In this article we will discuss about seed marketing and distribution.
Seed Marketing:
Seed marketing does not differ significantly from marketing any other product. It can therefore be dealt with the same principles as general business identifying customers, adjusting the product and presenting the product. Marketing of vegetable seeds is the performance of all business activities involved in the movement of vegetable seeds from the seed farm to the final vegetable grower at a given time, place, quantity, type of seed, growers preference and at a fixed price he is willing to pay.
The most important well known function of marketing is that of exchange including collection, buying and selling, transportation, storage, grading, seed price determination, financing and assumption of risks. Vegetable seed is a perishable commodity, expensive to produce, store and transport. Therefore, production must be geared to realistic marketing and distribution targets.
In assessing market needs we first have to answer the questions?
i. How much, where and when?
ii. To what standards of quality?
iii. At what price?
When we have the answers to these questions we can plan both the scale and the timing of production to satisfy the expected demand.
In the marketing process one has to decide the quantity and quality of seed to be sold, the area where the sale will take place, the growing season and year for the sale. It is necessary to think about storage facilities and the logistics of how the seed is to be distributed.
Transport should be as quick as possible since seed is vulnerable during transit, particularly in difficult climates such as the humid tropics. Supply also needs to be sufficiently flexible so that surplus seed in one area can be moved quickly to fulfill a need in another.
Distribution has to be arranged so as to deliver the right quantity of seed of the right quality in time for sowing when conditions are at their best. This makes it essential to give careful thought to the delivery system so that it functions smoothly in the limited period available for moving the seed. Because the business is seasonal, it is not usually economic to have a transport system solely for seed.
The concept of marketing is based on sum total of activities that facilitate exchange relationships. American Marketing Association defines Marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges effectively and efficiently.
However, analysis of different marketing definitions revel that marketing activities generally focus on four interrelated categories e.g. product, price, promotion and distribution. The modern marketing is a customer oriented physiology.
It focuses attention on three elements:
(1) Customer needs are the basis of all the activities of the business
(2) Physiology of customer focus should be integrated through the business
(3) Long term profitability through customer satisfaction is the motto.
Seed marketing should aim to satisfy the farmer’s demand for reliable supply of a range of improved seed varieties of assured quality at an acceptable price. However, the difficulties of organizing effective seed delivery systems, especially to small-scale farmers, have often been underestimated in comparison with the attention given to other seed industry activities.
Historically, more attention and resources have been devoted to the physical aspects of seed production and storage than to the difficult organizational issues involved in managing sales and distribution.
Marketing is one of the most important, yet misunderstood business activities and frequently means different things to different people. To a retailer in the agricultural sector, for example, it is selling seed alongwith other inputs to the farmers. To the farmers, it is simply selling what he produces on his farm. However, whatever the circumstances, a well-defined sequence of events has to take place to promote the product and to put it in the right place, at the right time and at the right price for a sale to be made.
Too many people think of marketing solely in terms of the advertising and selling of goods, whereas in reality marketing starts long before the goods exist and continues long after they are sold.
Therefore, for the marketing process to be successful:
(1) The farmer/consumer’s needs must be satisfied
(2) The seed company’s objectives must be realised.
Seeds follow no normal route from producer to user, but most seed movement involves a grower, a wholesaler, and a retailer. The activities of each vary widely, depending on the items handled.
Although governments in developing countries have, in general, succeeded in establishing seed legislation as well as seed production and trading activities, government supply objectives are frequently not met and seed stocks remain unsold. This may be because the public sector usually operates passive distribution systems, simply stocking outlets from which the farmers can collect seed but often leaving many outlets un-stocked or with the wrong varieties.
Such systems are not responsive to the needs of the farmers. However, by introducing a commercial perspective and applying sound management and marketing techniques these passive systems can be transformed into active marketing systems which may prove far more beneficial to the farmers and the suppliers.
The principle that marketing is about identifying, anticipating and satisfying the needs of the farmers, as well as realizing the objectives of the supplier, is fundamental. Even if public sector objectives are not necessarily profit oriented there is no reason why a public organization should not adopt sound management and marketing techniques.
Seed Marketing Activities:
Marketing is not just advertising, distribution or sales but an integrated management process involving employees at every level of a business. Marketing activities are traditionally divided on the basis of operational activities, such as sales and distribution, and marketing service activities which include advertising, promotion and market research.
