In 2011, Ethiopia introduced the Direct Seed Marketing (DSM) initiative to address inefficient seed distribution, low adoption of improved varieties, and stagnant productivity. DSM shifted seed distribution from a state-controlled model to a competitive market-driven system. Public and private seed producers could sell directly to farmers, bypassing bureaucratic bottlenecks and creating a more dynamic and efficient seed market. Seed producers could conduct their own demand assessments and distribute seeds through various channels, including cooperatives, private dealers, and retail outlets.
A comprehensive study by researchers from the World Bank, CGIAR, and the Ethiopian Agricultural Transformation Institute assessed DSM’s impact on smallholder farmers’ seed purchasing behavior and crop productivity. The study found that DSM significantly improved access to improved seed varieties, particularly for maize, leading to increased adoption and higher yields. However, the initiative faced challenges in extending similar benefits to wheat farmers due to the continued dominance of state-controlled seed production for wheat.
Ethiopia’s DSM initiative demonstrates how market-driven approaches can improve seed access and efficiency. The success of DSM in maize markets highlights the potential of competitive seed systems to drive agricultural growth. However, the challenges faced in wheat markets underscore the need for tailored policy interventions and continued public investment to support diverse crops. By refining seed policies and fostering collaboration between public and private sectors, Ethiopia can further enhance food security and resilience in its agricultural sector.