Seed certification and maize, rice and cowpea productivity in Nigeria: An insight based on nationally representative farm household data and seed company location data (WP5 Nigeria Study 2022) Hiroyuki Takeshima (presenter) Senior Research Fellow, IFPRI Seed Equal: Reflect, Assess, and Plan Addis Ababa, 13-17 March 2023 Background and objectives Background  Significant interests in seed certification expansion in Nigeria  Limited evidence on seed certification impacts Objectives  Assess heterogeneous returns to seed certification  Generate evidence toward more flexible, decentralized seed quality assurance systems in Nigeria www.cgiar.org 1 Seed quality assurance in Nigeria  National Agricultural Seeds Seed inspectors per million ha of Council Act 2019 empowered arable land NASCs to provide legal backing Zambia 31.1 for seed certification Madagascar 20.0 Ghana 17.1  Certified seed production Zimbabwe 15.0 South Africa 15.0  Private companies – 95% Malawi 10.3 Mali 9.4  Procured by local gov’t for Kenya 8.6 distribution (rest sold Burkina Faso 7.5 directly by dealers) Rwanda 6.9 Senegal 6.6  Varietal diversity - limited Burundi 5.8 Mozambique 4.4  Seed Certification Officers are Tanzania 3.6 located in Agricultural Liberia 2.0 Development Project (ADP) area Ethiopia 2.0 in each state Nigeria 1.7 Uganda 1.0  QDS - limited Source: Number of seed inspectors from Mabaya et al. (2021), Waithaka et al. (2019, 2021). Arable land are from FAOSTAT (2022). www.cgiar.org 2 Certified seed production in Nigeria has varied at significant scale over time 200,000 120 100 150,000 80 100,000 60 40 50,000 20 0 0 Maize (Hybrid) Maize (OPV) Maize Rice Rice (Lowland) Rice (Upland) Others Source: Calculations based on NASC annual reports in left-hand side panels, and FAOSTAT in right-hand side panels. www.cgiar.org 3 tons 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2020 Inedx (Proportion to seed used: Seed use = 100) 2010 2011 2012 2013 2014 2015 2016 2017 2020 Certified seed production for cowpea gradually increasing 1,400 1.0 1,200 0.9 0.8 1,000 0.7 800 0.6 0.5 600 0.4 400 0.3 0.2 200 0.1 0 0.0 Cowpea Cowpea Source: Calculations based on NASC annual reports in left-hand side panels, and FAOSTAT in right-hand side panels. www.cgiar.org 4 tons 2009 2010 2011 2012 2013 2014 2015 2016 2017 2020 Index (Proportion to seed used: Seed use = 100) 2010 2011 2012 2013 2014 2015 2016 2017 2020 Certified seeds production by seed company headquarter locations 2009 2009 2009 2011 2011 2011 2014 2014 2014 2017 2017 2017 2020 2020 2020 Maize Rice Cowpea Source: Compilations from NASC annual reports (various years) (Takeshima et al. 2022). www.cgiar.org 5 Empirical methods Panel fixed effects regression 𝒚𝒚𝒌𝒌𝒌𝒌𝒌𝒌𝒌𝒌 = 𝛼𝛼 + 𝛽𝛽1𝑺𝑺𝒌𝒌𝒌𝒌𝒌𝒌 + 𝛽𝛽2𝑺𝑺𝟐𝟐𝒌𝒌𝒌𝒌𝒌𝒌 + 𝛾𝛾𝑋𝑋𝑖𝑖𝑖𝑖𝑖𝑖 + 𝑢𝑢𝑘𝑘𝑖𝑖𝑖𝑖 + 𝜀𝜀𝑘𝑘𝑖𝑖𝑖𝑖𝑖𝑖 Yield Certified seeds Farmer (k = crop, produced by seed fixed i = farmer companies effects j = LGA/State headquartered in t = Year) LGA/State j 𝒚𝒚𝒌𝒌𝒌𝒌𝒌𝒌𝒌𝒌 = 𝛼𝛼 + 𝛽𝛽𝐶𝐶 ⋅ 𝑪𝑪𝒌𝒌𝒌𝒌𝒌𝒌𝒌𝒌 + 𝛽𝛽𝐶𝐶𝐶𝐶𝐶 ⋅ 𝑪𝑪𝒌𝒌𝒌𝒌𝒌𝒌𝒌𝒌 ⋅ 𝑍𝑍𝑖𝑖𝑖𝑖 + 𝛽𝛽𝐶𝐶 ⋅ 𝑋𝑋𝑖𝑖𝑖𝑖𝑖𝑖 + 𝜐𝜐𝑘𝑘𝑖𝑖𝑖𝑖 + 𝜀𝜀𝑘𝑘𝑖𝑖𝑖𝑖𝑖𝑖 Certified seeds Agroclimatic used (yes = 1) conditions Instrumental 