1. Market Research and Analysis:
It involves finding out about the seed market through studying the nature of the product, where and by whom it is needed, at which times of the year and why.
2. Forecasting:
It entails using marketing information for the purposes of planning and making sound business decisions, such as how many bags of seed will be sold and how much seed should be produced.
3. New Product Development:
It requires the identification of possible new products (e.g. by plant breeding) or making improvements to existing products, such as by using seed treatments.
4. Product Sourcing:
It involves licensing varieties and sourcing seeds from own and third-party suppliers.
5. Product Management:
It concentrates on developing and implementing marketing policy for a seed product or range of products.
6. Advertising, Promotion and Public Relations:
It aims to create product awareness, influence farmers’ buying decisions, and build up a positive perception of a company or institution.
7. Sales Order Administration and Dispatch:
It involves receiving and processing orders, allocating stock and dispatching orders, and maintaining stock records.
8. Stock Control and Quality Assurance:
It involves managing the inventory for each class of seed, crop and variety, to ensure maintenance of germination and vigour.
9. Distribution and Transport:
It entails moving the seeds from the point of production to the point of sale.
10. Sales and Invoicing:
It is the process of making the actual sale and receiving payment for it, i.e. the end result of the marketing activity.
11. Management Information:
It involves collecting and interpreting sales information and other information as a basis for monitoring operations and planning future activities.
12. Customer Care:
It involves after-sales service, dealing with complaints and maintaining customer loyalty.
Government Policy for Seed Marketing:
The role of government should be to create a legislative framework which supports national seed institutions, creates the appropriate economic environment and minimizes government interference in the market. In such circumstances the private sector may be encouraged to play a greater role while guaranteeing the availability of seed of reliable quality to the farmer.
Over the past ten years many developing countries have initiated structural adjustment programmes in order to correct severe domestic economic problems. An important part of these programmes consists of reducing the role of the state in economic activity. One specific area where changes are occurring is in the marketing of agricultural inputs and produce.
The pressure for market liberalization is based on the belief that economic performance will be enhanced by involving the private sector and creating competition. However, private business may not always be able to fill the gap left by departing state enterprises. As a result, it may be necessary to combine professionally managed public operations and private enterprises. In privatizing state seed organizations, for example, there is an added risk that private monopolies are created in the place of state monopolies.
A steadily increasing number of countries is embracing privatization and seed market liberalization as a solution to the underperformance of public sector seed supply. But no practical improvement in seed supply will result simply by declaring such a policy. Any such change has to be accompanied by a significant shift in attitude and a willingness to implement change.
Components of a Government Seed Policy:
National seed policy should aim to guarantee the security of seed supplies and to make available to farmers a range of seeds of improved varieties and of assured quality with a choice of supplier. A formal document on seed policy should cover the areas described below.
Policy relating to establishment of a national seed industry should:
i. Clarify the role and objectives of state seed enterprises.
ii Recognize that there must be coordination between research, production and marketing.
iii. Establish a private-sector National Seed Association as a means of maintaining contact with government, as a forum for discussion between the members, and as a mechanism for self-regulation.
iv. Create the conditions necessary to ensure that commercial finance and credit are available for the development of seed production and distribution enterprises.
Seed Acts and statutory controls should consist of:
i. Primary legislation which takes the form of a Seed Act enabling the Ministry of Agriculture to regulate production, processing and marketing activities, thus providing ‘consumer protection’ to the farmers.
ii. Seed quality control procedures to cover the field inspection of crops and the analytical and technical services for certification.
iii. Testing of public and private seed varieties and their release which is ensured by creating a National List (of suitable varieties).
iv. Assuring the freedom to import and export seeds subject to the proper controls.
Seed policy should also create a positive economic environment by:
i. Removing the barriers to seed trading.
ii. Liberalizing investment and ownership regulations.
iii. Adopting a public sector pricing policy which supports the concept of fair and equal competition.
iv. Supporting agricultural services and promoting the use of inputs, including seeds, through the extension service.
v. Providing adequate funding to government seed institutions involved in the administration of seed legislation.
vi. Making full use of public sector seed facilities.
Information to Plan and Control Seed Marketing:
The information required to make business decisions and to plan and control seed marketing activities falls under the broad headings of:
i. General economic and political factors.
ii. The market place.
iii. The company and its products.
iv. The competition.
v. The distributors.
vi. The farmers.
vii. The traders and industrial users who buy farm produce.
