Forage seed production as a business in smallholder systems of Zimbabwe: a value chain approach.

The study focused on developing a model for forage seed production as a business among smallholder farmers. There have been contributions to knowledge in forage seed production in Zimbabwe and this would inform future forage seed initiatives.

INTRODUCTION

Background
Problem statement
Research questions
Objectives
Research approach and methods employed
Reliability and validity of study

Reliability
Validity

Dealing with bias
Ethical considerations
Overall significance of study

Significance of objective 1

Study limitations
How the dissertation is organized

Who are the actors in the forage seed value chains and what are their roles. This is related to the fact that knowledge about aspects of forage seed production is limited.

Figure 1.1: Value chain for forage seed (Source: Adapted from Porter, 1985)

EVIDENCE FOR FORAGE SEED PRODUCTION

Introduction

The chapter also reviews literature on forage seed production as an enterprise in smallholder farming systems in Zimbabwe. The literature also discusses the inclusion of forage seeds in the market and the possibilities for farmer participation in such markets.

Farming system in Zimbabwe

It can be noted from the table that most of the commercial farms have been redistributed as Model A1 and A2 farms. Fast Track Land Reform Program – a program implemented by the Government to redistribute land for the benefit of the majority of the people in the country.

Figure 2.1: Agro-ecological zones of Zimbabwe. Source: FAO OCHA Maps, (2010)

Livestock production systems in Zimbabwe

The seed industry in Zimbabwe

Seed supply and marketing

FAO and ICRISAT (2015) also report that the volumes of feed seed for the market are too low and uneconomical for individual farmers. In East Africa, efforts are being made to promote viable and economical seed systems so that smallholder farmers can benefit from highly productive, good quality feed (Wambugu, Place and Franzel, 2011).

Why forage seed production?

Demand for forage seeds has not been matched with production in countries through national programs (Haque, Jutzi and Neate, 1986). The involvement of smallholder farmers in forage seed production will improve livestock and crop productivity, market participation and household income through seed sales.

Pasture seed production in Zimbabwe

A seed company was interested in buying some of the fodder seed for the export market. From the study it appeared that information on fodder seed production and marketing is very limited.

Table 2.2: Average forage seed sales by NARES per season from 2014 to 2016 Forage species Seed material sold per season

Forage seed market development

Inclusive forage seed value chains

All these functions of the value chain actors can be represented in tables or in flowchart diagrams. In social network analysis, in addition to the visual presentation of the value chain relationships, there is also mathematical analysis (Scott, 2012; Poudel, Shapit and Shrestha, 2015).

Table 2.3: Main steps and guiding questions for seed value chain analysis

Actors and their roles in forage seed value chains

Although the steps are clearly described, some steps occur faster or sooner than others depending on the type of seed and who is involved in the value chain. It is important to understand governance, organization and coordination in value chains because this improves profitability across all segments of the value chain.

Value chain actors

Input suppliers
Producers
Processors
Traders and marketers
Consumers
Research and extension services (including development partners)

Furthermore, it has been observed that wholesalers operate in urban centers as they focus on bulk material (USAID, 2008), while dealers and retailers go the extra mile to be in touch with the farmers in their localities. Robust infrastructure development and support services should be in place for this to happen (Adejobi and Kassli, 2013).

Figure 2.3: Model of a household seed production and supply system - Adapted from Beyene, 2010

Gender in value chains

Inclusion of smallholders in seed value chains

Based on such strategies, models have been developed that take into account smallholder capacities, environmental conditions and potential to benefit agricultural activity. Contract farming has had varying degrees of success among smallholders for different farms, including crop seed production.

Value chain approach as an analytical tool in forage seed systems

Empirical evidence on value chain analysis of seed in smallholder systems

The study further found that by gender, it was men who had the most access to seeds. In the study, it was observed that the supply of fodder seeds was low as farmers planted small areas, thus forcing stockholders to keep small quantities of seeds for sale.

