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INTRODUCTION
Seed is the most important and primary agriculture input. Its quality has a direct impact on
production. The need of quality seed has been felt since times immemorial when our farmers
thought of selecting good fruits, seeds and planting material to raise healthy crops .The Royal
Commission on Agriculture and the National Commission after Independence have strongly
emphasized for need of quality seed to feed the fast growing population.
Bangladesh is an Agriculture based country. It is a well known fact that 80% of the population is
still engaged in agriculture. Unfortunately the ratio between the growth rate of population and
the increase in production of food is very low .The situation is quite alarming and will become
more critical after 20 years if we do not target the higher productivity resulting in a many fold
increase in overall production. The nation has to keep the close watch on the use of quality seed.
It certainly needs a joint effort at level of scientists to develop location specific high yielding
varieties providing better crop geometry and other agronomic practices where the farmer should
be educated to utilize the maximum of new technologies.
The Government sector also has to be vigilant enough to ensure quality inputs to farmers and
ensure better marketing services a well-developed seed industry as such can be the only answer
to ensure higher production and better economy of Bangladeshi farming. The National Seed
project and the encouragement to private sector seed trade are the further steps taken by the
Government in this direction therefore today we are very close to have a well-developed Seed
Industry in existence. Only what is needed is to keep our eyes open with a receptive mind in such
a way that the poor farmer is attached only to real Diamonds, Imitations are identified and
discarded out rightly before they reach to the poor farmers. The ratio of increasing population to
the nations food growth production is too low. This is a serious question for Bangladeshi
economy.

HISTORY

OF

THE DEVELOPMENT

OF

THE SEED INDUSTRY

The Shift from Public to Private Seed Systems

One hundred sixty years ago the United States did not have a commercial seed industry today we
have the worlds largest. Some view this as real progress a form of genetic Manifest Destiny. A
nation once a debtor in plant genetics now supplies the world. In 1854, seeds were sourced in the
U.S. by way of a small number of horticultural seed catalogs, farmer (or gardener) exchange, on1

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farm seed saving and through the beneficence of the United States government. Specifically
beginning in 1850 the U.S. Patent and Trade Office (PTO) and congressional representatives saw
to the collection, propagation and distribution of varieties to their constituents throughout the
states and territories. The program grew quickly so that by 1861, the PTO had annual distribution
of more than 2.4 million packages of seed. The flow of seed reached its highest volume in 1897
with more than 1.1 billion packets of seed distributed.
The governments objectives in funding such a massive movement of seed stemmed from the
recognition that feeding an expanding continent would require a diversification of foods. To the
early colonies, the introduction of wheat, rye, oats, peas, cabbage and many other vegetable
crops was as critical to food security as was the adoption of the corn, beans and squash.
Immigrants were encourage to bring seed from the old country founding fathers such as Thomas
Jefferson engaged in seed-exchange societies and by 1819 the U.S. Treasury Department issued a
directive to its overseas consultants and Navy officers to systematically collect plant materials.
The first commercial seed crop was not produced until 1866 cabbage seed produced on Long
Island for the U.S. wholesale market. The industry flourished to some degree, but early seed
trade professionals felt their growth was stymied by the U.S. government programs as well as the
self-replicating nature of their product. In 1883, the American Seed Trade Association (ASTA)
formed and immediately lobbied for the cessation of the government programs. The organization
developed powerful allies, such as Grover Clevelands Secretary of Agriculture J. Sterling
Morton who wrote that the government giveaway was ANTAGONISTIC TO SEED AS A
COMMODITY-FORM AND IN DIRECT COMPETITION WITH THE PRIVATE SEED TRADE. But the
program was very popular with constituents, and the USDAs seed budget was kept intact at one
point counting for a full 10 percent of the agencys overall annual expenditures.
In the early part of the 20th century, the first wave of hybrids began to provide seed companies
with a potential increase in product profitability. However, most of the hybrid development was
occurring at Land Grant Universities and these universities refused to give the companys
exclusive rights to the seed. Once again, the industry felt its growth hindered by federal
programs and complained of unfair trade practices. Mounting data also indicated a slowing in
yield increases from seed developed in government programs. The industry used this last point to
strengthen its argument for the privatization of seed development in order to foster greater food
security.
In 1924, after more than 40 years of lobbying, ASTA succeeded in convincing Congress to cut
the USDA seed distribution programs. The USDA still supported breeding at the state
agricultural schools, and for a time these programs continued to compete with seed companies by
developing finished commercial varieties. Associations such as the American Society of
Agronomy and American Society of Horticulture Science eventually convinced the public
programs that their appropriate role was in training plant breeders, performing fundamental
research, and creating raw materials and technologies for private industry to capitalize on. The
LGUs began to increasingly serve in this capacity developing inbred parental lines and breeding
stock that the seed trade would use to create proprietary varieties.
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These changes in the public role, along with improvements in hybrid techniques, led to the
growth of the seed trade following World War II. The trade was well represented during this
period by regional companies. The conversion to mono cropping and large-scale corporate
agriculture had not yet moved into full swing. The Santa Clara Valley grew vegetables and fruit
and not internet startups, and Americans still planted their Victory Gardens. The seed trade
reflected this diversity in food production.
In the 1960 a few larger seed firms began to purchase smaller companies for strong hybrid
holdings. But the consolidations of this period were minor compared to the frenzy that would
come with a Supreme Court ruling on June 16, 1980 in the case of Diamond v. Chakrabarty.
Prior to the Chakrabarty decision, a plant could be owned, but the genetics could not. This case
cleared the patenting of life forms on the bases of their genetic coding. The PTO granted more
than 1,800 such patents following the ruling. Companies that had no historical seed interests
primarily chemical and pharmaceutical firms began purchasing seed companies. In a few short
years, there were billions of dollars in mergers and acquisitions with little to no regulatory
oversight creating for the first time a majority ownership of plant genetics by a few multinational
companies. Here is the list of worlds top 10 agribusiness multinational company in Table 1
based on the year of 2011.
Table 1: Worlds Top 10 Agribusiness Multinational Company

Serial

Company name

Country

Current Dividend Yield

USA

2.21%

Canada

0.41%

Singapore

1.63%

1.

Archer-Daniels-Midland Co.

2.

Potash Corp.

3.

Wilmar International

4.

Monsanto Co.

USA

2.12%

5.

Associated British Foods

U.K.

3.03%

6.

Brasil Foods

Brazil

Not available

7.

Deere & Co.

USA

1.99%

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Syngenta

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Switzerland

2.27%

Mosaic Co.

USA

0.46%

Bunge Ltd.

USA

1.59%

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No other natural resource has ever shifted from public to private hands with such rapidity, such
intensity of concentration and so little oversight.

THE INTERNATIONAL SEED INDUSTRY

Introduction
One of the most fundamental goals of agriculture is the production of food, feed and fiber for an
increasing number of people in the world. This is now over six billion. With this objective in
mind the different areas of production management have been greatly developed, such as
breeding, establishment techniques, irrigation, nutrient supply, pests control and postharvest.
Among these areas breeding of cultivated plants has been especially relevant, being estimated
that it represent about 75% of the total increase in yield of most cultivated species, during the last
20 to 30 years. In addition to this noble goal, the economic development experienced by a
portion of the society, has originated new necessities. For instance, in the last time there has been
an increasing demand for vegetables because they have been associated with heath benefits or
properties.
The demand for ornamentals species is also increasing, influenced by the moving of people from
rural areas to the cities. Research has provided new technologies in order to do both, a more
efficient food production and production of goods that respond to new and more specific
demands. In the last two decades, the achievements in these areas have been extraordinary, with
a special relevance of genetic engineering, essential component of biotechnology. In this context,
seeds have become more than a fundamental input of the Agriculture. Now a days seeds are
valuable organisms able to transport some of the most recent technologies. Therefore seeds must
have high quality and flawless performance. The changes in orientation of production and other
ancillary changes have affected the seed industry as a whole creating a new global industry,
which is guided by large multinational companies. This article analyzes the reasons that have led
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toward the globalization of the seed industry, how technological advances have affected it and
the roles that now a days the industry has had to assume.

Globalization of the Seed Industry

The global market for seeds is not easy to apprise. The first obstacle for the analysis is that the
definition of "seed" varies from country to country. Obviously seeds also vary in value and level
of renewal among countries. In spite of these difficulties, the International Seed Federation (ISF)
estimates that the total value of annual seed consumption in the world is close US$ 80 billion,
with approximately US$ 65 billion being actually involved in commercial transactions.
Globally the most important products are vegetable, flower, herbage and beet seeds 'regional'
products are maize and potatoes while 'local' products are cereals and large seed legumes. A
general explanation for globalization is based on political, economic and technical changes
which have conducted to a true global market. Some examples of these changes are the existence
of the Mercosur, NAFTA and the consolidation of the European Community. In addition to
general reasons such as the ones stated, there are more specific reasons for the
internationalization of the seed industry. I presented the followings:

In order to ensure regular supply it is necessary to organize production in different

countries so that climatic accidents are avoided. Counter-season growing allows the
acceleration of breeding cycles as well as prevention from seasonal hazards in either of
the hemispheres.
Some agro-climatic zones are particularly favorable to the production of seeds of
specifics crops and also some countries have available manpower with an interesting
quality price ratio.
During last century some regional and international organizations concerned with the
existence of adequate regulations related with seed trade were created, watching over the
interests of breeders, producers and consumers. Some examples are the ISF, which is the
result of the merger of the International Seed Trade Federation (FIS) and the International
Association of Plant Breeders (ASSINSEL) which is in charge of the international seed
analysis certification the International Union for the Protection of New Varieties of Plants
(UPOV) etc.
The creation of multinational companies which facilitates and enhances international seed
trade and the globalization of the market.

In spite of the described reasons, there are also some restrictions to a more intense
internationalization of the market, which can be grouped in technical or commercial and
regulatory limitations

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Technical commercial limitations: Contrary to commodity products, this can be sold globally
without major modifications plant varieties must be especially adapted to their geographical
markets, so there is a geographical specialization preventing movement from one region to
another. There are also some reasons that limit exports of some kind of seeds for example in
many cereals the fragmented structure of the industry, a smaller commercial margin and the high
seed volume per hectare.
Regulatory limitation: As a result of the commercial agreements, tariff barriers are decreasing
more and more, however another kind of barriers has been appearing. This is the case of:

Phytosanitary regulations. For some diseases, no identification tests have been developed and
legislation implemented is often inappropriate and/or impossible to practice.
In various countries there are prohibitions to the trade of varieties which are not registered in
an official catalogue.
Problems to the trade of seed treated with products which are not registered in some
countries.
Prohibition to the commerce of genetically modified organisms (GMO) products, maybe the
most important in recent time, due to the increment of transgenics crops production.

