Index-based livestock insurance pilot launches today in drought-prone northern Kenya’s Wajir County

Kenya: drought leaves dead and dying animals in northen Kenya

Kenya: dead and dying animals in previous drought in Arbajahan, in northern Kenya’s Wajir County (photo credit: Brendan Cox / Oxfam).

Today (Sat 10 Aug 2013), Takaful Insurance of Africa is launching a pilot project providing satellite date-based livestock insurance cover for pastoral livestock herders in the drought-prone drylands of northern Kenya’s Wajir County.

The Takaful Livestock cover will provide livestock keepers in the county with covers against livestock deaths resulting from shortage of fodder due to prolonged dry weather.

Those who subscribe to this insurance policy will receive payments if the forage available for their insured cattle, camels, sheep or goats falls below a given threshold, with assessment of the state of vegetative cover in the county determined by satellite data.

Takaful Insurance is partnering in this project with the International Livestock Research Institute (ILRI) and MercyCorps. ILRI, under the leadership of Andrew Mude, is providing the satellite data and MercyCorps is coordinating public awareness campaigns.

Among those who will be in attendance are:

  • Jimmy Smith, director general of ILRI
  • Andrew Mude, leader of ILRI’s Index-Based Livestock Insurance Project
  • Abdihafith Maalim, deputy governor of Wajir County
  • Liesbeth Zonnoveld, country director of Mercy Corps
  • Hassan Bashir, chief executive officer of Takaful Insurance of Africa

The launch of this new livestock insurance scheme, the first ever provided in this county, begins at 12 noon at the Wajir Guest House in Wajir town.

About Takaful Insurance of Africa
Founded in 2008 and licensed in Mar 2011 by the Insurance Regulatory Authority (IRA), Takaful Insurance of Africa Limited (TIA) is pioneering an ethical approach to insurance in Kenya and the region based on the Shariah principles of togetherness, cooperation and mutual solidarity. Each participant contributes a given premium, which is pooled in a general fund managed by TIA on behalf of the members. Through the principle of Tabarru’, or donation, members allow the company to pay any loses suffered by participants contributing to the pool, while any surplus left from the pooled funds after payment of claims and other expenses is either used to grow the reserves or is distributed among members.

About ILRI
The International Livestock Research Institute (ILRI) ILRI is a not-for-profit institution with a staff of about 600 and, in 2012, an operating budget of about USD 60 million. A member of the CGIAR Consortium working for a food-secure future, ILRI has its headquarters in Nairobi, Kenya, a principal campus in Addis Ababa, Ethiopia, and offices in other countries in East, West and Southern Africa and in South, Southeast and East Asia. ILRI works with partners worldwide to enhance the roles that livestock play in food security and poverty alleviation, principally in Africa and Asia. The outcomes of these research partnerships help people in developing countries keep their farm animals alive and productive, increase and sustain their livestock and farm productivity, find profitable markets for their animal products, and reduce the risk of livestock-related diseases.

Read more about ILRI’s Index-Based Livestock Insurance Project

Index-Based Livestock Insurance Blog

ILRI Clippings Blog
Livestock keepers in Kenya’s northern Isiolo District to get livestock-drought insurance for first time, 30 Jul 2013

ILRI News Blog
‘Livestock insurance project an excellent example of innovative risk management in Kenya’s arid lands’ Kenyan minister, 10 Sep 2012
Options to enhance resilience in pastoral systems: The case for novel livestock insurance, 22 Feb 2012
Short films document first index-based livestock insurance for African herders, 26 Oct 2011
Livestock director and partners launch first-ever index-based livestock insurance payments in Africa, 25 Oct 2011
Herders in drought-stricken northern Kenya get first livestock insurance payments, 21 Oct 2011

A few of our favourite (missed) livestock presentations in 2012

Here, for your New Year’s reading/viewing pleasure, are 20 slide presentations on 12 topics made by staff of the International Livestock Research Institute (ILRI) in 2012 that we missed reporting on here (at the ILRI News Blog) during the year.

Happy reading and Happy New Year!

1 LIVESTOCK RESEARCH FOR FOR DEVELOPMENT

>>> Sustainable and Productive Farming Systems: The Livestock Sector
Jimmy Smith
International Conference on Food Security in Africa: Bridging Research and Practice, Sydney, Australia
29-30 Nov 2012; posted on ILRI Slideshare 27 Nov 2012; 426 views.

Excerpts:
A balanced diet for 9 billion: Importance of livestock
•  Enough food: much of the world’s meat, milk and cereals comes from developing-country livestock based systems
•  Wholesome food: Small amounts of livestock products – huge impact on cognitive development, immunity and well being
•  Livelihoods: 80% of the poor in Africa keep livestock, which contribute at least one-third of the annual income.
The role of women in raising animals, processing and 3 selling their products is essential.

Key messages: opportunities
•  Livestock for nutrition and food security:
– Direct – 17% global kilocalories; 33% protein; contribute food for 830 million food insecure.
Demand for all livestock products will rise by more than 100% in the next 30 years, poultry especially so (170% in Africa)
– Indirect – livelihoods for almost 1 billion, two thirds women
•  Small-scale crop livestock systems (less than 2ha; 2 TLU) provide 50–75% total livestock and staple food production in Africa and Asia
and provide the greatest opportunity for research to impact on a trajectory of growth that is inclusive –
equitable, economically and environmentally sustainable.

>>> The Global Livestock Agenda: Opportunities and Challenges
Jimmy Smith
15th AAAP [Asian-Australasian Association of Animal Production] Animal Science Congress, Bangkok,Thailand
26–30 Nov 2012; posted on ILRI Slideshare 27 Nov 2012; 1,650 views

Excerpt:
Livestock and global development challenges
•  Feeding the world
– Livestock provide 58 million tonnes of protein annually and 17% of the global kilocalories.
•  Removing poverty
– Almost 1 billion people rely on livestock for livelihoods
•  Managing the environment
– Livestock contribute 14–18% anthropogenic greenhouse gas emissions, use 30% of the freshwater used for agriculture and 30% of the ice free land
– Transition of livestock systems
– Huge opportunity to impact on future environment
•  Improving human health
– Zoonoses and contaminated animal-source foods
– Malnutrition and obesity

>>> Meat and Veg: Livestock and Vegetable Researchers Are Natural,
High-value, Partners in Work for the Well-being of the World’s Poor

Jimmy Smith
World Vegetable Center, Taiwan
18 Nov 2012; posted on ILRI Slideshare 27 Nov 2012; 294 views.

Excerpts:
Livestock and vegetables suit an urbanizing, warming world
Smallholder livestock and vegetable production offers similar opportunities:
•  Nutritious foods for the malnourished.
•  Market opportunities to meet high urban demand.
•  Income opportunities for women and youth.
•  Expands household incomes.
•  Generates jobs.
•  Makes use of organic urban waste and wastewater.
•  Can be considered ‘organic’ and supplied to niche markets.