Considering the above headings, the following items are not intended to be an exhaustive list, but a guide to the kind of information required by managers of a seed company and how it might be used.
The information required on general economic and political factors includes:
i. National economic performance and political indicators.
ii. Agricultural policy.
iii. Seed sector policy.
iv. Seed legislation.
v. Infrastructure development.
vi. Crop and regional development assistance.
vii. Industrial development in the food sector.
These are factors which should be considered in longer range planning and when making investment decisions. They are important when setting up new breeding programmes, as ten years may elapse before the new products become available.
The following information is needed about the market place:
i. Size, volume and value of seed required.
ii. Structure, farm size and type and regional differences.
iii. Trends, changes taking place in the market.
iv. Demand.
v. Seed supply, the volume of seed certified, imports.
vi. Import regulations and duty payable.
vii. Transport.
viii. Geographic and climatic factors.
Such market data are used when creating sales forecasts and .making seed production and purchasing decisions. This basic market data is also needed when consideration is being given to new products and markets.
i. Information required by managers on their company and its products.
ii. The image and reputation of the company among distributors and farmers.
iii. Satisfaction of the dealers and their customers with the company’s products and service.
iv. Aspects of the company’s product presentation and service which should be improved.
v. The responsiveness of the organization to customers’ needs and changes in the market.
vi. The reason why farmers choose the company’s products, e.g. for cost benefits, technical benefits and superior yield.
vii. New products in the pipeline.
viii. Progress reports on production and processing and stock available for distribution.
Several of the above factors fall into the category of qualitative data. This can be collected by questions to customers and may be used in making changes to the internal organization of the company as well as in planning promotional campaigns. Also included is internal information, such as variety performance and stock availability, which is required by management for day-to-day operations.
Information required about competitor companies includes:
i. Ownership and organizational details.
ii. Market shares by variety, breeder, distributor.
iii. New varieties undergoing official trials.
iv. Distribution systems used, number and location of outlets.
v. Pricing to distributors and farmers, price history, margins and commission, terms of trade.
vi. Promotional activities, extension, product and market support, advertising, packaging.
vii. Number and location of sales representatives and their areas of operation.
viii. Dealers shared with other suppliers and how much they sell from each company.
ix. Responsiveness of competitors to customers’ needs and changes in the market.
In a market economy, seeds of the same or similar varieties will be available from various sources, allowing customers to choose between different brands. It is therefore important to know as much about the competition as possible since choice is based on many factors, not just product performance.
Seed companies will also require the following information on their distributors:
i. The company’s distributors and their location.
ii. Methods of communication with the distributors.
iii. Their purchasing pattern and history.
iv. The level of support they need.
v. The factors limiting their purchases of the company’s products.
vi. Their financial soundness.
vii. Alternative channels of distribution.
This is operational information that is used to manage and control the channels of distribution and to evaluate alternative methods.
Information needed regarding farmers includes:
i. Factors which limit or influence their demand for seeds.
ii. Land ownership and who makes the buying decisions.
iii. Banking and credit sources to which farmers have access.
iv. Agronomic problems such as pests, diseases and weeds.
v. The leading farmers in the area.
vi. Literacy level.
vii. Availability of transport and in what form.
viii. Sources of information used by farmers.
Customer information of this type helps in market planning and focusing the target of sales and promotion efforts. Such information is also useful to distributors and dealers. Indeed distributors and dealers may be used to collect information on farmers.
Finally, information is required from the buyers of farm produce grown from the company’s seeds.
This information includes:
i. Marketing arrangements that exist for farm produce.
ii. The uses to which the product is put.
iii. Quality requirements.
iv. Quality premiums available to the fanner.
v. Contract growing systems and whether seeds are supplied or varieties specified.
vi. Developments in the commodity and final products markets, including demand, price and replacement by substitutes.
This will indicate the extent to which the buyer or industrial user influences the farmer’s decision to buy a particular seed. Often industrial users provide seed as part of a buy-back contract.
Research gives an indication of the strength of the market for farm produce and, therefore, future demand for seed. There are also quality factors which should be understood and incorporated into plant breeding objectives. Examples are barley used for making malt, wheat used for bread making and cotton used for high quality yarn.