Chapter summary

METHODOLOGY

Introduction

Research Design

Qualitative research
Quantitative research
Mixed methods

Such a design helps the researcher validate quantitative data and gain further insight into the research being conducted (Figure 3.1). The method analyzes both qualitative and quantitative data from a single study that examines the similar underlying phenomenon. Mixed method was chosen for the study to better understand the research problem as the study included both positivist (objective, sample and numerical data) and post-positivist (subjective, verbal and case data) research.

Figure 3.1: Validation research design model. Source: Adapted from Creswell (2014)

Study site

Description of site
Climate and vegetation
Agricultural activities

The study also involved gathering opinions and views from sample respondents who participated in discussions and interviews, in addition to the individual responses of structured questionnaires. Most common grasses found in the area are Themeda triandra, Sporobolas pyramidalis and Hyparrhenia fillipendula. Subsistence farming is practiced on communal land in the study area and is suitable for intensive crop and livestock production.

Figure 3.3: Location of study area with concentration of household survey (Source: Author)

Data types and Sources

Secondary data for this study was obtained from the database of International Livestock Research Institute (ILRI), Central Statistics Office of Zimbabwe (CSO), Zimbabwe Ministry of Agriculture, Mechanization and Irrigation Development (MoAMID) and its affiliated departments (AGRITEX and LPD), books, journals and annual reports (such as “Second Crop and Livestock Assessment Report” from MoAMID). Secondary sources of data are inexpensive, time-saving and provide a direction for the research to follow. However, not all secondary data are relevant, which reduces the accuracy of the data in the current study.

Sampling

Sampling techniques and procedure
Sample size determination

Bryman and Bell, (2003); Singh and Masuku, (2014) define simple random sampling as each element of the population having an equal chance of being selected in the sample. In the case of this research study, each element of the sample, i.e. farmers, has an equal chance of being selected. NGOs also implemented agriculture-related projects in the study area and they had a reasonable understanding of the communities and their livelihood activities.

Table 3.1: Distribution of sample households in Goromonzi and Murewa districts District Ward Identification

Data collection

Quantitative data collection
Qualitative data collection
Logistics for fieldwork and management of data

The researcher prepared consent forms (Appendix 6) that were completed by each respondent before the interview took place, a copy of which remained with the respondent. Also the consent form assured the respondent of privacy and anonymity to the individual and that there was no harassment involved in conducting the interview. Mack, Woodsong, MacQueen, Guest and Namey (2005) mention that it is important to disclose the purpose of the study to the respondents.

Data analysis

Descriptive statistics
Inferential statistics
Profitability of forage seed using Gross Margin analysis
Sensitivity analysis
Value Chain Analysis

Forage seed production - is a dummy dependent variable assigned 1 for adopters and 0 for non-adopters in the model. Farmers' participation in a farmers' organization can have a positive influence on the adoption of forage seed technologies (Ramirez, 2013; Tolno, Kobayashi, Ichizen, Esham, & Balde, 2015). What strategies can be developed that can increase the competitiveness of forage seed production in smallholder farming systems.

Table 3.3: Factors and variables used in the model and related studies on the variables

Chapter summary

RESEARCH FINDINGS ON OBJECTIVE 1

Introduction

Characteristics of sampled household

The average age of the household head is within the economically productive age as outlined by Mandara, (1998), although transfer of agricultural knowledge and activities may be threatened in the area (Anderson, Marita and Musiime, 2016). Head of household's level of education - Of the selected households, 3.1% have never attended school, while 8.0% reached primary, secondary and higher education respectively. Membership of an organization – Sixty-three percent of households are not members of any farmer organization.

Table 4.1: Household characteristics of sample households in Goromonzi and Murewa

Farming activities

Crop production system
Livestock Production System
Gender issues and forage seed value chains

The main source of fodder seed is from NGOs, which implies that the seed is still very scarce. Major types of markets in the study area for forage seeds and associated with contract farming include seed companies and development organizations. All these words on the word tree highlight themes and words that one should consider when venturing into the production and marketing of forage seed.