Also, there is one aspect that should be either limiting or accounting for the internationalization
of the commerce: the protection of intellectual property. In one hand, breeders will be reluctant
to produce and commercialize their varieties in countries where there is weak or no protection of
the intellectual property, whereas, in the other hand, they will be encouraged to do it in UPOV
member countries, where their rights are well protected. Also, as will be discussed later, new
methods to protect intellectual property are being worked out.
Impact of new technologies
During the last decade the advances in genetic engineering, the central component of the
biotechnology, have resulted in revolutionary changes in the plant breeding area. Those changes
have affected the production and seed technology, as well as the market and its economic value.
Breeding and development of new varieties: Recent technologies which have led to the study of
the genome structure and function, have made possible to increase the precision of the process
that generate variability and, at the same time, a better use of this variability. In addition, by
virtue of recombinant DNA technology, today the breeders dispose of all the genes of nature and
also of artificial genes created in the laboratory. Thus, the breeding of new varieties has had
important advances, manifested by reduction of the time required and a better precision in
obtaining target characteristics, such as larger yields, resistances to diseases and insects, better
adaptation to stress conditions, herbicide resistance, better compositional traits of the products,
improved post-harvest performance etc.
Production and seed technology: The mentioned advances could also carry some problems, for
instance, the modification of a specific trait could affect either seed quality or the performance of
the variety or both. For example, there are evidences that modifications in compositional
characteristics of the kernel are related with problems of seed viability and vigor in maize.
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Something similar happens in tomato in this case genes which are associated with production of
lycopene enriched fruits have deleterious effects on seed quality and plant development. Thus,
alternative methods for the production and use of these seed should be developed. Another
example of the influence of new technologies on seed production is the generation of new
techniques to control fertility in species in which natural sterility is not know or is useless. This
aspect is especially important on the efficiency of hybrid seed production.
Also new techniques have been developed to control germination of second generation of seeds.
Some examples are programmed male-sterility, modifications in the seeds compositional traits to
diminish viability and programmed expression of characters on time. These methods prevent
farmers from using second generation seeds, helping to protection of intellectual property. Other
benefit of these traits is the prevention of dispersion of GMOs in the environment avoiding the
undesirable cross between transgenic and non transgenic plants.
It is easy to understand the high value that the seeds represent nowadays they are more that a
basic input of production, they have transformed into the delivery and trade unit of new varieties
and all the technology developments that they represent. In this way, seed technology rises as an
important discipline, including selection, conditioning and treatments of seeds to improve their
performance as a propagation unit. An example is the different techniques of seed coating, from
use of film coatings to seed pellet. The first is a thin film which does not obscure the shape of the
seed, improving the adherence of chemicals and appearance of the seed. Pellets are produced by
encasing the seeds in an inert material, such as montmorillonite clay, which affects the shape and
volume of the seed, allowing free flowing during mechanical precision planting. These
techniques also permit the addition of fungicides, insecticides, microorganisms, growth
regulators, micronutrients or any compound which improve the seed performance. Another
technique of increasing relevant in last years is priming, which is a process of controlled seed
hydration, after which seeds are directly planted or re-dried and handled using normal practices.
Priming allows the seeds to override thermo dormancy and improve field stands, even under
some stressful condition. The technologies described are an opportunity for seed companies to
give an extra value to their product, or to share or transfer this value with other specialized
companies.
Impact in the seed market: Since the introduction of the first commercial transgenic crop in
United States, in 1996, production of transgenic crops has increased steadily and during 2001
represented more than 52 million of hectares in the world. It is possible to appreciate that the
number of species is limited, and that the modified traits, benefit just the growers. However, it is
expected that in the future the breeding will be done in a wider number of species and that it will
be more focused in traits which will benefit also the consumers for example, improving
compositional traits of products. In the analysis of the evolution of transgenic products, it is
necessary to state the fact that this kind of technology is in its infancy. In fact the acreage is
constituted basically by four species and in spite of transgenic crops being cultivated
commercially in 16 countries just four countries represent 99% of the total acreage. It is well
known the reticence that GMO's produce in some groups around the world. However, the
introduction of new traits more attractive to consumers, the introduction of new crops and the
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establishment of clears policies related with the production and commerce of GMO's should
result in larger increases in GMO's. The importance of these tendencies in the seed market is
obvious it is estimated that in 2001, the value of the transgenic seed market was almost U$3.5
billion, which is about 12% of the total seed market.
Function and structure of the seed industry: The seed industry is responsible of supplying a
basic and valued input of agricultural production. Among the diverse functions of the industry
according to Desai, Kotecha y Salunkhe (1997) is the following ones:

Plant breeding, including genetic research and cultivar assessment.

Multiplication and seed production, either in companies own dependences or by
producers.
Processing, including drying, storage, packaging and seed treatments.
Marketing
Legislative control, seed certification and testing.
Extension activities.

The Industry is organized in public and private entities, which assume these different functions,
with the objective of accomplishing the general roles of research, production, quality control and
marketing. Universities and others public entities carry out research of different aspects of
interest for the industry. Recently, research also has been assumed by companies they are
investing increasing amounts of resources in it, which obviously have affected the divulgation of
the knowledge. One obvious target of research is breeding, which include from genetics studies
to cultivar assessment. However research is not just limited to obtaining new cultivars, but
concerns each one of the many activities of the industry. For example, research is essential to the
optimization of the seed production process and it generates the information and techniques for
efficient seed production of different crops under different environmental conditions. Research
also is concerned with seed technologies and testing.
Another aspect of research carry out by public entities, which has a not so obvious relation with
the seed industry, is the development and extension of better growing techniques. It is known
that the use of improved varieties and seed of high quality is important for successful growing,
but it is not the unique requirement. To achieve the potential of an improved variety it is
necessary certain technological level developing that level among growers will be essential to
increase seed demand. Other public entities that participate in the seed industry are the global,
regional and national organizations, which contribute in the regulation of seed market. These
organizations guarantee the rights of breeders, producers and consumers and also contribute to
the training and operation of seed analysts. Examples are ISF, ISTA, UPOV, International
Society of Seed Technologists (ISST) and others.
Now a days the seed industry is characterized by the presence of huge multinational companies,
most of them North American, European and Japanese. They have integrated vertically and
participate in all the functions of the industry. May be one of the most important fact of recent
years perhaps as consequence of advances in genetic engineering, is the several merges that have
been occurring. The underlying reason may be that the companies which enter the race for
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identification and patenting of potentially useful genes realize that those genes have value only if
they are included in superior varieties. Therefore, the interest to buy or merger with companies
who have the superior varieties become crucial and has created a new concept of companies,
known as "Life Science Companies". This companies, based in genomics (study of genome
function and structures), biotechnology and chemistry, will generate agricultural, pharmaceutical
and agrochemicals products, which will be introduced to the production process by the seed.

SEED INDUSTRY

IN

ASIA

Introduction
Tropical Asia contains about 30% of the worlds population (UNFPA, 2007). Between 1990 and
2001, poverty levels1 in South Asia dropped from 39.4% to 29.9%, and the region is on track to
reach the Millennium Development Goal (MDG) target of less than 19.7% of the population
living in poverty by 2015. In Southeast Asia and Oceania, the poverty level dropped from 19.6%
to 10.2% almost reaching the MDG target for the region (UN 2005). Despite rising incomes, a
substantial portion of the population lives below the poverty line, with those affected
concentrated in disadvantaged regions and rural areas. How to lift these disadvantaged people
out of poverty will be a key challenge for policymakers in the years to come. Urbanization in
tropical Asia is on the rise delivering adequate food supplies to cities while maintaining quality
and reducing losses is another challenge for many countries in Asias tropics. In countries where
grain self-sufficiency is being reached and for remote and marginalized communities, vegetables
are a key option to diversify marketing opportunities, enhance community nutrition and boost
income for farmers and traders. A clear action agenda for industry development is needed to
optimize progress and use of resources. Consolidation of information and statistical data on the
vegetable sector in tropical Asia from diverse sources and references provides baseline and
background information on trade and priority recommendations for industry, policymakers and
researchers. The country focus chapters and case studies highlight trends and issues for countries
at various stages of development, with lessons learned in one country or region potentially
applicable elsewhere.
Beyond the Green Revolution: Most of the countries in tropical Asia have undergone farreaching sociopolitical transformations since their emergence from colonial rule after World War
II3. Several have endured natural disasters, and national or regional schisms and conflicts but
generally, economic and social development has advanced significantly throughout the region.
Although population, food needs, and urbanization continue to increase, population growth has
generally slowed, and per capita food availability has increased. Since 1981, hunger levels have
decreased, as assessed by the Global Hunger Index (Table 2) with 1981 and 2003 levels highest
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in Cambodia, Bangladesh, Nepal, and India (and absolute numbers living with hunger highest for
India). Levels have declined most rapidly in Indonesia and Thailand and most slowly in Laos and
the Philippines.
Table 2: Global Hunger Index (IFPRI)
Country

1981

1992

1997

2003

Bangladesh
Cambodia
India
Indonesia
Laos
Malaysia
Myanmar
Nepal
Pakistan
Philippines
Sri Lanka
Thailand
Timor Leste
Vietnam

44.40
46.43
41.23
28.17
29.53
12.67
25.20
43.30
33.60
22.40
24.90
23.37
32.20

36.33
32.93
32.73
18.53
25.70
10.10
19.27
27.77
25.97
21.99
22.40
17.83
25.90

35.73
36.03
25.73
15.60
26.73
7.72
15.53
27.77
23.60
19.63
21.87
13.80
22.37

28.27
30.73
25.73
12.47
23.83
7.75
16.17
24.50
21.77
17.55
16.63
12.36
22.29
18.37

Per annual decline

(%)
2.0
1.9
2.1
3.6
1.0
2.2
2.0
2.6
2.0
1.1
1.8
2.9
2.5

The Green Revolution had a seminal role in the agricultural transformation and enhancement of
food security in tropical Asian countries. Many are now self-sufficient in grains and the region as
a whole is a net exporter of rice. The Green Revolution encompassed the development and
uptake of higher yielding, disease-resistant crops and improved productivity of the livestock,
fisheries, forestry and postharvest technology sectors. The success of the Green Revolution came
about due to changes in agricultural policy, sociopolitical and trade frameworks, better land and
water management, the enhancement of extension, training and farmer skills, improvements in
agricultural systems, rural infrastructure, and mechanization and greater input use.
The increase in productivity was critical for food security but it came at a cost. Today the
excessive use of fertilizer and chemicals to boost yields is cause for concern. Land and water
resources are increasingly limited and environmental sustainability and climate change are
emerging as future threats. Trade liberalization, while generally positive for the region, has
enhanced competition and affected market access for farmers. While average farm size generally
increased in developed countries as agriculture modernized the trend has been the reverse in
tropical Asia. Average farm size has decreased and production costs have risen, so it has become
increasingly difficult for farmers to earn an adequate income from staple crops alone. To remain
viable without the support of subsidies, farmers need to diversify into higher value industries
(livestock, aquaculture, fruit and vegetables) and increase off-farm income. The increased
interest and opportunities for high-value industries throughout tropical Asia reflect changing
food preferences and customer requirements favoring high-quality meat, fisheries products, and
fruit and vegetables and better access to markets. Farmers are able to profit from high-value
industries because of increased demand and improved market access, and because of increased
productivity when advanced production and marketing technologies are available and adapted to
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the local situation. Increasing and more diverse production, processing and trade in vegetables
has been part of the transformation of the rural sector, fostered through proactive policy changes
by some national governments, and through attention to the vegetable sector by national
agricultural research systems (NARS), the international agricultural research centers (IARC) and
the private sector. Vegetables represent a two-pronged contribution to development. They
provide additional income for farmers and traders and they enhance the health and nutrition of
consumers. While they offer critical opportunities for boosting income and nutrition, attention
from international donors and from national and local governments has been less than their
potential deserves.
Snapshot of Tropical Asia: In addition, tropical Asia includes 15 of the worlds top 50 most
populous urban areas.
Figure 1: Map showing the 17 countries that are in or near tropical Asia

In this study, tropical Asia is taken to include 17 countries 6 of South and Southeast Asia, which
range in size from Singapore (689 km2), Timor-Leste (14,870 km2), and Brunei (5,270 km2) to
Indonesia (1.8 million km2) and India (3.0 million km2).
Table 3: Tropical Asia: Land areas, population (2007 and 2050) and urbanization
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

Country

Bangladesh
Bhutan
India
Nepal
Pakistan
Sri Lanka
South Asia
Brunei
Cambodia
Indonesia
Laos
Malaysia
Myanmar
Philippines
Singapore
Thailand
Timor Leste
Vietnam
Southeast Asia
Tropical Asia

Land Area
(000 ha)
13017
4700
297319
14300
77088
412887
412887
527
17652
171157
23080
32855
65755
29817
68.9
51089
1487
31007
434495
847382

Population in
2007 (millions)
147.1
2.3
1135.6
28.2
164.6
1498.9
1498.9
14.6
228.1
6.2
26.2
51.5
85.9
4.4
65.3
1.1
86.4
569.7
2068.6

Estimated
population in
2050 (%)
242.9
4.4
1592.7
51.2
304.7
2219.5
2219.5
26.0
284.6
11.6
38.9
63.7
127.1
5.2
74.6
3.3
116.7
751.7
2971.2

Urban
population in
2007 (%)
26
12
29
17
36
21
50
21
69
32
64
100
33
27
27
-

Urban growth
rate 2005-2010
(%)
3.5
5.1
2.3
4.8
3.3
4.9
3.3
4.0
2.9
2.9
2.8
1.2
1.8
7.0
3.0
-

Key climatic features of the region are the tropical conditions and the monsoons (rainy seasons)
from the northwest (December to early March) and the southwest (June to September) that affect
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different parts of the region, with intervening dry periods in most of the region and cool
seasons in more northern areas and highlands. Temperatures and humidity are generally
high, but lower in northern and elevated areas. Some areas are also prone to hurricanes arising in
the Indian Ocean or the Northwest Pacific. Rainfall varies across the region and is discussed in
the individual country chapters.