Opportunities for livestock & vegetable research
Research is needed on:
•  Ways to manage the perishable nature of these products.
•  Innovative technological and institutional solutions for food safety and public health problems that suit developing countries.
•  Processes, regulations and institutional arrangements regarding use of banned or inappropriate pesticides,
polluted water or wastewater for irrigation, and untreated sewage sludge for fertilizer.
•  Innovative mechanisms that will ensure access by the poor to these growing markets.
•  Ways to include small-scale producers in markets demanding
increasingly stringent food quality, safety and uniformity standards.

>>> The African Livestock Sector:
A Research View of Priorities and Strategies

Jimmy Smith
6th Meeting of the CGIAR Independent Science and Partnership Council, Addis Ababa, Ethiopia
26−29 Sep 2012; posted on ILRI Slideshare 25 Sep 2012;  4,227 views.

Excerpts:
Livestock for nutrition
• In developing countries, livestock contribute 6−36% of protein and 2−12% of calories.
• Livestock provide food for at least 830 million food-insecure people.
• Small amounts of animal-source foods have large benefits on child growth and cognition and on pregnancy outcomes.
• A small number of countries bear most of the burden of malnutrition (India, Ethiopia, Nigeria−36% burden).

Smallholder competitiveness
Ruminant production
• Underused local feed resources and family labour give small-scale ruminant producers a comparative advantage over larger producers, who buy these.
Dairy production
• Above-normal profits of 19−28% of revenue are found in three levels of intensification of dairy production systems.
• Non-market benefits – finance, insurance, manure, traction – add 16−21% on top of cash revenue.
• Dairy production across sites in Asia, Africa, South America showed few economies of scale until opportunity costs of labour rose.
• Nos. of African smallholders still growing strongly.
Small ruminant production
• Production still dominated by poor rural livestock keepers, incl. women.
• Peri-urban fattening adds value.

>>> The CGIAR Research Program on Livestock and Fish and its Synergies
with the CGIAR Research Program on Agriculture for Nutrition and Health

Delia Grace and Tom Randolph
Third annual conference on Agricultural Research for Development: Innovations and Incentives, Uppsala, Sweden
26–27 Sep 2012; posted on ILRI Slideshare 13 Oct 2012;  468 views.

Excerpts:
Lessons around innovations and incentives
• FAILURE IS GETTING EASIER TO PREDICT – but not necessarily success
• INNOVATIONS ARE THE LEVER – but often succeed in the project context but not in the real world
• PICKING WINNERS IS WISE BUT PORTFOLIO SHOULD BE WIDER– strong markets and growing sectors drive uptake
• INCENTIVES ARE CENTRAL: value chain actors need to capture visible benefits
• POLICY: not creating enabling policy so much as stopping the dead hand of disabling policy and predatory policy implementers
‘Think like a systemicist, act like a reductionist.’

>>> The Production and Consumption of Livestock Products
in Developing Countries: Issues Facing the World’s Poor

Nancy Johnson, Jimmy Smith, Mario Herrero, Shirley Tarawali, Susan MacMillan, and Delia Grace
Farm Animal Integrated Research 2012 Conference, Washington DC, USA
4–6 Mar 2012; posted on ILRI Slideshare 7 Mar 2012; 1,108 views.

Excerpts:
The rising demand for livestock foods in poor countries presents
– Opportunities
• Pathway out of poverty and malnutrition
• Less vulnerability in drylands
• Sustainable mixed systems
– Threats
• Environmental degradation at local and global scales
• Greater risk of disease and poor health
• Greater risk of conflict and inequity

• Key issues for decision makers
– appreciation of the vast divide in livestock production between rich and poor countries
– intimate understanding of the specific local context for specific livestock value chains
– reliable evidence-based assessments of the hard trade-offs involved in adopting any given approach to livestock development

• Institutional innovations as important as technological/biological innovations in charting the best ways forward
– Organization within the sector
– Managing trade offs at multiple scales

2 LIVESTOCK FEEDS

>>> Livestock feeds in the CGIAR Research Programs
Alan Duncan
Food and Agricultural Organization of the United Nations (FAO) West Africa Regional Workshop on Crop Residues, Dakar, Senegal
10–13 Dec 2012; posted on ILRI Slideshare on 18 Dec 2012; 3,437 views.

>>> Biomass Pressures in Mixed Farms: Implications for Livelihoods
and Ecosystems Services in South Asia & Sub-Saharan Africa

Diego Valbuena, Olaf Erenstein, Sabine Homann-Kee Tui, Tahirou Abdoulaye, Alan Duncan, Bruno Gérard, and Nils Teufel
Planet Under Pressure Conference, London, UK
26-29 Mar 2012; posted on ILRI Slideshare 27 Mar 2012;  1,999 views.

3 LIVESTOCK IN INDIA

>>> Assessing the Potential to Change Partners’ Knowledge,
Attitude and Practices on Sustainable Livestock Husbandry in India

Sapna Jarial, Harrison Rware, Pamela Pali, Jane Poole and V Padmakumar
International Symposium on Agricultural Communication and
Sustainable Rural Development, Pantnagar, Uttarkhand, India
22–24 Nov 2012; posted on ILRI Slideshare 30 Nov 2012; 516 views.

Excerpt:
Introduction to ELKS
• ‘Enhancing Livelihoods Through Livestock Knowledge Systems’ (ELKS) is an initiative
to put the accumulated knowledge of advanced livestock research directly to use
by disadvantaged livestock rearing communities in rural India.
• ELKS provides research support to Sir Ratan Tata Trust and its development partners
to address technological, institutional and policy gaps.

4 AGRICULTURAL R4D IN THE HORN OF AFRICA

>>> Introducing the Technical Consortium
for Building Resilience to Drought in the Horn of Africa

Polly Ericksen, Mohamed Manssouri and Katie Downie
Global Alliance on Drought Resilience and Growth, Addis Ababa, Ethiopia
5 Nov 2012; posted on ILRI Slideshare 21 Dec 2012; 8,003 views.

Excerpts:
What is the Technical Consortium?
• A joint CGIAR-FAO [Food and Agriculture Organization of the United Nations] initiative,
with ILRI representing the CGIAR Centres and the FAO Investment Centre representing FAO.
• ILRI hosts the Coordinator on behalf of the CGIAR.
• Funded initially by USAID [United State Agency for International Development] for 18 months –
this is envisioned as a longer term initiative, complementing the implementation of investment plans
in the region and harnessing, developing and applying innovation and research to enhance resilience.
• An innovative partnersh–ip linking demand-driven research sustainable action for development.

What is the purpose of the Technical Consortium?
• To provide technical and analytical support to IGAD [Inter-governmental Authority on Development]
and its member countries to design and implement the CPPs [Country Programming Papers]
and the RPF [Regional Programming Framework], within the scope of
the IGAD Drought Disaster Resilience and Sustainability Initiative (IDDRSI).
• To provide support to IGAD and its member countries to develop regional and national
resilience-enhancing investment programmes for the long term development of ASALs [arid and semi-arid lands].
• To harness CGIAR research, FAO and others’ knowledge on drought resilience and bring it to bear on investments and policies.

