Tuesday, January 7, 2014

Research-extension systems led by the private sector

As a complement to the perspectives presented by the NGOs on the second day of the Expert Consultation on Strengthening Linkages between Research and Extension to Promote Food and Nutrition Security, two private sector representatives also offered their insights on the issue.

Mr. Mahbub Anam, Managing Director, Lal Teer Seed Limited, Bangladesh explained his company’s extension activities including adaptation trials, result and method demonstrations, farmers’ field days and community meetings. He stressed that “seed is the single most important input in crop production which ultimately results in food and nutrition security,” so “it is our responsibility to work until farmers get the right kind of products they deserve.” To ensure quality products for farmers, the firm offers after- sales service and makes sure their feedback reaches the company’s R&D department.

He also spoke about corporate social responsibility and why it is important for both farmers and the private sector. His firm sells a product called Mini Packet targeting homestead farmers as a part of its corporate social responsibility. “We subsidized the Mini Packet and lost money by selling the product. But we didn’t lose because that is also an extension program.”

A challenge facing the private sector is adulteration. The company estimates that it is losing 30 per cent of sales income due to counterfeit products.

Mr. Stuart Morris, Extension Manager, East-West Seed, Myanmar said “the success of our company is based on focusing on local needs and the local demand-specific market,” since “farmers’ income and the profits of companies go hand in hand as well as the sustainability of the market.” For this, his firm considers extension as an essential part of business and has integrated extension into the firm’s business strategy.

Describing the situation in Myanmar, he spoke of the high cost of disseminating “public goods” information and explained that it is sometimes challenging and time-consuming to change farmers’ perception about farming practices and technologies. Myanmar also lacks local R&D capacity so that all seeds must be imported.

His firm focuses on providing extension services and the most significant extension activity is to showcase profitable cases to local farmers through demonstration farms because the major source of knowledge for farmers in Myanmar are neighbours, rather than formal extension programmes. Other extension activities include collaboration with universities and farmers, peer-to-peer technology dissemination and cost-and- return record-keeping for optimal results.

He emphasized that the private sector should use market-aligned skills and technology to keep market-driven incentives for the service provider and the client. He insisted that the private sector has to understand that farmers are also entrepreneurs who would not utilize extension activities if these did not bring them income.

Prepared by Ms. Yuri Kim, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)

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