𝑺𝑺 variables 𝑺𝑺𝒌𝒌𝒌𝒌𝒌𝒌 𝒌𝒌𝒌𝒌𝒌𝒌 ⋅ 𝑍𝑍𝑖𝑖𝑖𝑖 www.cgiar.org 6 Data  LSMS-ISA (NBS & World Bank)  Certified seeds produced by seed companies (NASC annual reports)  Seed company headquarter locations (NASC)  Agroclimatic data (Various sources) www.cgiar.org 7 Positive but declining marginal returns: Maize Categories Use improved Use of certified seeds Use of certified seeds Yield (proportional varieties (yes = 1) (yes = 1) (improved) (yes = 1) increase) Certified seed production -0.178 0.465*** -0.020 0.309*** (States of seed companies) (0.149) (0.170) (0.295) (0.103) Square term 0.175 -0.236* 0.134 -0.149 (0.117) (0.127) (0.199) (0.091) Certified seed production 1.040*** 0.712*** 0.547*** 0.109 (LGA of seed companies) (0.137) (0.144) (0.183) (0.068) Square term –0.804*** –0.594*** –0.415*** –0.121*** (0.116) (0.112) (0.141) (0.037) Other controls Yes Yes Yes Yes Yes Yes Yes Yes Wave dummy Yes Yes Yes Yes Yes Yes Yes Yes Intercept Yes Yes Yes Yes Yes Yes Yes Yes Samples responding at least two 650 650 650 650 650 650 1945 1945 rounds Source: Takeshima et al. (2022). ***1% **5% *10% www.cgiar.org 8 Rice - similar patterns Categories Use improved Use of certified seeds Use of certified seeds Yield (proportional varieties (yes = 1) (yes = 1) (improved) (yes = 1) increase) Certified seed production -6.455 -0.442 2.123*** -0.217 (States of seed companies) (7.050) (5.054) (0.985) (0.529) Square term -6.713 3.401 –1.251*** 0.261 (6.291) (1.859) (0.361) (0.362) Certified seed production 0.565 -0.149 1.722** 0.145** (LGA of seed companies) (1.148) (0.752) (0.657) (0.066) Square term -0.489 -0.136 –1.147** –0.124** (0.936) (0.686) (0.529) (0.059) Other controls Yes Yes Yes Yes Yes Yes Yes Yes Wave dummy Yes Yes Yes Yes Yes Yes Yes Yes Intercept Yes Yes Yes Yes Yes Yes Yes Yes Samples responding at least two 102 102 102 102 102 102 509 509 rounds Source: Takeshima et al. (2022). ***1% **5% *10% www.cgiar.org 9 Cowpea - similar patterns Categories Use improved Use of certified seeds Use of certified seeds Yield (proportional varieties (yes = 1) (yes = 1) (improved) (yes = 1) increase) Certified seed production 0.890** 0.612 0.646 0.464*** (States of seed companies) (0.385) (0.432) (0.426) (0.128) Square term –0.523** –0.288 –0.508** –0.438*** (0.204) (0.219) (0.201) (0.107) Certified seed production 0.098 0.488*** 0.029 0.013 (LGA of seed companies) (1.116) (0.120) (0.124) (0.019) Square term -0.119 –0.511*** 0.015 0.000 (0.114) (0.120) (0.124) (0.015) Other controls Yes Yes Yes Yes Yes Yes Yes Yes Wave dummy Yes Yes Yes Yes Yes Yes Yes Yes Intercept Yes Yes Yes Yes Yes Yes Yes Yes Samples responding at least two 436 436 436 436 436 436 2076 2076 rounds Source: Takeshima et al. (2022). ***1% **5% *10% www.cgiar.org 10 Declining marginal returns to seed certification 𝜌𝜌𝑙𝑙 𝜌𝜌∗ 𝜌𝜌ℎ Policy and regulatory costs Source: Spielman (2022). www.cgiar.org 11 Seed sector value/growth ($, %) Heterogeneous returns to certified seeds due to agroclimatic conditions Determinants of yield OLS-fixed effects OLS-fixed effects IV-fixed effects model model model Coef. Coef. Coef. (s.e.) (s.e.) (s.e.) Used