5 LIVESTOCK AND FOOD/NUTRITIONAL SECURITY

>>> Mobilizing AR4D Partnerships to Improve
Access to Critical Animal-source Foods

Tom Randolph
Pre-conference meeting of the second Global Conference for Agricultural Research for Development (GCARD2), Punta de Este, Uruguay
27 Oct 2012; posted on ILRI Slideshare 29 Oct 2012; 385 views.

Excerpts:
The challenge
• Can research accelerate livestock and aquaculture development to benefit the poor?
– Mixed record to date
– Systematic under-investment
– Also related to our research-for-development model?
• Focus of new CGIAR Research Program
– Increase productivity of small-scale systems
> ‘by the poor’ for poverty reduction
> ‘for the poor’ for food security

Correcting perceptions
1. Animal-source foods are a luxury and bad for health, so should not promote
2. Small-scale production and marketing systems are disappearing; sector is quickly industrializing
3. Livestock and aquaculture development will have negative environmental impacts

Our underlying hypothesis
• Livestock and Blue Revolutions: accelerating demand in developing countries as urbanization and incomes rise
• Industrial systems will provide a large part of the needed increase in supply to cities and the better-off in some places
• But the poor will often continue to rely on small-scale production and marketing systems
• If able to respond, they could contribute, both increasing supplies and reducing poverty
. . . and better manage the transition for many smallholder households.

6 LIVESTOCK INSURANCE

>>> Index-Based Livestock Insurance:
Protecting Pastoralists against Drought-related Livestock Mortality

Andrew Mude
World Food Prize ‘Feed the Future’ event, Des Moines, USA
18 Oct 2012; posted on ILRI Slideshare 22 Oct 2012; 576 views.

Excerpts:
Index-Based Livestock Insurance
• An innovative insurance scheme designed to protect pastoralists against the risk of drought-related livestock deaths
• Based on satellite data on forage availability (NDVI), this insurance pays out when forage scarcity is predicted to cause livestock deaths in an area.
• IBLI pilot first launched in northern Kenya in Jan 2010. Sold commercially by local insurance company UAP with reinsurance from Swiss Re
• Ethiopia pilot launched in Aug 2012.

Why IBLI? Social and Economic Welfare Potential
An effective IBLI program can:
• Prevent downward slide of vulnerable populations
• Stabilize expectations & crowd-in investment by the poor
• Induce financial deepening by crowding-in credit S & D
• Reinforce existing social insurance mechanisms

Determinants of IBLI Success
DEMONSTRATE WELFARE IMPACTS
• 33% drop in households employing hunger strategies
• 50% drop in distress sales of assets
• 33% drop in food aid reliance (aid traps)

7 LIVESTOCK-HUMAN (ZOONOTIC) DISEASES

>>> Lessons Learned from the Application of Outcome Mapping to
an IDRC EcoHealth Project: A Double-acting Participatory Process
K Tohtubtiang, R Asse, W Wisartsakul and J Gilbert
1st Pan Asia-Africa Monitoring and Evaluation Forum, Bangkok, Thailand
26–28 Nov 2012; posted on ILRI Slideshare 5 Dec 2012; 1,395 views.

Excerpt:
EcoZD Project Overview
Ecosystem Approaches to the Better Management of Zoonotic Emerging
Infectious Diseases in the Southeast Asia Region (EcoZD)
•  Funded by International Development Research Centre, Canada (IDRC)
•  5-year project implemented by International Livestock Research Institute (ILRI)
•  Goals: capacity building & evidence-based knowledge•  8 Research & outreach teams in 6 countries.

>>> Mapping the interface of poverty, emerging markets and zoonoses
Delia Grace
Ecohealth 2012 conference, Kunming, China
15–18 Oct 2012; posted on ILRI Slideshare 23 Nov 2012; 255 views.

Excerpt:
Impacts of zoonoses currently or in the last year
• 12% of animals have brucellosis, reducing production by 8%
• 10% of livestock in Africa have HAT, reducing their production by 15%
• 7% of livestock have TB, reducing their production by 6% and from 3–10% of human TB cases may be caused by zoonotic TB
• 17% of smallholder pigs have cysticercosis, reducing their value and creating the enormous burden of human cysticercosis
• 27% of livestock have bacterial food-borne disease, a major source of food contamination and illness in people
• 26% of livestock have leptospirosis, reducing production and acting as a reservoir for infection
• 25% of livestock have Q fever, and are a major source of infection of farmers and consumers.

>>> International Agricultural Research and Agricultural Associated Diseases
Delia Grace (ILRI) and John McDermott (IFPRI)
Workshop on Global Risk Forum at the One Health Summit 2012—
One Health–One Planet–One Future: Risks and Opportunities, Davos, Switzerland
19–22 Feb 2012; posted on ILRI Slideshare 5 Mar 2012; 529 views.

8 LIVESTOCK MEAT MARKETS IN AFRICA

>>> African Beef and Sheep Markets: Situation and Drivers
Derek Baker
South African National Beef and Sheep Conference, Pretoria, South Africa
21 Jun 2012; posted on ILRI Slideshare 24 Nov 2012; 189 views.

Excerpt:
African demand and consumption: looking to the future
• By 2050 Africa is estimated to become the largest world’s market in terms of pop: 27% of world’s population.
• Africa’s consumption of meat, milk and eggs will increase to 12, 15 and 11% resp. of global total (FAO, 2009)

9 KNOWLEDGE SHARING FOR LIVESTOCK DEVELOPMENT

>>> Open Knowledge Sharing to Support Learning in
Agricultural and Livestock Research for Development Projects

Peter Ballantyne
United States Agency for International Development-Technical and Operational Performance Support (USAID-TOPS) Program: Food Security and Nutrition Network East Africa Regional Knowledge Sharing Meeting, Addis Ababa, Ethiopia
11–13 Jun 2012; posted on ILRI Slideshare 11 Jun 2012; 2,220 views

10 LIVESTOCK AND GENDER ISSUES

>>> Strategy and Plan of Action for Mainstreaming Gender in ILRI
Jemimah Njuki
International Women’s Day, ILRI, Nairobi, Kenya
8 Mar 2012; posted on ILRI Slideshare 8 Mar 2012; 876 views.

11 AGRICULTURAL BIOSCIENCES HUB IN AFRICA

>>> Biosciences eastern and central Africa –
International Livestock Research Institute (BecA-ILRI) Hub:
Its Role in Enhancing Science and Technology Capacity in Africa

Appolinaire Djikeng
Annual Meeting of the American Association for the Advancement of Science (AAAS), Vancouver, Canada
16–20 Feb 2012; posted on ILRI Slideshare 20 Feb 2012; 2,405 views.

12 PASTORAL PAYMENTS FOR ENVIRONMENTAL SERVICES

>>> Review of Community Conservancies in Kenya
Mohammed Said, Philip Osano, Jan de Leeuw, Shem Kifugo, Dickson Kaelo, Claire Bedelian and Caroline Bosire
Workshop on Enabling Livestock-Based Economies in Kenya to Adapt to Climate Change:
A Review of PES from Wildlife Tourism as a Climate Change Adaptation Option, at ILRI, Nairobi, Kenya
15 Feb 2012; posted on ILRI Slideshare 27 Feb 2012; 762 views.

