appendices

APPENDICES 

Appendix 1. Program of the stakeholders workshop: Testing market 

segmentation of seed for agricultural development in Africa 

CIMMYT, ICRAF Campus, Nairobi, 8.30 am, Thursday 26 June, 2008 

Chair: Dr. Stephen Mugo, CIMMYT 

Rapporteur: Dr. David Spielman, IFPRI 

Logistics: Ms. Dorothy Nanzala & Jane Mwangi 

8.30a.m. Opening remarks 

� Welcoming remarks, Marianne Banziger, Dir. CIMMYT(Global Maize 

Program) 

� Introductions, Stephen Mugo, CIMMYT 

� Background of the project , Mike Hall, USAID 

� Objectives of the meeting and expected output, Obongo Nyachae, STAK 

9.00a.m. Technical presentations 

� Importance of certified seed, untapped markets, Obongo Nyachae, STAK 

� Public goods and private investment - lessons 

learned from international experience David Spielman, IFPRI 

� Maize seed use by the poor, options for 

market segmentation Hugo De Groote, CIMMYT 

10:00a.m. COFFEE BREAK 

10:30a.m. Beneficiary targeting in Kenya 

� Experience of the Ministry of Agriculture Philip Makheti, NAAIP 

� Experience in the NGO sector Ruth Nguyo, CRS 

� Preliminary results of stakeholder consultation, Mike Hall, USAID 

11:00a.m. Discussion Stephen Mugo & Dr. De Groote 

� Experience from other stakeholders 

� Points of discussion as raised by presentations 

and preliminary consultation 

12:45p.m. Way-forward and wrap-up 

1.00p.m. LUNCH AND DEPARTURE 

48

Appendix 2. List of participants 

Banziger Marianne, Dr., CIMMYT, PO Box 1041-00621, Nairobi, 254-20-7224600, 

M.banziger@cgiar.org 

De Groote Hugo, Dr., CIMMYT, PO Box 1041-00621, Nairobi, 254-20-7224600, 

h.degroote@cgiar.org 

Gaithigi Bernard, Mr., CIMMYT, PO Box 1041-00621, Nairobi, 254 (0)721-529890, 

bgathigi@tegemeo.org 

Gathama Samuel, Mr., PIONEER SEEDS, , , 254-20-550869 

254 (0)722-709432, gathama@africaonline.co.ke 

Gathigi Ben, , Tegemeo Institute, , , , 

Goble Nick, Mr., Pannar Seed (Kenya) Ltd, PO Box 10383, Nairobi, 254-20-820121, 

nick.goble@pannar.co.za 

Gohole Linnet , Dr., Moi University, Seed Tech Dept. 

PO Box 1125-30100, Eldoret, 254-53-63212, lgohole@africaonline.co.ke 

seedtech@africaonline.co.ke 

Hall Mike, Dr., USAID, , Nairobi, 254-20-8622306, mhall@usaid.gov 

Ininda Jane, Dr., Alliance for a Green Revolution 

in Africa (AGRA), PO Box 66773-00800, Nairobi, 254-20-3750627 

254 (0)734699996, jininda@agra-alliance.org 

Karanja James Gichanga, Capt., Freshco Kenya Ltd, PO Box 27659-00506, Nairobi, 254-20- 

3753122/3, karanjajg@freshcoseeds.com 

Kiguru Lawrence, Mr., World Vision, PO Box 50816, Nairobi, 254-20-6926000, 

lawrence_kiguro@wvi.org 

Kimani Virginia, Dr., CARPA (Rep Worlds Vision), , , , carpakenya@yahoo.com 

Longley Kate , Dr., ICRISAT, PO Box 39063-00623, Nairobi, 254-20-7224552/4, 

k.longley@cgiar.org 

Mahinda Joseph, Mr., Farmers World Ltd, PO Box 2939, Nakuru, 254-51-2214635/6 

254 (0)722-323305, farmers@africaonline.co.ke 

Makokha Stella, Dr., KARI-NARL, PO Box 14733-00800, Nairobi, 254-20-4444143, 

stellamakokha@yahoo.com 

Mbugi Abraham, Mr., Monsanto Kenya Ltd, PO Box 47686, Nairobi, 254 20 2719567, 

abraham.mbugi@monsanto.com 

Muchai Daphne , Mr., KENFAP Representative, PO Box 43148-00100, Nairobi, , 

producers@kenfap.org 

Mugo Stephen , Dr., CIMMYT, PO Box 1041-00621, Nairobi, 254-20-7224600, 

smugo@cgiar.org 

Mukindia Stanley Guantai, Mr., ACDI-VOCA 

(Kenya Maize Dev. Prog), PO Box 1308-00606, Nairobi, 254-20-4443254, 

Muriuki Susan , Dr., Ministry of Agriculture , PO Box 30028-00100, Nairobi, 254-20-2718870 

