Maize seed marketing chains and marketing efficiency along supply chains of the hills in Nepal

Abstract

Remoteness, poor infrastructures, labor shortages, small quantities of seed at the producer level and few private seed traders are inherent problems in maize seed production and marketing in the hills of Nepal. Farm-saved seed, including seed exchange and private sector supply are the main sources of improved maize seeds in Nepal. Using the primary data collected from 200 respondents across 20 hilly districts of Nepal, this paper analyzes marketing chains and the efficiency of marketing of improved maize seed along the supply chains. The results show five major maize seed marketing chains. Chain I involved producers, collectors, wholesalers, retailers and consumers; Chain II involved producers, collectors, wholesalers and consumers; Chain III involved producers, collectors, retailers and consumers; Chain IV involved producers, collectors and consumers; and Chain V involved producers and consumers. A total of 64.3 tons of improved maize seed was marketed through the identified chains. Chain II was the most important supply chain, accounting for 38.8per cent of total marketed seeds; while Chain I was the least important, accounting for 4.3per cent. Producers’ share on consumer price was highest in Chain V (100per cent) and lowest in Chain III (66per cent). Transportation cost accounted for the highest amount (average 47.5per cent). Highest margin of profit (NRs 6.5/kg) was taken by retailers and lowest by collectors (NRs 2.5/kg). Highest marketing efficiency with a magnitude of 7.24 was observed in Chain V and lowest with a magnitude of 0.9 in Chain I.