This tool helps to analyze financial performance of early generation seed (EGS) businesses run by specialized seed producers, such as NARS and private companies. The tool includes coverage of in-vitro, pre-basic, and basic seed classes. The supply of EGS is often a bottleneck to improving formal seed systems.
Sustainable early generation seed business analysis tool (SEGSBAT) measures financial sustainability based on six steps: (1) identify the minimum production capacity for each stage of EGS production to meet the minimum sales targets; (2) measure the total recurrent costs of production for the final product; (3) formulate pricing strategies based on type of customer and time of order; (4) calculate funds, such as revolving funds, needed to meet total recurrent cost; (5) estimate the net cash flow based on actual sales; and (6) review and update the production plan each season to track actual performance of the seed business. This tool can be used by anyone familiar with Microsoft Excel. This tool does not perform financial feasibility analysis, which includes net present values, internal rate of return, and sensitivity analysis of the business.
Examples of questions that the tool can address
- What is an accurate cost of EGS production?
- How to determine the price of EGS products and formulate a pricing strategy for EGS products to attract more customers?
- Are there production inefficiencies that can be streamlined to make EGS more profitable for suppliers?
For more information on the tool
Contact Srini Rajendran (International Potato Center): Srini.Rajendran@cgiar.org