254 (0)721986276, suzannairobi@yahoo.com 

Mutonyi James , Dr., CNFA/Agmark, PO Box 14184-00800, Nairobi, 254-20-3740268 

254-20-3740343, jmutonyi@cnfakenya.org 

Mwaura Francis, Mr., Kenya Seed Company Limited, PO Box 553, Kitale, 254-54–30912, 

31309, fchegemwaura@yahoo.com 

'info@kenyaseed.co.ke 

49

Nambiro Elizabeth, Dr., KARI, PO Box 57811-00200, Nairobi, 254 (0)722-472745, 

enambiro@yahoo.com 

Nelson Craig, Mr., Pannar Seed (Kenya) Ltd, PO Box 10383, Nairobi, 254-20-820121, 

craig.neilson@pannar.co.ke 

Ngigi Obadiah Hinga, Mr., Egerton University, Njoro, PO Box 536, Njoro, 254 (0)724-210477, 

ngigioh@yahoo.co.uk 

Nguyo Ruth, Ms., Catholic Relief Services (CRS), , Nairobi, 254-20-4210107, 254 

(0)733403401+H12, rnguyo@crskenya.org 

Njihia Kahenya, Mr., FAIDA Seeds, PO Box 2657-20100, Nakuru, wireless: 2027756, 

info@faidaseeds.com 

Njoroge Josphat K., Mr., East African Seeds Co. Ltd., , Nairobi, 254 (0) 724-123723, 

info@easeed.com 

njoroge@easeed.com 

Nyachae Obongo, Mr., STAK, , Nairobi, 254-20-2713619, stak@stak.or.ke 

Omanya Gospel, Dr., AATF, -, Nairobi, 254-20-4223700, g.omanya@aatf-africa.org 

Onyango Ann, Ms., Ministry of Agriculture , PO Box 30028-00100, Nairobi, 254-20-6752962, 

2718870, annakinyi_2005@yahoo.com 

Sakhasia Juma, Mr., Farmchem Seedlinks Ltd, PO Box 18407-00500, Nairobi, 254-20-542678/9; 

254-20-550448/9, farmchem@farmchemafrica.com 

'info@farmchemafrica.com 

Sikinyi Evans, Dr., KEPHIS, PO Box 49592-00100, Nairobi, 254-20-3536171, 3536175, 

esikinyi@kephis.org 

Sikobe Rymer, Mr., Ministry of Agriculture (NAAIAPI), PO Box 30028-00100, Nairobi, 254- 

20-2718870 

254 (0)734-463580, sikobery@yahoo.com 

Soi Azariah, Mr., Simlaw Seeds, PO Box 40042-00100, Nairobi, 254 20 2215066/7/83, 

soi@simlaw.co.ke , admin@simlaw.co.ke 

Spielman David, Dr., IFPRI, PO Box 5689, Addis Ababa, Ethiopia, tel: +251.11.6172505, mbl: 

+251.911.414949, d.spielman@cgiar.org 

Van DenBerg Marcel , Dr., ICRISAT, PO Box 39063-00623, Nairobi, 254-20-7224563/4, 

m.j.vandenberg@cgiar.org 

Walker Sophie, Ms., ACDI-VOCA 

(Kenya Maize Dev. Prog), PO Box 1308-00606, Nairobi, 254-20-4443254, 

sophie@kenagri.com 

Wangia Caleb, Dr., CNFA/Agmark, PO Box 14184-00800, Nairobi, 254-20-3740268 

254-20-3740343, cwangia@cnfakkenya.org 

cwangia46@yahoo.com 

50

Appendix 3. Questionnaire Expert Opinion Survey 

Expert Opinion Survey on “Testing market segmentation of seed for 

agricultural development in Africa” 

The Seed Trade Association of Kenya (STAK), International Maize and Wheat Improvement 

Center (CIMMYT), United States Agency for International Development (USAID), and 

International Food Policy Research Institute (IFPRI) are conducting an expert opinion survey on 

market segmentation strategies for maize seed markets in Africa. The objective of this survey is 

to obtain expert opinions on viable market-based mechanisms that would increase small farmers’ 

access to improved seed while supporting the growth of a competitive seed industry. 

