Presentation by David Spielman (IFPRI) at the PIM Webinar held on 25 October 2017. See more here: http://pim.cgiar.org/2017/09/29/webinar-strengthening-developing-country-seed-systems-and-markets-policy-trade-offs-unintended-consequences-and-operational-realities/

1. Introduction Design principles Policy options Conclusion Annexes
Strengthening developing-country seed systems
and markets
Policy trade-offs, unintended consequences, and operational
realities
David J. Spielman
International Food Policy Research Institute
October 25, 2017

2. Introduction Design principles Policy options Conclusion Annexes
What do we expect from a better seed system?
ADOPTION of improved varieties
Change in genetic quality as farmers switch from traditional
to improved varieties
TURNOVER of improved varieties
Change in genetic quality as farmers replace one improved
variety with another
USE of quality planting material
Change in physical and/or genetic quality as farmers
replace saved seed with better quality seed
PRODUCTIVITY gains for farmers
Increased yields, fewer losses to biotic and abiotic stresses
WELFARE gains for resource-poor farmers
Increased incomes, consumption, nutrition, well-being

3. Introduction Design principles Policy options Conclusion Annexes
What makes seed systems so difficult to change?
Integration between formal, informal seed markets
Assessment genetic/physical quality of seed ex ante
Appropriation of the gains from innovation
Articulation of demand for seed
Scaling in fragmented markets

4. Introduction Design principles Policy options Conclusion Annexes
Which public policies matter? A shortlist
1 Seed laws and legislation
2 Seed rules, regulations, guidelines
3 Public investment in research, extension, production
4 Seed producer subsidies and taxes
5 Seed user subsidies and taxes
6 Trade rules and regulations

5. Introduction Design principles Policy options Conclusion Annexes
Which policies matter? A schematic

6. Introduction Design principles Policy options Conclusion Annexes
Seed policy reforms occur in a hotly contested space

7. Introduction Design principles Policy options Conclusion Annexes
Key design elements
1 Rules for accessing better genetics
2 Procedures for accelerating varietal release
3 Regulations for assuring seed quality
4 Investments for promoting new seeds and traits
5 Incentives for encouraging market growth

8. Introduction Design principles Policy options Conclusion Annexes
There is an optimal level of regulation wrt market size
Q
Regulatory costρl ρhρ∗
Regulatory cost ρ may increase market size Q,
but only up to some optimal level ρ∗

9. Introduction Design principles Policy options Conclusion Annexes
“Integrate into the Informal” strategy
Leverage informal seed systems
Build farmers’ capacity to select, produce quality seed
through project support
Leverage farmer collective action, social networks to
disseminate seeds and traits
Concentrate public investment in breeding and extension
Limit focus on varietal registration, seed certification, IP
protection
Ex: Sub-Saharan Africa: cassava, sweet potato, banana

10. Introduction Design principles Policy options Conclusion Annexes
“Formalize the Informal” strategy
Regulate all seeds and traits in the system
Maintain control over varietal registration and release
Enforce quality assurance with strict inspection systems
Encourage private investment with IP protections
Discourage farmer production and marketing of seed
Ex: Kenya: potato; Zambia: maize

11. Introduction Design principles Policy options Conclusion Annexes
“Formalize Where it Matters Most” strategy
Regulate strategically
Require varietal testing for strategic crops only
Certify early generation seed only
Allow farmers to produce and sell seed
Introduce lower quality standards for farmer-produced seed
Encourage private investment in commercial seed
Ex: Pakistan, Ethiopia: wheat; Vietnam: cassava

12. Introduction Design principles Policy options Conclusion Annexes
“Focus on Commercial Potential” strategy
Foster private sector-led growth of seed markets
Allow for automatic/voluntary variety registration
Allow for truthful seed labeling, not formal certification
Enforce plant breeders rights and IP protections
Encourage investment in breeding, production, marketing
Let farmers respond to market signals
Ex: Bangladesh: hybrid rice; Zambia: Hybrid maize