Pastoral livestock development in the Horn: Where the centre cannot (should not) hold

Pastoralism and Development in Africa

Who eats better, pastoral children in mobile herding or settled communities? (answer: mobile). Which kind of tropical lands are among those most at risk of being grabbed by outsiders for development? (rangelands). Are pastoral women benefitting at all from recent changes in pastoral livelihoods? (yes). Which region in the world has the largest concentration of camel herds in the the world? (Horn of Africa). Where are camel export opportunities the greatest? (Kenya/Ethiopa borderlands). Is the growth of ‘town camels and milk villages’ in the Somali region of Ethiopia largely the result of one man’s (desperate) innovation? (yes). Which is the more productive dryland livestock system, ranching or pastoralism? (pastoralism). Is irrigation involving pastoralists new? (no). Are we missing opportunities to make irrigated agriculture a valuable alternative or additional livelihoods to pastoralism? (perhaps).

The answers to these and other fascinating questions most of us will never have thought to even ask are found in a new book, Pastoralism and Development in Africa: Dynamic Change at the Margins, edited by Andy Catley, of the Feinstein International Center, at Tufts University; Jeremy Lind, of the Institute of Development Studies at the University of Sussex and Future Agricultures Consortium; and Ian Scoones, of the Institute of Development Studies, the STEPS Centre and the Future Agricultures Consortium. Published in 2012, it includes a chapter by scientists at the International Livestock Research Institute (ILRI): Climate change in sub-Saharan Africa: What consequences for pastoralism?

Thirty-six experts in pastoral development update us on what’s so in pastoral development in the Greater Horn of Africa, highlighting innovation and entrepreneurialism, cooperation and networking and diverse approaches rarely in line with standard development prescriptions. The book highlights diverse pathways of development, going beyond the standard ‘aid’ and ‘disaster’ narratives. The book’s editors argue that ‘by making the margins the centre of our thinking, a different view of future pathways emerges’. Contributions to the book were originally presented at an international conference on The Future of Pastoralism in Africa, held at ILRI’s campus in Addis Ababa, Ethiopia, in Mar 2011.

Here are a few of the book’s ‘unstandard’ ways of looking at pastoralism.

‘Overall, mainstream pastoral development is a litany of failure. . . . Pastoral borderlands are . . . beyond the reach of the state, and so the development industry.  ·  Perhaps no other livelihood system has suffered more from biased language and narratives than pastoralism. . . . Hidden in these narratives also are political agendas that perceive mobile pastoralism as a security and political threat to the state, and, therefore, in need of controlling or eliminating.  ·  To avoid the Malthusian label, or simply out of ignorance, many social scientists have neglected the important implications of demographic trends in pastoral areas. . . . Some of the fastest growing towns in Kenya are in pastoralist districts.  ·  Local demand for education is consistently high among pastoralists, a pattern that was not the case even 10–15 years ago.  ·   It seems feasible . . . to propose a pastoral livestock and meat trade value approaching US$1 billion for the Horn in 2010.  ·  The past dominant livestock practice characterized as traditional mobile pastoralism” is increasingly rare. . . . The creation of a relatively elite commercial class within pastoral societies is occurring at a rapid pace in some areas.  ·  . . . [P]astoral lands are vulnerable to being grabbed. On a scale never before envisioned, the most valued pastoral lands are being acquired through state allocation or purchase . . . . The Tana Delta sits at the precipice of an unprecedented transformation as a range of investors seek to acquire large tracts of land to produce food and biofuels and extract minerals, often at the expense of pastoralists’ access to key resources. . . . A notable facet of changing livelihoods in the Tana Delta is the increasingly important role of women in the diversifying economy, a trend seen elsewhere in the region. . . . Until now, pastoralists have been mostly unsuccessful at challenging proposed land deals through the Kenyan courts.  ·  The shift from a breeding herd to a trading herd is perhaps the biggest shift in Maasai pastoralism.  ·  Although drought is a perennial risk to pastoralist livelihoods, an emerging concern is securing access to high value fodder and other resources to support herds, in areas where rangelands are becoming increasingly fragmented due to capture of key resource sites.  ·  During the 2009–2011 drought in the Horn of Africa, several hundred pastoralists who participated in an Index-Based Livestock Insurance (IBLI) scheme in northern Kenya received cash payments.  ·  Despite its many challenges, mobile pastoralism will continue in low-rainfall rangelands throughout the Horn for the simple reason that a more viable, alternative land use system for these areas has not been found. . . . But the nature of pastoralism in 2030 will be very different than today in 2012. . . .’

One of the book’s chapters is on Climate change in sub-Saharan Africa: What consequences for pastoralism? It was written by ILRI’s Polly Ericksen (USA), whose broad expertise includes food systems, ecosystem services and adaptations to climate change by poor agricultural and pastoral societies; and her ILRI colleagues Jan de Leeuw (Netherlands), an ecologist specializing in rangelands (who has since moved to ILRI’s sister Nairobi CGIAR centre, the World Agroforestry Centre); Mohammed Said (Kenyan), an ecologist specializing in remote sensing and community mapping; Philip Thornton (UK) and Mario Herrero (Costa Rica), agricultural systems analysts who focus on the impacts of climate and other changes on the world’s poor countries and communities; and An Notenbaert (Belgium), a land use planner and spatial analyst.

The ILRI scientists argue that if we’re going to find ways to adapt to climate change, we’re going to need to learn from pastoralists — who, after all, are demonstrably supreme managers of highly variable climates in addition to rapidly changing social, economic and political contexts — about how to make sustainable and profitable, if cyclical and opportunistic, use of increasingly scarce, temporally erratic and spatially scattered water, land, forage and other natural resources.

In important respects, pastoral people are at the forefront of responses to climate change, given their experience managing high climate variability over the centuries. Insights from pastoral systems are critical for generating wider lessons for climate adaptation responses.’

What scientists don’t know about climate change in these and other drylands, they warn, is much, much greater than what we do know. So:

The key question is how to make choices today given uncertainties of the future.’

Because ‘the more arid a pastoral environment, the less predictable the rainfall’, and because ‘vegetation growth closely follows rainfall amount, frequency and duration, . . . the primary production of rangelands is variable in time and space’, with the primary driver of this variability in livestock production in pastoral areas being the availability or scarcity of forages for feeding herds of ruminant animals (e.g., cattle, sheep, goats, camels). In severe or prolonged droughts, forage and water scarcity become a lethal combination, killing animals en masse. The authors quote former ILRI scientist David Ndedianye, a Maasai from the Kitengela rangelands in Nairobi’s backyard, and other ILRI colleagues who report in a 2011 paper on pastoral mobility that pastoral livestock losses in a 2005 drought in the Horn were between 14 and 43% in southern Kenya and as high as 80% in a drought devastating the same region in 2009. It may take four or five years for a herd to recover after a major drought.

Map of flip in temperatures above and below 30 degrees C
Maps of a flip in temperatures above 30 degrees C. Left: Threshold 4 — maximum temperature flips to greater than 30°C. Right: Threshold 5 — maximum temperature in the growing season flips to greater than 30°C. Map credit: Polly Ericksen et al., Mapping hotspots of climate change and food insecurity in the global tropics, CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS), 2011.

