• A mixed methods approach is employed to assess economic viability and sustainability of quality declared seed (QDS) system. • QDS seed system is profitable with positive profit margins and a benefit-cost ratio greater than one. • This system is sustainable with diverse varieties, affordable and timely delivery of seeds to farmers. • QDS system is characterized by low producer license renewal rates despite continued seed production. • QDS is sold at farmgate with <10% through formal outlets, posing quality and traceability challenges. Relative to the informal seed systems, quality declared seed (QDS) system provides higher quality seed. Thus, it offers smallholder farmers an opportunity to access seeds of new and improved varieties more conveniently and efficiently. However, various challenges limit growth of QDS production in many subscribing countries. Therefore, this study assesses economic viability and sustainability of QDS system for common bean, groundnuts and sorghum in Tanzania. We find that QDS production is profitable, with positive profit margins and a benefit-cost ratio greater than one. QDS is primarily sold at the farmgate, with <10% sold through formal outlets or shops, posing quality and traceability challenges. QDS system avails to smallholder farmers diverse and improved varieties at affordable costs and in a timely manner. Weak regulations, inadequate inspections, low producer license renewal or registration may slow gains in the QDS business. We recommend developing marketing infrastructure to integrate private sector players like grain traders and processors, and enhancing public-private partnerships for early generation seeds and certified seeds needed for QDS production. We also suggest revising and updating the QDS training curriculum to include business entrepreneurship and marketing modules and revising existing laws to support faster QDS sector growth.
Ochieng et al. (Fri,) studied this question.