AUDIT REPORT USAID/BRAZIL SEED INDUSTRY DEVELOPMENT PROJECT NO. 512-15-130-247.5 (7/7/72-10/31/72)

EVALUATN BASED ON MISSION DOCUMTS. TEAM CONCLUDES CONTRACTOR HAS PERFORMED ADEQUATELY. FARMERS ARE DEMONSTRATING GREATER INTEREST IN LEARNING SEED POTENTIALS & GERMINATION RATES. GOVT OF BRAZIL (GOB) HAS DEVELOPED ITS FIRST SEED LEGISLATN. LOAN AGREEMT BETWEEN INTER-AMERICAN DEVEL BANK & GOB HAS BEEN NEGOTIATED TO FUND THE NATNL SEED PLAN (PLANASEM) IN BRAZIL"S S & SE REGIONS. GOB"S MINISTRY OF AGRICULTURE (MOA) HAS BECOME AWARE OF THE IMPORTANCE OF A SOUND SEED PROGRAM & HAS THUS INITIATED PARTICIPANT TRNG, ESTABLISHED SEED TESTING METHODS & CONSTRUCTED SEED PROCESSING & STORAGE FACILITIES. MOA HAS ALSO REGISTERED 564 PRIVATE SEED COMPANIES IN 9 STATES WHICH PRODUCE 80% OF BRAZIL"S CORN & 95% ITS VEGETABLE SEEDS. US TRAINED PARTICIPANTS RETURNING TO BRAZIL HAVE REMAINED ACTIVE IN THE PROJECT (3 ARE MEMBERS OF PLANASEM PLANNING GROUP) WHILE ANOTHER 2, 300 PARTICIPANTS HAVE RECEIVED SHORT-TERM TRNG IN SEED TECHNIQUES. FURTHER, OF 55 FACILITIES PROGRAMMED, 51 UNITS ARE EITHER COMPLETED OR UNDERWAY. DESPITE PROGRESS, PROJECT IS ONLY PARTIALLY SUCCESSFUL DUE TO GOB"S FAILURE TO PURSUE PROJECT GOALS. SEED PROCESSING EQUIPMT VALUED AT $16, 000 HAS NEVER BEEN USED. PRIVATE SEED INDUSTRY SECTORS IN THE S & SE HAVE NEVER BEEN DEVELOPED & PROGRESS IN SEED EXTENSION EDUCATN HAS BEEN NEGLIGIBLE. BECAUSE OF LIMITED STAFF, EFFORTS TO TRAIN TECHNICIANS IN RESEARCH TECHNIQUES HAVE BEEN LIMITED. ALTHOUGH THE COMMITTEE FOR SEEDS & SEEDLINGS REVIEWS OLD REGULATIONS & ISSUES NEW ONES, LACK OF SEED INDUSTRY INFRASTRUCTURE RESOURCES HAVE ELIMINATED LAW ENFORCEMT. POOR COORDINATN & COMMUNICATN AMONG SEED INDUSTRY INSTITS, LACK OF CONTINUITY AND INSUFFICIENT TECH CAPABILITY TO PRESERVE SEED GENETICS & QUALITY AND STAFF LIMITATNS HAVE FURTHER CURTAILED PROJECT ACTIVITIES. FOR FUTURE PROGRESS IT IS NECESSARY THAT GOB DEVELOP ITS AGRICULTURAL INFRASTRUCTURE; AND STRENGTHEN ITS CAPACITY TO DEVELOP & IMPLEMENT SEED LEGISLATION, GOVERNMENT POLICY, AND SERVICE TRNG PROGRAMS, AS WELL AS SUPPLY MISSION WITH ADEQUATE DATA FOR ANALYSIS. TEAM ALSO RECOMMENDS MISSION RELOCATE UNUSED EQUIPMENT.