Evidence from a range of modelling efforts was used by the authors to calculate places in the global tropics where maximum temperatures are predicted to flip from less than 30 degrees C to greater than 30 degrees C by 2050. This temperature threshold is a limit for a number of staple crops, including maize beans and groundnut. Heat stress also affects grass and livestock productivity. Large areas in East African may undergo this flip, according to these models, although the authors warn that these predictions remain highly uncertain.

Thornton and Herrero in a background paper to the World Bank’s 2010 World Development Report investigated the impacts of increased drought frequency on livestock herd dynamics in Kenya’s Kajiado District. ‘Their results indicate that drought every five years keeps the herds stable as it allows sufficient time for the herds to re-establish. A once in three year drought interval by contrast drives livestock density to lower levels . . . . Hence, if there is a greater frequency of drought under climate change, this might have a lasting impact on stocking density, and the productivity of pastoral livestock systems.

The results were extrapolated to all arid and semi-arid districts in Kenya and estimated that 1.8 million animals could be lost by 2030 due to increased drought frequency, with a combined value of US$630 million due to losses in animals, milk and meat production. . . .’

In the face of changes in climate (historical and current), many pastoralists will change the species of animals they keep, or change the composition of the species in their herds. In the space of three decades (between 1997/8 and 2005–10) in Kenya, for example, the ratio of shoats (sheep and goats) to cattle kept increased significantly. Goats, as well as camels, are more drought tolerant than cattle, and also prefer browse to grasses.

Such changes in species mix and distribution will have important implications for overall livestock productivity and nutrition, as well as milk production.’

While change is and always has been fundamental to pastoralist livelihood strategies, much more—and much more rapid and diverse—change is now sweeping the Horn and many of the other drylands of the world, with local population explosions and increasing rangeland fragmentation and civil conflicts coming on top of climate and other global changes whose nature remains highly uncertain. New threats are appearing, as well as new opportunities.

While the ILRI team argues that we can and should look to pastoralist cultures, strategies and innovations for insights into how the wider world can adapt better to climate change, they also say that ‘development at the margins’ is going to be successful only where pastoralists, climate modellers and other scientists  work together:

. . . [A]daptation and response strategies in increasingly variable environments must emerge from grounded local experience and knowledge, as well as be informed by increasingly sophisticated [climate] modeling efforts.’

Support for the conference and book came from the UK Department for International Development, the United States Agency for International Development in Ethiopia, and CORDAID. Purchase the book from Routledge (USD44.96 for the paperback edition): Pastoralism and Development in Africa: Dynamic Change at the Margins, first issued in paperback 2012, edited by Andy Catley, Jeremy Lind and Ian Scoones, Oxon, UK, and New York: Routledge and Earthscan, 328 pages. You’ll find parts of the book available on Google books here.

To read the ILRI chapter—Climate change in sub-Saharan Africa: What consequences for pastoralism?, by Polly Ericksen, Jan de Leeuw, Philip Thornton, Mohammed Said, Mario Herrero and An Notenbaert—contact ILRI communications officer Jane Gitau at j.w.gitau [at] cgiar.org.

‘Livestock insurance project an excellent example of innovative risk management in Kenya’s arid lands’ – Kenyan minister

Kenya Rural Development Programme launch in Kiboko, Kenya

Marjaana Sall, deputy head of delegation of the European Union to Kenya, Jimmy Smith, director general of ILRI, Mohammed Elmi, Kenya’s minister of state for development of northern Kenya and other arid lands and Romano Kiome, permanent secretary in Kenya’s ministry of agriculture at the launch of the Kenya Rural Development Programme (KRDP) at the KARI centre in Kiboko, Makueni on 7 Sept 2012 (photo credit ILRI/Paul Karaimu).

Kenya’s minister of state for development of northern Kenya and other arid lands, Mohamed Elmi, has praised a livestock insurance project implemented in Kenya by the International Livestock Research Institute (ILRI) and other partners for its role in improving the productivity of the country’s drought-prone arid and semi-arid lands.

‘The index-based livestock insurance project in Marsabit District is an excellent example not just of innovative risk management, but of how, with thought and imagination, basic services such as insurance can be brought within reach of those previously excluded,’ said Elmi.

The minister was speaking last week (7 Sep 2012) at the launch of a five-year Kenya Rural Development Programme at the Kenya Agricultural Research Institute rangeland research station at Kiboko, located in Makueni County. Representatives from the Kenya government, the European Union and international research organizations, including ILRI, participated in the launch.

The Kenya Rural Development Programme is a new five-year agricultural support program funded by the European Union at 66 million euros. It is seeking to improve drought response and management and agricultural productivity in the country’s arid lands and to reduce the vulnerability of people living in these areas.

Jimmy Smith, the director general of ILRI, who attended the launch, said the index-based livestock insurance project is making rangelands-based livelihoods more sustainable.

‘Promoting food security and reducing poverty in arid areas is a key priority for the government. I’m delighted the minister highlighted the role IBLI is playing in this process; ILRI is committed to making an important contribution,’ said Smith.

The insurance project, which was piloted in Marsabit District, in northern Kenya, in 2010, is a component of the Kenya Rural Development Programme. The project is a result of collaborative efforts between ILRI, UAP Insurance, Cornell University and the Index Insurance Innovation Initiative, based at the University of California at Davis. A second phase of the project, which started in southern Ethiopia in August 2012, has received 1 million euros from the European Union.

‘The Kenya Rural Development Programme responds to the development needs of the rural people in Kenya and the support given by the European Union to the agricultural sector will improve the lives of people in the country,’ said Marjaana Sall, deputy head of delegation of the European Union to Kenya.

The event featured displays of European Union-funded activities in Kenya’s rangelands from the Kenya Rural Development Programme, the Kenya Agricultural Research Institute and ILRI, among other exhibitors, and was attended by local community members and farmers in Kiboko.

Read recent stories about index-based livestock insurance: http://www.ilri.org/ilrinews/index.php/archives/8149

Read more about the Kenya Rural Development Programme: http://www.dmikenya.or.ke/

New markets book showcases livestock insurance scheme that is helping Kenyan herders protect their marketable assets

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Herders who took out livestock insurance under the Index-Based Livestock Insurance Project in a 2011 meeting in Marsabit, Kenya. A new markets book highlights the role of the insurance scheme in helping farmers protect their assets (photo credit: Neil Palmer/CIAT).

A new book on markets development for African smallholder farmers has highlighted a pioneering livestock insurance project as a key innovation that could enable African farmers reduce their losses in crop and livestock production.

The new publication: Towards priority actions for market development for African farmers, says lowering production and efficiency losses in agricultural production and improving agricultural markets will, among other actions, ‘level the playing field for smallholder farmers’ and support human and economic development in Africa. The books calls for the ‘right mix’ of policy and investments to not only ‘strengthen African policy expertise’ but also encourage ‘a more diverse array of investments and initiatives, including those initiated by the private sector.’

One such initiative that brings together private and public sector actors to support African agriculture is an Index-Based Livestock Insurance project in Kenya. The project is featured in a chapter in the new book.

