Regional finding

Key findings for South and South-East Asia

The 2021 Access to Seeds Index ranks 31 seeds companies in South and South-East Asia for the second time on their efforts to reach smallholder farmers with quality seeds in 14 countries.

Access to quality seeds for farmers is an essential element of creating an enabling environment to realise the potential of the rural economy and improve food security in developing countries. Smallholder farmers are the backbone of food production in South and South-East Asia, but they still cannot produce sufficient and nutritious food for the growing population affected by hunger and malnutrition today. The UN’s 2021 report on the state of Food Security and nutrition indicates that 418 million people in Asia are suffering of hunger, 57 million more people than in 2019, partly because of the Covid-19 pandemic.

It is critical to address the challenges smallholder farmers face in achieving food security and ending hunger in the region. The seed industry has the most potential and greatest role in developing a robust local seed sector that improves smallholder farmer productivity and income. The Access to Seeds Index highlights the efforts of leading seed companies to improve access to seeds for smallholder farmers in emerging economies. The index seeks primarily to identify leadership and good practices across the seed industry, providing an evidence base for discussing where and how companies can step up their efforts.

In 2019, the Access to Seeds Index evaluated 24 companies in the region for the first time. The index showed that the industry is present in all countries and is highly research-driven, releasing new varieties for a wide variety of crops and tailoring seed package sizes for smallholders. However, training to help smallholder farmers adopt new technologies was not often offered in all countries where there were sales activities. In addition, breeding and production activities were concentrated in only a handful of countries.

The 2021 index shows that the seed industry continues to be driven by innovation and release of new varieties to help drive productivity in the region. The index expanded its scope to assess 31 seed companies, including 13 global and 18 regionally based companies. Companies have further continued their access to seeds activities all 14 index countries. Still, they can improve their distribution to reach remote rural areas closer to the farm gate. Crop portfolios are broad, mainly for vegetables and cereals; however, pulses rich in nutrition are still underrepresented. Hybrids are the most famous seed type for many vegetable and field crops, showing the willingness of smallholder farmers to adopt improved technologies. Companies can increase their training support to match their efforts in sales activities to ensure that smallholder farmers maximise the benefits of quality seed of improved varieties.

Furthermore, the industry must increase efforts to invest in developing the local seed businesses such as seed production, breeding and processing activities in the region. Such investments enable improved technology, knowledge and resource sharing to benefit smallholder farmers in achieving food security and ending hunger. Although seed companies significantly invest in seed production in the region, effective tracking systems to ensure social and labour rights are lacking. Further, companies can invest in breeding programmes and processing activities in more countries since these activities are still concentrated in a few countries.

Companies are present with sales in all index countries but can increase their reach to remote areas

Seed companies evaluated by the index report sales presence of quality seed of improved varieties in all 14 index countries. Five or more companies are present per country. However, only half of the companies with sales activities in each country reach remote rural areas.

India, Vietnam, Thailand, and Bangladesh have 15 or more regional and global companies present, with sales activities in each country. In Afghanistan and Laos, five companies are present, an opportunity for more seed companies to invest in these countries to benefit more smallholder farmers and increase food production and income.

Global companies East-West Seed (14 countries), Rijk Zwaan (13), Advanta (13), Takii (12), Sakata (12), Bayer (11) and Enza Zaden (11) stand out for having substantial sales activities in the region. Most of these companies reach remote rural areas, but Advanta, Sakata and Enza Zaden have an opportunity to develop their distribution channels to better reach smallholder farmers as well.

As observed in 2019, regional companies tend to focus their activities on their home countries. However, in 2021, we see significant efforts by Indian companies in reaching many countries beyond their home base, such as Acsen HyVeg (5 countries), Namdhari Seeds (7), JK Agri Genetics (8) and Kalash Seeds (8), in addition to Bangladesh’s Lal Teer (8) and Taiwan’s Known-You Seed (12), the majority of which reach remote areas.

Overall, half of the companies with sales activities in each country reach remote rural areas closer to the farm gate. Reliable access to quality seeds for smallholder farmers in developing countries where infrastructure is weak allows smallholder farmers to acquire suitable seeds to plant at the right time. As highlighted by companies, the Covid-19 pandemic amplified challenges for companies to reach smallholder farmers with quality seeds due to international and local movement delays, increased transport costs and closure of outlet shops. The seed industry in South and South-East Asia has the key to ensuring a reliable supply and resilient distribution channels of quality seed for remote rural areas. In turn, farmers can produce sufficient, healthy, and nutritious food on small land farms for the growing population, while reducing the increasing hunger rates affecting more than 400 million people in Asia today.

Vegetables continue to dominate company portfolios, however pulses rich in nutrition are still underrepresented

Company portfolios in South and South-East Asia are broad, mainly for vegetables and cereals; however, pulses rich in nutrition are still underrepresented. In addition, companies continue to offer more hybrids than Open Pollinated Varieties indicating the adoption for improved varieties for smallholders in the region.

Both global and regional companies assessed for South and South-East Asia offer a broad crop portfolio. As noted in 2019, rice and maize are widely offered field crops, and company portfolios still lack pulses such as beans (dry), chickpea, pigeon pea, soya bean and groundnuts, which can contribute to the reduction of malnutrition in the region. The most widely offered vegetables are tomato, pepper (hot), watermelon and cucumber.

