1) The document proposes a Village Seed Entrepreneur (VSE) model in Nigeria to address challenges with the prevailing cassava seed system and establish a sustainable seed system. 2) Under the BASICS project, CRS and NRCRI have selected, trained, and supported VSEs who have seen increasing yields and profits over three years through demonstrations and quality seed production and sales. 3) Financial analysis shows that while cassava seed/root production provides low profits of $350/hectare for individual farmers, it provides over five times more profit for VSEs through seed sales and multiplication over multiple years, making it a viable business model.

1. Business case for Village
Seed Entrepreneur (VSE) in
Nigeria
Position Project Director
E-mail h.nitturkar@cigar.org
Date 24th October 2018
Name Hemant Nitturkar

2. Increasing productivity in Cassava,
and other RTB crops, is vital!
“…extreme poverty is
becoming super
concentrated: By 2050,
86% of extremely poor
people (living on $1.90 a
day) will be living in Sub-
Saharan Africa…”
Bill Gates, 2018

3. Prevailing Cassava seed system
@60 bundles/ha, over 300 million bundles are being planted
every year over the 6 m ha of cassava in Nigeria (FAO 2016)
DISTRIBUTION METHODS CHALLENGES
Saved Stems from own farm Low Productivity
Stem from friends and relatives Unreliable, Dubious quality
Informal seed system Unreliable, Dubious quality
Donor Sponsored Projects and Programs Unreliable, Occasional, Non-inclusive
Public Sponsored Programs Unreliable, Occasional, Non-inclusive

4. Sustainable cassava seed system
Problem with the current seed system:
• Unreliable and dubious
• No recurse or no light at the end of the tunnel
Challenges in establishment of a sustainable seed system
• Unviable business proposition due to seed reusability
• Low and slow multiplication, low margins/high volumes
• Bulky, hence costly, and delicate to transport
• Farmers cannot afford risk, need to see for themselves

5. Village Seed Entrepreneur (VSE) model
• VSE or some community based,
distributed avatar of it appears the
only viable option
• CRS and NRCRI lead this component
• Select, train and handhold the VSEs
• Agronomy, Business & Quality
training
• Demonstrations and market
promotions to create demand

6. VSE performance under BASICS so far
PARTNER PARTICULARS 2016 2017 2018
CRS # VSEs planted 28 104 94
CRS Hectares planted 40 107 97
CRS Bundles harvested 0 5429 12,000*
NRCRI # VSEs planted 0 35 50*
NRCRI Hectares planted 0 35 98*
NRCRI Bundles harvested 0 0 NA
• * WIP, final figures will be
known by November 2018
• NA – info Not Available yet
• 85% certification rate, 30% VSEs females
• 6/10 farmers aware of the VSEs and about seed

7. VSE FinancialsCassava seed/root production - Business case
COSTS
Stem + root
($/ha)
Root only
($/ha)
Land cost 30 30
Total labour for crop husbandry 250 200
Planting material 170 50
Other inputs cost 200 150
Miscellaneous 200 100
Total production cost $/ha 850 530
REVENUES
Stems sales 300 bundles@$2/b 600 0
Root sales 10 tons @$60/t 600 600
Total revenues 1200 600
OVERALL PROFIT 350 70
SCENARIO II – Ratooning
Production costs:
Year 1 : $ 850
Year 2 : $ 400
Total : $1,250
Revenues:
Year 1 : $ 600 from stems
Year 2 : $ 600 from stems
Year 2 : $ 600 from roots
Total : $1,800
Overall profit over two years: $550
$350 profit per hectare may be low for a private company. It is five times profit for a VSE!

8. Sustainability of VSEs
VSE or a community based seed producer is not a new concept. It has not
survived without project support.
What is BASICS trying to do differently?
• VSE Chapters
• Linkage with input dealers
• Demand creation
• Developing critical mass – DFID funded MADE project etc.
What else can help make VSEs sustainable?
• Extension services, Input/output aggregation for farmer clients
• Add other crops seeds and become a one stop shop
• Ecosystem support through enabling policies

9. Thank you!
Village Seed Entrepreneurship is a viable business
opportunity for rural youth and women!
And this helps establish a sustainable seed system!!