certified seed × Soil 0.424* (0.207) 0.289 (0.228) 0.900 (0.572) alkalinity × Organic contents -0.342** (0.149) -0.361** (0.172) -1.476***(0.507) Soil alkalinity Soil organic Soil drainage × Soil texture (medium) 0.096 (0.173) 0.013 (0.176) 0.268 (0.417) (pH) contents property × Soil texture (fine) 0.119 (0.123) 0.147 (0.134) 0.147 (0.323) × Soil salinity 0.007 (0.114) 0.100 (0.110) -0.155 (0.293) × Soil sodicity -0.046 (0.175) -0.055 (0.182) -0.050 (0.415) ×Soil drainage (poor drainage) 0.258* (0.133) 0.269** (0.127) 0.071 (0.288) × Soil drainage (excess drainage) 0.185 (0.159) -0.032 (0.180) 0.020 (0.421) × Rainfall z-score 0.510 (0.322) 0.638* (0.351) -1.526* (0.931) × Temperature z-score 0.076 (0.129) 0.275** (0.126) -0.735** (0.309) × Wind -0.018 (0.202) 0.299 (0.209) -1.898***(0.609) × ln (farm size) 0.255** (0.117) 0.264** (0.121) -0.263 (0.381) × ln (agricultural capital) 0.261** (0.119) 0.176 (0.118) 0.463 (0.338) × ln (asset) -0.074 (0.102) -0.231** (0.112) -0.365 (0.287) × Female household head -0.129 (0.111) -0.169 (0.123) -0.617** (0.270) Used certified seed Yes Yes Yes Used certified seed × maize Yes Yes Yes Wind Rainfall Temperature Used certified seed × rice Yes Yes Yes anomaly anomaly Geopolitical zone dummy Yes Yes Yes Other control variables Yes Yes Yes Certified seed production by Yes seed companies in the state Number of observations (panel 920 920 920 samples growing the same crops in both waves) p-value (H0: model insignificant) .000 .000 .000 p-value (H0: not overidentified) .380 www.cgiar.org Source: Takeshima et al. (2022). ***1% **5% *10% 12 Policy recommendations  Revisit seed certification target in Nigeria  Excessive expansion of certified seed production may not necessarily lead to higher use rates or yield outcomes when compared to more moderate levels of certified seed production  Prioritize spatially the seed certification expansion effort if it is still of policy importance:  continue research to better identify locations with higher returns to certified seeds, given agroecological / socio economic conditions and currently popular varieties  prioritize in those locations  certification capacity enhancement / deployment of inspectors => this may encourage seed companies to invest in certified seed production in those areas  enforcement capacity (i.e., spot check of certified seeds sold by dealers conducted by NASC)  Identify and prioritize where hybrid maize is more widely adopted (so that certification efforts shift relatively more to hybrid maize)  Promote more decentralized systems, like QDS / community seed schemes for rice, cowpeas, OPV maize (as in various Eastern and Southern African countries) www.cgiar.org 13 More details available in IFPRI Discussion Paper: Takeshima H, T Abdoulaye, KS Andam, HO Edeh. A Fasoranti, B Haile, P. Lava Kumar, C Nwagboso, C Ragasa, D Spielman, T Wossen. (2022). Seed certification and maize, rice and cowpea productivity in Nigeria: An insight based on nationally representative farm household data and seed company location data. IFPRI DP 02147. https://doi.org/10.2499/p15738coll2.136474 Thank you !