THE SEED INDUSTRY

IN

TROPICAL ASIA

The high yielding crop varieties (HYVs) that were developed in the late 1960s and early 1970s
provided the basis for the Green Revolution. When they were released they required the creation
of a seed industry that could rapidly disseminate the improved seeds. Four seed projects that the
Bank supported in 1973-85 are analyzed in a recent OED impact evaluation. Two were in India
and one each in Bangladesh and Pakistan. At their completion, the outcome of all four projects
looked uncertain if not dismal. But a decade later, it is clear that the projects played a vital role in
the development of South Asian seed industries. They pioneered the development and marketing
of seeds, through parastatal agencies they provided an institutional framework within which
private companies could develop and by providing training, they developed a cadre of welltrained seed professionals who have been fundamental to the emergence of private seed
companies.
Project scope
The four projects were designed to introduce seed multiplication and marketing systems to
provide HYV seeds, principally of rice and wheat, to farmers. They were modeled on the first
seed industry project supported by the Bank the successful Tarai Seeds Project in India. They
included resources for seed breeding, multiplication, processing, marketing and certification.
They made major investments in large seed processing plants and established new seed
certification and registration units. Technical assistance and significant training components were
included. As was common at the time, almost all the investments under the projects were in the
public sector.
Approach to evaluation
The impact evaluation assessed whether or not the projects had met their goals. It also analyzed
whether the projects had helped or hindered appropriate roles for the private and informal
sectors. It looked at the sustainability of the public sector institutions created by the projects, any
crowding out of the private sector by public sector seed companies and the support that the
projects provided to the informal sector.
Results
At completion, project outcomes were at best uncertain indeed, the project in Pakistan was
canceled. Unlike the Tarai project, these projects came too late to capitalize on the seed boom
that was associated with the first HYVs most farmers were already using HYV based seed much
of it saved from their own crops. Research failed to produce the stream of new and improved
varieties on which the projects had been predicated. This was quickly noticed by farmers, most
of whom were already skeptical of seed from public suppliers and demand for certified seed
failed to expand. The projects found themselves overcapitalized for the level of demand and they
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could not raise prices to the levels needed to break even. From today's vantage point however,
the projects have achieved a large measure of success, due to their positive though unsought after
institutional development results. The parastatal seed companies they supported opened the way
for the private sector to take a bigger role in the seed industry.
Bangladesh
The Cereal Seeds Project provided the first assistance to the country's seeds sector. It developed
new agencies the Seed Certification Agency and the National Seed Board. It greatly expanded
the production of wheat seed though without fully meeting domestic demand. Support of the
Bangladesh Agricultural Development Corporation's seed wing helped popularize HYVs. Farmer
interviews and a survey during the impact evaluation showed farmers to be aware of the
importance of good seed and satisfied with their access to improved seed, though inclined to
prefer seed saved from crops in their own villages. With its major emphasis on training, the
project dramatically increased the technical capacity of the public seed sector.
Unlike the other two countries, Bangladesh has not benefited from competition within the public
sector, and hence the expansion of a private seed industry has been slower. Seeds policy has been
liberalized to some extent since the project closed, but various releases of key crops, including
rice and wheat, are still under government control.
India

The National Seeds Projects I and II have clearly had a more beneficial impact than seemed
likely at the time of completion. The expertise they created provided the basis for today's seed
industry. As well as the state seed companies established under the projects, there are now more
than 500 private seed companies, 24 of them with links to multinational seed companies, and
many with their own hybrid development programs. The public and private sectors both develop
new varieties the private sector has kept largely to hybrid varieties. India's laws on seeds, which
existed before the projects made varietals seed certification optional, so that the need for
certification could not be used to bar new companies from entering the market. This together
with the large size of India's market helps explain why private sector seed companies have
evolved more rapidly than in Bangladesh and Pakistan.
Pakistan

The Bank-supported Seed Project was Pakistan's third effort to establish a modern public sector
seed industry. Past efforts had left farmers suspicious of seed from public sources. Despite a
shaky start the project created:
An active routine wheat and cotton breeding program
A rigorous seed registration and certification program
A major wheat and cotton seed marketing organization and
An extensive cadre of well trained seed industry professionals

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The Bank's initial sponsorship of monopoly provincial seed companies did not prevent the entry
of multinational seed companies and the emergence of private sector seed companies.
Institutional evolution
The projects supported monopolistic national parastatal companies, but simultaneously supported
the development of state (in India) and provincial (in Pakistan) parastatal seed companies, which
were expected to better cater to the needs of farmers. The national parastatals made a major
contribution early on by (1) increasing the physical supply of seed (2) making farmers,
politicians, and the agricultural sector in general "seed conscious" and (3) providing an initial
cadre of seed scientists and technologists. Decentralizing the seed industry to public state or
provincial seed companies provided a public sector dynamic that the central companies could not
resist, because it opened up so many promotion possibilities to their staff. This introduction of
competition within the public sector eased the subsequent entry of local and multinational private
sector seed companies. India's state seed companies were less able to resist the entry of private
companies than a monolithic national seed company would have been. In the industry structure
supported by the projects, political and bureaucratic power was too diffuse to inhibit an expanded
role for private seed companies. The National Seed Company has continued to play a major if
unprofitable, role in seed production and distribution.
The projects' most successful aspects were training and the creation of institutions for seed
testing and certification. Today, the seed industries in India and Pakistan have evolved from
single parastatal companies to decentralized state or provincial parastatals within a mixed
private-public system in which the public sector predominantly supplies self-pollinated varieties
and the private sector supplies hybrids and specialized varieties.
Challenges
Further evolution of the seeds industries in the three countries waits a rethinking of seed policy.
A key assumption of the projects was that public sector seed companies would be able to break
even on the basis of selling mainly self-pollinated varieties. This assumption may not be valid.
Of the public seed companies visited, only Pakistan's Punjab Seed Corporation claimed to be
breaking even and even here the need for subsidy may reappear. The project paradigm that there
should be a 20 percent replacement rate for self-pollinated varieties and that the cost should be
fully paid by farmers, may be untenable.
Greatly reduce the volume of certified seed sold, and raise its price. This would widen the gap
between the price of certified seed and grain saved by farmers which in turn would provide an
incentive for private producers to multiply seed for one or two generations before selling it to
farmers.
If it is thought to be in the public interest to distribute present volumes at present prices, a
permanent subsidy should be considered. Subsidizing both private and public companies per
kilogram of seed sold would level the playing field and may tempt more efficient private
companies to provide seed for self-pollinated varieties.
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Technical training: The seed industry stretches all the way from genetic research through
varietal development, bulking up, certification, registration and production, to marketing. Many
of these tasks require considerable expertise. To provide the seed scientists and technologists
needed, an active training component is essential to a good project technical assistance is a very
limited, temporary and imperfect substitute.
Institutional infrastructure: An initial core of publicly supported genetic research, seed breeding
and seed testing is essential for development of the industry. There is no point in training staff if
they will have nowhere to practice their professions. In a mature industry there is room for
debate and experimentation as to the relative roles of the public and private sectors in research,
breeding and certification. But in a developing industry, the public sector must be ready to fill
any roles not yet satisfactorily filled by the private sector.
Seed production: Public production and marketing of seed may well be a necessary first step to
show the existence of a market and to make seed available, pending the development of private
seed companies. Such parastatal companies should be encouraged to compete and if freed from
the more onerous public sector bureaucratic procedures may be able to outperform the private
sector competition.
Break-up of monopoly: To prevent the emergence of a single all-powerful parastatal monopoly,
one alternative may be to foster competing parastatals. Another may be to provide for seed
imports by companies other than the seed production parastatal.
Remove barriers to entry: Though it is not necessary to have an active pro-private policy stance,
it is important to ensure that there are no unnecessary barriers to entry of private firms into the
industry. Advice and technical assistance to small start-up enterprises may be desirable.
Subsidy: Care should be taken to ensure that any subsidy is not merely a cover for reduction in
demand due to poor quality. If seed production must be subsidized, it is important to ensure that
the subsidy is available equally to the private and public sectors. Beyond a percentage-of-sale
subsidy, provided equally to both public and private sectors, parastatal losses should not be
compensated.
Independent testing and certification: National uniform varietal trials should be open to all and
a highly professional and independent seed certification authority is needed to establish standards
for germination, purity, and genetic composition. A truly rigorous seed certification authority is
perhaps the most important indicator of a mature seed industry. It is at least as useful to the
producing companies as it is to the farmer.
Support for informal system: At least for the next 20 years the bulk of self-pollinated variety
seed planted is likely to be seed saved by farmers. Farmers need more advice on sorting for offtypes, minimizing weed contamination, seed cleaning and storage, and germination testing. It
may be possible for the private sector to provide seed cleaning and treatment services to farmers.
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Seed Characteristics and their implications: The high yielding varieties of rice and wheat are
self-pollinated, which means that once new genetic material has been introduce, farmers can save
seed for several generations without a major decline in yields. This makes it difficult for seed
companies to recover the full cost of seed. The public sector needs to play an important role in
breeding and crop certification of these varieties since the benefits to society are much greater
that can be captured by the organization developing the variety. Several models of private public
cooperation are possible for self- pollinated varieties including that where the public sector
dominates breeding but the private sector is active in marketing. In hybrid varieties by contrast,
any seed retained from a crop will perform much less well than its parents. Here, since
development costs can more easily be recovered the private sector tends to dominate both
breeding and marketing. The fraction of seed sown that the farmer buys commercially is called
the replacement rate. For hybrid varieties, the rate must be 100 percent for self-pollinated
varieties it can be as low as 5 percent. But even seed of self-pollinated varieties declines in
productivity when saved from generation to generation.
Quality control: The company recognized that farmers were right when they felt that the
corporation's seed was little better than the best of their own retained seed. At first only half the
seed that the corporation submitted to the Federal Seed Certification Department could be
certified. Much tighter attention to all aspects of quality control raised this proportion to more
than 95 percent and in the process, almost halved the unit cost of seed produced. Stock control
has been tightened up, reducing unaccounted-for losses, again raising profitability.
Demonstration program: With better seed, the corporation has begun a demonstration program
where it provides farmers with free seed for an acre of crop provided that they follow
recommended husbandry procedures and display a notice describing husbandry and cost
structure. About a thousand of these plots are now distributed widely in the Punjab. Based on the
increased acceptance of its seeds the corporation is projecting more than a 20 percent growth in
seed sales based in part on a lottery of prizes for seed purchasers.
Farmers spread improved seed: Pakistan has a flourishing informal trade in seed. About 90
percent of the rice and wheat seed and about 60 percent of the cotton seed sown comes from
farmers' own previous harvests or is bought from other farmers or small traders. How has the
introduction of certified seed under the Bank-supported project affected the quality of seed that
farmers plant? The effect cannot be measured simply by the replacement rate since it is the
disposition of the early generations of certified seed that counts. Thus, with an 8 percent
replacement rate for rice if no seed were traded among farmers, the average farmer would be
using seed six generations away from certified.
The purchasers of certified seed from Punjab Seed Corporation who were interviewed for the
impact evaluation in fact sold on average, three times as much seed to their neighbors from their
first harvest as they had bought from the corporation. In this case, assuming 8 percent of the seed
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used is certified seed, 32 percent of seed is at most one generation away from certified and all
farmers have ready access to seed that is at most two generations away from certified.
Farmers apparently use the best seed they have seen growing in farmers' fields. Most farmers
who see even a greatly increased yield on demonstration plots would rather have their neighbor
use the new seed first, and then buy from him next year after verifying the higher yield in the
neighbor's field. If as happened with the first generation of HYVs farmers see a spectacular
difference in yields, then the informal market provides for almost universal adoption within a
few crop generations. If farmers see no big improvement, it may be many generations before a
switch is made.