Seed Distribution:
Distribution is the process of moving packaged seed from the stores to the farmers. This may involve a single step, if sales are made directly to farmers or a series of steps involving intermediate wholesalers and retailers. Clearly, distribution is a key area of marketing and is a vital part of meeting the customers’ needs and requirements. The route that seed follows to the consumer is often known as’ the marketing channel.
There will obviously be marketing channels already in use but every business should continually reappraise the alternatives which mean:
(1) Setting distribution objectives
(2) Considering existing constraints
(3) Listing and evaluating the alternative systems.
(4) Deciding on the best channels to use.
In conducting this appraisal, consideration should be given to the nature of the product, the distributors, the consumers and the competition. The product should be appraised by its: volume to weight ratio; unit package size and value; transport and protection requirements; handling characteristics and load size; requirements in terms of maintaining seed quality.
All the product’s characteristics need to be taken into account. There is an enormous difference between moving 50-kilogram sacks of wheat seed and fifty 50- gram packets of cabbage seed. High value, small packets will be more readily pilfered than 50-kilogram sacks thus making security a further consideration. Load and package size will have to be planned in relation to the availability of transport, road conditions, access and handling arrangements.
The distributors should be evaluated in terms of:
i. The number of outlets needed to cover the market and the appropriateness of their locations.
ii. The location of the seed company’s stores in relation to the wholesale or retail outlets.
iii. The size of the sales area allocated to an individual distributor, measured by the physical area and potential sales value.
iv. Whether a single distributor should be given exclusive marketing rights; the capacity and quality of the available storage.
v. The margin or commission and credit arrangements that will be required by the distributors.
vi. The need for training and marketing support.
vii. The handling of unsold stock and the need for a return system.
Seed consumers should be considered in terms of:
i. The period when seeds are required and whether there is a single sowing period or as in the case of vegetables, a more continuous demand.
ii. When seed is purchased and in what quantity.
iii. The most popular package sizes,
iv. The distance normally travelled between farm and retail outlet.
v. The transport used by farmers to move the seeds to their farms.
vi. Farmers’ credit needs.
The competition should be appraised in terms of:
i. Which channels they use.
ii. The terms and conditions they offer their dealers.
iii. The capability of the company to match or improve on their level of service and support.
In planning physical distribution a balance has to be struck between the need to provide good customer service and the need to minimize costs. If a bag of seed does not get to the right place at the right time there is no sale and, as a consequence, the customer may not come back the following year.
Farmers’ demands are seasonal and they generally buy seed just before sowing time, rather than planning ahead, with the result that the transport and delivery system can be put under extreme pressure.
Intermediate storage between the seed company’s stores and the retailers will therefore need to be considered to make the system more responsive, but this will add to the cost. Another approach is to encourage farmers to buy early so that stock can be moved to the dealers, thus easing the transport problem. For this purpose a ‘buy early’ promotion campaign could be run.
Seed Distribution Systems:
Seed distribution can be carried out by government, public sector agencies, cooperatives and the private sector or, as is often the case, by a combination of all of these.
Channels for seed marketing may be described as:
1. Direct:
The seed producing organization supplies the farmers directly.
2. Single Level:
The seed producing organization supplies the farmers through independent retail outlets.
3. Multi-Level:
The seed producing organization supplies a national distributor, wholesalers or regional distributors who, in turn, supply sub-distributors or the retail outlets.
Under this system the seed producing organizations maintains a sales division covering the sales area and supplying the farmers directly from central seed stores and a network of supply points.
Some features of direct channel distribution are:
i. The supplier has direct contact with the consumer.
ii. A high level of service and customer support can be maintained.
iii. Direct control is maintained over the quality of the product.
iv. The upkeep of such a system can be expensive, with high fixed costs if a sales force is employed.
v. A responsive management structure and well-motivated staff are required.
vi. Where there are many staff involved in a direct sales organization there can be an inbuilt inertia to change so the system may lack flexibility.
Where the public sector is the main supplier of agricultural inputs, a direct marketing system is often operated. The public sector must be aware of the need for an effective management structure, good communications systems and staff who are motivated and responsive to the needs of the consumers. Typically, however, such public sector organizations suffer from being ‘passive’ rather than ‘active’ marketing agents.
Private companies supplying field crops seeds are unlikely to be able to justify a direct sales organization unless they have a monopoly on the market or are selling a broad product range in a developed market. Conversely, where a company has a considerable investment in proprietary, high-margin, low-volume products, such as vegetable seeds, direct marketing is a viable option.
