Abstract:
High cost of hybrid seed can affect food self-sufficiency. A study was
conducted to investigate the structure, conduct and performance of the hybrid
maize seed industry in Zimbabwe to determine whether the level of competition in
the industry caused high and unstable prices. Primary data on the quantity of hybrid
maize produced and/or marketed, pricing strategies and hybrid maize seed prices
for the period 2011 to 2015 was collected using questionnaires administered to
marketing managers of 10 seed houses involved in hybrid maize seed production
and marketing in Zimbabwe as well as key stakeholders. The questionnaires were
also used as interview guides for key informant interviews with production managers of respective seed houses. Secondary data were obtained from annual reports
and technical bulletins of respective companies. The analysis involved respondent
triangulation as well as triangulating the data from responses with secondary data
in order to increase the convergent validity of the data. Descriptive statistics,
ANOVA and trend analysis were used for data analysis. Results indicated that the
hybrid maize seed industry in Zimbabwe is highly concentrated meaning that there
is low competition. The study established that there may be tacit collusion in the pricing of hybrid maize seed in the form of dominant firm price leadership. The
study showed that prices have not been stable for the period 2011 to 2015. It is
recommended that the government should enact policies that; prohibit abuse of
a dominant position, prohibit mergers which create or strengthen a dominant
position and prohibit state aid that creates monopolies.
