Lecture s ceture No.16 Seed: marketiny Promotional media, structure and organization, sales generation activ Factors affecting seed marketing, Role of WTO and OECD in seed marketin > Seed marketis ; eee ings one of the most vital components of seed technology. fn broad sense of seeds. In the series 8 production, processing, storage, quality control and marketing packed seeds ene Sets seed marketing refers to the atual acquisition and selling of Pedals intermediate storage, delivery of seeds and sales promotional activities. Thus narketing comprises of the following aspect Demand forecast (Assessment of eff Marketing structure, Seeds storage infrastructure. Sales promotional activ Post-sales servic Economics of seed production and seed pricing, etive demand), ausup= Demand forecast : The assessment of effective seed requirements is critical to any planned seed programme. The demand forecast should be that the seed supply keeps pace with seed demand in terms of quantity, quality, price, place and time Marketing structure : The key to success in seed marketing is the establishment of effective channel of distribution, The simplest and most efficient system is to establish a central marketing cell and regional offices in end-use areas. The retail sale should be organized either by appointing distributors/ dealers such as private dealers, co-operatives, agro sales service centers etc. or by opening owned sales points of seed company or seed corporation. 3. Seed storage infrastructure : Transportation of seeds from production areas to end, use areas is important and time consuming task. Availability of seeds to the dealers/consumers in time is essential. Therefore, buffer godowns, with good storage conditions are to be established in end use areas. 4. Sales promotional activities : These activities reflect on the over all distribution of seeds as well as the impact on the consumer. The seed company and the dealers should jointly share in the publicity efforts. The seed company should provide basic materials such as photographs, technical reports, posters, charts, leaflets which the dealer can adopt to specify uses. A sound and effective sales programme must be based on the judicious use of three basic tools i.e. advertising, publicity and public relations. 5. Post sale services ; It includes educating the farmers, technical help as and when desired by the farmers and quick follow up on the complaints about seed sold. 6. Economies of seed production and seed pricing : The seed production cost must be kept as low as possible. The farmers or seed producer will not be interested in seed production unless the prices they receive have reasonable profit.A a Faetors affecting seed marketing : 1 is greatly affected by the following factors + clear cut policy regarding duties and responsibilities of the official semai-atficiats and private economic sectors is necessary for the development of seed marketing on sound basis 2. Availability of well identified and adapted varieties : A sced programme would not have any impact unless superior varieties are regularly supplied for the seed programme, Current official information on new varices that have been recommended for crop production helps in accelerating the programme. 3. Adequate production, storage and testing facilities ; These are necessary for producing and maintaining. seed qualities and quantities in accordance with the established standards for the development of sound marketing er 4. Official programme : State government has to take the initiative and promote the supply arrangement of new varieties or hybrids are when first time introduced among Faery all evale farmers, The important role of government is to provide market information, to set targets and to regulate and control agencies and enter prices dealing with seeds. 5. Demand forecast : Real assessment a1 Seed market 1. Clear-cut policy : ind targets of seed demand are very essential. Excess quantity of seed may result in large carry over stocks and losses in storage while short supply would deprive the seed dealers of profits they could have made 6. Market intelligence : A market intelligence systems should be so developed to provide reliable information regarding the needs of farmers, location of production areas and Size of market demands as well as marketing cost to keep official and private institution up to date on production and supply patterns. 7. Transport and storage arrangement : Adequate transport arrangement for timely supply of seeds and their proper storage in end use areas / dealers or storage buffer godowns are also important in order to maintain seed germination and viability for a long period. 8. Nature of product : Seeds are perishable commodity and easily get damaged if handling is not proper at any stage of marketing so proper handling is required. 9. Quality control programme : Legally enforced effective quality contro! procedure should be strictly followed to ensure uniform quality levels as per the prescribed standard which may help in reducing the unhealthy competition with bonafide seed companies. 10, Publicity : A high level publicity on value, availability and returns from certified seed of the recommended varieties is important tool for increasing sced sales. 11. Financial rewards : A well-defined policy of financial rewards to those dealers who make out standing records as salesmen is of considerable importance and goes a long way in development of seed marketing. Seed pricing policy ‘The seed pricing policy is the most effective and delicate management tool for regulating the flow of seeds in the market. The price fixed for sale should be reasonable enough, $0 that a large number of farmers could purchase certified seeds. Seed production costs involves following expenses. 