Title
Exploring the marketing environment for maize seed in Kenya: how competition and consumer preferences shape seed sector development
Date Issued
03 July 2020
Access level
open access
Resource Type
journal article
Author(s)
Rutsaert P.
International Maize and Wheat Improvement Centre
Publisher(s)
Taylor and Francis Inc.
Abstract
During the past decade, sizable investments have been made to strengthen maize (Zea mays L.) seed production in Eastern and Southern Africa by private seed companies. However, efforts have generally overlooked downstream issues, such as how seed companies market their products and position their business in a competitive market. This paper assesses competition and customer preferences in Kenya at the retail level for varieties from the parastatal, private domestic and international companies. Data were collected from agro-dealer surveys (n = 80) and farmer intercept interviews (n = 377). Compared to the market leader, the parastatal Kenya Seed Company, private domestic and international companies provide greater value to farmers by selling varieties that are, on average, 10 years younger. However, these companies offer few late-maturing varieties, thus giving the parastatal a near monopoly in that market segment. Kenya Seed Company also excels at being present at all sales locations with their varieties. If private domestic companies focus more on smallholders with lower budgets (including travel budget), they should consider the most cost-effective ways to extend their networks to remote areas as well as compete with the lower prices of Kenya Seed Company. Modern breeding programs should explicitly consider these marketing challenges when designing strategies for seed production and engagement with seed companies.
Start page
486
End page
504
Volume
34
Issue
4
Language
English
OCDE Knowledge area
Negocios, Administración
Agronomía
Subjects
Scopus EID
2-s2.0-85081361278
Source
Journal of Crop Improvement
ISSN of the container
15427528
Sponsor(s)
This work was funded by the Bill & Melinda Gates Foundation and USAID through the project Stress Tolerant Maize for Africa (STMA) [grant number OPP1134248] and the CGIAR Research Programs Maize Agri-Food Systems (CRP MAIZE) and Policies, Institutions and Markets (CRP PIM), supported through the CGIAR Fund. For a full list of CGIAR Fund Donors please see: http://www.cgiar.org/about-us/our-funders/. We thank Pauline Muindi and Victor Kitoto of CIMMYT as well as Agri-Food Economics Africa Limited for their support with the data collection. The contents and opinions expressed herein are those of the authors and do not necessarily reflect the views of the associated and/or supporting institutions.
Sources of information:
Directorio de Producción Científica
Scopus