Beyond the global field crops and vegetables, 19 companies provide access to good quality seeds of traditional and local crops. These crops are part of the local agrobiodiversity and contribute to a diverse diet. East-West Seed provides the most local crops in the region. Companies’ local crops include Amaranthus, Chaisim, Choy Sum, Greens, Kailaan, Kangkong, Lablab bean, Lentil, Mung bean, Mustard, Tinda and Yard Long Bean.

Altogether, companies in the region offer a wide choice of vegetables and field crops, mostly of hybrids than of open-pollinated varieties (OPVs). For example, eight global companies, Bayer, Limagrain, Advanta, Syngenta, East-West Seed, Takki, BASF and Rijk Zwaan, offer broad vegetable portfolios of mostly hybrids and a few OPVs. Regional companies such as Mahyco Grow, JK Agri Genetics and Lal Teer Seed offer hybrid and OPV options of field crops and vegetables. The use of more hybrids in the region is a good indicator of commercial farming by smallholder farmers adopting the high-yielding crop varieties to increase food production on small land farms.

As found in the 2019 index, the seed industry in the region makes significant efforts in investing in its own company breeding programmes, which is evident in the renewal varieties on the market. Both global and regional companies report more than half (57%) of the newest crops on the market are less than 2 years. Sixty percent of regional companies’ new varieties are from their own programmes compared to 71% for global companies. Additionally, companies release new varieties through collaboration among their breeding programmes and from public research.

Training for smallholder farmers is centered around countries with an established seed sector

Twenty-four companies report offering extension services to smallholder farmers in all 14 index countries, with a least one company present per country.

Company portfolios show that smallholder farmers in South and South-East Asia have adopted seeds of improved varieties, mainly hybrids, to increase their productivity. However, smallholder farmers need after-sales support through extension services such as agronomic and crop protection advice, appropriate application of other agricultural inputs, sustainable farming practices and weather data platforms to gain from these technologies to grow more food on a small area of land.

Twenty-four companies report offering extension services to smallholder farmers in all 14 index countries collectively, with a least one company present per country. Extension services are highest in India, Bangladesh, Thailand, Vietnam and Indonesia. However, such efforts are still low in Laos, Cambodia and Afghanistan, with one or two companies offering extension services per country.

Global companies Sakata and Takii, both originating from the region, have the greatest capacity building presence, with extension services in 12 countries. Generally, regional companies mainly focus these training efforts on their home countries, except for companies with a wide regional sales presence such as JK Agri Genetics (8 countries), Namdhari Seeds (7) and Acsen HyVeg (5).

Due to the Covid-19 pandemic, companies report challenges in visiting smallholder farmers for field training and demonstrations and reduced engagement with call centers in the early pandemic stages. Companies responded with training materials focused on smallholder farmers in remote rural areas most affected by the pandemic and surveys to collect farmer information to design and offer virtual support using digital tools such as WhatsApp, Facebook, Zoom, audiovisuals and other social media platforms.

Companies still concentrate their investments mainly in six countries

Six countries, India, Thailand, Indonesia, Vietnam, the Philippines and Bangladesh, continue to attract most investments in local seed sector developments such as breeding, production and processing. In addition, companies invest in one or two business activities in Myanmar, Nepal, Pakistan and Laos, but no such investments are reported in Cambodia, Afghanistan, Sri Lanka and Malaysia.

Twenty-eight seed companies report investments in seed production in 10 countries, including Myanmar, Nepal, Pakistan and Laos, where company activities are usually minimal. India, Thailand and Indonesia benefit most from seed production activities. In addition, 15 companies report involving smallholder farmers in seed production activities, who produce around 78% of seed for those companies.

East-West Seed, Bayer and Advanta have the most locations for seed production in the region and tend to involve smallholder farmers in their activities. Companies with seed production activities report commitments and policies to ensure social and labour standards such as the right not to subject workers to forced labour and child labour and respect of workers’ health and safety. But they lack effective monitoring systems and standards to track their performance. Furthermore, a living wage provides a decent standard of living for workers and their families, but no company reports paying a living wage or requiring its intermediaries to do.

Twenty-eight companies, comprised of 12 global and 15 regional companies, have breeding locations in 8 countries, including Nepal, Pakistan and the six seed hubs. These efforts allow the seed industry in the region to advance in research and development to develop new and suitable seed varieties that are important for smallholder farmers in the region. In addition, global companies such as Bayer, Limagrain and Advanta invest in three or more countries, while regional companies have investments in one or two countries.

Twenty-one companies have processing locations in nine countries. Seventeen of those companies are present in India. East-West Seed (6 countries), Advanta (4) and Syngenta Group (3) have the most investments in South and South-East Asia. Regional companies Charoen Pokphand Group, Bioseed and Namdhari Seeds focus their efforts on three countries each in the region. Other companies tend to have one to two processing locations in the region.

There is an opportunity for more seed companies to scale their investments in more countries to develop a robust regional seed sector that responds to the growing demand for sufficient, healthy and nutritious food to feed the growing population while reducing hunger and malnutrition rates affecting many people in the region.