1. Using sub-sector analysis for improving tree seed systems Jens-Peter Barnekow Lillesø

2. Transforming countries Urbanized countries Rural poor/total poor Agriculture’s contribution to growth 1990 – 2005, % 3 CATEGORIES OF COUNTRIES Agriculture-based countries Bringing development to the poor

3. Price and marketing strategy Value chains Smallholder market entry

4. “Productive chains” integrate primary production with processing and marketing as links in a chain “Value chain” implies generation of value added throughout the chain The productive/value chain as a principal framework for the design and implementation of support programs Productive chains and value chains Value chains Smallholder market entry

5. Chain and subsector: The Subsector includes all productive/value chains involved in the production and marketing of one well- defined product or several closely related products The Subsector also includes arrangements that govern their interaction and regular access to services, such as sectoral information, new technologies and products, as well as the definition and the management of quality standards Value chains Smallholder market entry Roads Credit Input supply Processing Marketing Producer organisations …..

6. Subsector analysis The basic condition for success: competitiveness of the chain – the viability of the business in the long term, even without public subsidies Without the intervention and support of the state and other support organizations - small and medium-sized producers rarely integrate into a value chain A tool for promoting smallholder value chains Value chains Smallholder market entry

7. So what about agroforestry? An estimated 500 million to 1 billion smallholder farmers grow farm trees or manage remnant forests for subsistence and income (Scherr, 2004) Value chains Smallholder market entry Small family farms and plantations are the two contrasting systems of agricultural production (Hayami, 1996) Small farms have the edge for less technologically advanced agriculture with low labour costs, but as an economy develops and wages and the use of capital intensive technology increase, then the advantage shifts to larger farms (IFPRI, 2007)

8. Xx Xxx Xx XXXXXXXXxXXXXXXXXx XXXXXXXXXX XXXX X Smallholder market entry Value chains Input supply chains

9. Smallholder market entry Value chains Input supply chains

12. Definitions of tree seed sources have been developed and applied in many countries, and standardised (slightly differently) by OECD, EU, FAO, DFSC, GTZ and others These guidelines generally rank seed sources into unclassified and selected sources and for selected sources, into tested and untested reproductive material. The definitions originate from industrial plantation forestry and the criteria used cannot be utilised for ‘Natural forest’ and ‘Farmland’ sources ´One size fits all´

13. Currently used definitions disregard options for applying simple principles that can widen the genetic quality considerably and minimise the risk of inbreeding Furthermore the terms 'selected' and 'unclassified' sources presuppose that central authorities have the capacity to establish, maintain, protect and evaluate improved sources of relevance to the consumers (smallholders), which is very rarely the case ´One size fits all´ Common sense criteria strict criteria that cannot be applied.

14. Except for ‘Natural Forest’, the other four types can equally well be handled by small enterprises A major reason for the almost complete absence of seed orchards in agroforestry is that they are very costly to run on government land. For small-scale entrepreneurs they are not costly, they are providing income Natural forest is a special case – mobilising indigenous species has an economy of scale due to the large amount of seed collected for ensuring long term genetic quality

15. Applying criteria that all seed should be tested for germination quality by selected authorities is a serious barrier to development of smallholder agroforestry (unless such a rule is ignored) An appropriate solution (for many countries) is ‘Quality Declared Seed’, and ‘Truth in Labeling’ with spot checks by authorities In crop seed systems the challenge of seed testing control vs reaching many farmers have been solved

16. The challenges of the tree seed input supply chain are the same as in value chains – overcoming transaction costs for small-scale business So instead of spending all efforts to provide seed to relatively few smallholders Gvmnt and NGOs should spend their efforts in enabling small-scale entrepreneurs to provide quality to many smallholders

17. In many countries there are two types of input supply chains, The Aid funded channel through NGOs, and The private initiative channel of small-scale seed vendors and nurseries

18. Malawi example Current nursery input supply chains

19. Malawi example More efficient use of Aid money Larger impact

20. 72 seed sources around Mt. Kenya - models used Model typeModel NoCount CCC - Centralised government/large NGO model121 CCC/ - Centralised government/large NGO model CDD - Centralised seed sources, decentralised enterprise model 1 & 32 CCC/ - Centralised government/large NGO model CDC - Contract worker model 1 & 41 CDD - Centralised seed sources, decentralised enterprise model31 CDC - Contract worker model42 CDC/ - Contract worker model CDD - Centralised seed sources, decentralised enterprise model 4 & 34 DDD - Decentralised seed sources, decentralised enterprise model531 DCC - Outgrower model, procurement done by distributor61 DDC - Outgrower model, procurement done by producer61 DDC/ - Outgrower model, procurement done by producer DDD - Decentralised seed sources, decentralised enterprise model 6 & 51 DCC - Outgrower model, procurement done by distributor73 Not producingNone4 28 donor models 8 mixed models 32 enterprise models Part of a study of 230 sources In the same area around Mt. Kenya a nursery survey showed that 95% of nurseries’ procurement was from farmland They apparently had no knowledge or access to the 230 sources