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Mozambique, the only Lusophone country covered in the agribusiness indicators initiative, has had a turbulent history since independence. Civil unrest over some 20 years and frequent drought in southern Mozambique, coupled with floods near the many waterways that transect the country (mainly east-west), have inhibited an agricultural transformation. Even so, Mozambique could be a regional breadbasket. The country has much potentially usable arable land, along with access to river water for irrigation in many agricultural production zones, particularly in central and northern Mozambique. Sesame, pigeon peas, and cashew exports are significant and rising, not to mention exports of industrial crops such as cotton, leaf tobacco, and sugarcane, yet production of grain and most other food crops remains stagnant. Irrigated area is way below what is possible and needed to increase yields and total agricultural output.

Because agriculture is the economic backbone of most countries in Sub-Saharan Africa, including Ethiopia, any meaningful sustainable development program in the continent must therefore be anchored in the sector. The concept for this study on agribusiness indicators was based on the vital role that agribusiness plays in agricultural development. The study focuses on agribusiness indicators (ABI) to identify and isolate the determining factors that lead private investors and other stakeholders to participate in agribusiness and to engage in discourse regarding its development. A more thorough empirical understanding of these determinants in turn can usefully inform the types of policy reforms that can promote agribusiness in Africa. In Ethiopia, the ABI team focused on the following success factors: a) access to critical factors of production of certified hybrid seeds, fertilizer, and mechanical input; b) enabling environment in terms of access of credit and transportation; and c) government expenditures on agriculture, and trade and regulatory policies that currently influence the agribusiness environment. The factors and indicators that the research team has included in this study are not exhaustive but rather are intended to serve as a pilot that could be scaled up to include more variables and countries. The findings of the study revealed the dominant role of the government in the seed and fertilizer markets. In the seed sub-sector, perennial shortages of both basic and certified seeds have greatly limited agricultural productivity in Ethiopia.

The use of quality seed is a major component of increased yields in crop production. Quality seed and seed programs in a country does not emerge by happenstance; it is created by a combination of many factors that include variety development, seed production, quality control, processing, marketing, and governmental oversight. As the seed sector in a country matures, each of these factors becomes more important and plays a more important role in the growth of the agricultural sector. The seed program in Cambodia is interestingly different from that in many other developing countries. Even without a true seed program in Cambodia, farmers understand the need to plant quality seed to increase crop yields. When structuring this growing seed industry, it is important to look at current practices and to incorporate these practices into programs. Since a major thrust of the seed program in Cambodia involves rice, it is important to consider its role in the average Cambodian’s life. Cambodia’s climate must also be accounted for in any decisions regarding seed. Its heat and humidity causes rapid deterioration of seed viability and germination in rice and other seeds in both the growth and storage phases. CARDI research has shown that the level of rice germination falls below 80-85 percent within 6-8 months after harvest; this means that seed must be planted during the growing season following harvest. Therefore, any seed produced beyond immediate planting needs for the next crop is used for milling; seed production costs for that seed cannot be recouped. When seed producers’ budgets are constrained, they often plan their seed production based on conservative seed sales estimates.

Many transition and developing economies have reduced direct public involvement in the production and trade of seed and other agricultural inputs. This trend creates opportunities for farmers to realize improved access to inputs, including technology from international private research. Unfortunately, input regulations often derail these opportunities by blocking private entry and the introduction of private technology. This study looks at the experience in Bangladesh, India, Turkey, and Zimbabwe to see whether regulations make a difference in agriculture and input industries in developing economies. In all countries, companies and farmers responded to regulatory reforms by introducing and adopting more new technology and by expanding the production, trade, and use of inputs. The increased use of private technology has brought higher yields and incomes, allowing farmers and consumers to reach higher levels of welfare. These results challenge governments to open their regulatory systems to allow market entry and the introduction of private technology through seeds and other inputs.