Institutional System and Rice Seed Group Problems in North

Sumatra Province

Muhammad Asa’ad, Tri Martial, Surya Dharma and Desi Novita

Agribusiness Department, Faculty of Agriculture, UISU, Medan, Indonesia

Keywords: Institutional, Seeds, Rice Fields, Breeding Groups.

Abstract: This study aims to identify the institutional forms of breeders of paddy rice and identify problems that occur

in rice seed breeding groups in North Sumatra. This study uses in-depth interview method with key

respondents. Besides, questionnaires and observations were made in the field. The results showed that the

form of breeding institutions consist of two independent and non-independent breeders. All breder members

only carry out seed production activities on cultivation resistance, while post-harvest activities, certification

and marketing are carried out by the head of the farmer group or the partner company. Problems faced by

breeders include lack of access to irrigation sources, capital sources, markets, lack of knowledge and skills

in post-harvest and certification and high dependence on one party.

1 INTRODUCTION

The Agriculture Sector, especially the food crops

sub-sector is one of the fields that has great potential

and is important to be developed in North Sumatra

Province. Therefore, agricultural development

policies, especially sub-sectors of the food crops are

directed to ensure food security to support national

security. One of the directions of agricultural

development policy is to increase production

capacity through increasing productivity and

expanding agricultural areas.

Increased production capacity of food crops,

especially paddy fields is needed to support food

security both at the household and national level.

One of the factors of production that has an

important role in increasing rice production is the

use of certified superior seeds. Seeds are the main

factor in achieving high yields (Nugraha and

Subandi, 2002). This superior seed is one of the

factors that determines the high and low production

due to the use of certified superior seeds increases

the production of 15% compared to the use of

unqualified seeds (Ministry of Agriculture, 2012).

According to Jayanti (2011), the behavior of farmers

in the use of superior seeds has several advantages,

among others, improving the quality of rice,

overcoming the obstacles of pest disruption and

increasing farmers' income.

Whatever the source, farmers are generally very

aware of the need to sow the seeds of the highest

quality available. But that does not mean they prefer

"official seeds" rather than those from local sources.

Farmers' priorities related to quality are more

fulfilled from local sources. The genetic quality of

the varieties circulated may not be adapted to the

conditions of the local agricultural environment as

well as the special preferences of local consumers in

the area. In fact, it could be the analytical,

physiological and sanitary nature of the "official

seeds" inferior to local seeds. Long distribution and

poor channel distribution design can cause damage

to seeds that are initially of high quality. Other

considerations are supplier closeness, supply time

(just before the planting season), supply of reliability

(quality and guarantee of timeliness for the next

season) and seed prices (related to yield and

production prices) (Louwaars and Marrewijk, 1992).

Quality seeds are the result of all efforts to overcome

things that can negatively affect when the seeds are

formed until they can be replanted (Sadjad, 1993).

Propagation of superior and certified rice seeds is

carried out by the government together with the

private sector and farmers. Farmers can do certified

seed propagation through breeding business groups.

Most business groups of seed breeders collaborate

with the private sector or food sector BUMN.

To ensure the continuity of the availability of

certified superior rice seeds, various methods must

188

Asa’ad, M., Martial, T., Dharma, S. and Novita, D.

Institutional System and Rice Seed Group Problems in North Sumatra Province.

DOI: 10.5220/0008887201880193

In Proceedings of the 7th International Conference on Multidisciplinary Research (ICMR 2018) - , pages 188-193

ISBN: 978-989-758-437-4

be carried out. One of them is by developing and

improving the ability of seed institutions from

upstream to downstream levels, guiding, fostering,

and supervising the procurement of superior seeds

by breeding business groups (Sutami, 2016). The

role of rice seed institutions is seen as a very

important thing in the process of accelerating

agricultural development. Seed institutional support

is focused on the regulatory process, strengthening

the understanding and knowledge of the same

farmers, as well as ensuring the sustainability of

seed production that is of the right quality, right

amount, on time, right place, price and right type.

Institutional is a way to develop production capacity

(Ciat, 2003). Breeding institutions play a role in

various aspects including quality assurance, variety

development, market strengthening and

strengthening of production and post-harvest

systems (Gauchan, Magar, and Gautam, 2016).

In connection with that, to obtain a description of

the breeding business group in North Sumatra

Province, the formulation of the problem in this

study is:

1. What are the institutional forms of rice seed

breeders in North Sumatra Province?

2. What problems are faced by the institutions of

rice seed breeders in North Sumatra Province?

