Seed multiplication. Source seed is multiplied to produce commercial seed. In most cases, a seed enterprise supervises contract farmers to multiply seed.
Quality control. The multiplication process must ensure both the genetic purity and physical quality of the seed. Quality control systems may range from managing a mandatory seed certification scheme to requiring only that seed be truthfully labeled. Responsibility for quality control is now shifting to seed enterprises.
Seed conditioning. Seed must be cleaned, dried, treated, and stored before sale. This process requires specialized equipment and (for certain crops) considerable storage capacity.
Seed marketing. Seed is sold through input dealers, requiring distribution capacity through a competent, independent network of wholesalers and retailers.
These components of seed provision may all be managed by a single firm or by various linked enterprises (box 7.15). Any investment in seed enterprise development must examine the options of supporting smaller, specialized operations versus larger, integrated firms, with the choice depending in large part on the resources and capacities available and the stage of evolution of the seed industry. Box 7.15 India: the private provision of public rice varieties Private companies produce almost one-half of the rice seed sold in Andhra Pradesh State, even though all varieties are publicly developed. The state agricultural university system’s transparent procedure for selling breeder seed to private companies has facilitated private seed enterprise development. Andhra Pradesh has become a leader in the development of the private hybrid seed industry for millet and sorghum, and this experience is now being used in the less profitable (but high-volume) rice seed industry. A range of capacities and “clustering” of facilities in the state allows dozens of enterprises to contribute to rice seed provision in Andhra Pradesh. Some enterprises specialize only in certain aspects of seed provision. For example, they supervise seed multiplication by farmers, contracting their services to seed companies that do not have a presence in the area. Other enterprises own seed cleaning and storage facilities, which they contract out. Such specialized services allow medium-scale enterprises to fill gaps in their capacity. At the other end of the spectrum, the larger seed companies have integrated operations and take responsibility for foundation seed production, supervision of growers, processing, and marketing. Source: Tripp and Pal 2001 |
Benefits
The potential benefits of investing in seed enterprise development will depend on whether investment is for varieties or for seed. Investing in varieties represents the genetic gains derived from access to the new products of plant breeding, whereas investing in seed represents gains from the good physical quality of commercial seed. The two kinds of benefits are different, and commonly used phrases such as “improved seed” tend to confuse the issue.  
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