13. Introduction Design principles Policy options Conclusion Annexes
“Farmer Self-Regulation” strategy
Encourage farmer-led development of seed markets
Finance crop breeding through levies and contributions
Encourage seed production and marketing through
farmer-based organizations
Rely on collective action/self-regulation to assure quality
Invest in social organization, cooperative management,
technical training
Ex: US, Europe: wheat, potato

14. Introduction Design principles Policy options Conclusion Annexes
Crop and country matter

15. Introduction Design principles Policy options Conclusion Annexes
Political economy and policy processes matter
How does a country navigate the policy change
process? Consider...
Where the change process occurs (centrally, locally)
Roles, interests, and power of key actors
Complementary investments in hard/soft infrastructure
needed
Technical, organizational and regulatory capacities required

16. Introduction Design principles Policy options Conclusion Annexes
Conclusion
1 No easy answers, no silver bullets
2 Lots of experience and more questions
3 More structure to our thinking: a clearer narrative
4 Urgent need for evidence on “what works” in seed policy

17. Introduction Design principles Policy options Conclusion Annexes
Questions, comments?
Thank you
d.spielman@cgiar.org

18. Introduction Design principles Policy options Conclusion Annexes
Acknowledgments
This presentation was prepared with generous support from the CGIAR Research Program on
Policies, Institutions, and Markets (PIM). The presentation also draws on prior work
conducted under the Cereal Systems Initiative for South Asia (CSISA) and supported from the
Bill & Melinda Gates Foundation (BMGF) and U.S. Agency for International Development
(USAID); and under the Regional Strategic Analysis and Knowledge Support System in Asia
(ReSAKSS-Asia), supported by USAID. Helpful insights were provided by Alan Rennison,
Gary Atlin, and Tony Cavalieri at the Bill & Melinda Gates Foundation; Melinda Smale and
Mywish Maredia at Michigan State University; Olaf Erenstein and Mariane B¨anziger at the
International Maize and Wheat Improvement Center (CIMMYT); Guy Hareau and Margaret
McEwan at the International Potato Center (CIP) and the CGIAR Research Program on
Roots, Tubers, and Bananas; Adam Kennedy and Todd Benson at IFPRI; Ahsan Rana at the
Lahore School of Management Sciences; and Rob Tripp. Any and all errors are the sole
responsibility of the presenter.

19. Introduction Design principles Policy options Conclusion Annexes
References & suggested reading
1 Kloppenburg, J. 1988. First the Seed. The Political Economy of Plant Biotechnology
1492–2000. Cambridge, UK: Cambridge University Press.
2 Lipper, L., C.L. Anderson, C.L., and T.J. Dalton. 2010. Seed Trade in Rural Markets:
Implications for Crop Diversity and Agricultural Development. London: FAO and
Earthscan.
3 Louwaars, N., and W. de Boef. 2012. Integrated seed sector development in Africa: a
conceptual framework for creating coherence between practices, programs, and policies.
Journal of Crop Improvement 26: 39–59.
4 Spielman, D.J., and M. Smale. 2017. Policy Options to Accelerate Varietal Change among
Smallholder Farmers in South Asia and Africa South of the Sahara. IFPRI Discussion
Paper 01666. Washington, DC: IFPRI.
5 Spielman, D.J., and A. Kennedy. 2016. Towards better metrics and policymaking for
seed system development: Insights from Asia’s seed industry. Agricultural Systems 147:
111–122.
6 Tripp, R., 1997. New Seed and Old Laws: Regulatory Reform and the Diversification of
National Seed Systems. London: Intermediate Technology Publications.
7 Tripp, R., and N. Louwaars. 1997. Seed regulation: choices on the road to reform. Food
Policy 22(5), 433–446.
8 World Bank Group. 2017. Enabling the Business of Agriculture.
http://eba.worldbank.org/.