like these, who form an essential link in the chain between researchers, seed producers and farmers. (Photo: M. DeFreese/CIMMYT)
Agricultural seed on sale by a vendor near Islamabad, Pakistan. For improved crop varieties to reach farmers, they usually must first reach local vendors like these, who form an essential link in the chain between researchers, seed producers and farmers. (Photo: M. DeFreese/CIMMYT)

New approaches are yielding results

Despite the complexity of the challenge, CIMMYT has been making progress, especially in Africa where slow variety turnover is creating roadblocks for increased food security and poverty alleviation.

Recent analysis of the weighted average age of CIMMYT-related improved maize varieties in 8 countries across eastern and southern Africa reveals that the overall weighted average age has decreased from 14.6 years in 2013 to 10.2 years in 2020. The remarkable progress in accelerating the rate of variety turnover and deploying the improved genetics — with climate resilience, nutritional-enhancement and grain yield — are benefiting more than eight million smallholders in Africa.

In Ethiopia, CIMMYT, EIAR and ICARDA’s work led to the adoption of improved rust-resistant varieties, corresponding productivity gains and economic benefits that, besides the urgent need to fight against the damaging rust epidemic, depended on a combination of enabling factors: pre-release seed multiplication, pro-active policies and rust awareness campaigns. The estimated income gain that farmers enjoyed due to adopting post-2010 varieties in 2016/2017 reached $48 million. For the country itself, the adoption of these varieties could save $65 million that otherwise would be spent on wheat imports.

Bill Gates echoes this in Chapter 9 of his new climate book, How to Avoid a Climate Disaster, as he describes CIMMYT and IITA’s drought-tolerant maize work: “[…] experts at CGIAR developed dozens of new maize varieties that could withstand drought conditions, each adapted to grow in specific regions of Africa. At first, many smallholder farmers were afraid to try new crop varieties. Understandably so. If you’re eking out a living, you won’t be eager to take a risk on seeds you’ve never planted before, because if they die, you have nothing to fall back on. But as experts worked with local farmers and seed dealers to explain the benefits of these new varieties, more and more people adopted them.”

Bidasem director general María Ester Rivas (center) stands for a photo with her seed processing team. Bidasem is a small seed company based in the city of Celaya in the central Mexican plains region known as the Bajío. Despite their small size, Bidasem and similar companies play an important role in reaching small farmers with improved seed that offers them better livelihoods. (Photo: X. Fonseca/CIMMYT)
Bidasem director general María Ester Rivas (center) stands for a photo with her seed processing team. Bidasem is a small seed company based in the city of Celaya in the central Mexican plains region known as the Bajío. Despite their small size, Bidasem and similar companies play an important role in reaching small farmers with improved seed that offers them better livelihoods. (Photo: X. Fonseca/CIMMYT)

Holistic action needed if we are to reach farmers with genetic innovations

Now more than ever, with increased frequency and intensification of erratic weather events on top of the complications of the COVID-19 pandemic, successful seed systems require the right investments, partnerships, efforts across disciplines, and enabling policies.

Varietal release and dissemination systems rely greatly on appropriate government policies and adoption of progressive seed laws and regulations. CGIAR’s commitment to farmers and the success of national seed systems is described in the recently launched 10-year strategy: “CGIAR will support effective seed systems by helping national governments and private sector companies and regulators build their capacities to play their roles successfully. New initiatives will be jointly designed along the seed distribution chain, including for regional seed registration, import and export procedures, efficient in-country trialing, registration and release of new varieties, and seed quality promotion through fit-for-purpose certification.”

In line with CGIAR’s ambitious goals, to provide farmers with a better service, small- and medium-size seed companies need to also be strengthened to become more market-oriented and dynamic. According to SPIA, helping local private seed dealers learn about new technology increases farm-level adoption by over 50% compared to the more commonly used approach, where public sector agricultural extension agents provide information about new seed to selected contact farmers.