Started in 2010 by the International Livestock Research Institute (ILRI) in partnership with UAP insurance, Equity Bank, Cornell University and the Index Insurance Innovation Initiative program at the University of California at Davis, the Index-Based Livestock Insurance project provides livestock insurance against forage losses to over 2500 households in Kenya’s Marsabit District. Freely available satellite imagery is used to assess conditions of pastures. When pasture vegetation is reduced to a level below a specified threshold, the insurance company pays herders who bought insurance. Yearly premiums cost USD100 for 6-8 animals.

Pastoral livestock sectors are at the heart of agricultural markets in Africa. Kenya’s livestock industry, for example, is estimated to be worth about USD800 million per year and produces most of the meat consumed in the country and is critical to the country’s food security. Research by ILRI shows that long-term solutions to food security in Kenya and other countries in the Horn of Africa need to support livestock herding. Pastoral systems are critical for the survival of livelihoods here and offer the most efficient way of managing the region’s large arid and semi-arid lands.

This insurance scheme is currently being piloted in other parts of Kenya and in Ethiopia. In late 2011, 600 livestock keepers insured through the project received insurance payments for vegetation losses arising from the drought that struck the Horn that year. The project is also now making use of mobile phones to widen its impact in remote communities.

Notes:

The new book, which is published by ILRI and the Alliance for a Green Revolution in Africa (AGRA), warns that ‘it will not be enough to simply produce more food from the fields and grazing lands of Africa.’ More effort is needed to create better markets and improve access to these markets’ especially in remote regions.

The book describes the outcomes of an international conference held in Nairobi three years ago that examined the ‘priority actions’ that if taken could speed up the development of African agricultural markets.

Authors of the markets books recommend enhancing markets for poor people, improving market information, lowering transaction costs associated with trading and adding value to farm produce by upgrading value chains and processing mechanisms.

Read more about the book

http://www.ilri.org/ilrinews/index.php/archives/8786

http://marketopportunities.blogspot.com/2012/03/agra-and-ilri-publish-proceedings-of.html

Download the full book or different sections:

http://mahider.ilri.org/handle/10568/16491

Read recent stories on the Index-Based Livestock Insurance Project from ILRI news:

http://www.ilri.org/ilrinews/index.php/archives/8149

http://www.ilri.org/ilrinews/index.php/archives/7348

View short films about the project

http://www.ilri.org/ilrinews/index.php/archives/7374

 

 

 

Five ways to enhance agricultural markets in hungry regions of East and West Africa

 

Causes of livestock deaths

Causes of livestock deaths, figure reproduced in ILRI-AGRA book: Towards priority actions for market development for African farmers: Proceedings of an international conference, Nairobi, Kenya,13-15 May 2009. Nairobi (Source of figure: J McPeak, PI Little and C Doss. 2010. Livelihoods in a Risky Environment: Development and Change among East African Pastoralists, Routledge Press, London.)

With food shortages being predicted for dryland communities in both East and West Africa this year, it seems an appropriate time to revisit a major way African experts see that the continent can feed itself: Get Africa’s markets working.

Three years ago, 150 of the world’s leading market experts gathered in Nairobi, Kenya, to document the best ways to drive agricultural market development in sub-Saharan Africa. Both the proceedings of this international conference, Towards Priority Actions for Market Development for African Farmers, held 13–15 May 2009, and a synthesis of its outcomes, Priority Actions for Developing African Agricultural Markets, were published last year by ILRI and the Alliance for a Green Revolution in Africa (AGRA).

The synthesis of this major African markets conference begins by referring to the sudden escalation in food costs that began in late 2010 and persisted into 2011—the second time in only three years that rapid food price rises, caused by a combination of production shortfalls and market failures causing dramatic gaps between supply and demand, rocked developing countries worldwide. With Africa’s long-term struggle with food insecurity, this continent and its economies and people are especially vulnerable to any sudden rise in food prices.

Even before the price shocks of 2008 and 2011, expert opinion had begun to coalesce on the centrality of agriculture in addressing African hunger and poverty. Much of the discussion has focused on increasing agricultural productivity through improved crop varieties and animal breeds, along with increased access to inputs and veterinary services, to boost farm yields. And, indeed, with crop and livestock yields on African farms typically a fraction of that in other regions, there appear to be big opportunities for new breadbaskets and milk sheds emerging across the continent.

But it will not be enough to simply produce more food from Africa’s fields and grazing lands. First, most Africans—including most smallholder, and even subsistence farmers—are net purchasers rather than growers of food.  Also, as more and more people migrate from rural to urban areas, more and more Africans are relying on markets to meet their food needs. And because most rural as well as urban Africans spend a significant proportion of their income on food, even modest increases in food prices can tip millions of them into poverty.

Efficient and vibrant agricultural markets would help. But Africa’s agricultural markets suffer from a dearth of processing and storage facilities, pricing information, smallholder credit, and transport. These create inefficiencies that both raise prices for consumers and restrict sales opportunities for farmers, who are stopped from selling their food surpluses in nearby food-deficit regions.

View or download the full proceedings of this international conference:
Towards Priority Actions for Market Development for African Farmers, 13–15 May 2009, published by ILRI and AGRA, 2011.

and a synthesis of the outcomes of the conference:
Priority Actions for Developing African Agricultural Marketspublished by ILRI and AGRA, 2011.

Five recommendations
The following five recommendations, highlighted here for their special pertinence to the drylands of East and West Africa, are presented in case studies published in the ILRI-AGRA markets book:
1 Support village seed trade in semi-arid areas
2 Manage pastoral risk with livestock insurance
3 Employ ICTs to raise smallholder income
4 Embrace informal agro-industry
5 Encourage intra-regional trade

Details of these recommendations follow.
1 Support village seed trade in semi-arid areas
Section 2 of the proceedings volume, Seed and Fertilizer Markets, includes a case study of the utility of Tapping the potential of village markets to supply seed in semi-arid Africa in Mali and Kenya. This paper, written by Melinda Smale, (Oxfam America), Latha Nagarajan, Lamissa Diakité, Patrick Audi (ICRISAT), Mikkel Grum (Bioversity International), Richard Jones (ICRISAT) and Eva Weltzien (ICRISAT), shows that village markets have the potential to supply high-quality pigeon pea and millet seed in semi-arid areas of Kenya and Mali, respectively.

The problem: Periods of seed insecurity occur in remote, semiarid areas when spatially covariate risk of drought is high and many farmers fall short of seed. In these remote environments, seed systems are typically informal, and farmers rely on each other for locally adapted varieties. They are not reliable clients for private seed companies because they purchase seed irregularly. Less improved germplasm has been developed for semiarid environments because of the high costs of breeding and supplying seed—a situation that has worsened with decreasing public funding for agricultural research. In the Mali study, village markets assure a supply of seed of identifiable, locally adapted, genetically diverse varieties as a final recourse in a risky environment where there are as yet no reliable formal channels, for which competitive varieties have not yet been bred, and the potential of agro-dealers to supply certified seed has not yet been exploited. In the Kenya study, well-adapted varieties have been bred, but no formalized channels of seed provision exist for pigeon pea and agro-dealers are active in selling improved varieties of maize and vegetables. In both studies, farm women are major seed trade actors. Interestingly, the characteristics of seed vendors and the locations of seed programs—not the price of seed—tend to determine the quantities of seed sold. The authors argue for strengthening and linking both formal and informal systems for non-hybrid dryland crops.