BANGLADESH SEED INDUSTRY

AT

A GLANCE

Bangladesh is primarily an agriculture based country with agriculture accounting for 19% of the
countrys GDP. About 67% of the countrys population is engaged in agricultural production. The
seed industry in Bangladesh comprises of both public and private sector initiatives. In the private
sector, there are more than 100 companies involved with over 5000 registered seed dealers
operating across the country. The recent expansion of the private sector seed companies has
resulted in the engagement of thousands of contract farmers into the formal seed production
chain, leading to improved livelihoods amongst the rural community.

Table 4: Demand, supply and opportunity of seed market in Bangladesh

Varieties
Rice
Wheat
Maze
Jute
Pulses
Oil seed
Vegetable seed
Spice seed
Potato
Total Market Value
(MT)
17

Total Demand
(Figure in MT)

Total Supply
Governmen
Private
t
Sectors
Sectors

Total Supply

Opportunity of
ACI
67%
65%
20%
49%
99%
97%
53%
100%
95%

317000
72000
6000
3570
21350
13500
4300
101875
400000

75000
25050
300
456
12300
398
300
60
12300

30000
400
4500
1350
7000
0
1700
230
7000

105000
25450
4800
1806
12300
398
2000
290
19300

39932500

126164

52180

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Government agencies involved in this sector include Bangladesh Agricultural Development

Corporation (BADC), Bangladesh Agricultural Research Institute (BARI), Bangladesh Rice
Research Institute (BRRI), Bangladesh Jute Research Institute (BJRI) and Department of
Agriculture Extension (DAE). The government has recently given the seed sector a priority
status. Of the locally produced vegetable seeds, nearly 90% is accounted for by the private
sector. The government agency most actively involved in vegetable seed production is BADC.
Vegetable production is Bangladesh has traditionally been seasonal with 70% of the vegetables
being grown in the dry winter months between November and February and only about 30%
during the rest of the year.
Recent initiatives from the private sector have emphasized the development of vegetable
varieties suitable for growing during the hot and wet summer months between March-October
enabled by the production of off season vegetable seed varieties. The past decade has also been
marked by a transition from Open Pollinated to Hybrid varieties-deriving maximum utilization
from the existing land mass.

Seed Market Trend

14000000
Hybrid Rice

12000000

OP Rice
Wheat

10000000

Maize
Jute

8000000
Taka in "000"

Potato
Vegetable

6000000

Spices
Pulses

4000000

Oil
2000000
0
2005 2006 2007 2008 2009 2010 2011 2012
Figure2: Seed market trend in Bangladesh

With regards to rice seed this year, an additional 1 million hectare of land has been brought under
hybrid rice production. This required 11400 MT of seed and of this 1800 MT was locally
supplied while the rest was imported. The production, marketing and import of the entire volume
of the hybrid rice seed was undertaken by the private sector. However, hybrid rice seed accounts
for less than 5% of total rice seed requirement. Considering the land limitations in the country,
recent trends indicate a shift towards the production of high yielding varieties of both vegetables
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and rice. Locally produced varieties including Red Amaranth, Stem Amaranth, Yard Long Bean,
Bitter Gourd and Cabbage have found markets in Europe and some countries of South East Asia.

THE AGRICULTURE SECTOR

IN

BANGLADESH

Role of agriculture in the national economy

Bangladesh became independent in 1971 when Bangladesh East Pakistan seceded from its union
with West Pakistan. Since then, Bangladesh remains a very poor country, despite an annual
growth in Gross Domestic Product (GDP) of 5% for the past several years. According to the
Human Development Report of the United Nations Development Programme (UNDP),
Bangladesh ranks 87th out of 190 countries in the Human Development. The agricultural sector
occupies the majority of the active working population with 80% of the laboring force and
contributes with 19% to the GDP. In comparison, the industrial sector and the service sector
occupies 18% and 26 % of the laboring force but contributes respectively with 27% and 53% to
the GDP. The rural non-farm sector is primarily driven by agriculture and accounts for another
33% of GDP. About 75% of Bangladeshs population lives in the rural areas and their main
sources of livelihoods are agriculture and the rural non-farm sector. With almost 85 out of 100
poor people living in the rural areas, poverty in Bangladesh is primarily a rural phenomenon.
Hence, improvement within the agricultural sector performance and acceleration in growth are
critical to reduce rural poverty. It is estimated that the agricultural land is declining by around
2.3% per year and the land quality is deteriorating due to degradation, soil fertility problems, soil
erosion and soil salinity.
In average, Bangladesh is losing good quality agricultural land by approximately 80,000 ha
annually due to urbanization, building of new infrastructure such as roads and implementation of
other development projects. In order to produce more food for the increasing population,
growing at the rate of about 1.6% per year, there is a call for increase in agricultural growth
through higher productivity, including increased yields, agricultural intensification and/or
diversification and value addition. According to the Poverty Reduction Strategy Paper (PRSP)
(15), annual economic growth must be about 6-7% per year, if Bangladesh is to achieve its
Millennium Development Goal (MDG) of a 50% reduction in poverty by 2015. From 19802000, GDP grew at 4.8% per year and agricultural GDP grew with 3.1%. In order to achieve the
GDP growth rate of 6-7% per year, the annual growth in agriculture must be at least 4%. This
would be possible only through an increase in agricultural productivity based on modern
agricultural technology and a supply chain linking farmers with the consumers in the national as
well as export markets.
Geographic location, physical features and agro-ecological conditions
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Bangladesh lies in the North Eastern part of South Asia between 20034I and 26038I North
latitude and 88001I and 92041I East. The country is bordered by India on the West, the North,
and the Northeast, Burma on the Southeast and the Bay of Bengal on the South. The land area
covers 144,000 km2. The Padma and Jumuna rivers divide the country into six natural regions
which consequently constitute six administrative divisions, 64 districts and 490 sub districts.
Rivers are the most important geographical characteristic of Bangladesh. The rivers Ganges and
Brahmaputra create a river delta which comprises nearly 90% of the country. Thus, most of
Bangladesh is exceedingly flat, low-lying land. Annually, about a third of the country is
subjected to floods during the monsoon rainy season, hampering economic development. The
only significant area of hilly terrain, constituting less than one-tenth of the nation's territory, is
the Chittagong Hill Tracts in the narrow South-Eastern panhandle of the country. Small scattered
hills lie along or near the Eastern and Northern borders with India. The agro-ecologically
constrained areas of Bangladesh are shown in. The eroded remnants of two old alluvial terraces,
the Madhupur Tract, in the North central part of the country and the Barind, straddling the NorthWestern boundary with India, attain elevations of about 30 m. The soil here is much less fertile
than the annually replenished alluvial soil of the surrounding floodplain in the delta. Bangladesh
soil has previously been known to be highly fertile. A good fertile soil should have organic
matter content higher than 3%. In Bangladesh, most of the soils have now less than 1.5% of
organic matter and without a natural replenishment of adequate nutrition, the decline in
productivity continues.
The climate of Bangladesh is characterized by a tropical monsoon. In all areas, about 80% of the
annual rainfall typically occurs in the monsoon period, which lasts from late May to midOctober. Mean annual precipitation ranges from about 1400 mm along the country's east central
border to more than 5080 mm in the far Northeast. In addition to the normal monsoonal rainfall,
Bangladesh is also subject to devastating cyclones, originating over the Bay of Bengal, in the
periods of April to May and September to November, often accompanied by devastating waves,
which cause great damage and losses of life.
Bangladesh is a subtropical country with three main seasons with relatively little variation from
month to month. January tends to be the coolest month and May the warmest. In Dhaka, the
average temperature in January is about 19oC, and the average temperature in May is about
29oC. The cropping season varies considerable between crops. Rice has four types grown in four
different seasons: Aus (April to July), broad cast Aman (April to December), transplanted
Aman (June to December) and Boro (December to May). The area with Aus and broadcast Aman
has been decreasing whereas Boro and transplanted Aman have been increasing. Other crops like
onion, potato, sugarcane and pulses are sown in the autumn and harvested from November to
June (Boro - season). The growing seasons in Bangladesh imply that seeds need to be stored for
a period of 5-7 month before the seed can be used for the next crop. Without proper storage
conditions, there is a high risk that the seed quality deteriorates under the humid conditions and
high temperatures. There is a clear relationship between food insecurity and the agricultural
production cycle. Food insecurity is greatest in October-November before the winter harvest and
prior to the summer harvest in April-May.
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ADVANCE CHEMICAL INDUSTRIES ( ACI LIMITED )

Advanced Chemical Industries Limited is a public limited company which was incorporated as
ICI Bangladesh Manufacturers LTD. The principal activities of the company are to manufacture
pharmaceutical products, consumer brands, public health and animal health products and to
market them along with agrochemicals and other consumer brand items.
ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the then East
Pakistan in 1968. After independence the company has been incorporated in Bangladesh on the
24th of January 1973 as ICI Bangladesh Manufacturers Limited and also as Public Limited
Company. This Company also obtained listing with Dhaka Stock Exchange on 28 December,
1976 and its first trading of shares took place on 9 March, 1994. Later on 5 May, 1992 ICI plc
divested 70% of its shareholding to local management. Subsequently the company was registered
in the name of Advanced Chemical Industries Limited. Listing with Chittagong Stock Exchange
was made on 22 October 1995. Advanced Chemical Industries (ACI) Limited is one of the
leading conglomerates in Bangladesh, with a multinational heritage. The company has
diversified into three major businesses.
Strategic Business Units

Pharmaceuticals

Consumer Brands & Commodity Products

Agribusinesses

21

Crop Care Public Health

Livestock & Fisheries

Fertilizer

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Seeds

ACI also has the following subsidiaries

ACI Formulations Ltd.

Apex Leathercrafts Limited

ACI Salt Limited

ACI Pure Flour Limited

ACI Foods Limited

Consolidated Chemicals Limited

Premiaflex Plastics Limited

Creative Communication Limited

ACI Motors Limited

ACI Logistics Limited

Joint Ventures of ACI Limited

ACI Godrej Agrovet Private Limited

Tetley ACI (Bangladesh) Limited

Asian Consumer Care (Pvt) Limited

Financials (From 2002 to 2007)

Particulars

2002

Authorized capital
Issued & paid capital

500
162

22

2003

2004

2005

2006

2007

Taka in million
500
500
162
162

500
162

500
162

500
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Turnover (net)
Number of employees

2,053
1,662

TO

PURCHASE SEED
RETAIL

2,240
1,883

2,558
1,931

BY THE

3,089
2,000

FARMERS

3,516
2,476

AT

5,757
4,027

Table 5: Finance of ACI 2002-2007

Mission of ACI
ACIs mission is to enrich the quality of life of people through responsible application of
knowledge, skills and technology. ACI is committed to the pursuit of excellence through worldclass products, innovative processes and empowered employees to provide the highest level of
satisfaction to its customers.
Vision of ACI
To realize the mission ACI will

Endeavor to attain a position of leadership in each category of its businesses.