CIMMYT socioeconomics and market experts are putting this in practice through working with agrodealers to develop retail strategies, such as targeted marketing materials, provision of in-store seed decision support and price incentives, to help both female and male farmers get the inputs that work best.

Within the new CGIAR, CIMMYT scientists will continue to work with partners to strongly improve the performance of wheat and maize in smallholder farmers’ fields. Concerted efforts from all actors conforming the entire seed system are essential to achieve our vision: to transform food systems for affordable, sufficient and healthy diets produced within planetary boundaries. Wheat and maize seed systems will form the basis to fulfill that vision and provide a tried and tested roadmap for other crops, including legumes, vegetables and fruits. Together, we can keep a finger on the pulse of farmers’ needs and build healthy diets for a better tomorrow from the ground up.

Breaking Ground: Dyutiman Choudhary builds strong agribusinesses for sustainable economic growth

Agricultural market systems play a pivotal role in food security, livelihood development and economic growth. However, the agricultural sector in Nepal is constrained by a lack of spatially-explicit technologies and practices related to improved seed and fertilizer. Embracing these challenges, Dyutiman Choudhary, a scientist in market development with the International Maize and Wheat Improvement Center (CIMMYT), works to strengthen the seed and fertilizer market systems and value chains, with the ultimate goal to ensure demand-driven, inclusive and market-oriented cereal production.

Nepal’s agricultural sector is dominated by smallholder farmers. As farming is mostly semi-commercial and subsistence in nature, many smallholder farmers are isolated from markets and lack knowledge about the latest farming technologies and inputs. They are unable to upgrade their farms to increase productivity for generating marketable surplus to make profitable income. Agribusiness entities in Nepal — such as seed companies, agrodealers and importers — face market development challenges and lack the commercial and business orientation to develop and deliver new technologies to farmers. Output market linkages are weak and loosely integrated, leading to poor coordination, weak information flow and lower return to actors.

This is where Choudhary’s expertise in agribusiness management fits in to make a difference.

Born and raised in Shillong, a hill station in northeastern India with a distinctive charm, he was enrolled as an engineering student. However, his interest took a sudden turn when he got drawn towards biological sciences and ultimately decided to leave the engineering course by stepping into agribusiness management. “I realized I was walking in the right direction as I was fascinated to learn about the livelihood benefits of agroforestry and the scope of agribusiness in fostering overall economic growth.”

He joined CIMMYT in 2017 as an expert in market development, but his roles and responsibilities transitioned to working as a Lead for the Nepal Seed and Fertilizer (NSAF) project within four months of his appointment. His role involves leading an interdisciplinary team of scientists, partners and experts to develop a synergistic market system. The NSAF team fosters public private partnerships, improves access to support services and strengthens inclusive value chains in a supportive policy environment.

Choudhary’s research focuses on assessing crops, seed and fertilizer value chains; developing commercial and inclusive upgrading strategies with businesses and stakeholders; assessing competitiveness of seed companies; lobbying for policies to foster the growth of seed and fertilizer business; and building pathways for public and private sector services to market actors and smallholder farmers.

Dyutiman Choudhary (seventh from left) with seed producers during a field visit. (Photo: Dipak Kafle)
Dyutiman Choudhary (seventh from left) with seed producers during a field visit. (Photo: Dipak Kafle)

A roadmap to innovative market systems

Choudhary introduced the vision of a market system approach and put together a strategic roadmap in collaboration with a team from CIMMYT researchers from the Global Maize program, the Sustainable Intensification program and the Socioeconomics program. The roadmap addressed the concerns of low crop productivity, poor private sector growth and a less supportive policy environment inhibiting agricultural innovations in Nepal.

“Seed and fertilizer market systems in Nepal are uncompetitive and lack influx of new knowledge and innovations that restricts agriculture growth,” Choudhary explained.