Figure 4.4: Percentage (%) area cultivated different crops

Chapter summary

These discussions were quite informative and enlightening, especially considering that the aspect of forage seed business among smallholder farmers is a relatively new field. Based on focus group discussions and key informant interviews, business arrangements were identified to be suitable for forage seed value chains contract farming, farmer-owned enterprises, joint ventures, outgrower schemes and tenant farming. For individual households, those who had been involved in some form of arrangement to produce a crop for a business also highlighted the possibility of contract use for forage seed production.

RESEARCH FINDINGS ON OBJECTIVE 2

Introduction

Results and discussion

Challenges and opportunities in forage seed value chain

This is in addition to 16.4% of respondents stating that they lack knowledge of forage seed production. Smallholder farmers perceive that the capital expenditure of forage seed production is beyond their reach. More training in forage seed production and general management practices should be offered to farmers.

Table 5.1: Major challenges in forage seed supply

Chapter summary

For this to have a positive effect on forage seed production, transparency is needed. There is a need to use quality fodder seeds in the market, engage in fodder seed production and do away with seed imports, engage private organizations like seed companies to contract farmers to produce seeds. There is a need to improve researchers' efforts in forage evaluation and screening to improve forage seed yield and adaptability.

RESEARCH FINDINGS ADDRESSING OBJECTIVE 3: BASED ON OWN

Introduction

Results and discussion

Value chain actors and their roles
Value chain actor relationships

Its services are essential because it connects feed seed producers and the rest of the stakeholders, especially in the livestock industry. Development partners that have been active in forage seed production at the study sites are the Cluster Agricultural Development Services (CADS) and the Community Technology Development Organization (CTDO). In the forage seed network, there are a number of actors who act as intermediaries in certain networks.

Table 6.1: Forage seed yields from smallholder farmers during 2012-13 to 2014-15 growing seasons Crop type 2012-13 season 2013-14 season 2014-15 season

Chapter summary

A k-core, a concept developed by Seidman (1983), is a maximal group of actors, all of whom are connected to some number (k) of other members of the group. The centrally located nodes have slightly higher connections compared to the rest of the nodes. The study of the networks is a way to improve communication and relations between the actors of the value chain.

ENHANCING FORAGE SEED PRODUCTION IN SMALLHOLDER

Introduction

Enhancing competitiveness of forage seed business

Irrigation infrastructure revitalization
Intensification of production
Innovation platform approach
Input and output market
Policies, regulations and governance
Partnerships and farmer organisations
Farmer training and capacity building
Gender equity, social inclusion and training
Support services
Seed companies engaging smallholder farmers in seed value chains
Financial inclusion

Forage seed production fits well into the sustainable intensification approach, even where a conservation farming system is used. Extension and Advisory Services – For fodder seed value chains to be successful businesses, effective and efficient extension service support is needed. Mode of transport is another aspect to consider when transporting forage seeds.

Figure 7.2: Sustainable intensification of production. Source. Adapted from Garnet et al., 2013

Economic analysis

This is also the case with mucuna and lablab fodder seed, which are scarce. The initial forage seed of mucuna and lablab used in the project was imported at a price of US$8.00 and US$11.00 respectively. Most information consists of technical publications in peer-reviewed journals and forage seed information is rarely available in the general local language for smallholder farmers.

Table 7.1: Comparison of Gross Margins for various crops including forages grown in Goromonzi and Murewa districts

Sensitivity Analysis

The findings in Chapter 4 indicate that there is no reliable market for the fodder legumes, a notion supported by Alemu, (2015) and Welu, (2015) who found similar findings. It has also been argued by Boelt et al., (2015) that there is a lack of information about legumes in an understandable way to encourage adoption by farmers. However, the sensitivity analysis does not take into account the probability that changes may occur.

Forage seed business development

Potential business models for forage seed in smallholder systems

In the buyer-driven model, seed companies would try to involve farmers in their activities, including forage seed production. More small farmers are motivated to venture into the production of mucuna and lablab feed seeds. They say forage seed is different from the rest of the food crop seed that can be produced and sold at retail.