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
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
C3c Providing discounts on price to regular or reliable 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
C3d Providing discounts on price to clients/beneficiaries based on the volume purchased (i.e., higher
discounts on large volume purchases)
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
53
1 =yes,
2 =no

C3e Providing smaller sizes of packaging for lower-income 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
C3f Providing low-income farmers with starter kits to encourage future purchases 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
C3g Providing discounts to low-income clients/beneficiaries against reimbursals or payments from
non-governmental organizations
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
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
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
D2 Identification of low-income farmers using local administration or district development officers
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
1 =yes, 2
=no

D3 Identification of low-income farmers using information provided by non-governmental or
community-based organizations
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
D4 Identification of low-income farmers using information from seed stockists who are familiar with
their clientele
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
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
1 =not effective, 2 =somewhat effective, 3 =very effective, 4 =extremely effective, n/a =
not applicable, x =don’t know
E3 Sale of seed at a discounted price
1 =not effective, 2 =somewhat effective, 3 =very effective, 4 =extremely effective, n/a =
not applicable, x =don’t know
E4 Sale of seed in small packages (2-5 kg)
1 =not effective, 2 =somewhat effective, 3 =very effective, 4 =extremely effective, n/a
= not applicable, x =don’t know
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