Seed processing center evaluation in Honduras

WHEN THE SEED CENTERS WERE OPENED, THE SEED PRODUCED WAS OF POOR QUALITY ATTEMPTS TO MARKET IT WERE NOT VERY SUCCESSFUL; WHEN SEED WAS PROCESSED, THE COST WAS PROHIBITIVE, THE QUALITY WAS USUALLY LOW, AND THUS DEMAND WAS LOW. IN ADDITION, IT WAS FOUND THAT 1) POOR QUALITY SEED WAS RECEIVED BY THE CENTERS, MAKING IT DIFFICULT TO PRODUCE HIGH QUALITY SEED; 2) SEED PRODUCERS COULD NOT GET PAID PROMPTLY; 3) THERE WAS POOR MARKETING AND DISTRIBUTION; AND 4) PRODUCTION AND MARKETING OF THE SEED WAS NOT EFFECTIVE. ON TOP OF THESE, A RECENT HURRICANE AND DROUGHT HAD MADE THE SITUATION EVEN WORSE. THE LOAN AGREEMENT TO AID THE SEED CENTERS CONTAINS PROVISIONS FOR A REVOLVING FUND TO PAY COMPETITIVE PRICES TO CONTRACT SEED PRODUCERS IMMEDIATELY UPON RECEIPT OF THEIR SEED. PROVISIONS WERE MADE ALSO FOR THE ESTABLISHMENT OF A VERY CLOSE WORKING RELATIONSHIP (AGREEMENT) BETWEEN THE MAG AND THE BNF (BANCO NACIONAL DE FOMENTO). SPECIFIC RECOMMENDATIONS FOR AND COMMENTS UPON THE TWO SEED CENTERS ARE DETAILED IN THIS REPORT.