Your participation in this expert survey would be greatly appreciated. Any information you 

provide will be strictly confidential and will not be used for any purpose outside of this research. 

SECTION A: GENERAL INFORMATION 

A1 Respondent’s name 

A2 Respondent’s 

designation/position 

A3 Respondent’s name of 

organization 

A5 Contact information 

Email; 

A6 Respondent’s Academic 

background 

A7 Respondent’s years of 

experience 

51

SECTION B: DESCRIPTION OF THE ORGANIZATION 

Please tick the most appropriate description of your organization in each category below. 

B1: What type of organization do you work for? 

1 University or higher learning institute 

2 Agricultural vocational/technical training institute 

3 Agricultural research organization, not affiliated with 

a university 

4 Company producing or distributing agricultural inputs 

(e.g., seed, fertilizer, pesticides, herbicides, livestock 

breeds, etc.) 

5 Company or enterprise involved in agricultural 

processing, distribution, wholesale or retail 

6 Agricultural extension service 

7 Public regulatory agency 

8 Independent research institute, not affiliated with the 

government 

9 Research institute, affiliated with the government 

10 Farmers’ organization, cooperative, or cooperative 

union 

11 Non-governmental organization 

12 Other, please specify: 

___________________________________ 

52 

B2: At which level does your organization or company 

operate? (multiple answers possible) 

1 At the national level 

2 At the provincial level 

3 At the district level 

4 At the community level 

5 Other, please specify: 

_______________________________________ 

B3: If applicable, how many districts does your 

organization/company operate in? ________ 

B4: Please list these districts below. 

a. _______________________________________ 

b. _______________________________________ 

c. _______________________________________ 

d. _______________________________________ 

e. _______________________________________ 

f. _______________________________________ 

g. _______________________________________ 

h. _______________________________________ 

i. _______________________________________ 

SECTION B: MARKETING, SEGMENTATION AND TARGETING STRATEGIES 

B4 If applicable, please indicate how many clients/beneficiaries your organization or company 

reached in 2007? 

B5 If applicable, what type of clients/beneficiaries did your organization serve in 2007? 

1=small-scale farmers; 2=large-scale farmers; 3=both; 4=other, please 

specify__________________________________________ 

B6 What volume of seed is sold in a year?

SECTION C: STRATEGIES AND METHODS 

C1 Do you have strategies for targeting different clients? 1 =yes, 2 

=no 

C2 Has your organization/company employed differentiated seed marketing strategies? 1 =yes, 2 

=no 

C3 What is your experience with the following methods for serving low-income farmers? 

Please answer the questions below 

C3a Marketing and advertising that targets different types of clients/beneficiaries 1 =yes, 

2 =no 

Please briefly describe the method you used : 

Please give us your opinion on how effective this method was for serving low-income 

clients/beneficiaries. 

1 =not effective, 2 =somewhat effective, 3 =very effective, 4 =extremely effective, n/a 

= not applicable, x =don’t know 

C3b Providing discounts on price to lower-income clients/beneficiaries 1 =yes, 

2 =no 






C3c Providing discounts on price to regular or reliable clients/beneficiaries 1 =yes, 

2 =no 






C3d Providing discounts on price to clients/beneficiaries based on the volume purchased (i.e., higher 

discounts on large volume purchases) 






53 

1 =yes, 

2 =no

C3e Providing smaller sizes of packaging for lower-income clients/beneficiaries 1 =yes, 

2 =no 






C3f Providing low-income farmers with starter kits to encourage future purchases 1 =yes, 

2 =no 






C3g Providing discounts to low-income clients/beneficiaries against reimbursals or payments from 

non-governmental organizations 






54 

1 =yes, 

2 =no 

SECTION D: IDENTIFICATION 

D What is your experience with the following methods in identifying low-income farmers? Please provide 

your input on the questions below. 