Attain a high level of productivity in all its operations through effective and efficient use
of resources, adoption of appropriate technology and alignment with our core
competencies.

Develop its employees by encouraging empowerment and rewarding innovation.

Promote an environment for learning and personal growth of its employees.

Provide products and services of high and consistent quality, ensuring value for money to
its customers.

Encourage and assist in the qualitative improvement of the services of its suppliers and
distributors.

Establish harmonious relationship with the community and promote greater

environmental responsibility within its sphere of influence.

Core Values

23

Quality

Transparency

Customer Focus

Continuous Improvement

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Table 6: Corporate Management

BY THE

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Innovation

Executive Management
Mr. M Anis Ud Dowla, Chairman
Mr. Arif Dowla, Managing Director
Mr. M Mohibuz Zaman, Chief Operating Officer Pharmaceutical
Executive Director
Mr. F H Ansarey, Executive Director, Agribusiness
Mr. Syed Alamgir, Executive Director, Consumer Brands
Muallem A Chowdhury, Executive Director, Finance & Planning
Director Corporate Service
Ms. Sheema Abed Rahman
Auditors
Hoda Vase Chowdhury & Co.
Legal Advisor
Barrister Rafique-ul Huq, Huq and Company
Principal Bankers
Standard Chartered Bank
HSBC Bank
City Bank N.A
Commercial Bank of Ceylon
The City Bank Limited
BRAC Bank Limited
AB Bank Limited
Bank Alfalah Limited
Mercantile Bank Limited
Premier Bank Limited
Bank Asia Limited
Dutch Bangla Bank Limited

SWOT Analysis of ACI Limited

Strengths
Best quality products
Customer-specific professional services
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Market leader in Hygiene category - Savlon, Home care product ACI Aerosol &
Food category ACI pure salt.
ACI pure salt got the Best Brand award in food and beverage category in 2008.
Highly trained field forces
Minimum trade incentives
Credit policy that makes business sense credit is secured

National company with multinational image

Functionally sensible marketing & sales organization structure

Weaknesses
Slightly higher manpower turnover in field forces
Less number of forces in distribution to deal with diversified business
Less developed IT side
Inadequate training on customer handling at the lower level
Lack of Merchandisers in sales force

Opportunities
High Demand of Quality products
Favorable Reputations with Customer
Higher growth rate of the Industry
More Experienced and Managerial Know-how
Expanding Export market
E-business Opportunities

Threats

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Bargaining Power of Suppliers

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Political Instability
Ever Increasing Customer Demand for Better Customer Service
Increasing number of newcomers in the FMCG industry

ACI SEED
Seed industry is the most fundamental part of agriculture. The evolution of this industry towards
high yielding variety and maintaining genetic diversity will play a critical role in ensuring
sustainable increase in the agricultural output of Bangladesh. Keeping this challenge in mind,
ACI started the seed business in 2006. In water melon ACI Seed is still the market leader
enjoying 40% market share with Sugar Emperor. ACI Seeds have gained wide acceptance by
farmers for their quality and yield. This has created a positive brand image and a foundation of
trust on which we can expand the business.
ACI Seed have own research and development stations in Rural Development Academy, Bogra,
Bangabandhu Sheikh Mujibur Rahman Agricultural University (BSMRAU), Gazipur and
Bangladesh Agricultural University, Mymensingh.
The plan of ACI Seed is to grow this business through proper communication of agricultural
practices and ensure appropriate use of hybrid seeds. ACI Seed focusing on more research and
development of biotech products to ensure superior quality and quantity of agricultural outputs in
the country.
Agricultural land is rapidly being eaten up by development. Each year an area about hectares
wide is lost from agriculture cultivate land list of Bangladesh. High national crop output cannot
continue with such high rates of development. However Bangladesh govt. wills not able to feed
its own citizens for many years to come with this rapid loss rate of agricultural land, its
prominence in the world's food economy will decrease. In this line graph we can see that the
amount of farming land is decreasing year after year. It will be very much difficult for the
farmers of Bangladesh to cultivate more and more food for huge numbers of population with this
few farming land. The world's population will suffer as well.

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Arable Land Trend

12000000
10000000
8000000
Hectre

6000000
4000000
2000000

19
61
19
65
19
69
19
73
19
77
19
81
19
85
19
89
19
93
19
97
20
01
20
05
20
09

Figure 3: Arable land trend in Bangladesh

One of the large difficulties in dealing with this issue is that agricultural land is worth more
developed than in farming. Home builders are currently paying more per land for developing
sites. The same land is worth only little profit in terms of its Agricultural value. Cash strapped
farmers are hard pressed not to sell their land. Another concern is that the average age of the
typical farmer is over 55. Most farms that plan on continued operation will be passed on to the
children. If the farm is not to be passed on to the family offspring, then the farm is generally sold
for development. As the typical farmer gets older, increasingly more farms will be phased out of
use.One possible method of reducing the destruction of farm land is through tax incentives.
Property values for home and farms are usually figured the same way. If farmers would be given
large tax breaks, then they could afford to stay in business longer. Farmers would also be willing
to buy more land to actually increase their acreage. They could even begin to reduce the yield to
help sustain the life of the soil with larger farms. Another difficulty of stopping the conversion of
farm property is that farm land is privately owned. Privately owned farms are more efficiently
operated and produce greater yields. However with the current economic situation it is better for
the farmer to convert the land into other uses. By creating tax breaks private property can be
maintained and the loss of farm land will decrease.

27

FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Crop Seed Demand in Bangladesh-1

400000
350000
300000
250000
200000
Axis Title

150000
100000
50000
0
Rice

Wheat

Maize

Jute

Potato

Figure 4: Crop seed demand in Bangladesh-1

In this column chart we can see that total demand of crop seed like rice, wheat, maize, jute and
potato is very high then the supply from government and private sector. Current demand of rice
seed is 317000 MT. However government and privet industry can supply 105000 MT. So the
shortage of remaining 212000 MT will be a great opportunity for the private industry to do
business in near future. In case of wheat total demand is 72000 MT. Only 25450 MT is supplying
mutually government and private industry. Remaining 46550 MT will be a great opportunity for
the private industry to do business in near future. The demand for maize and jute is respectively
6000 MT and 3570 MT. However government and private industries mutually supplying 4800
MT and 1806 MT for maize and jute seed. Potato has huge demand of 400000 MT. However
government and privet industry can supply only 19300 MT. So the shortage of remaining 380700
MT will be a great opportunity for the private industry to do business in near future.

28

FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Crop Seed Demand in Bangladesh-2

120000
100000
80000
60000
MT
40000
20000
0
Vegetable

Spice

Pulses

Oil

Figure 5: Crop seed demand in Bangladesh-2

In this column chart we can see that total demand of crop seed like vegetable, spice, pulses and
oil is very high then the supply from government and private sector. Current demand of
vegetable seed is 4300 MT. However government and privet industry can supply 2000 MT.
Moreover most of them is providing by private sector. So the shortage of remaining 2300 MT
will be a great opportunity for the private industry to do business in near future. In case of spice
total demand is 101875 MT. Only 290 MT is supplying mutually government and private
industry. Remaining 101585 MT will be a great opportunity for the private industry to do
business in near future. The demand for pulses is 21350 MT. However government and private
industries mutually supplying 315 MT. Oil has demand of 13500 MT. However only government
can supply only 398 MT. So the shortage of remaining 13102 MT will be a great opportunity
only for the private industry to do business in near future.

29

FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Aggregate Seed Market Value Trend

40000

35000

30000

25000

20000
Taka in "000"
15000

10000

5000

0
2006

2007

2008

2009

2010

2011

Figure 6: Aggregate seed market value trend

In this column chart we can see that the aggregate seed market value trend was increased year
after year. In 2006 the total figure was 265000000 taka. However after one year it caught the
figure of 295000000 taka. In 2008 it was 312000000 taka moreover one year later it reached in
the figure of 340000000 taka. In 2010 the aggregate seed market value trend was 365000000
taka. Bye the way in last year 2011 it was almost 40000000 taka. However the figure of 2011s
aggregate seed market value trend was 39000000 taka.

30

FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Formal Industry VS ACI

120%
100%
80%
60%
Axis Title
40%
20%
0%

2008

2009

2010

2011

-20%
Figure 7: Formal industry VS ACI

This is the column chart from which we can understand about the contribution of ACI in
Agribusiness against formal industry. In here we can see that the contribution of ACI was
decreased and increased year after year. In 2008 the formal industry growth rate was 25% and
ACI was 114 % compare than year of 2007.In 2009 and 2010 it was decrease sharply due to
economic turn down in all over the world. During this 2 year ACIs contribution was 2% and
(-15%) respectively. However after one year in 2011 it successfully rise up and its growth rate
against formal industry reached in 32%. Moreover the growth rate of formal industry at the year
of 2010 and 2011 was 6% and 10% respectively.

31

FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

ACI Performance and Trend for Vegetable seed Against Formal Industry
7000000
6000000
5000000
4000000
BDT in "000"

3000000
2000000
1000000
0

2006

2007

2008

2009

2010

2011

Figure 8: ACI performance and trend for vegetable seed against formal industry

This is the column chart of performance and trade analysis demand of formal industry against
ACI. In here we can see that at the year of 2006 performance and trade analysis demand was
2160000000 taka. Though formal industry contributes 750000000 taka, ACI do nothing. Because
that was ACIs seed business starting year. After one year in 2007 it was 8000000 taka where
formal industry was 1250000000 taka against total demand of vegetable seed of taka
3412500000. In the year of 2008 and 2009 ACIs seed business was 12500000 taka and
19000000 taka respectively. Formal industry was 1780000000 and 2010000000 taka
respectively. And at the year of 2010 and 2011 total ACIs seed business was 28000000 and
40000000 taka respectively. However the formal industrys was 2130000000 and 2280000000
taka at 2010 and 2011 respectively. Moreover total vegetable seed demand was 5434000000 and
6006000000 taka. From my research I found that at the year of 2012 the total demand of
vegetable seed will be 8280000000 taka. However formal industry will supply the vegetable seed
pricing amount of 3800000000 taka and ACI will supply the vegetable seed of 235000000 taka at
the year of 2012.

32

FACTORS DETERMINING

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RETAIL

BY THE

FARMERS

AT

Future vegetable market

9000000
8000000
7000000
6000000
5000000
BDT in "000"

4000000
3000000
2000000
1000000
0

2011

2012

2013

2014

2015

Figure 9: Future vegetable seed market

Here is the column chart of future vegetable market of Agribusiness. In here we can see that
future vegetable demand, formal industries price of supplying seed and ACIs price of supplying
vegetable seed from 2012-2015. In previous chart I told about the future demand of vegetable
seed. Also I told about the prices of supplying vegetable seed of formal industry and ACI. So
now I will start from the year of 2013. In 2013 the total of demandable vegetable seed will be
7189600000 taka. Formal industry supply vegetable seed whichs price will be 3210000000 and
ACI supply the seed whichs price will be 140000000 taka out of total demand. In 2014 the price
of total demand will be 8280000000 taka. Formal industry supply vegetable seed whichs price
will be 7744000000 and ACI supply 3550000000 takas vegetable seed out of total demand.
Moreover at the year of 2015 total demandable price of vegetable seed will be 8280000000 taka.
However formal industry supply seed of 3800000000 takas and ACI will supply 220000000
takas vegetable seed.