1, Inraising a seed crop : a) Cost of foundation seed b) Cost of specialized planting (in hybrids and vegetables) ©) Roguing costs4) Cost of other special operations (Detasseling ete) ©) Cost of additional supervision required in raising a seed crop. Seed certification fee 8) Other expenses not covered above e.g. construction of separate threshing floors, extra cleaning of equipments etc. 2. At the time of seed harvesting drying and processing a) Separate harvesting of lodged or rejected portions of field and disposing the produce as commercial. b) Losses incurred due to drying to 10-12 % moisture content as compared to 12-14 % for a commercial crop ©) Sorting and rejection of undesirable cars of maize, car heads of pearlmillet or sorghum, root or shoot of vegetables ete d) Separate handling in order to maintain lot identity ©) Additional transportation costs f) Losses in seed processing | 2) Loss, that is, difference in sale price of underside, shriveled and rejected seed (roughly, 10-20 % of the seed supplied) as compared to upgraded produce. h) Seed processing and testing charges 3. Seed marketing costs : a) Storage and transport expenses b) Interest on capital investment ©) Distribution and sales promotion costs Factors (components) affecting the final marketing price 1. Input costs a) Price paid to seed producers for raw seed or fully processed seed depending upon the marketing scheme b) Storage and transportation costs, ©) Distribution costs 4d Wholesale margin (if applicable) ©) Retail margin (Dealer’s commission) ) Sales promotion 2) Risks costs h) Profit (if applicable) 2. Supply and demand: Total supply available and total demand generated also influence the seed price. If the supply is short the sale price is relatively high, if supply is abundant the price is less and profit margin is low. 3. Prices of other farm products and time trend should also be taken in to consideration while fixing the price.Dail The role of Wro establishing it and includes: 1 > The Role of WTO; internation: i al trade is as stipulated in the Agreement facilitating the i = objectives ae remmeaiat oe administration and operation and furthering Agreements and eeemem establishing it and other Multilateral Trade administration | ere ais _the framework for the implementation, n and operation of the Plurality Trade Agreements, 2. Providir Gaia a negotiations among its Members concerning their Annona aot ade Felations in matters dealt with under the agreements in the negotiation aan eames seting twp and for the results of such BM apa inisieriacting (he jecided by the Ministerial Conference, ting the Understanding on Rules and Procedures Governing the Settlement of Disputes or the Dispute Settlement Understanding which is Annex 2 to the agreement setting it up, 4. Administering the Trade Policy Review Mechanism in Annex 3 of the ‘agreement setting it up, and 5. Cooperating as appropriate with the International Monetary Fund and the International Bank for Reconstruction and Development {the World Bank] with a view to achieving greater coherence in global economic policy making. LIST OF ABBREVIATIONS AOSA Association of Official Seed Analysts AOSCA Association of Official Seed Certifying Agencies ECOWAS Economic Community of West African States EU European Union FAO Food and Agriculture Organization of the United Nations GPA Global Plan of Action IP Identity Preserved IPPC International Plant Protection Convention ISF International Seed Federation ISTA International Seed Testing Association MLS. Multilateral System of Access and Benefit-Sharing NDA National Designated Authority OAPI Organisation afrieaine de la propriété intellectuelle OECD Organisation for Economic Co-operation and Development oc Orange International Seed Lot Certificate PGRFA Plant Genetic Resources for Food and Agriculture QA Quality Assurance ps Quality Declared Seed a RPPO Regional Plant Protection Organization SADC Southern African Development Community SMTA ‘Standard Material Transfer Agreement SPS Sanitary and Phytosanitary ; TRIPS Trade-Related Aspects of Intellectual Property Rights UPOV, International Union for the Protection of New Varieties of Plants WTO World Trade OrganizationOECD- Organisation for Economic Co-operation and Development (OECD) I.INTRODUCTION World population will increase fom 6.9 billion in 2010 to 9. billion people Ht 2050; andagriculture will play a fundamental role in meeting the world’s growing demand for food, feed and fibre, In order to feed the world population in 2050, agricultural production will have to almost double, and most of the incremental output will have to come from increases in yields (FAO, 2009). High-quality seed is a pre-requisite to achieve maximum outputs and good returns for farmers. To strengthen the seed sector, itis crucial that seed growers and companies adhere to policies that guarantee quality standards and appropriate regulatory features. Many countries have adopted seed laws. 'A number of international organisations, conventions and treaties deal with the regulation of seed trade, ranging from access to delivery of quality seeds to growels- ‘Torether they provide an international regulatory framework by overseeing the interests of breeders, producers and consumers. Among these organisations are the Organisation for Economic Co-operation and Development (OECD), whose Seed Schemes are globally recognized for the certification of seed moving in international trade. International regulatory framework for related aspects of seed trade, including plant health and phytosanitary measures, access and benefit-sharing for plant germplasm and use of pesticides. An appropriate regulatory framework helps to promote competitive seed markets and lowers barriers to trade. Special attention is paid to the OECD Seed Schemes and their contribution to the development of an international seed certification framework as well as their links to other international organizations. “The plan aims to further strengthen the work of the Schemes and countries. ‘This document is intended as an information document for policy-makers in Member countries of the OECD Seed Schemes and in countries interested in joining the Schemes. value to MemberThe OECD S. 'eed Schemes: A globally recognized seed certification system The OECD . means peer pote an international framework for the certification of ere facilitate seed trade by reducing technical barirs, improving re aceney and lowering transactions costs oy ee re the use of labels and cerfcates for seed produced and ocessed fi ional trade according to agrced principles. One of the main principles is that OECD certification is applied only to those varieties that are officially recognised as distinct and having an acceptable value in at fast one participating country. ‘An OECD list of varieties eligible for seed certification is regularly published and available onlineand in hard copy. For a country to use the OECD labels it is required to register the species and varieties in the OECD list of varieties. The list contains most internationally traded varieties, and it has grown progressively over the last 30 years. There are currently 49 899 varieties and 200 species listed. The rules of the Seed Schemes cover seven groups of species, constituting s distinct and independent Schemes. In response to the needs of Member countries, the rules are regularly amended. In onder for a country to participate in the OECD Seed Schemes, several criteria must be met: The country must provide a description of the national seed certific scheme and a copy of the national rules and procedures governing variety registration and seed certification. even