D1 Community-based identification of low-income farmers 1 =yes, 2 

=no 





D2 Identification of low-income farmers using local administration or district development officers 





1 =yes, 2 

=no

D3 Identification of low-income farmers using information provided by non-governmental or 

community-based organizations 





D4 Identification of low-income farmers using information from seed stockists who are familiar with 

their clientele 





SECTION E. What types of interventions do you think are most effective at getting 

improved maize seed to low-income farmers? 

E1 Direct distribution of free seed 

1 =not effective, 2 =somewhat effective, 3 =very effective, 4 =extremely effective, n/a = 

not applicable, x =don’t know 

E2 Direct distribution of subsidized seed 



E3 Sale of seed at a discounted price 



E4 Sale of seed in small packages (2-5 kg) 



55 

1 =yes, 2 

=no 

1 =yes, 2 

=no 

SECTION F. If you wanted to offer vouchers to low-income farmers in order to encourage 

the use of improved maize, what type of discounts and quantities would you recommend 

offering? 

F1 Discount (your recommended percentage discount on retail price) 

____________ % 

F2 Quantity (your recommended size of the maize seed package that would be sold at a 

discounted price) ____________ kg

Appendix 4. Project summary 

Testing market segmentation of seed 

for agricultural development in Africa 

Justification 

Growth and development in Africa depend acutely on our ability to promote rapid productivity increases in the 

region’s agriculture. These productivity gains depend primarily on the ability of small-scale, resource-poor farmers 

to purchase modern inputs such as improved seed and fertilizer. 

Often, it is the high cost of improved seed marketed by private companies that challenges small farmers. 

However, without a viable and competitive private seed industry, small farmers are unlikely to gain access to 

improved seed. 

The challenge for Africa is to develop mechanisms that encourages farmer adoption of new technologies and 

supports the growth of private investment in seed markets. A combination of development- and market-oriented 

interventions can potentially achieve this, provided it simultaneously addresses the interests of small farmers and 

seed companies. 

Objective 

The objective of this project is to explore viable market-based mechanisms that would increase small farmers’ 

access to improved seed and growth of a competitive seed industry. 

To do so, the project will develop and test a market segmentation strategy for the Kenyan maize seed market that 

simultaneously lowers the cost of improved seed for low-income farmers and encourages growth of a competitive 

seed industry. 

Figure 1. Maize agroecological zones and the poor. 

Principle 

The key principle here is to maximize the benefits for low-income farmers of using improved seed while 

minimizing the costs of distributing improved seed to them, and minimizing the distortions to the competitive 

market for improved seed. 

Options 

The challenge identified here can be approached in several ways, for example, by exploring alternative 

distribution mechanisms such as: 

• Direct distribution: Selected farm households in the project area are provided with a set quantity of seed (5-15 

kg) at some discounted price. The project distributes the seed directly. 

• Tiered pricing: All farm households in the project area could be allowed to purchase a set quantity of seed (5- 

15 kg) at some discounted price. Private seed stockists sell the seed directly. 

• Voucher distribution: Selected farm households in the project area are issued vouchers that provide them with 

the right to purchase a set quantity of seed (5-15 kg) at some discounted price. Private seed stockists would 

sell seed directly. 

56

The project will also explore how to identify low-income farmers, e.g., though (a) community-based identification 

methods, (b) district development officers, (c) non-governmental and community-based organizations, or (d) 

stockists familiar with their clientele. Moreover, the project will consider alternative ways of providing discounts, 

e.g., with non-transferable numbered vouchers, digital smart cards, ID cards, or other alternatives. Finally, the 

project will address the question of exactly what level of benefits are feasible. 

Proposed way forward 

Ultimately, the best options will be those that are most reliable in targeting low-income farmers, delivering 

noticeable benefits to these farmers, and minimizing both direct administrative costs and the cost of leakage to 

higher-income farmers. This can only be ascertained with evidence accumulated from on-the-ground experience. 

This project aims to acquire the necessary evidence by testing a range of options in several pilot districts in 

Kenya. 

For further information, please contact Hugo De Groote (CIMMYT, h.degroote@cgiar.org) or 

Michael Hall (USAID, mhall@usaid.gov) 

57

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