Privatisation key in giving Kenya’s seed sector its mojo

On average smallholder farmers in Kenya travel seven kilometres to the nearest source of fertiliser and hybrid seeds, a situation that best amplifies the sorry state of our seed sector.

Seeds are the most important inputs in food production yet their development and distribution channels are the most complicated and warped.

The country took a commendable step in the early 1990s when it liberalised the seed sector. Yet two decades later that liberalisation hasn’t had any tangible impacts, especially to farmers and industry players.

The government continues to dominate the sector, which has served to discourage new entrants and even dampen the spirits of the existing private entities.

Nothing captures this scenario better than a report that indicates that out of the over 129 registered seed companies in the country, only a paltry 17 are active in production and distribution. The rest have opted to be seed merchants as conditions for production and distribution become untenable.

This is further corroborated by a continental seed index released this year that sought to monitor the state of Africa’s rapidly evolving seed sector.

The African Seed Access Index (TASAI) tracked indicators along the delivery chain like the number of crop breeders, varieties released, industry competitiveness and availability of seed in small packages among others.

For Kenya, the index revealed poor performance in the industry competitiveness owing to the government controlled entities which accounted for the lion share of seed sales. This made it tough for private sector players to remain competitive.

This is a stark contrast to continental peers like South Africa, Zimbabwe and Uganda where the government has exited the seed sector and left private entities to run it, leading to change in number of seeds bred, the period it takes from seed production to access to farmers and the distance farmers travel to access the input.

For example in South Africa, it takes 12 months for a new seed variety to move from breeders to farmers. In contrast, it takes three years in Kenya.

In Zimbabwe, a liberalised and competitive seed market has levelled the playing field for all players, heightening competition. This has worked for the benefit of the farmers who now access superior seed varieties conveniently and at reduced prices.

Data shows that it takes a Zimbabwean farmer on average three kilometers to reach a seed point.

Total liberalisation and privatisation is at the heart of a successful sector. Think about the impressive private sector reputation the country has earned in anchor sectors like banking, retail, ICT and tourism.

Such free market dynamics have transformed these sectors and allowed innovations that have worked for the end consumer.

The liberalisation of the banking sector has heralded cutting edge innovations like agency and mobile banking that have now fenced in thousands of traditionally unbanked Kenyans, redefining access to finance. The seed sector could borrow a leaf.

For starters, our staccato style seed policies need a serious rethink, especially in tapping and enticing more private players and new entrants.

The government should exit seed distribution and take on the oversight role, making the environment conducive for private players to be motivated to compete.

This way more varieties are released and the cost of production and distribution is kept at a minimum, benefitting both farmers and the seed companies.

As things stand the cost is prohibitively high, which means seed companies are operating unsustainable business models. The firms have to factor in the cost of production and distribution, which is reflected in the final price.

This discourages farmers who have opted for informal seed systems like planting from the seeds of the previous harvest or buying from neighbours. This is what has fanned the current “bronze age agriculture” where farmers still use seed varieties from the 1930s.

Liberalisation of the market has traditionally proven effective. Even in tough operating conditions, companies like Elgon Kenya have been pivotal in revolutionising distribution, especially through availing seeds in small packages and in superior varieties, like the now famous Elgon Prestige 02 maize that is tripling yields even in depressed rains.

It is amazing what a fully liberalised market and a levelled playing field can do. Profits from such sales would go a long way in inspiring research and development by seed and agro input companies, which is key in understanding the dynamics of crop production.

Like most scholars have argued, while seeds are not a cure all, a healthy seed sector matters now more than ever especially in the wake of unprecedented population growth and changes in climate that are bound to take a toll on food production.

We cannot afford a high wire trapeze act with our food production if we are to tame the hunger cycle. Reforming our seed sector is no longer a matter of if but when.

Mr Maina is the communications manager, Elgon Kenya – an agro-input provider.