Some solutions: Several approaches piloted recently are potential candidates for improving the supply of good-quality seed on a large scale.

The West Africa Seed Alliance (WASA) and the Eastern and Southern Africa Seed Alliance (ESASA) work to help local entrepreneurs expand existing seed companies and create new ones.

Since private seed companies do not yet operate in the sorghum- and millet-based systems of the Sahel, where state agencies are underfunded, scientists at the International Crops Research Institute for the Semi-Arid Tropics (lCRISAT) have tested several models that draw on the comparative advantages of farmer organizations.

2 Manage pastoral risk with livestock insurance
Section 3 of the ILRI-AGRA markets proceedings, Strengthening Finance, Insurance and Market Information, has two case studies of particular relevance to the food problems facing the drylands of West and East Africa.

First is a report on Insuring against drought-related livestock mortality: Piloting index-based livestock insurance in northern Kenya, written by ILRI’s Andrew Mude and his partners Sommarat Chantarat, Christopher Barrett, Michael Carter, Munenobu Ikegami and John McPeak.

The problem: Climate extremities pose the greatest risks to agricultural production, with droughts and floods not only causing crop failures but also forage and water scarcity that harms and kills livestock. The number of droughts and floods has risen sharply worldwide in the last decade, with disaster incidence in low-income countries rising at twice the global rate. In much of rural Africa, where water harvesting, irrigation and other similar water management methods are under developed, the impacts of climate change are expected to be especially pernicious.

A solution: In the last several years, new ways to manage weather-related agricultural risk have been developed. Of these, index-based insurance products represent a promising and exciting market-based option for managing climate-related risks faced by poor and remote populations.

This paper describes research to design commercially viable index-based livestock insurance for pastoral populations of northern dryland Kenya, where the risk of drought and drought-related livestock deaths is high.

The analysis indicates a high likelihood of commercial sustainability in the target market and describes events leading up to the pilot launch in Marsabit District in early 2010. The paper concludes that this insurance tool has largely succeeded in helping Marsabit’s livestock herders better manage their risk of drought. Growing interest from both commercial and development partners is helping to take this instrument to other arid and semi-arid districts in Kenya and other countries and regions.

3 Employ ICTs to raise smallholder income
The same Section 3 of the ILRI-AGRA book offers a case study from West Africa, written by Kofi Debrah, coordinator of MISTOWA, supporting the Role of ICT-based management information systems in enhancing smallholder producers’ incomes.

The problem: Smallholder African farmers typically have little access to reliable marketing outlets in which to sell their surplus produce at remunerative prices. Furthermore, their ability to respond quickly to market opportunities is constrained by lack of labour, credit, market information and post-harvest facilities. As a result, West African farmer incomes from agriculture are low and variable and little agricultural produce is traded in the region.

A solution: A project funded by the United States Agency for International Development (USAID), ‘Strengthening Regional Networks of Market Information Systems for Traders’ Organizations in West Africa’ (MISTOWA), helped build a private-public partnership to develop and deploy an ICT-based market information system that improved farmers’ access to markets. Some 12,500 agricultural producers and traders from 15 West African countries benefited from the project, with the beneficiaries reporting USD4,080 in benefits, or USD4.33 per dollar of donor funds invested.

Evidence from the beneficiaries suggests that access to real-time market information provides smallholder farmers with incentives for investing in agriculture.

 

4 Embrace informal agro-industry
Section 4 of the markets book, High-Value Commodities and Agroprocessing, includes a paper by ILRI scientists Amos Omore and Derek Baker on Integrating informal actors into the formal dairy industry in Kenya through training and certification.

The problem:  Throughout the developing world, most food produced by smallholder farmers is delivered and processed by an ‘informal’ agro-industry, which is the principal source of food for most poor consumers and a major source of employment of poor people as traders and service providers. In spite of this, agro-industrial policy has historically tended to displace this informal sector with a formal one featuring relatively large-scale and capital-intensive production and marketing. Other policy concerns, such as public health and municipal planning, have further selected against informal agribusiness, particularly livestock’s informal agro-industry.

A solution: This paper presents a case study of interventions in the Kenyan informal milk industry that led to changes in dairy policy that in turn reduced poverty levels in the East African country. The paper identifies the informal agribusiness sector as fertile ground for alleviating poverty and supporting vulnerable groups.

Policies do well to embrace informal agro-industry, the research indicates, while helping it transform itself into a more formal industry.

The ILRI scientists show that the informal dairy industry can respond well to consumer demand for quality, particularly for safe food, and, when unjustified policy barriers are removed, can compete well when price alone becomes the basis of competition. These achievements support much conjecture in the development literature about the centrality of markets, and access to them, for pro-poor development and the idea that pro-poor markets rely heavily on policy and institutional change. The lessons of this project are being transferred to other informal commodity sectors (goats, beef cattle and pigs) in Africa and Asia and the policy changes seen in the Kenya dairy project have been adopted across the East African region.

5 Encourage intra-regional trade
Section 6 of the markets book, Encouraging Regional Trade, includes a paper on The impact of non-tariff barriers on maize and beef trade in East Africa. The paper is written by Joseph Karugia (ILRI and ReSAKSS-ECA), Julliet Wanjiku (ILRI and ReSAKSS-ECA), Jonathan Nzuma, Sika Gbegbelegbe, Eric Macharia, Stella Massawe, Ade Freeman, Michael Waithaka and Simeon Kaitibie.

The problem: In 2004, the East African Community member states established an East African Community Customs Union, committing them, among other things, to eliminate non-tariff barriers to facilitate increased trade and investment flows between member states and to create a large market for East African people. However, several such trade barriers are still applied by member states and there exists little reliable information about how, and how much, these non-tariff barriers are actually hurting regional trade. This study identified the existing non-tariff barriers on the trade of maize and beef in East Africa and quantified their impacts on trade and citizen welfare in the region. The study found that the main types of non-tariff barriers within the three founding members of the East African Community (Kenya, Tanzania and Uganda) are similar and include administrative requirements, taxes/duties, roadblocks, customs barriers, weighbridges, licensing, corruption and transiting.

Some solutions: The study recommends taking a regional approach to exploit economies of scale by eliminating non-tariff barriers, since they are similar across the member countries and across commodities. Specific policy recommendations include streamlining administrative procedures at border points to improve efficiency; speeding up implementation of procedures at point of origin and at the border points; and implementing monitoring systems to provide feedback to relevant authorities on progress in removing unnecessary barriers to trade within East and Central Africa. The welfare analysis of the study shows that abolishment or reduction of the existing non-tariff barriers in maize and beef trade increases trade flows of maize and beef within the East African Community, with Kenya importing more maize from both Uganda and Tanzania and Uganda exporting more beef to Kenya and Tanzania. As a result, positive net welfare gains are attained for the entire East African Community maize and beef sub-sectors.