The main objectives of this research are to:

1. Analyze the institutional forms of rice seed

breeders in North Sumatra Province

2. Analyze what problems faced by the rice seed

breeding institutions in North Sumatra

Province.

2 METHODOLOGY

The selection of research locations was purposively

determined based on the criteria of the level of

productivity of paddy produced by the district on the

productivity of rice in North Sumatra Province and

the potential area of harvested land. Research

locations include Simalungun Regency, Serdang

Bedagai, Langkat, Deli Serdang, Mandailing Natal

and South Tapanuli Regency. The sampling

technique used is purposive sampling technique

namely the determination of samples with certain

considerations to determine who has the right to be

made an expert (Sugiyono, 2010). Each regency is

assigned 2 breeders/group breeders with a stretch

area of each group of 10 Ha.

The method used in data collection is by in-depth

interviews with experts or related parties,

questionnaires, observation, and literature studies.

The type of data used is primary data and secondary

data. Primary data in this study were obtained

through interviews, questionnaires and observations

with experts or related parties who understand about

seed institutions in North Sumatra Province. The

related parties include: 1) Breeding Business Group,

2) Agricultural Extension, 3) Plant Seed Supervisor,

and 4) Agriculture Service in each district.

Meanwhile secondary data in this study were

obtained from the Seed Supervision and

Certification Office (BPSB) of North Sumatra

Province, various literatures such as books, scientific

articles, previous researches, and regulatory

documents and government policies obtained

through internet search. The data obtained were then

analyzed using qualitative descriptive analysis to

determine the institutional forms of breeders and to

know the problems that occur in the breeder group.

3 RESULT AND DISCUSSION

3.1 Institutional Forms of Rice Seed

Breeders

Institutional forms of rice seed breeders in North

Sumatra Province are in the form of individual

businesses or legal entities. Individual businesses are

breeder farmers or breeder farmer groups that

individually or in groups produce rice seeds based

on cooperation contracts with seed breeding

companies. Farmers or farmer groups conduct

activities. Legally incorporated seed producers are

institutions or institutions that are organized to

produce seeds for commercialization. This legal

entity can be a government institution/BUMN or

private/breeding group.

Based on its working mechanism, seed producers

are grouped into:

 Independent Seed Producers are seed

producers who market their own produced

seeds.

 Seed producers of Non-Independent

Business Partners are seed producers who sell

seeds produced to their business partners.

There are 141 rice seed breeders in North

Sumatra in 2017 with details of breeding forms as

follows:

Institutional System and Rice Seed Group Problems in North Sumatra Province

189

Table 1: Institutional Forms of Rice Seed Producers in North Sumatra 2017.

Institutional Form of Seed Producers Total

1. Department of Agriculture

2. PT. Sang Hyang Seri (Persero)

3. PT. Pertani (Persero) UPB Binjai

4. Seed Hall

5. UPBS

6. UPT / UPTD

7. Breeding Groups

8. Farmer Groups

9. Limited Liability Company (PT)

10. Limited Partnership (CV)

11. Sole Proprietorship (UD)

12. Combined Farmer Groups (GAPOKTAN)

13. Cooperative

14. Foundation/Others

Source: BPSB North Sumatra Province (2018)

Table 2: Character System of Production and Marketing Based on Institutional Forms of Breeders.

Institutional Forms Production Marketing

1. Department of Agriculture

2. PT. Sang Hyang Seri (Persero)

3. PT. Pertani (Persero) UPB Binjai

4. Seed Hall

5. UPBS

6. UPT/UPTD

7. Breeding Groups

8. Farmer Groups

9. Limited Liability Company (PT)

10. Limited Partnership (CV)

11. Sole Proprietorship (UD)

12. Combined Farmer Groups (GAPOKTAN)

13. Cooperative

14. Foundation /Others

Independent

Independent & Partner

Independent

Independent & Partner

Independent

Inde

endent

Independent

Independent & Partner

Independent

Independent & Partner

Inde

endent

Source: Primary Data (Processed)

Based on Table 1 above, most (56.02%) of seed

producers/seed breeders are in the form of Farmer

Groups, and 14.89% in the form of Breeder Groups.

The production and marketing system in each form

of institutional breeder blends independently and/or

partnerly. An independent production and marketing

system means that breeding producers/institutions

carry out their own production/marketing activities

without cooperating/partnering with other parties.

Meanwhile, a system of production and marketing

that is partnered/non-independent means that the

production and marketing systems of breeding

producers/institutions collaborate with other parties.