Having prior experience as a regional lead for high-value products and value chains for South Asia and an inclusive market-oriented development expert in Eastern and Southern Africa, Choudhary carries unique capabilities for putting together a winning team and working with diverse partners to bring about a change in farming practices and build a strong agribusiness sector in Nepal.

Under his leadership, Nepalese seed companies are implementing innovative and competitive marketing approaches to develop newly acquired hybrid varieties under their brands. The companies are upgrading to build business models that cater to the growth of seed business, meet market demands and offer innovative services to smallholder farmers to build a sustainable national market. Facilitating financing opportunities has enabled these enterprises to produce strategic business plans to leverage $2 million to finance seed business. Improved value chain coordination mechanisms are increasing demand of seed company’s products and enhancing smallholder farmers’ access to output markets.

There is a renewed interest and confidence beaming from the private sector to invest in fertilizer business due to improved knowledge, communication and collaborative methods. The government committed to support balanced soil fertility management and allocated $2.4 million in 2019 to initiate fertilizer blending in Nepal.

The landscape is changing, and policy makers are considering new ideas to strengthen the delivery of targets under the Government of Nepal’s National Seed Vision 2013-2025 and the Agriculture Development Strategy 2015-2035.

Dyutiman Choudhary (left) welcomes the Feed the Future team leader to the CIMMYT office in Nepal. (Photo: Bandana Pradhan/CIMMYT)
Dyutiman Choudhary (left) welcomes the Feed the Future team leader to the CIMMYT office in Nepal. (Photo: Bandana Pradhan/CIMMYT)
Dyutiman Choudhary shows a demonstration plot during a field visit with USAID and project partners in Nepal. (Photo: Darbin Joshi)
Dyutiman Choudhary shows a demonstration plot during a field visit with USAID and project partners in Nepal. (Photo: Darbin Joshi)
Dyutiman Choudhary (left) receives a token of appreciation at an International Seed Conference organized in Nepal. (Photo: Bandana Pradhan/CIMMYT)
Dyutiman Choudhary (left) receives a token of appreciation at an International Seed Conference organized in Nepal. (Photo: Bandana Pradhan/CIMMYT)

Competitiveness fosters productivity

The results of Choudhary’s work have the potential to transform Nepalese agriculture by unleashing new investments, changes in policies and practices, and innovative business management practices. “Despite a huge change in my TOR and the challenges to deliver impactful outcomes, I was able to successfully steer the project to produce exciting results that made the donor to declare it as their flagship project in Nepal,” he explained. “At the end of the day, reflecting upon the work achieved with my team and the stakeholders in co-creating solutions for complex issues brings me immense satisfaction.”

An amiable individual, he feels close to natural science and loves interacting with farmers. “I’ve always enjoyed traveling to biodiversity-rich locations, to understand local cultures and livelihood practices, so as to gauge the drivers of innovation and adaptation to change among diverse rural populations.”

“Keeping up the momentum, I want to continue to support growth in agribusiness management in less favorable regions, helping stakeholders in the farm-to-fork continuum to leverage the potential of innovations in research, development and delivery.”

Do smallholders get the right seed and inputs from their agrodealer?

Judith Thomson, agrodealer in Mbalizi, Mbeya district, Tanzania. (Photo: Owekisha Kwigizile)
Judith Thomson, agrodealer in Mbalizi, Mbeya district, Tanzania. (Photo: Owekisha Kwigizile)

Many Tanzanian smallholder farmers fail to produce even 1 ton of maize grain per hectare. To improve crop yields, a farmer needs the right seeds and complementary inputs, including inorganic fertilizer. The “right” inputs will depend upon what his or her geographical location and farming system are. How many farmers have access to such inputs and advice? What is the distribution of agrodealers in rural areas? What do they stock, and at what prices?

The International Maize and Wheat Improvement Center (CIMMYT) recently carried out a survey of agrodealers in Uganda and Tanzania to answer such questions related to the last-mile delivery of seeds and other agronomic inputs.

