Analysis of the Performance of Local Hybrid Maize Seed Production and Marketing In Marwoled and Goshyie, Womberma and Yilmandensa woreda, Amhara, Ethiopia

Production and marketing of hybrid maize seed is constrained by different production and marketing factors in the study area. To analyze those factors, this study was carried in local hybrid maize seed production and marketing in Marwoled and Goshyie seed Producers. Multi-stage sampling techniques were used to select the study area considering their participation in hybrid seed production and marketing. The total sample consisted of 140 members selected randomly. Descriptive statistics and multiple linear regression models were employed to analyze the performance of production and marketing of local hybrid maize seed and also it was measured using indicators of marketing margins and concentration ratio. In addition, the level of perception of the seed producers towards the existing contract local hybrid maize seed production and marketing agreement was identified. The quantity production and supply of local hybrid maize seed was significantly and positively influenced by amount of UREA fertilizer, access to credit, Experience in contract hybrid maize seed production and Time of seed supply. Seed processing, transportation and warehouse cost were identified as the major cost components of local hybrid maize seed marketing which accounted 52.20% of the total seed marketing cost. The gross margin analysis proved that local hybrid maize seed producer shares Producer’s Gross Marketing Margin (GMMP)and Net Marketing Margin(NMM) of 52.12% and 65.76% of the consumers’ price, respectively. The result of concentration ratio reveal BH660 hybrid maize seed marketing was inefficient at regional level. In 2010, maize seed production and marketing was profitable with per hectare returns of birr 28344.29 over total cost of birr 9884.02. The sample hybrid maize seed producer farmers gain 79.98% higher income than those who grew grain maize for open market. Based on this finding 95 and 79.29percent of the sample households perceived positively that the existing contract hybrid maize seed production and marketing arrangement increases the producers return and level of fertilizer utilization. On the other hand the respondents disagreed with existing price of their produce, time of payment, time of seed supply. Low selling price of locally produced hybrid maize seed, lack of training, lack of fund and poor coordination and communication within seed production and marketing participants identified as constraints. Increasing farmers’ technical experience, access of long rainy season and Existence of sustained demand of quality hybrid maize seed identified as opportunities. Poor seed quality inspection system and uniform seed pricing strategy for different grades of local hybrid maize seed identified as major threat for community-based hybrid maize seed production and marketing. To mitigate the existing local hybrid maize seed production and marketing constraints responsible organizations should give attention to provide technical support for Seed producers and traders to exploit properly the existing socioeconomic, institutional and environmental opportunities and potentials and encourage Seed producers’ cooperatives to play their role at local, regional and National seed marketing.