Learning objectives
At the end of this session, each LSB member should be capable of: 1. Setting seed production targets based on sales targets.
2. Identifying and arranging necessary resources for seed production
“Allianu Cupiria Timbakua Seed Development Association (ACTS) would be very far if we had implemented the plan we made under that mango tree, now we are here with nothing to show”, Chairman ACTS LSB told members in 2014 planning meeting. “What went wrong?” asked the chairman. Members said they didn’t set good targets for seed production: “we did not consider resources needed for seed business i.e. how much foundation seed we needed, how much money we needed for the seed including the source of the seed as well as delivery means and cost. At the end everything went wrong”. This group learnt the hard way that failure to plan is like planning to fail. Only a few members bought foundation seed and even those that bought the seed did it late because of poor planning.
Content
Planning Seed Production means planning, to produce the required amounts of the desired kinds of seed, to have it ready when it is needed for sale, ensuring that all seed is of the highest possible purity and quality, and doing this at the lowest possible cost.
Remember the old “PPP” motto: Prior Planning Pays! To be successful, you must know what you want to do and can do, where/when you can do it, and how to do it most cost- effectively. Plan carefully, avoid being one of the 75+% of small businesses who don’t survive. All LSBs must determine how much seed they need to produce in order to meet their sales targets.
Here are a few key questions when thinking about seed production: Key consideration during planning
1. Do you have land to produce seed? Are your fields fertile and high yielding? 2. Do you have the labour in the family or cheaply available to do the extra work
involved in producing and handling seed? During certain seasons in farming, there is a shortage of labour; these are also the seasons when extra work often must be done on a seed crop.
3. Can you afford to use fertilizers, pesticides, etc., required to produce high yields and have fields which look good and impress your customers?
4. Do you have the facilities for harvesting, processing and handling seed in a manner that safeguards the seed’s planting quality before it is dispatched to the market?
5. Do you have enough technical knowledge on the crops and varieties, growing them, in order to advise your customers on the best cropping practice and convince them of the value of good seed?
Key issues to consider when planning for foundation seed 1. Which crop?
2. Which varieties? NB: We should consider land races also i.e. varieties which may not be known to formal research as long as it has market in the community (Who are the key custodians of certain crops in this community?)
3. Price of Foundation seed (how much per kg)
4. How much seed is required per individual group member?
5. When should seed be booked by the production/internal seed quality control committee?
6. Where is the source? 7. Cost of transport
8. Should be procured by when?
9. Seed should be delivered to the respective LSBs by when?
10. Where is the money coming from (Each member contributes? or group has money in account to buy and distribute as seed loan to members?).
11. Money should be collected by when? Seed production targets
Produce only what you can sell!
There is no profit if the enterprise produces or purchases goods which never leave the storage!
Never produce or purchase goods unless there is a good chance they can be sold. The potential for selling the goods is determined by a thorough, realistic Market Survey which results in a Marketing Plan. Both Market and Production committees should work hand in hand. The Markets set sales targets and the production committee then must produce the required volumes.
Production requirements
With a realistic market survey, accurate forecasts of what/how much seed will be sold can be made. To forecast sales and produce seed according to what can be sold to farmers, the seed enterprise must know:
1. What seed, crops and varieties should be used by farmers?
2. What is the real and potential demand for higher-cost/quality purchased seed-- what kind, how much, when, by whom, where, at what price?
3. What seed crops and varieties should be produced? How much? Where? When? How? At what quality? At what cost?
4. To whom can the seed be marketed? Where? How? How much? In what package size? At what price? At what promotion and distribution cost?
Advantages to manage a seed business individually
The owner can decide on everything without asking for the opinion of anyone else. All revenues generated belong to the owner.
Possibilities to try new ideas, new methods and new marketing techniques without the approval of anyone else.
No problems of mistrust or clashes when a business is managed individually. Disadvantages of producing individually:
The owner must support all the financial costs by himself.
One can obtain external support for decision-making but it is costly and takes a lot of time.
One can feel more isolated as a single owner rather than being part of a group. The owner must support all the risks related to equipment, inputs…
Advantages of operating a seed business as a group:
Costs of transport, marketing and distribution of both seed and fertiliser scan be shared.
Purchase of large quantity of inputs such as fertilisers, pesticides and seed treatment chemicals reduce costs.
Groups often have access to lower credit rates.
When a large number of persons work together, it is easy to guide them to reach a high level production, which also means a high level of income. The increase in production will generate more opportunities for saving, which can later be used to increase production or fulfil other needs.
People learn to work together, analyse problems they are facing together and plan the future together.
Women will have more chances to get access to land and other resources if they are organised.
Disadvantages of producing in groups:
Conflicts between team members can occur for various reasons.
Sometimes, the group depends too much on external assistance instead of being financially self-sufficient.
When group leaders are not efficient, the group runs the risk of not achieving the objectives which had been set and the number of adherents might diminish. A bad recording of transactions can create confusion within the group on the state
of expenditure, marketing and sales.
If a minority of members take all the decisions, the other members will become dissatisfied as they may not have the chance to voice their opinions.
Training methods
Open the training with a welcome message and brief presentation of the objectives of the training. The trainer then evaluates the participants’ expectations. The facilitator presents his/her own experience followed by that of the participants.
Start by reviewing last season’s or year’s performance through a question and answer approach:
Q: What was done well last year/season?
Q: What was not done well last year/season? Did you meet your production and sales targets?
Q: What lessons have you learnt?
Q: Which resources do you need? Which ones are already available? Which ones are missing?
Then guide the participants to set their seasonal/annual targets by asking the following questions:
Q: How much seed do you plan to produce with the available resources?
Q: How do you plan to achieve your production and sales targets? Do you plan to produce individually or as a group?
If participants plan to produce seed in a group, it is necessary to facilitate discussions on how the group would function while working together:
Q: what are the advantages and obstacles of team work for your future activities? Q: What are the potential problems and opportunities that could arise (an analysis
of strengths, weaknesses, opportunities and threats)?
Explore the organizational options available for groups producing seed:
1. Team members come together only to buy material and inputs in order to reduce costs.
2. Team members produce seed individually but work in group on some activities such as storing or marketing.
3. Team members all lead the production activities together and share the benefits.
Important points to be agreed on
1. Each LSB must have a minimum of 20 acres per season for seed production. 2. At least 75% of all members must have seed gardens per season.
3. We should consider block gardens (clustered seed production) for easy inspection. 4. Each seed growing member should consider having at least 1acre for seed
multiplication/production
Materials
Flip charts, markers
Notes to facilitator
Make sure updated production and sales records are available with the participants for reference.
Resources
CIAT manual 3 p.19-21;
Harry van den Burg. & Nina de Roo. 2013. Seed Entrepreneurship manual session 1.3, page 16-17.