This is a joint initiative from two projects — Taking Maize Agronomy to Scale in Africa (TAMASA) and Strengthening product profile-based maize breeding and varietal turnover in Eastern and Southern Africa — funded by the Bill & Melinda Gates Foundation and USAID.

For the study, CIMMYT teams interviewed 233 agrodealers in Uganda and 299 agrodealers in Tanzania. The survey started in September 2019, just before the main maize planting season, and covered five districts in each country, in both easy-to-reach and remote areas.

The study focuses particularly on two types of agricultural inputs: maize seeds — similar to an earlier survey done this year in Kenya — and fertilizer.

Are agrodealers catalyzers of varietal turnover?

For maize seed, researchers looked at which varieties are available at the agrodealer and how do they decide on what to stock.

Agrodealers were also asked to report the key selling attribute of the different varieties they had in store whether it was yield, drought tolerance, maturity level or another marketing characteristic like pricing or packaging. Such information will give some better insights for CIMMYT’s maize breeding team about perceived differences along the seed value chain on key attributes and product profiles.

For example, a new variety in Uganda that was tolerant to maize lethal necrosis (MLN), was mainly promoted as a double cobber and not as MLN tolerant. And unlike in Uganda, there was no “cheap variety” option available in Tanzania, according to the agrodealers interviewed for the study, although high seed prices were often mentioned as the main barrier for seed purchases.

Better understanding how retailers select their varieties could help improve varietal turnover, a key indicator of how fast CIMMYT’s research reaches out farmers.

Besides their own role, it is also interesting to see how agrodealers perceive external challenges to influence farmer adoption of improved varieties. In Uganda, agrodealers saw counterfeit seed and government free seed distributions to farmers as the main challenges for their business, issues that were not frequently mentioned in Tanzania.

Understanding input market characteristics

Enumerator Mary Mdache (left) interviews Shangwe Stephano, staff of BAYDA agrovet shop in Haydom town, Mbulu district, Tanzania. (Photo: Furaha Joseph)
Enumerator Mary Mdache (left) interviews Shangwe Stephano, staff of BAYDA agrovet shop in Haydom town, Mbulu district, Tanzania. (Photo: Furaha Joseph)

The use of fertilizer is very low in sub-Saharan Africa, around 8-12 kg per hectare, twenty times less than Western standards. Fertilizer access and affordability have been cited as key factors in the low rates of uptake.

The study may shed some new light on this, as it looks at what types of fertilizer is available to farmers at agrodealer shops, and what drives sale and prices. Researchers will examine whether there is a competition effect and how transport costs or subsidies impede the growth of the fertilizer market.

Georeferencing of interviewed agrodealers and farmer population mapping will help reveal the degree to which agrodealers are concentrated in particular areas, leaving other areas with relatively little local access to inputs. Project researchers will investigate how marketing conditions vary across such situation, examining, for instance, how input pricing strategies, selection and quality varies spatially. The team will also use data collected on fertilizer prices to further refine regional fertilizer profitability maps.

Such mapping exercises could help improve the relevance of extension advice. As an example, to tackle acid soils or phosphorus deficiency, could farmers find the recommended input, lime or appropriate P fertilizer at the right time and right price, so that it is profitable for them?

The detailed results of the study are expected in early 2020 to guide agronomic investments and policies for more functional input markets that drive a much-needed sustainable intensification of African smallholder agriculture.

Breaking Ground: Pieter Rutsaert looks to better marketing for faster adoption of climate-smart maize in Africa

Ever wondered why farmers prefer a certain maize variety over another? What crop traits different farmers value? How they make their seed selections at the market? Pieter Rutsaert, an expert in markets and value chains with the International Maize and Wheat Improvement Center (CIMMYT), analyzes the important factors that African farmers consider when purchasing maize varieties at agro-dealers and the implications for how the seed industry can better meet farmers’ needs.

