Monsanto misses seed sales target

As the crop growing season draws closer, Monsanto Malawi, an integrated agriculture solutions provider, says it did not achieve the intended objectives last year because most of the contracted agro-dealers failed to meet the required sales target.

Even when the company introduced the sales volume incentive plan—an initiative in which agro-dealers are rewarded—all of them save for one, Chuma Chili Mthaka, beat their maize seed sales target.

Malawi is an agro-based economy, and maize is the staple grain. Ministry of Agriculture and Food Security figures show that the country achieved just over 300 000 metric tonnes surplus maize last year with the Malawi Vulnerability Assessment Committee (Mvac) estimating that over a million Malawians are food insecure.

Monsanto Malawi outgoing country manager Paul Chimimba has also cited, among other challenges, huge seed returns because most of the agro-dealers sub-contracted their work, non- payment of loans and the proliferation of counterfeit seeds on the market which was rampant in the Southern Region.

On the returns, he said normally they expect agro-dealers to return the seed not sold by February of the other year, but most of them were returned between July and August, a situation that surprised the company.

“This year, we will not allow the agro-dealers to sub-contract the sale of seed without our consent. We know sub-contracting is part of business. We will also ensure that by the end of February, all the agro-dealers return the seed not sold to us,” said Chimimba at a meeting for agro-dealers from the Southern Region

The company supplies maize seed to their contracted agro-dealers on credit, who are supposed to pay back as soon sales are over.

But Chimimba warned that unless the agro-dealers pay back the loan, they will not be given the contract this year.

“It was really a difficult year and because of your [agro-dealers] actions, you have made us to be strict,” he said.

Last year, the company confronted a certain company in the Southern Region which was producing counterfeit Monsanto seed, a development the company officials described as a huge set back.

Already, police in collaboration with the company have this year, busted fake seed manufacturing company and the culprits have been apprehended.

The danger of planting counterfeit seed, according to seed experts, is that in one hectare farmer can only harvest five bags [50 kg] as compared to between 60 and 70 bags if they had planted certified seed.

Managing director of Zomba-based Reform Agro-dealers Frank Chagoma told Business News that selling of counterfeit seed greatly affects businesses of certified seed agro-dealers.

“If the trend continues unchecked, most of the agro-dealers will be out of business because most fake seed is underpriced,” he said, adding that farmers are also affected because of poor yield.

This year, the company has tightened all the loopholes to have a good season.

Among others, all the sub-contracted agro-dealers will be required to submit their financial statements to gauge if they are viable and provide their physical address to ensure they are easily traced.

Monsanto also said there will be different invoicing on the two, five and 10 kilogrammes subsidy maize seed.

The company will also require agro-dealers to pay post-dated cheques and be registered with the Seed Trade Association of Malawi (STAM), the umbrella group of all seed traders in Malawi.