With this system, the seed producing organizations supplies a network of retail outlets. In order to achieve national coverage, the producer may require intermediate storage in order to service these outlets adequately.
The main features of this system are:
i. The seed supplier relies on the retailer for contact with the consumers.
ii. Retail networks require strong service and support from the supplier.
iii. Good administrative control must be provided by the sales management.
iv. The supplier’s distribution system must be well organized and responsive.
v. Product quality at the retail level must be monitored for deterioration and adulteration and a return system should be considered.
vi. Although the products may be well promoted, the supplier relies on the retailer to make the final sale.
Public-sector seed supply organizations are increasingly channelling sales through private dealers networks, in the interests of reducing costs and increasing sales. However, these dealers networks need effective support, and resources must be made available for marketing and promotion.
Under this system the involvement of the seed producing organization in physical distribution is minimized.
This system is characterized by:
i. The supplier having no direct contact with the consumer.
ii. Products being strongly promoted in order to create demand.
iii. Supplying seed to the distributors in sufficient time to achieve timely availability at the retail level.
iv. Management ensuring that there is a good system of monitoring sales and obtaining feedback from the consumers.
v. The distributor being interested only in the strongest selling lines.
If neither infrastructure nor the economy are well developed, national distributors may simply not be available and the seed producer will have to supply seed to regional wholesalers or distributors.
Sources of Seed Available to Farmers:
For farmers there are a number of sources available for the purchase of seed.
These are:
1. Direct Sales:
The seed producer supplies the farmers directly from central seed stores and a network of his/her own supply points.
2. Farmer Producers:
Farmers with seed production contracts are licensed to supply other farmers within their zone of influence.
3. Cooperatives:
Cooperatives act as ‘farmer producers’ and/or as suppliers of inputs to members.
4. Farmer Dealers:
Farmers act as dealers, supplying their neighbours; this can evolve into a highly developed system.
5. Commission Agents:
These work directly with the producer or his/her intermediaries, passing on orders from the farmers.
6. Crop Buyers:
Collectors and crop or commodity traders who provide a point of contact with farmers and can be used to market seed.
7. Retail Store Dealers:
Town and village dealers who retail a range of agricultural inputs, with the larger operators possibly having sub-dealers.
8. Industrial Processors:
Processors interested in specific crops including oilseed crushers and vegetable canners, who may have an interest in supplying seed as part of a growing contract or integrated production system.
9. Cold Store Operators:
Potato cold store operators trade potato seed since they deal directly with the growers and have the appropriate storage.
10. Consumer Outlets:
Garages, shops and supermarkets are best suited to display small packets of seed.
11. Mail Orders:
They are suitable for low volume high value products such as vegetables and flowers seeds. Although government extension outlets are not strictly retail outlets, seed is sometimes supplied to the farmers through government sponsored agencies and departments which administer crop or regional development and credit programmes.
Seed Storage and Transport:
There are several reasons why seed is stored:
i. To allow the efficient management of seed handling and processing.
ii. To cover the natural time gap between seed harvest and sowing.
iii. To enable sufficient stocks to be carried in the distribution system.
iv. To carry over unsold stock from season to season.
v. To provide security of supply (buffer stocks) to meet fluctuations in demand and supply and meet the agreed inventory policy;
vi. To provide sufficient stock seed for future production requirements.
Assuming that seed is harvested at maturity with satisfactory germination and vigour, it will become subject to a natural process of deterioration over time, the rate of decline being influenced by several factors such as moisture content, packaging, treatments and storage. These factors must be controlled to ensure that seed bought by farmers is in satisfactory condition and has retained its potential for high performance.
It is very important that storage conditions are satisfactory and that seed is regularly monitored for both internal as well as external deterioration. Dealers frequently sell fertilizer as well as seeds and it is imperative that seed is not stored alongside fertilizers.
Fertilizers attract moisture from the atmosphere creating damp conditions that damage seeds. Separate arrangements have to be made for the transport and distribution of potato seed, which requires special cool storage conditions.
Storage problems and seed quality loss are caused by:
i. High humidity and high temperature causing loss of germination and vigour.
ii. Water, causing direct damage, increasing, humidity and promoting fungal attack.
iii. Insects and pests (birds and rodents) causing direct damage and spillage.
iv. Cross contamination from fertilizers, chemicals and toxic materials.
v. Pilfering of seed due to the insecurity of the store.