Maize is the most important cereal crop in Africa, grown on over 29 million hectares of rainfed farmland and consumed daily by around 50% of the population. However, increasingly erratic weather patterns threaten the performance the maize varieties grown, putting household food security at risk.

“African smallholders typically plant maize seeds they are familiar with, but these varieties often lack the attributes to tolerate harsher weather including droughts, extreme heat or disease stress,” Rutsaert explains.

“Despite the existence of maize varieties bred to stand up to harsher weather, their intrinsic attributes alone are not enough to convince farmers to leave their preferred varieties. These stress-tolerant varieties need to be properly marketed to be competitive and increase their market share.”

With previous experience as a marketing consultant in the food industry, Rutsaert brings unique skills and approaches to CIMMYT’s Stress Tolerant Maize for Africa (STMA) project, to help businesses develop new seed distribution and marketing strategies to get climate-resilient varieties into farmers’ fields.

Pieter Rutsaert (right) discusses a research study questionnaire with consultant enumerator Victor Kitoto. (Photo: Jerome Bossuet/CIMMYT)
Pieter Rutsaert (right) discusses a research study questionnaire with consultant enumerator Victor Kitoto. (Photo: Jerome Bossuet/CIMMYT)

Market intelligence on climate-smart seed

Rutsaert sees local agro-dealers as a strategic entry point for researchers to gather information on the varying farmer interests and conditions as information about seed demand is revealed at the point of purchase.

Despite large investments to support seed systems in sub-Saharan Africa, including investments to upgrade agro-dealer capacity, there is limited evidence into how women and men take decisions on maize seed purchases to support development initiatives.

“The agro-dealer space is where farmers decide what inputs to buy. In addition to providing farmers access to inputs at competitive prices, front-line agro-dealers offer technical assistance, such as advice on input use and production practices, and short-term credit for input purchases.”

Thus, agro-dealers offer the chance to learn about farmers’ unique conditions and ensure they adopt the right variety. Gathering these insights has the potential to support locally owned small and medium enterprises that produce stress-tolerant varieties, suited for local conditions, says the marketing expert.

An agent from a seed company (right) promotes sales at an agro-dealer shop. (Photo: Pieter Rutsaert/CIMMYT)
An agent from a seed company (right) promotes sales at an agro-dealer shop. (Photo: Pieter Rutsaert/CIMMYT)

Marketing strategies for agro-dealers

Compared to multinational seed companies, local seed businesses are expected to show greater willingness to seek out traditionally underserved segments of the seed market, such as poorer farmers or those located in less-favored production regions. However, local seed producers and retailers generally lack marketing capabilities and have a limited understanding of the costs and benefits of different approaches to market their seed, Rutsaert says.

“Without effective marketing strategies responding to the needs of different clients, farmers will stick to the seeds that they know, even when this might not be the best for their situation,” he continues.

Based on the market information gathered, Rutsaert works with agro-dealers to develop retail strategies, such as targeted marketing materials, provision of in-store seed decision support, and price incentives, to help women and men farmers get the inputs that work best.

Rutsaert says he is committed to use his private sector experience to improve CIMMYT’s understanding of the seed sector and build the capacity of local agro-dealers to distribute climate-resilient maize varieties throughout the African region.

The Stress Tolerant Maize for Africa (STMA) project seeks to develop maize cultivars with tolerance and resistance to multiple stresses for farmers, and support local seed companies to produce seed of these cultivars on a large scale. STMA aims to develop a new generation of over 70 improved stress tolerant maize varieties, and facilitate the production and use of over 54,000 metric tons of certified seed. The STMA project is funded by the Bill & Melinda Gates Foundation and USAID.