33

FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Vegetable Market
7000000
6000000
5000000
4000000
3000000
BDT "000"

2000000
1000000
et
eM
ar
k

t
bl
e
Fe
as
i

Ac
tio
na
bl

M
ar
ke

et
Vi
ab
le

M
ar
k

et
M
ar
k
ib
le
ss

Ac
ce

To
ta
lS

ee

dD
em
an
d

Figure 10: Vegetable market

This is a column chart of vegetable market. In here we can see the accessible, viable, feasible and
actionable market against total seed demand of vegetable seed market. This chart shows that the
total price of demandable vegetable seeds price is 6450000000 taka. Out of this huge market
4515000000 takas vegetable seed market is accessible. Right now formal industry and
government mutually do business in this accessible vegetable seed market. The figure of viable
market is 3870000000 taka. Capturing this market will be very easy for both private and
government sector in current period. The feasible market of vegetable seed industry is
3360000000 takas. This could be a huge market for government and private sector to do
business in near future. Moreover the worlds largest agribusiness MNCs are entering in
Bangladeshi seed market for capturing this market. And the actionable market is now out of
control for both government and private sectors. There are so many unregistered dealers and
company in our country who do business. Moreover farmers like to choose farmer to farmer seed
for long term seed collection and to reduce farming cost. This is a pie chart. In this chart we can
see the amount of vegetable seed sale

34

FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Vegetable Seed Sales in BDT& Market Share

Total industry sales: BDT 2245 Crore

40; 2%
370; 16%
ACI Lal Teer United Kashem Namdhari A.R Malik Supreme Syngenta others
1100; 49%

70; 3% 74; 3%

280; 12%
80; 4%
80; 4%
165; 7%

Figure 11: Vegetable seed sale in BDT

This is a pie chart. In this chart we can see the price amount of vegetable seed sale. The price
amount figure is 2245 crore taka. Out of this total sale 49% is doing through nonregistered seed
company and dealers. Total amount of this 49% is 1100 crore taka. In the formal industry Lal
Teer is in the top position in case of sale vegetable seed. They sale the vegetable seed total
amount of 370 crore taka. This is 16% out of total formal industry sale. United seed home is in
second position to sale the vegetable seed sale. They sale 12% vegetable seed out of 51%. The
price of this 12% seeds is 280 crore taka. A.R Malik provides 7% vegetable seed out of 51%.
Total price of this 7% is 165 crore taka. Namddari seed and Kashem seed provide 4% vegetable
seed respectively out of 51%. The price of this 4% is 80 crore taka. Supreme seed and worlds 8 th
agribusiness MNC Syngenta sale 3%. This 3% total price is respectively 74 and 70 crore taka.
Moreover remaining 2% vegetable seed out of 51% is sale by ACI seed. The price of this 2% is
only 40 crore taka.

35

FACTORS DETERMINING

TO

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RETAIL

BY THE

FARMERS

AT

Hybrid Rice Seed Sales in MT & Market Share

Total industry sales: 6000 MT

ACI

Lal Teer

1050; 18%
1700; 30%
Aftab
Energypac
BRAC

Ispahani

Supreme

600; 10%
520; 9%
1000; 17%

540; 9%
350; 6%

Figure 12: Hybrid rice seed sale in BDT

This is a pie chart. In this chart we can see the weight in MT and the price of hybrid rice seed
sale in Bangladesh. Total weight of hybrid rice seed sale in Bangladesh is 6000 MT. Out of this
6000 MT Supreme seed sale 1700 MT. This is 30% of total hybrid rice seed sale in Bangladesh.
ACI is in second position of hybrid rice seed sale category. They sale 1050 MT which is 18% out
of total hybrid seed sale market in Bangladesh. Then BRAC is in third position with total sale of
17% hybrid rice seed in Bangladesh. The weight of total 17% is 1000 MT. Lal Teer sale the
hybrid rice seed of 6000 MT. This is 11% out of total formal industry sale. Ispahani and Aftab
seed sale respectively 520 and 540 MT hybrid rice seed. That is 9% out of total hybrid rice seed
sale in Bangladesh. Remaining 6% hybrid rice seed by Energypac. The weight of this 6% is only
350 MT.

36

FACTORS DETERMINING

TO

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RETAIL

BY THE

FARMERS

AT

HYV Rice Seed Sales in MT & Market Share

Total industry sale 4500 MT

12%

8%
7%

16%

16%

Aftab
Energypac
BRAC
ACI
Supreme
Syngenta
Ispahani

12%
29%

Figure 13: Hybrid rice seed sale in MT

This is a pie chart. In this chart we can see the weight in MT of HYV rice seed sale in
Bangladesh. Total weight of HYV rice seed sale in Bangladesh is 4500 MT. Out of this 4500 MT
ACI seed sale 1305 MT. This is 29% of total HYV rice seed sale in Bangladesh. Worlds 8 th
agribusiness MNC Syngenta and BRAC mutually is in second position of HYV rice seed sale
category. They sale 720 MT which is respectively 16% out of total HYV seed sale market in
Bangladesh. Then Supreme and Ispahini is just after Syngenta and BRAC with total sale of 12%
HYB rice seed in Bangladesh. The weight of total 12% is respectively 540 MT. Aftab seed sales
8% HYV rice seed out of total formal industry sale in Bangladesh. This 8% is 360MT.
Energypac sale 315 MT hybrid rice seed. That is 7% out of total HYV rice seed sale in
Bangladesh.

37

FACTORS DETERMINING

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RETAIL

BY THE

FARMERS

AT

Top Industry Players on Positioning Barometer

Supreme
Namdhari Malik

4.0

United Seed
ACI

4.0

3.0

3.0

2.0

2.0

A.R Malik

4.0

4.0

4.0

3.0

3.0

3.0

2.0

2.0

2.0

1.0

1.0

2.0

Pr
oc
es

se

sS

H
ea
lth
Fi
na
nc
ia
l

ou
rc
es
R

es

(1.0)

Pr
od
uc
tiv
e

is t
rib
ut
io
n

(1.0)

Pr
om
ot
io
n

Pr
ice

Pr
od
uc
t

1.0

4.0

tre
ng
th

5.0

Lal Teer
BRAC
5.0

Figure 14: Top industry players position

This is the line chart of top industry players on positioning Barometers. In here we can see the
top industry players position based on some very important barometer. Those barometers are
product, price, promotion, distribution, productive resource and financial health and processes
strength. From this chart we can easily understand about the companys current situation and
their corporate advantage in seed market. The selective top market players in our countries
agribusiness are Lal Teer, Supreme, United seed, A.R Malik, BRAC, Namdhari Malik and ACI
seed. Gradually I will discuss about all those company.
Lal Teer is in the top position in our countries agribusiness. There product price and quality is
best in our country market. In case of promotion and distribution activity they hold top position
then other seed company. There promotion and distribution activity is much more centralizing
then other companies. Productive resources of Lal Teers are in moderate position. Moreover
their financial health is not good enough. However their processes strength is very high in
market.
Supreme seed is in the second position compare then other company in our countries
agribusiness. There product quality is good but there price rate is moderate in our country
market. In case of distribution activity they hold very good position and in case of promotion
they other seed company. Moreover the processes strength of supreme is also poor.
United seeds product quality is not good enough but their price is moderate in our country
market. In case of promotion and distribution activity they are very poor then other seed
38

(2.0)

FACTORS DETERMINING

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RETAIL

BY THE

FARMERS

AT

company. Productive resources of United seed is very good. Moreover their financial health is
moderate. However their processes strength is also poor.
The product quality of ACI seed is good but their price is moderate in our country market. In
case of promotion and distribution activity they are very poor then other seed company. There
promotion and distribution activity is not good enough then others. Productive resources of ACI
seed are very good. Moreover their financial health is moderate. However their processes
strength is also poor.
Namdhari seeds product quality is good but their price is very high in our country market. In
case of promotion activity they are very poor on the other hand their distribution system is very
good compare then other company. Productive resources of Namdhari seed are moderate.
Moreover their financial health is also moderate then others. However their processes strength is
very poor.
The product price and quality of BRAC is not good in our country market. In case of distribution
activity they hold moderate position then other seed company. There promotion activity is not
good enough. Productive resources of BRAC are very high. Moreover their financial health is
also good enough. However their processes strength is not good.
A.R Malik is another good market player in our countries agribusiness. There product price and
quality is moderate in our country market. In case of promotion they are very poor and their
distribution activity is very good then other seed company. Productive resources of A.R Malik
are moderate. Moreover their financial health is not good enough. However their processes
strength is very poor in market.
SWOT Analysis of ACI Seed
Strengths
Customers perception as dominant quality seed marketer having strong corporate
image.
Several leading varieties in bulk market.
Most qualified staff pool sound both in technical and non technical parameters.
Wide customer network base.
Innovative market permeation style in a given market.
Weaknesses

Opportunities
39

Low-key performer in farmers brand call.

Longer distribution leads time.
Relatively small array of GP contributing product variants.
Lack of state-of-the-art storage facilities.
Slow pace of own-bred variety release.

FACTORS DETERMINING

Threats

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Untapped market size amount to 75-80% for the industry access.

Rapidly increasing farmers brand affiliation to replace unstructured sources.
Incremental seed use for vertical extension and multiple cropping.
Addition of high-tech to maximize yield and minimize cost of production.

Abnormal rise of import price.

Farmers price sensitivity and too wavering decision to choose crops and crop types
(hybrid or HYV).
Long overdue pile by the debtors in market.
World agro giant s entry with huge start -up cost.

ANALYSIS

AND

FINDINGS

This survey conducts as of mutually rural and urban spot. My survey spot was Siddiqe Bazar of
Dhaka as well as Mowna of Gazipur. I accumulate the valued data from 73 farmers. Moreover
most of them are vegetable farmers. I prefer 25 farmers at random as of those 73 farmers
designed for my analysis and findings purpose. I do suppose that, this analysis and findings be
able formulate strategic choice, start on customize product and diversify the business to add
value in ACI Seed.
I visit Siddiq Bazar for 5 periods to gather resource able data from 47 farmers. Approximately
89% of them were from countryside. Moreover all of them are vegetable farmers. In support of
having a mixture of dissimilar data I visit Mowna of Gazipur for 2 times and accumulates the
data from 26 farmers. They were also vegetable farmers, however only 12% of them cultivate
rice for the duration of Boro (November-April). The determining factors to purchase the rice
seed are not so as to great extent multifaceted similar to vegetable seed. So the determining
factors to purchase the rice seed are approximately equal for 85-90% rice seed farmers.
The data was accumulating based on six significant questions. Those were strappingly connected
with the determining factors to purchase seed by the farmers at retail. Then I arrange area chart
based on five questions out of six. Remaining only question was regarding the yearly income of
individual farmers. However the farmers were not paying attention to make available about the
actual figure of their every year income. So, it was not possible to make out their annually
income. Yet I arrange my analysis and findings element based on age range starting point. In
addition it will be of assistance to start on customize product and diversify the business.

40

FACTORS DETERMINING

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RETAIL

BY THE

FARMERS

AT

Question 1: How important are these features as part of the products?

