1. Review of tree germplasm supply systems Jens-Peter Barnekow Lillesø Main subjects of this presentation - The two major phases in National tree Seed Centers (NTSCs) - Productive and Normative functions of NTSCs - Consequences of privatization of NTSCs - The rise of NGO tree seed supply - Comparing histories of crop and tree seed systems - Seed sector and tree seed input supply chains as a basis for analysis - Introduce some critique and suggestions from crop seed systems

2. Deforestation in 1980’s and 1990’s Disappearing tropical forests and the appeance of a lot of poor farmers No direct causal relationship gone going But a there is a lot of poor farmers (billions)

3. Brief history of tree seed supply (Danida Forest Seed Centre as the example) – Industrial plantations In the early years, the focus was on tree breeding and gene conservation National Tree Seed Centres and industrial forestry Teak in Thailand 1965-1970, Tropical pines in Thailand 1975-1980, Conifers and selected broadleaved species in India 1976-1980 Conifers and selected broadleaved species in Nicaragua 1983- 1990 At the time there was limited the interest in the investment into planting. Now there is a huge demand for teak Forest tree species for industrial purposes The lesson learnt: Public investment in programmes for gene conservation of valuable species is required, as long as it is more profitable to harvest the natural forest, whether legally or illegally

4. From the mid-80s - multipurpose tree species for a variety of tree plantings National Tree Seed Centres and rural development Tanzania, Sudan, Nepal, Uganda, Ethiopia, Indonesia, Eritrea, Thailand, Burkina Faso, Vietnam, Laos, Cambodia Most of these centres still exist today - commercial seed enterprise and national public funding. A few focus on provision of know-how. The market analyses largely built on national sector planning (e.g. national forestry action plans) Analysis of impact has been limited, but an informed guess would be that National Tree Seed Centres covered around 10% of the actual smallholder market Brief history of tree seed supply (Danida Forest Seed Centre as the example) – Multipurpose species Multipurpose species and rural development

5. Brief history of tree seed supply (Danida Forest Seed Centre as the example) – Multipurpose species Multipurpose species and rural development The lesson learnt: With partial government support it is possible to establish viable tree seed centres in developing countries. However, the impact of national tree seed centres on smallholder planting is in general limited Discussion point: The informal market is large, holding vast development potential, which approach is needed to realise this potential?

6. Brief history of tree seed supply (Danida Forest Seed Centre as the example) – Productive and Normative functions National tree seed programmes were designed with two types of functions: Productive functions: Short-term operations of seed supply, and Long term investments in tree breeding and gene conservation Normative functions include: Policy measures Regulating mechanisms, and Dissemination of information to promote appropriate use Provision of a variety of good quality material Rationale for mixing functions: Standards must be available and known before they are regulated

7. Brief history of tree seed supply (Danida Forest Seed Centre as the example) – Productive and Normative functions Provision of a variety of good quality material The normative role and long-term term investments in the tree seed sector include: Preparing plans for tree improvement and gene conservation Supporting establishment and certification of seed sources – centralised/decentralised Providing training and extension services Preparing guidelines for use and matching of seed sources to planting sites Will these functions be retained in a private Tree Seed Center?

8. Brief history of tree seed supply (Danida Forest Seed Centre as the example) – Normative role of NTSC Most centres have been partly or fully privatised with three important consequences: Limited their normative role and concentrate on financial survival Limited investments in in seed source establishment for smallholders Little incentive to support decentralised establishment of seed sources in smallholders’ diverse agroecological environments Provision of a variety of good quality material Privatisation in itself does not provide a variety of good quality material to smallholders

9. Brief history of tree seed supply (Danida Forest Seed Centre as the example) – Normative role of NTSC Provision of a variety of good quality material Lessons learnt: Short-term income required to sustain commercial seed sale is difficult to combine with longer-term investment in breeding and conservation Commercial business and public sector services in the same institution can be problematic Discussion points: What are the important public (normative) functions to support a vibrant tree seed sector for smallholders and what institution should get (substantial) financial support to carry them out? To what extent should establishment of seed sources be a public function and to what extent could it be taken up by private – catering for poor smallholders?

10. Brief history of tree seed supply – NGO supply In many countries, NGOs are now major suppliers of tree seed and seedlings to farmers, but is NGO supply an innovation compared to NTSC supply? NGOs have used two major methods: NGO procurement and distribution to farmers is organised and paid by the NGOs – sometimes hoping that farmers will start to disseminate seed to other farmers NGOs help set up seed sources for communities in the hope that the community will start selling The NGO approaches for tree seed and crop seed are very similar, and the lessons learnt from crop seed systems, as described below, are equally relevant to tree seed systems. Provision of a seed and seedlings by NGOs