Solving the “last mile” challenge of maize seeds

Philomena Muthoni Mwangi stands at the entrance of her agrodealer shop, Farm Care, in the village of Ngarariga. (Photo: Jerome Bossuet/CIMMYT)
Philomena Muthoni Mwangi stands at the entrance of her agrodealer shop, Farm Care, in the village of Ngarariga. (Photo: Jerome Bossuet/CIMMYT)

Agrodealers play a pivotal role in delivering the gains of the green revolution to millions of smallholders in Africa. Reaching even the most remote corners of the continent, they give farmers access to agricultural inputs and services.

So far, seed systems research has mainly focused on the factors influencing farmers’ adoption of or seed companies’ investment in new varieties. However, little is known about independent agrodealers, who play an important role in the “last mile” of seed systems, distributing improved maize seeds and fertilizers as well as giving agronomic advice. There is a gap of knowledge about who they are, their needs and constraints, and the ways in which they secure and develop their businesses.

Understanding how to better support agrodealers is important for the International Maize and Wheat Improvement Center (CIMMYT), to ensure that new varieties reach the largest possible number of farmers. Under the Stress Tolerant Maize for Africa (STMA) project, CIMMYT has launched a new research effort to better understand agrodealers in Kenya, with a specific focus on maize seed marketing.

Researchers are now testing the tools and expect to begin field work in March 2019, during the next maize planting season. “We want to collect detailed quantitative and qualitative data about the way agrodealers outsource and choose their maize varieties, and how they market these seeds to farmers,” explained CIMMYT associate scientist Pieter Rutsaert, who leads the study. This research will help government agencies, NGOs and funders to design better interventions related to agrodealers, for greater and more sustainable impact.

CIMMYT researchers Jason Donovan (left) and Pieter Rutsaert (right) discuss the research study questionnaire with consultant enumerator Victor Kitoto. (Photo: Jerome Bossuet/CIMMYT)
CIMMYT researchers Jason Donovan (left) and Pieter Rutsaert (right) discuss the research study questionnaire with consultant enumerator Victor Kitoto. (Photo: Jerome Bossuet/CIMMYT)

The million-shilling question

The way questions are selected and phrased, and data collected, is critical. “Figuring out how to ask the right question to the right person is a hard business, especially when we ask agrodealers to evaluate their own performance,” recognized Rutsaert. For example, it could be challenging to estimate the importance of maize seed sales if owners are hesitant to provide details about their businesses to outsiders. Anticipating the challenges of collecting reliable and comparable data, Rutsaert’s team will use visual tools, like illustrated cards, to facilitate conversations with interviewees. They will also use innovative exercises, like the shop investment game, where owners are asked how they would invest one million Kenyan shillings (about US$10,000).

Standing behind the counter of her shop, selling bags of feeding supplements for dairy cattle and small pesticide bottles on dusty shelves, Philomena Muthoni Mwangi explained she had run out of maize seeds for sale. This small agrodealer in the village of Ngarariga, in central Kenya, will restock her maize seeds from a big agrovet shop nearby at the onset of the rainy season.

This is quite common, as agrodealers do not take risks when it comes to selling new varieties. Not knowing the future demand, leftover seed stock after the planting season would severely reduce Mwangi’s potential profit, as margins per bag are low. To address this issue, CIMMYT researchers will conduct an intercept farmer survey in the coming weeks, to better understand what farmers look for when buying maize seeds.

Agrodealers are not a homogeneous group. Ranging from large one-stop shops to small shacks, their business models, seed marketing strategy and type of clients may differ a lot. This study will provide useful insights to design targeted seed scaling strategies that consider all kinds of agrodealers, moving away from a one-size-fits-all approach.

The Stress Tolerant Maize for Africa (STMA) project is funded by the Bill & Melinda Gates Foundation and the United States Agency for International Development (USAID).

The 70-year-old owner of a farm input shop in Kikuyu town, Kiambu County, answers the questions of CIMMYT researchers. (Photo: Jerome Bossuet/CIMMYT)
The 70-year-old owner of a farm input shop in Kikuyu town, Kiambu County, answers the questions of CIMMYT researchers. (Photo: Jerome Bossuet/CIMMYT)