Important features of Seed purchase

Ro
s

hu

Fo
jlu

em
be

un

or
oo

lM

M
az
ed
M

i
sh

ol
la

uf
Yo
us
h

rP
at
oa
on

Germination

Sa
a

ha

Yield
Market Value

Ka
iu

lH
os
bu
A

Ko
rim

Bo
x

Sh
e

sa
in

ka
ri

Price
Name

Figure 15: Important feature of seed purchase

In case of this question, 100% farmer fills importance to play a part with their statement. There
were 11 options to preference as answer in support of this question. From this area chart farmers
prefer only five important features to answer this question. Those are
Table 7: Important features of seed purchase

41

Features

Percentage

Out of 25

Yield

43.36%

10.84

Price

30.68%

7.67

Market value

13.32%

4.77

Germination

9.32%

2.33

Name

3.32%

.83

FACTORS DETERMINING

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AT

From this area chart we can make out that the proportion of yield is maximum in the middle of
the subsequent features. The outline is 43.36% with 10.84 farmers out of 25. As the significant
seed purchasing feature, price is in second place. It is 30.68% with 7.67 farmers out of 25.
Number of farmers is 3.33 out of 25 are interest about market value to mention as there
important feature in case seed purchase, which is 13.32% of full amount. No more than 2.33
farmers out of 25 which is 9.32% of full amount, are think about seed germination as there
significant feature to purchase the seed. Moreover at last very slight segment of farmers .83 out
of 25 considers the companies name as there significant seed purchasing feature. The percentage
is no more than 3.32%.
To analysis the data I put together the percentage of farmers as well as the figure of farmers.
Randomly I prefer 25 farmers out of 73. As a result, to discover the percentage I multiply each
farmer with 4.
Table 8.1: Calculation

Number of Farmers
1
25

Multiply with ( 4
*?)
4
4

Total
4
100

In case shape of farmers, every farmer can prefer no more than one option in the middle of 11
options in this question. Since all single option hold a weight of number 1. However 8 farmers
prefer multiple option as there answer. So I separate the weight of number and make available
them uniformly.
Table 8.2: Calculation

Sample answer of farmers

Price
Yield and price
Yield, price and germination

Wight of answer
1
1
1

Proper distribution
1/1=1
1 / 2 = 0.5
1 / 3 = .33

As a consequence there have a number of fractions in the number of farmers out of 25.
Question 2: What is main reason for buying the products?

42

FACTORS DETERMINING

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RETAIL

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FARMERS

AT

Reason for buying Seed

em
be

Ro
s

hu

un
lM
or
oo

Fo
jlu

i
sh

ol
la
M
az
ed
M

Yo
us
h

Sa
a

ha
rP
at
oa
on

Yield
Good company

uf

Profit
low Price

Ka
iu
m

lH
os
bu
A

Ko
rim

Bo
x

Sh
e

sa
in

ka
ri

Believe on Dealer
Germination

Figure 16: Main reason for buying seed

This question is very much important for my research to find the actual reason of purchase the
seed. 100% farmer fills importance to play a part with their statement. There were no options to
preference as answer in this question. From this area chart farmers prefer six main reasons to
answer this question. Those are
Table 9: Main reason for buying seed

Main Reason
Germination

Percentag
e
40%

Out of
25
10

Yield

22%

5.5

Good company

16%

Low price

10%

2.5

Profit

8%

Believe on
dealer

4%

In this area chart we can make out that the proportion of germination is maximum in the middle
of the subsequent features. The outline is 40% with 10 farmers out of 25. As the main reason of
seed purchase, yield is in second place. It is 22% with 5.5 farmers out of 25. Number of farmers
is 4 out of 25 are interest about good company to mention as main reason in case seed purchase,
43

FACTORS DETERMINING

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AT

which is 16% of full amount. No more than 2.5 farmers out of 25 which are 10% of full amount
are thinking about low price as their main reason to purchase the seed. Only 2 farmers out of 25
think about profit, that is 8% of full amount. Moreover at last very slight segment of farmers 1
out of 25 considers the believe on dealer as there significant seed purchasing feature. The
percentage is no more than 4%. It is commonly known that, profit and believe on dealer is very
important reason to purchase the seed. However in my research this two category carry very poor
percentage and number of people also. Moreover germination, yield, good company was
consider as the main 3 reason to purchase the seed. As well as profit of a farmer and believe on
dealer also strongly depended on this 3 main reason.
To analysis the data I use same tools like previous question.
As it was an open ended question so were no options in this question. Since every single main
reason hold a weight of number 1. However 5 farmers prefer no more than 2 main reasons as
their answers. So I separate the weight of number and make available them uniformly.
Sample answer of farmers
Yield
Germination and price

Wight of answer
1
1

Proper distribution
1/1=1
1 / 2 = 0.5

As a consequence there have a number of fractions in the number of farmers out of 25.

Question 3: If offered a consumer promotion like discount, would

you buy these products?
s

44

FACTORS DETERMINING

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RETAIL

BY THE

FARMERS

AT

Reaction consumer promotion

em
be

Ro
s

hu

Fo
jlu

i
sh
un

or
oo

lM

M
az
ed
M

Yo
us
h
Sa
a

ha
rP
at
oa
on

ol
la

uf

Would Consider
Unlikely

m
Ka
iu

lH
os
bu
A

Ko
rim

Bo
x

Sh
e

sa

in

ka
ri

Likely
Not Sure

Figure 17: Consumer reaction for incentive

This question is also very important to take future plan about consumer promotion. Through this
area chart it will be very easy to understand to identify the reaction of farmers about consumer
promotion in near future. 100% farmer fills importance to play a part with their statement. There
were 4 options to preference as answer in this question. From this area chart farmers prefer all
those 4 options to answer this question. Those are
Table 10: Consumer reaction for incentive

Selection

Percentage Out of 25

Likely

76%

19

Would consider

16%

Not sure

4%

Unlikely

4%

The area chart of this question is very easy to understand. We can see that the proportion of
likely is highest in the middle of the subsequent options. The outline is 76% with 19 farmers out
of 25. Some farmers reaction about consumer promotion was positive. However before take any
kind of incentive they will consider it rather than any negative reaction. Theirs percentage is 16%
with 4 farmers out of 25. I got 2 individual farmers who are not sure and totally unlike about the
consumer promotion. Both of them are with 4% out of total. However the most important
45

FACTORS DETERMINING

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FARMERS

AT

findings in this analysis are in future farmer will positively react about consumer promotion. So
consumer promotion should add value in future seed business.
To analysis the data I use same tools like previous questions.
As it was a close ended question so there was 4 options in this question. Since every single main
reason hold a weight of number 1. However all farmers prefer to choose single option for their
answers. So easily it makes available them uniformly. As a consequence there have no number of
fractions in the single number of farmers out of 25.

Question 4: Who (which) influences you most in buying?

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FACTORS DETERMINING

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RETAIL

BY THE

FARMERS

AT

Influencer to buying seed

Fo
jlu

r
hu

Ro
s

lM
or
oo
M

un

em
be

sh

ol
la
M
az
ed
M

Sa
a

Yo
us

n
ha
rP
at
oa
on

Other Farmers

Family Members

uf

Dealer

m
Ka
iu

lH
os
bu
A

Ko
rim

Bo
x

Sh
e

sa
in

ka
ri

Past Performance

Figure 18: Influencer to buying seed

This question is playing very important role to add value in seed business. It was a close ended
question and there were 6 options to preference as answer in support of this question. In this area
chart we can see the most important matter who or which influence the farmers for buying seed.
100% farmer fills importance to play a part with their statement. From my research I found four
important things which influence the farmers to buying the seed. Those are
Table 11: Influencer to buying seed

Influencer

Percentage

Dealer

42%

Out of
25
10.5

Past
performance

34%

8.5

Family
member

12.72%

3.17

Other farmers

11.32%

2.83

From this area chart we can make out that the proportion of dealer influence is maximum in the
middle of the subsequent features. The outline is 42% with 10.5 farmers out of 25. As the
significant influence, past performance is in second place. It is 34% with 8.5 farmers out of 25.
Number of farmers is 3.17 out of 25 are influenced by their family members in case of seed
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FACTORS DETERMINING

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FARMERS

AT

purchase, which is 12.72% of full amount. No more than 2.83 farmers out of 25 which is 11.32%
of full amount, are consider other farmers as their influencer at seed purchase period.
This question is extremely associated with the second question which was regarding the main
reason for buying the seed. In this area chart dealer obtain the top place as the influencer in the
middle of the farmers at retail. However farmers also think about the seed germination rate as
their main reason to purchase seed. Moreover dealers do not influence the farmers to purchase
his seed, if he is not extremely self-confidence about seed germination rate.
To analysis the data I put together the percentage of farmers as well as the figure of farmers.
Randomly I prefer 25 farmers out of 73. As a result, to discover the percentage I multiply each
farmer with 4.
Number of Farmers
Multiply with ( 4
Total
*?)
1
4
4
25
4
100
In case shape of farmers, every farmer can prefer no more than one option in the middle of 6
options in this question. Since all single option hold a weight of number 1. However 13 farmers
prefer multiple option as there answer. So I separate the weight of number and make available
them uniformly.
Sample answer of farmers
Wight of answer Proper distribution
Dealer
1
1/1=1
Family and dealer
1
1 / 2 = 0.5
Family, dealer and germination
1
1 / 3 = .33
As a consequence there have a number of fractions in the number of farmers out of 25.

ANALYSIS
[

AND

FINDINGS BASED

ON

AGE RANGE

Question 1: How important are these features as part of the

products?

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FACTORS DETERMINING

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PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 45-50

Price

45-50

45-50

Yield

45-50

Germination

45-50

Name

Market Value

45-50

45-50

45-50

Figure 19: Age range 45-50 for Question no- 1

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 6 options out of 11 to answer this question. However the farmers who
are in 45-50 years age range, they prefer 5 options to support their answer for this question. In
this area chart we can see that a good number of the farmers are thinking about the product price
as their significant features. Some was concern about seed yield and only few of them think
about seeds germination, name and market value to hold up their answer for this question.
So, price and yield is very significant feature for purchasing seed to the farmers who are in the
age range of 45-50.

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FACTORS DETERMINING

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PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 51-55

Price

51-55

51-55

Yield

Market Value

51-55

51-55

Figure 20: Age range 51-55 for Question no- 1

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 6 options out of 11 to answer this question. However the farmers who
are in 51-55 years age range, they prefer only 3 options to support their answer for this question.
In this area chart we can see that a good number of the farmers are thinking about the product
price as their significant features. Some was concern about seed yield and only few of them think
about market value to hold up their answer for this question.
So, price is very significant feature for purchasing seed to the farmers who are in the age range
of 51-55.

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FACTORS DETERMINING

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PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 56-60

Price

56-60

56-60

Yield

56-60

Germination

56-60

Name

Market Value

56-60

56-60

56-60

Figure 21: Age range 56-60 for Question no- 1

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 6 options out of 11 to answer this question. However the farmers who
are in 56-60 years age range, they prefer 5 options to support their answer for this question. In
this area chart we can see that a good number of the farmers are thinking about the product price
as their significant features. Some was concern about seed yield and only few of them think
about seeds germination, name and market value to hold up their answer for this question.
So, price and yield is very significant feature for purchasing seed to the farmers who are in the
age range of 56-60.

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FACTORS DETERMINING

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BY THE

FARMERS

AT

Age range 61-70

Price

61-65

61-65

Yield

61-65

Germination

61-65

Market Value

66-70

66-70

66-70

Figure 22: Age range 61-70 for Question no- 1

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 6 options out of 11 to answer this question. However the farmers who
are in 61-70 years age range, they prefer 4 options to support their answer for this question. In
this area chart we can see that the farmers of 61-65 age ranges are thinking about the product
price as their significant features. Some was concern about seed yield and only few of them think
about seeds germination to hold up their answer for this question. Moreover the farmers with the
age range of 66-70 most prefer about seed yield. Some of them consider seed germination,
marker value and price as the main reason to purchase seed.
So, price is very significant feature to the farmers of age range 61-65 and yield is consider to the
farmers with age range 66-70 as the main reason to purchase seed.

Question 2: What is main reason for buying the products?

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FACTORS DETERMINING

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PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 45-50

Believe on Dealer

45-50

45-50

45-50

Yield

45-50

Germination

45-50

low Price

45-50

45-50

Figure 23: Age range 45-50 for Question no- 2

It was an open ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options. In this area chart we can see that a good number of the
farmers are thinking about the yield and germination as their significant reason. Some was
concern about low price and only few of them believe on dealer to hold up their answer for this
question.
So, yield and germination is very significant feature for purchasing seed to the farmers who are
in the age range of 45-50.

