Most of the seed of miscellaneous forage and cover crops such as cow-peas, vetches, field peas, lupines and millets is produced by the "in-and-out" grower and does not follow definite marketing patterns. The grower seldom produces seed on a contract, and the wholesale seedsman is often bypassed in the marketing of them.
As with some of the clovers, areas of production and consumption of seeds often are the same. Much seed is distributed on a farmer-to-farmer basis. Some producers sell their crops to wholesale or retail seedsmen, who have processing and storage facilities and are willing to assume the market risks.
This seed moves through normal channels to retailers and farmers.
Notable exceptions in this group are seeds of sudangrass and millets. Several public institutions have started breeding and improvement programs. A number of improved varieties, such as Piper Sudan, Starr and Gahi pearl millets, have been released. Most of the seeds of the Piper Sudan is produced in California and the pearl millets in the Southwest, outside of the major consuming areas. They usually are certified. Often they are grown under contract to wholesalers in the producing area, who move the seeds in normal market channels, as described for the alfalfa produced in the West.
SEEDS OF flue-cured tobacco often are sold over the counter in 1-ounce containers. Small amounts are needed to establish the individual plots or acreages. This, combined with the low total cost of seed per acre in comparison to the gross value of the resulting crop of tobacco leaf, influences marketing procedures.
The tobacco farmer who seeks out the best seeds is rewarded for his efforts by high yields, disease-resistant stands, and leaf of good quality. He usually is willing therefore to pay a premium for good varieties. By doing so, he makes possible the continuance of breeding and research programs. This has stimulated private interest, so that a major part of the flue-cured tobacco acreage is planted to privately developed varieties.
Certification is important in the distribution of tobacco seeds. The foundation to registered to certified pattern is preserved, but, unlike most other crops, a high percentage of registered seed is sold to farmers.
Marketing channels usually omit the traditional wholesaler function. The private breeder-producer sells directly to the retailer. In addition, breeders of improved varieties usually produce their own seeds and so bypass the contract grower. The maintenance, production, and harvesting of varieties of tobacco are highly technical operations that are not adapted to contract growing.
Some farmer-growers of tobacco seeds buy privately developed or publicly developed varieties. From these they grow, process, and package certified seed, which is usually sold direct to the retailer.
New tobaccos developed by public agencies generally follow the regular channels established for the release and distribution of varieties of field crops. Breeder seed is released to the recognized foundation seed organization, which makes the first multiplication. This seed, designated as foundation seed, is sold to growers for producing registered or certified seed.
Uncertified seed creates problems. In some areas, Georgia in particular, the farmer may be able to obtain bulk seed at no charge from the warehouse where his leaf tobacco is auctioned. The planting of poor seeds from deteriorated stocks may be the result.
The exportation of tobacco seeds from the United States is prohibited by Federal law.
Import-export trading of other items is becoming an increasingly important consideration for American seedsmen. Much of the imports are handled through import brokers. Such seeds usually go to an established domestic wholesaler, who introduces them into his normal trade channels. Importations of some crops contribute materially to our total supplies. Orchard-grass from Denmark and bromegrass from Canada are examples.
Seeds of farm crops once were sold in significant volume at retail by mail-order houses. Wider distribution of supplies, a standardization of qualities and varieties, and the elimination of terminal markets have cut heavily into mail-order distribution. Today a small percentage, probably less than 5 percent, is sold in this way.
Our discussion of marketing practices is applicable equally to both independent and cooperative enterprises. At each level, cooperatives account for an important percentage of the total seed business. Just as with independents, their activity by crop varies considerably. Of some items they handle only a little. For others, usually at the grower-producer level, their position may be an important one.
Most cooperatives engaged in handling seeds perform either an accumulation service for the grower-producer or a distribution service at the consumer level. Some do both.
With a few minor exceptions, basic marketing procedures are altered but little by certification. The grower to wholesaler to retailer norm is maintained. Certification as a mechanism to protect the identity of privately developed varieties may have a larger role in the future.
D. K. CHRISTENSEN is vice president of Northrup, King & Co., Minneapolis.
EARL SIEVEKING is manager of the Hybrid Seed Corn Division, Funk Brothers Seed Co., Bloomington, Ill.
J. W. NEELY is vice president and director of plant breeding, Coker's Pedigreed Seed Co., Hartsville, S.C.
