Public-Private Partnership Akhter Ali CIMMYT-Pakistan 04-02-2014

Contents What is public-private partnership Principles of PPP Need of PPP in Developing Countries Current Scenario of Maize in Pakistan Maize Seed Sector Conclusion

What is Public-Private Partnership Collaborative mechanisms in which public organizations and private entities share resources, knowledge, experience and risks in order to achieve more efficiency in the production and delivery of products and services

Public and Private Partners Public sector partners Research institutes, Universities Extension agencies Private sector partners Seed companies Producers’ organizations Individual producers

Principles of Public-Private Partnerships

The Potential Partners must have common interest First Principle The Potential Partners must have common interest

The benefits of partnership should outweigh the costs Second Principle The benefits of partnership should outweigh the costs

Third Principle The benefits of partnering which results from each partners contribution and from the synergy generated by collaboration as whole should be greater than the activities carried out individually

Fourth Principle The benefits the partners receive from the partnership should be balanced and proportional

Fifth Principle The results of the partnership should not openly conflict with the interest of the other groups that are not involved in the partnership but that can impact one or more of the partners

The Decision to Join a Partnership Goals of the Private Sector Economic profitability Increased productivity Competitiveness Product quality and diversity Leadership on markets and Consumer confidence Goals of the Public Sector Development Economic growth Social equity, and Environmental sustainability

The Decision to Join a Partnership Private Sector Public Sector

Importance/Need of PPP In less-developed countries the development process can be enhanced Innovation Led Agriculture needs PPP Developed Countries are spending 2 percent of GDP on Agricultural R&D Developing Countries are spending only 0.5 of GDP Hence the combine efforts are needed in the developing countries

Maize in Pakistan Maize is ranked third after wheat and rice Maize is vital for national food security Maize accounts for 5 per cent of the total cropped area The area under maize is 1.4 million hectares Total production of maize is 4.631 million tonnes Maize contributed to 2.2 per cent to value added agriculture and 0.5 per cent to GDP during 2012-2013

Maize in Pakistan Cereals Area Production Yield (Thousand Ha) % of Total (Thousand Tonnes) (Tonnes/Ha) Total Cereals 12818 100.00 34897 2.72 Maize 1085 8.46 4631 13.27 4.27 Wheat 8693 67.82 24231 69.44 2.79 Rice 2311 18.03 5541 15.88 2.40 Sorghum (Jowar) 197 1.54 122 0.35 0.62 Millet (Bajra) 461 3.60 310 0.89 0.67 Barley 71 0.55 62 0.18 0.87

Maize in Pakistan The growth in production of maize (9.43%) in Pakistan largely came from productivity gains (8.82%), with a very slow growth in area (0.61%), during last decade (2001-2010) Pakistan has already been on the list of the top 30 producers of the world during 2012, Pakistan ranked 31stin area under maize cultivation, 29th in total maize production In Pakistan the maize crops has never been supported by the support price mechanism

Maize Seed Demand Overtime the supply of improved maize seed has increased from 10.19 per cent of requirement in 2000-01 to 27.35 per cent in 2010-11 Share of private seed sector in the supply of improved (OPV) and hybrid maize seed remained in the range of 87 to almost 98 percent during last ten years

Maize seed Requirement and Availability Year Total Seed Requirement(MT) Seed Availability(MT) Value of Imported Seed   Local Imported Total Millions Rs. 2001-02 27,970 908 (3.25%) 2227 (7.96%) 3135 (11.21%) 223.87 2002-03 37,760 1470.78 (3.90%) 3536.50 (9.37%) 5007.28 (13.26%) 443.44 2003-04 37,782 1572.00 (4.16%) 3749.00 (9.92%) 5321.00 (14.08%) 441.00 2004-05 38,010 1987.33 (5.23%) 4318.07 (11.53%) 6305.40 (16.59%) 798.17 2005-06 30,888 3393.01-(10.98%) 7443.61 (24.10%) 10836.62 (35.08%) 1337.24 2006-07 30,036 4947.70 (16.47%) 6479.19 (21.57%) 11426.89 (38.04%) 1100.22 2007-08 27,950 3286 (11.76%) 6175.00 (22.09%) 9785.00 (35.01%) 1152.86 2008-09 31,170 770 (2.47%) 10259.00 (32.19%) 11029.00 (35.38%) 2360 2009-10 33,540 2144 (6.39%) 7260.00 (21.65%) (29.17%) 1852 2010-11 31,914 1686.51 (5.28%) 7042.00 (22.07%) 8728.51 27.35(%) 1748

