Cost-Benefit Analysis of Early Generation Seed Production: The Case of Public Seed Enterprises and Research Institutes in Ethiopia

Abstract

Understanding the cost of production of early generation seed (EGS) at public seed enterprises and research institutes in Ethiopia can help to better understand the need for greater specialization in terms of the crop type and the seed class. This study was conducted to assess the production costs of pre-basic and basic seed for tef (Eragrostis tef), wheat (Triticum aestivum), barley (Hordeum vulgare), maize (Zea mays L.), and faba bean (Vicia faba), and formulate recommendations to improve early generation seed (EGS) supply and contribute to the seed sector development in the country. The study was conducted in Amhara, Oromia, and South Ethiopia and Sidama regional states and included EGS producers from federal and regional research institutes and public seed enterprises.  A structured questionnaire was used to collect primary data directly from producers on EGS production costs and sale prices from producers. Besides, key informant interviews were conducted with technical experts and managers from research centers, seed enterprises, private companies, and seed unions. Descriptive and budgetary techniques such as profitability analysis, break-even analysis and sensitivity analysis were employed for data analysis. The results showed that the EGS production of tef, wheat, and maize was profitable to research institutes and public seed enterprises. Barley EGS production for research institutes and faba bean EGS production for both research institutes and public seed enterprises were not profitable. Possible causes of low profitability are discussed and interventions for a sustainable EGS business production recommended