11. Common limitations of NGO supply: Lack of concern or control regarding the genetic quality of the reproductive material Fail to address the long-term maintenance and protection of seed sources Seed and seedlings generally supplied on a relief basis, i.e. free of charge Impinges severely on the profitability of market-based commercial seed dealers and private nurseries The small private entrepreneurs (nurseries and seed vendors) that have appeared in some areas are generally not included in the NGO networks Instead, the NGOs usually choose to set up their own project-based networks of group nurseries. Brief history of tree seed supply – NGO supply Provision of a variety of good quality material

12. Brief history of tree seed supply – Learning from crop systems Is agroforestry tree seed systems catching up?

13. Brief history of tree seed supply – Learning from crop systems Parallel histories - changes for agroforestry delayed about a decade

14. The lack of tree seed, seedlings and other planting material repeatedly continue to be identified as one of the most important constraints to the greater adoption of tree planting and in particular agroforestry innovations What to do? – Learning from crop systems In summary: The National tree seed centres have been privatised, and NGOs have taken over their role This change has not substantially improved the problem: Crop seed systems has gone through the same evolution and the approach for analysis may be useful in an agroforestry context

15. Actors Seed source owners Seed collectors Seed distributors Private nurseries Project nurseries Communal nurseries Extensionists Seed customers Seedling customers Research organisations NGOs NTSCs Institutional environment Rules and regulations for seed/ seedling production and distribution Other laws for: land tenure, business, credit possibilities Pathways for information exchange between actors Extension, networks... Formal sector Public and private organisations with specialised roles and legal recognition Informal sector Individual farm households, small-scale nursery owners, seed vendors with no clear policy support and NGOs organising seed production Learning from the crop seed sector - Analyzing the sector The smallholder tree seed system

16. A well functioning seed system requires Economic input (costs) and output (income) Efficient seed / seedling flows of species and varieties that can meet the requirements of farmers Efficient information flows ensuring that distributors and customers (farmers) are well informed about the availability of these species and varieties Other actors performance and trustworthiness Technical production options Information about: Seed/seedling Procurement Seed/seedling Distribution Seed/vegetative Sources Seed-Seedlings Information Learning from the crop seed sector

17. Governance in production and distribution chains Who finances / controls germplasm sources? Who organises germplasm collection / transport / processing / cleaning / testing / storing? Who organises germplasm distribution to consumers? Seed/vegetative Sources Seed/seedling Procurement Seed/seedling Distribution Who provides information flows between producers and producers Who provides information to consumers (smallholders) Learning from the crop seed sector

18. We know of no case in Africa where a sustainable small-scale seed enterprise has emerged from community-level seed enterprises (Tripp and Rorbach, 2001). NGO programmes have not encouraged smaller scale seed business, but concentrated on the physical distribution of seed to smallholders - up-scaling would require an enormous increase in NGO funds devoted to seed activities (Wiggins and Cromwell, 1995). The impact of improved germplasm from CGIAR has been limited by seed production and marketing constraints (van Gastel et al, 1997) Much of the current investment in public sector crop breeding in sub-Saharan Africa is wasted because effective seed delivery systems are not in place (Tripp 2006) Learning from the crop seed sector Statements by leading crop seed systems researchers: To what extent do they apply to tree seed systems?

19. General suggestions to overcome constraints in seed systems (adapted from crop seed systems) (i) Smaller seed enterprises, with small overheads capable of supplying seed at competitive prices Requires: access to good germplasm, business networks, and marketing (extension) capacity (ii) The distribution of free seed and seedlings should be substituted by support to producers of seedlings and seed Requires: public support to marketing and introduction of new species/varieties (iii) International institutions and national tree seed centres may promote regional programmes to dissipate marketing risks and promote scale economies. Requires: harmonised standards for tree seed quality, trade regulation and recommendation domains for tree provenances (iv) International institutions and national tree seed centres could help increase returns to investments in breeding and conservation by producing foundation seed for the private sector. Requires: World Agroforestry Centre and NTSCs help increase returns to investments in domestication and conservation by helping to establish seed sources of key species and provenances.

20. Which agriculture development strategy will bring development for smallholders? Free market strategy –Mainly support to large scale farms, and creation of employment outside small-scale farms Interrelated rural development strategy –More emphasis on self sustaining production and little emphasis on markets. –Community Based Development and Livelihoods Price and marketing strategy –Focus on market limitations for smallholder participation. –Opportunities for farmers’ organisations to develop the human and social capital necessary to become full actors in the market Two views on smallholder agroforestry: A forestry activity? An agricultural activity? Basic assumptions used in the analysis of smallholder development

21. Summing up Analysing the roles and functions of the actors in the formal and informal systems may lead to more productive and efficient systems Efficiency of the chains of production – procurement – distribution depends on who controls each link and how the chains are supported Sources is a major challenge for development of efficient systems. In the afternoon we will take a closer look at how to categorize and describe sources taking into account their individual genetic quality criteria and procurement characteristics. The analysis of systems can be complicated. Tomorrow we will introduce a framework for analysis that are widely used in agroindustrial sectors, and may be useful for tree seed systems as well