To avoid such storage problems a company should consider constructing or renting high quality buildings which may be both fumigated and ventilated, with concrete floors, waterproof roofs, moisture-proof walls, good roof space above stack height, power and light. The location chosen should have adequate drainage and not be prone to flooding.
Seed should be stacked off floor level and apart from other products. Holes in roofs, walls and under doors need to be avoided to prevent pests from entering the store. The stores should be secure with an efficient stock control system in place; and regular checks of buildings and seed storage conditions should be carried out.
Although ownership of the seed may have passed to the dealer it is the name of the supplying organization which is carried on the bag. The marketing manager in the supplying organization must be satisfied that minimum storage standards can be met by the distributors, allowing for the length of time seed is expected to be in store.
Reference could be made to these minimum standards in the representation agreements. In planning storage a judgment must be made concerning peak holding capacity and carry-over requirements, the capital cost of building and the availability and the cost of space which can be rented, and the off-take rate during the sales season. The latter will depend on distance, transport, demand patterns and storage at the point of sale.
If the seed organization has a regional structure, a network of regional seed stores should be provided from which distributors and retail sales points can be quickly supplied. Apart from concerns about security and basic protection, physical storage requirements will depend on the amount of time that the seed is likely to be held.
Generally, seed can be moved back to central stores which have the required specifications after the selling season, to ensure that quality is maintained over longer periods of time. This will also make retesting and relabeling more convenient. A policy decision will have to be made regarding the provision of a return system for dealers.
The supplying organization can be expected to have comprehensive insurance for goods held in its own stores but special cover may have to be arranged for goods in transit if the seed-supplying organization undertakes delivery. Alternatively, seed can be sold ex-store with responsibility passing to the customer. The decision whether to supply ex-store or deliver can only be made in relation to the local situation but will be influenced by the product type, customer base and the competition.
Management of Distribution and Sales:
In order to manage distribution and sales effectively, a sound management and reporting structure is vital at every level. Within the marketing organization the sales service functions are directly concerned with the operational aspects of seed distribution.
Central sales and distribution functions are:
i. Central sales management
ii. Order administration and preparation
iii. Transport
iv. Dispatch
v. Stock records and inventory control
vi. Sales administration and invoicing (credit control)
Assuming that seed is distributed on a regional basis through a dealer system the marketing manager should:
i. Allocate responsibility for major customers within the organization in order that they may receive special attention.
ii. Define the sales territories of the area sales managers, salesmen and dealers.
iii. Know what the potential seed requirement is and the type of seed in each territory.
iv. Agree sales targets when setting the forecast and budget with those responsible for the territory.
v. Schedule dealer visit and support programme with salesmen.
vi. Insist on activity reports from the salesmen and arrange regular meetings.
vii. Establish a regular reporting system for monitoring sales and stock availability, both at the point of sale and at the supply locations.
viii. Introduce a sales staff incentive scheme in the form of bonuses or gifts linked to individual sales performance.
Seed Marketing Organizations and Agencies:
Different types of organizations and agencies are involved in seed distribution and trade in the various parts of the world.
1. Government Distribution:
In the economically less developed countries the government itself often takes care of the proper distribution of high quality seed, which is mostly multiplied on state farms or on selected private farms under the supervision of government experts. If there is no market of high quality seed, a demand among the farmers must first be created.
For this purpose, the government may sell the seed of improved varieties at a price below production costs or distribute it free of charge. From a national point of view such expenses can be considered good investment.
2. Co-Operatives:
In many countries, seed growers’ associations and farmers’ co-operative enter into the picture. Most of the wholesale and some of the retail cooperatives have been established. Seed cleaning, storage accommodation, processing and marketing of seed produced by their members have been undertaken.
A seed growers’ association is usually established in areas where seed production is done on an intensive scale by a large number of seed growers, having more or less the same interests.
These associations operate on a nonprofit basis and their main functions are more or less as follows:
i. Obtaining and dissemination of information on seed production for their members.
ii. Seeking markets for the seed of their members.
iii. Negotiating in connection with contract prices for seed.
3. Private Enterprise:
The bulk of high quality seed however is supplied to farmers by independent private companies, firms or agencies. Many seed firms sell their seeds under private registered trade-marks, although the use of trade-marks has not been so widely adopted as in other branches of trade. One of the reasons is that the use of a trade-mark added to a varietal name may lead to confusion. In many countries there are also independent seed growers who do their own marketing.