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FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 51-55

Profit

51-55

51-55

Yield

Germination

51-55

51-55

Figure 24: Age range 51-55 for Question no- 2

It was an open ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options. In this area chart we can see that a good number of the
farmers are thinking about the yield and germination as their significant reason. Only few of
them were concern about profit to hold up their answer for this question.
So, yield and germination is very significant feature for purchasing seed to the farmers who are
in the age range of 51-55.

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FACTORS DETERMINING

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PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 56-60

Yield

56-60

56-60

Germination

56-60

low Price

56-60

Good company

56-60

56-60

56-60

Figure 25: Age range 56-60 for Question no- 2

It was an open ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options. In this area chart we can see that a good number of the
farmers are thinking about the yield and germination as their significant reason. Some was
concern about good company and only few of them prefer low price to hold up their answer for
this question.
So, yield and germination is very significant feature for purchasing seed to the farmers who are
in the age range of 56-60.

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FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 61-70

Profit

61-65

61-65

Yield

61-65

Germination

61-65

Good company

66-70

66-70

66-70

Figure 26: Age range 61-70 for Question no- 2

It was an open ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options. In this area chart we can see that the farmers of 61-65 age
ranges are thinking about yield as their significant reason. Some was concern about profit to hold
up their answer for this question. Moreover the farmers with the age range of 66-70 most prefer
about seed germination. Only few of them consider good company as the main reason to
purchase seed.
So, price is very significant feature to the farmers of age range 61-65 and yield is consider to the
farmers with age range 66-70 as the main reason to purchase seed.

Question 3: If offered a consumer promotion like discount, would

you buy these products?

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FACTORS DETERMINING

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RETAIL

BY THE

FARMERS

AT

Age range 45-50

Likely

45-50

45-50

45-50

Would Consider

45-50

45-50

45-50

45-50

Figure 27: Age range 45-50 for Question no- 3

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options out of 4 to answer this question. However the farmers were
not willing to choose multiple options for this question like others. The farmers who are in 45-50
years age range, they prefer consumer promotion activity like discount or gift etc. In this area
chart we can see that maximum number of the farmers is thinking positively about the product
promotion activity. Only few of them would consider promotion activity. Although they do not
react negatively about this.
So, promotional activity will be preferable for purchasing seed to the farmers who are in the age
range of 45-50.

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FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 51-55

Likely

51-55

51-55

Would Consider

51-55

51-55

Figure 28: Age range 51-55 for Question no- 3

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options out of 4 to answer this question. However the farmers were
not willing to choose multiple options for this question like others. The farmers who are in 51-55
years age range, they also prefer consumer promotion activity like discount or gift etc. In this
area chart we can see that maximum number of the farmers is thinking positively about the
product promotion activity. Only few of them would consider promotion activity. Although they
do not react negatively about this.
So, promotional activity will be preferable for purchasing seed to the farmers who are in the age
range of 51-55.

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FACTORS DETERMINING

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PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 56-60

Likely

56-60

56-60

56-60

Would Consider

56-60

56-60

56-60

56-60

Figure 29: Age range 56-60 for Question no- 3

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options out of 4 to answer this question. However the farmers were
not willing to choose multiple options for this question like others. The farmers who are in 56-60
years age range, they also prefer consumer promotion activity like discount or gift etc. In this
area chart we can see that maximum number of the farmers is thinking positively about the
product promotion activity. Some few of them would consider promotion activity. Although they
do not react negatively about this.
So, promotional activity will be preferable for purchasing seed to the farmers who are in the age
range of 56-60 except few of them.

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FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 61-70

Likely

61-65

61-65

61-65

Not Sure

61-65

Unlikely

66-70

66-70

66-70

Figure 30: Age range 61-70 for Question no- 3

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options out of 4 to answer this question. However the farmers were
not willing to choose multiple options for this question like others. The farmers who are in 61-71
years age range, they also prefer consumer promotion activity without few of them. In this area
chart we can see that maximum number of the farmers with the age range of 61-65 is thinking
positively about the product promotion activity. Moreover some few of them would consider
about it. Although they do not react negatively about this. However only a single farmer do not
consider promotion activity positively.
So, promotional activity will be preferable for purchasing seed to the farmers who are in the age
range of 61-70 except only few of them.

Question 4: Who (which) influences you most in buying?

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FACTORS DETERMINING

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PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 45-50

Past Performance

45-50

45-50

45-50

Dealer

Family Members

45-50

45-50

Other Farmers

45-50

45-50

Figure 31: Age range 45-50 for Question no-4

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options out of 6 to answer this question. However the farmers who
are in 45-50 years age range, they also prefer 4 options to support their answer for this question.
In this area chart we can see that a good number of the farmers are influencing by past
performance and dealer force to purchase the seed. Some was influencing by family members
and only few of them are by other farmers to purchase the seed.
So, past performance and dealer force is very significant reason for purchasing seed to the
farmers who are in the age range of 45-50.

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FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 51-55

Past Performance

51-55

51-55

Dealer

Other Farmers

51-55

51-55

Figure 32: Age range 51-55 for Question no-4

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options out of 6 to answer this question. However the farmers who
are in 51-55 years age range, they prefer 3 options to support their answer for this question. In
this area chart we can see that a good number of the farmers are influencing by past performance
and dealer force to purchase the seed. Few of them are influenced by other farmers and only 1
farmer influenced by family members to purchase the seed.
So, past performance and dealer force is very significant reason for purchasing seed to the
farmers who are in the age range of 51-55.

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FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 56-60

Past Performance

56-60

56-60

56-60

Dealer

56-60

Family Members

56-60

56-60

56-60

Figure 33: Age range 56-60 for Question no-4

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options out of 6 to answer this question. However the farmers who
are in 56-60 years age range, they prefer 3 options to support their answer for this question. In
this area chart we can see that a good number of the farmers are influencing by past performance
and dealer force to purchase the seed. Only few of them are influenced by family members to
purchase the seed.
So, past performance and dealer force is very significant reason for purchasing seed to the
farmers who are in the age range of 56-60.

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FACTORS DETERMINING

TO

PURCHASE SEED
RETAIL

BY THE

FARMERS

AT

Age range 61-70

Past Performance

61-65

61-65

Dealer

61-65

Family Members

61-65

66-70

Other Farmers

66-70

66-70

Figure 34: Age range 61-70 for Question no-4

It was a close ended question. Meant for the first question all individuals randomly chosen 25
farmers from 73, pick total 4 options out of 6 to answer this question. However the farmers who
are in 61-70 years age range, they also prefer 4 options to support their answer for this question.
In this area chart we can see that the farmers with the age range of 61-65 are influencing by past
performance to purchase the seed and few of them are influencing by dealer force. On the other
hand the farmers with age range of 66-70 were influencing by dealer force and past performance.
However some of them are influenced by other farmers and family members to purchase the
seed.
So, past performance and dealer force is very significant reason for purchasing seed to the
farmers who are in the age range of 61-70.
Decision and Suggestion
From my survey I found some determining factors from the farmers. However only few of them
are very much important to them at the time of seed purchase. These are

64

Yield of seed
Seed Germination
Price of seed

FACTORS DETERMINING

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FARMERS

AT

Though these factors are little beat different in case of age range. The young farmers are very
much conscious about the product price. On the other hand middle aged and old farmers are very
much conscious about yield and seeds germination respectively. However most of the farmers
are very much concern about this three factors.
However to purchase rice seed most of the farmers like to choose the seed based on their past
experience. 80-85% farmer purchases rice seed based on past experience. Remaining farmers
purchase seed by convince through dealer force or the outlook of package. But this portion is
only 15-20%.
ACI seed need to increase their promotional activity like: gift or incentive. Because 92% of total
farmers are very much positive to take the incentive provided by the company. The young
farmers are very much excited about promotional activity of seed company. Some of them
mention that it will help to increase the sale of seed.

CONCLUSION
Table 12: Condition of top market player

65

High

Lal
Teer

Supreme

BRAC

Medium

United

ACI

Namdhari
Malik

Low

Competitive Strength

Market Attractiveness
High
Medium
Low

A.R
Malik

Ispahani

Aftab

FACTORS DETERMINING

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FARMERS

AT

In this table we can see the condition of top market players on the basis of some multi factors.
This multi factors are market attractiveness and competitive strength. Moreover market
attractiveness has three divisions on the other hand competitive strength has also three divisions.
All those three divisions of respective market attractiveness and competitive strength are high,
medium and low. Market attractiveness division is selected based on size of market, profit level,
competitive rivalry, growth, technology, ability to differentiate. On the other hand competitive
strength division is selected based on market share, size, quality, cost base, brand strength,
customer loyalty.
Based on this multi factor Lal Teer is in first position. There market attractiveness and
competitive strength is best then other seed companies. In the rural area Lal Teer is the most
reliable name to the farmers for seed. Moreover there competitive strength is their product
quality which is the best in Bangladesh. At the same time the seed of their Bitter gourd, Ash
gourd and Bottle gourd is world class. They have the largest research and development plant in
Gazipur.
Supreme is in second position based on this multi factors. There competitive strength is high.
However their market attractiveness is medium. There hybrid rice seed Hira is the best in
Bangladesh. They also sale vegetable seed and HYV rice seed. Their market share of HYV rice
seed is in third position and there Radish hybrid seed is best in the market. They have a good
research and development plant. Moreover the quality of their hybrid seed of Cabbage is very
good then other seed company.
BRAC is next after Lal Teer and Supreme. There competitive strength is high but market
attractiveness is very low then other seed companies. There hybrid and HYV rice seed is well
qualified in Bangladesh. They also sale vegetable seed. They also sale the flower seed. Over all
there seed quality is good.
The market attractiveness of United seed is very high. However their competitive strength is
medium. Actually United seed is very reliable only for vegetable seed. They are in the top
position to sale the hybrid seed of Carrot and Papaya. There corporate image is very good.
However they have no research and development plant.
ACI is in the 5th position based on this multi factor. There market attractiveness and competitive
strength is medium compare then other seed companies. There HYV rice seed is the best in
Bangladesh. They also sale vegetable seed and HYV rice seed. Their market share of HYV rice
seed is in third position. They have a good research and development plant. Moreover the quality
of their hybrid seed of Papaya and Watermelon is very good then other seed company.
Namdhari Malik is in the 6th position based on this multi factor. Basically its an Indian company.
There competitive strength is medium and market attractiveness is low compare then other seed
companies. There hybrid vegetable seed is good enough. There sponge gourd is very well
qualified in market. They have no research and development plant. Moreover the quality of their
hybrid vegetable seed is good compare then other seed company.
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FACTORS DETERMINING

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RETAIL

BY THE

FARMERS

AT

Market attractiveness of A.R Malik is high and there corporate strength is very low in seed
market. Basically its our local company. There hybrid vegetable seed is very good enough.
Moreover there seed is very reliable in rural area to the farmers. Specially Cauliflower, Cabbage,
Tomato, Radish, Watermelon is very good qualified. There promotional activity is very few but
there market share is moderate. They have no research and development plant.
Market attractiveness of Ispahani is medium and there corporate strength is very low in seed
market. They have some good market share for the HYV and hybrid rice seed. Moreover there
seed is not that much reliable like other company in rural area to the farmers. There promotional
activity is very few and their market share is moderate. They have no research and development
plant.
Market attractiveness and corporate strength of Aftab seed is very low in seed market. They are
very new in the seed market and thats why there corporate image is very poor. However they
sale various kinds of hybrid vegetable seed. There seed is not that much reliable like other
company in rural area to the farmers. They have no research and development plant. There
promotional activity is not good and their market share is very low.

67