Share of Local and Imported Maize Seed Year Share of Local Seed (%) Share of imported Seed (%) 2000-01 21.47 78.53 2001-02 28.96 71.04 2002-03 29.37 70.63 2003-04 29.54 70.46 2004-05 31.52 68.48 2005-06 31.31 68.69 2006-07 43.30 56.70 2007-08 34.73 65.27 2008-09 6.98 93.02 2009-10 22.80 77.20 2010-11 19.32 80.68

Maize Seed Demand MNCs are responsible for 95-98 per cent of hybrid seed import. The rest is imported by 25 national seed companies The analysis of data from 2008-2012 indicates that USA (61%) is the major maize seed supplier followed by Thailand (11.8%) and India (10.6%)

Maize Seed Import by origin 2007-08 2008-09 2009-10 2010-11 USA 3610.18 7035.21 4929.88 3370.03 India 195.04 741.34 279.74 2089.12 Thailand 867.87 1233.58 613.83 955.20 France 0.10 90.50 203.65 32.73 Brazil − 487.84 474.16 Argentina 93.85 601.78 Australia 92.13 121.28 0.25 0.28 Chile 450.28 China 730.00 Egypt 250.00 60.00 Guatemala 0.03 Hungary 142.67 Indonesia 202.00 Italy 169.41 S.Africa 117.71 114.00 Turkey 355.49 0.85 1.30 Holland 193.72 Mexico 143.95 Total 6175.32 10259.62 7261.78 7354.24

Utilization of Maize (Percentage) KPK Punjab Industry (wet milling) 17 25 Feed 30 55 Food 40 05 Seed and Other 13 15

Potential of Maize in Pakistan Maize can very well become more important than any other crop if industry stakeholders invest heavily in transport, handling, drying and storage infrastructure Demand for maize, largely from the poultry and livestock subsectors, is expected to increase and more can be done to add value to Pakistan’s maize crop

Potential Seed Market of Maize in Pakistan Crop Seed Requirement (Tonnes) Price/kg Domestic Market (Million Rs.) Wheat(OP) 1085520 30 32565.0 Cotton(OP) 40000 1000 40000.0 Paddy(Fine) 11877.0 59 700.0 Paddy Coarse(Hyb) 25316.0 300 7594.0 Maize(Hyb) 31000.0 450 13950.0

Maize Contract Farming In Pakistan, only Rafhan Maize Products Co. Ltd. enters into contracts with maize growers

Number of registered seed companies Category Punjab Sindh KPK Gilgit Baltist an Baluc histan Total Public Sector 1   4 Private National 600 91 20 02 7 720 Private Multinational - 5 Total Active 605 93 21 08 729 Cancelled 129 14 07 150 734 107 28 879

Overtime share of seed companies 2006-07 2007-08 2008-09 2009-10 2010-11 Multinational Companies Monsanto Pak Agri-tech, Lahore 29.39 23.88 36.73 38.26 14.10 ICI Pakistan Seeds, Lahore. 1.18 3.24 1.57 0.01 0.56 Pioneer Pakistan Seeds, Lahore. 59.94 58.47 48.88 43.53 52.08 Syngenta Pakistan Limited, Karachi/Lahore 7.02 11.53 9.35 16.06 28.18 Total 97.53 97.12 96.53 97.86 94.91 National Private Companies Companies involved (25) 2.47 2.88 3.47 2.14 5.09 Total Import (MT) 6479.18 6175.32 10259.8 7261.78 7355.94

Conclusion Increasing demand of seed can only be met through PPP Policy reforms are needed The benefits and risks of partnership needs to be shared proportionally The gender needs to be included CIMMYT is always there to facilitate

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