Based on the results of the study, there are two

forms of marketing institutions that occur. These

institutional forms can be seen in Figure 1 and 2

below:

ICMR 2018 - International Conference on Multidisciplinary Research

190

Figure 1: Marketing Institution in Independent Breeder Farmers.

Based on the figures above, it can be seen that all

group members only carry out seed production until

the grain stage is sold to the head of the farmer

group. Then the farmer group leader conducts post-

harvest processes (drying and sorting) and

certification. From this, group members only carry

out production activities at the cultivation stage

only. This is due to the need for farmers to fund

immediately after harvest and the unavailability of

post-harvest infrastructure.

Strengthening the production and marketing

system of quality rice seeds for increased access and

availability at the farm level will require the

development of efficient production and marketing

mechanisms including entrepreneurial skills among

seed actors. This can be done by: (1) improving the

flow of information on domestic variety quality

assurance in the market; (2) Improving the right

relationship of the development of varieties and the

chain of seed propagation with marketing to reduce

incompatibility in demand and supply; (3)

Strengthening the market and seed infrastructure

facilities for production, processing, packaging,

labeling and branding adequately (Gauchan, Magar,

and Gautam, 2016).

Meanwhile, marketing institutions in non-

independent seed growers, breeders have two

different roles. First, the breeder sells to the

company already in seed form, and there are also

selling breeders to partners in the form of harvested

dry grain. In more details, it is shown in Figure 2

below:

Breeder Farmers:

Selling wet yields (Dry Grain Harvest) to one representing the group

(group leader/ financier) at a higher price of Rp. 200/ kg compared to the

Breeder Farmers Leader:

1) Buy Farmer’s Harvest

2) Do Drying, Selecting, Laboratory Testing, and Seed Certification

Looking for customers and marketing

Consumers

Intermediary Traders

Institutional System and Rice Seed Group Problems in North Sumatra Province

191

Figure 2: Marketing Institution in Non-Independent Breeder Farmers.

3.2 Problems Faced by Rice Seed

Breeding Agencies in North

Sumatra

Based on research conducted in six districts in North

Sumatra, there are several problems faced by rice

seed breeding institutions including:

1. Access to Irrigation.

One important aspect in obtaining good

production and quality of seeds is the availability of

a good and easily accessible irrigation system.

Irrigation problems still exist in North Sumatra

province, because not all of the seed producers get

irrigation, especially primary irrigation. There are

also farmers who only have rainy rice fields as those

found in Langkat District and Simalungun District.

2. Dependence on Members of High Breeder

Groups.

All members of the breeders group sell their

products in the form of harvested dry grain. This

condition is caused by breeders needing funds as

soon as possible after harvesting and the

unavailability of drying land.

3. Access to Marketing is Still Lacking.

Marketing tends to be done only from person to

person and is only done by the head of the farmer

group. Other group members are not involved in

marketing the seeds produced.

4. Access to Capital Sources.

Breeders always experience a shortage of

farming capital so that breeders tend to come from

group leaders or breeders selling harvested dry grain

5. Still lack of knowledge and ability of breeders in

drying, sorting, laboratory testing and

certification processes.

4 CONCLUSIONS AND

RECOMMENDATIONS

Based on the results of the research, institutional

forms of breeders consist of independent and non-

independent seed growers. All breeder members still

have high dependence on the chairman of the group.

Breeder members have a role in the cultivation

process only, while the chairman of the breeder

group acts as the party conducting drying, sorting,

laboratory testing, seed certification and marketing.

Problems that occur in institutional breeders include

lack of access to sources of irrigation, lack of access

to capital, lack of access to marketing, knowledge of

Breeder Farmers:

Sellin

cro

s in a wet state

(

GKP

)

Breeder Farmers Leader:

Purchasing Farmers' Harvest

Products and Drying, Choosing,

Laboratory Tests and Seed

Certification

Breeder Farmers

Leader:

Coordination for the

sale of harvested dry

PT. Pertani

PT. Sang Hyang Seri

The Private Com

ICMR 2018 - International Conference on Multidisciplinary Research

192

breeder members for post-harvest processes that are

still lacking and high dependence on the chairman of

the group.

Realizing that seed institutions are an important

matter, it is expected that policies for strengthening

and increasing the capacity of breeders in post-

harvest and marketing processes so that breeders can

be empowered independently. In addition, the

government is expected to help facilitate breeders

for sources of capital, provision of post-harvest

facilities and infrastructure and the provision of

sources of irrigation.

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