These findings give compelling evidence in support of the elimination of non-tariff barriers within the East African Community Customs Union.

Options to enhance resilience in pastoral systems: The case for novel livestock insurance

ILRI director for institutional planning Shirley Tarawali

ILRI director for institutional planning Shirley Tarawali (photo credit: ILRI/Stevie Mann).

Shirley Tarawali, director for institutional planning at the International Livestock Research Institute (ILRI), gave a slide presentation today (22 Feb 2012) titled ‘Options for enhancing resilience in pastoral systems: The case for novel livestock insurance’, at a Brussels Briefing onNew challenges and opportunities for pastoralism in ACP [Africa, Caribbean and the Pacific] countries.

Rangelands, Tarawali told the participants at this policy briefing, have fewer than 20 persons per sq km and a growing period of less than 60 days/annum, making crop production impossible. Constituting the largest land-use system globally, rangelands cover some 35 million sq km and support almost 50% of the world’s livestock. The 200 million pastoralists who live on rangelands are the environmental stewards of these vast resources, but many of them are among the world’s poorest, Tarawali reported, living on less than $2 a day. Subject to the vagaries of climate variability, food insecurity, poor markets and infrastructure, animal diseases, under-investment and conflicts over natural resources, pastoralists are among the world’s most vulnerable peoples.

A key development challenge, Tarawali said, is how to help pastoral communities increase their adaptive capacity and resilience in the face of shocks, such as the food crisis that followed a great drought in the Horn of Africa last year. At the risk of over-simplifying matters, she said, two main strategies can improve pastoral resilience: (1) help herders better secure the assets on which they depend—their animals and other natural resources (land, water, biodiversity), and (2) help them diversify their income sources, whether through better livestock marketing, sales of other rangeland products, or schemes that pay pastoral herders for ecosystem services and environmental stewardship.

Blind man awaits payout

A blind man awaits his pay out by a livestock insurance scheme being trialled in Marsabit, northern Kenya (photo by Jeff Haskins on Flickr).

Empirical studies of almost 1,000 families in the Marsabit region of northern Kenya, Tarawali said, show that pastoralists rely on their animals for at least 40% of their income, with loss of animals to drought being a major reason that pastoralists fall into poverty. ILRI and partners have tested an innovative insurance scheme designed to protect pastoralists against drought-related livestock deaths. Based on satellite data that determines vegetative cover, and thus forage availability, this insurance makes pay outs when the level of forage scarcity is predicted to cause a certain percentage of livestock deaths in an area. The scheme, which involves commercial insurance companies, has been piloted in northern Kenya since January 2010.

The pilot shows that it’s feasible to design index-based livestock insurance contracts attractive to both pastoralists and commercial institutions. To date, more than 3,000 pastoralists have participated in this novel insurance scheme, and more than 600 of them received indemnity payments in October 2011, following the drought in the Horn that year. Creative education tools have played an important role in helping these never-before-insured pastoral communities to grasp how the insurance works.

Taking the pilot scheme to scale, Tarawali said, will require making the scheme more cost-effective (perhaps through use of ICTs both to collect premiums and to make indemnity payments) and better aligning the different incentives of the partners, with the private (insurance) companies stressing copyright and profit and the public institutions (such as ILRI) aiming to enhance pastoral livelihoods.

Despite these challenges, she reported that this insurance tool has potential to help development agencies and governments shift their focus from making the right responses to droughts when droughts occur to investing in pastoral development on an on-going basis, with livestock insurance acting as a social safety net, securing the productive assets of these vulnerable populations in times of hardship. And she reminded her audience that most countries make significant public investments in agricultural insurance programs (US farmers pay only 40% of the actuarially fair premium and index-linked insurance in India is subsidized by some 50%). The index-based livestock insurance schemes now being piloted in Kenya and about to start in Ethiopia include rigorous evaluations of their impacts on pastoral welfare, which should help governments to efficiently target public investments in livestock insurance.

With this demonstration that index-based livestock insurance mitigates both pastoral vulnerability to drought and ad hoc coping strategies, Tarawali argued, it’s an appropriate time to consider redeploying some of the significant public funds spent in responding to droughts in insurance subsidy programs that keep insurance premiums affordable by poor pastoralists.

View the slide presentation: Options for enhancing resilience in pastoral systems:

 

 

For more information, visit the websites of the Index-based Livestock Insurance Project, www.ilri.org/ibli  and ILRI, www.ilri.org

Short films document first index-based livestock insurance for African herders

For those readers interested to get more local context about the recent first insurance payouts to livestock herders in Kenya’s northern Marsabit District (go here for an assembly of recent stories on this), here are two films ILRI produced on the subject when the insurance was first made available to Marsabit’s pastoral herders, in January 2010.

Livestock Insurance for Pastoralists in Kenya
January 2010 saw the launch of the world’s first livestock insurance for remote African pastoralists as a result of years of research.
Running time: 2:49

Development of World’s First Index-Based Livestock Insurance for African Pastoralists Herders
In Kenya’s drylands, drought has always been the greatest hazard faced by livestock herding families. Modern pressures are making this situation worse.This film tells the story of a research project started in 2007, which this year introduced a new form of insurance to remote herding peoples who had never been provided with insurance before. This new insurance product has potential to protect many other herding communities throughout Africa.
Running time: 12.36.

Livestock director and partners launch first-ever index-based livestock insurance payments in Africa

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ILRI director general Jimmy Smith speaks to residents of Marsabit, in northern Kenya, where a livestock insurance scheme has made its first payouts to small livestock keepers following a prolonged drought in the Horn of Africa (photo credit: Neil Palmer/CIAT).

Jimmy Smith, director general of the International Livestock Research Institute, made the following remarks on the occasion of the first payouts of index-based livestock insurance policies ever made to livestock herders in Africa in a region that has been afflicted by the drought that has reduced herds in the drylands of the Horn by a third.

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Inhabitants of Marsabit town, in northern Kenya, attend a special event marking the first payouts of  a livestock insurance scheme to small-scale livestock keepers following a prolonged drought in the Horn of Africa (photo credit: Neil Palmer/CIAT).

‘Today ILRI’s Index-Based Livestock Insurance (IBLI) project provides 650 livestock herders in Kenya’s remote Marsabit District with the very first payments of index-based livestock insurance claims ever made on this continent.

‘That makes this an important as well as historic moment.

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Members of the Marsabit community listen to speakers at the launch of the first payouts of livestock insurance in Africa (photo credit: Neil Palmer/CIAT).

‘The success of any insurance scheme depends on its clients being confident that payments will be made if and when an insured event occurs. I hear that many have been reluctant to purchase the livestock insurance policies being offered to Marsabit’s livestock keepers in August and September of this year [2011] because the herders first wanted to be assured that this insurance product works and—in this time of great drought and livestock losses here and elsewhere in the Horn of Africa—if it will payout. Now that the appropriate payments are being made and in a timely manner, we hope we have earned the trust of people here, trust that will generate more widespread awareness and interest in this livestock insurance product.

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Women of the Marsabit community listen to speakers at the launch of the first payouts of livestock insurance in Africa (photo credit: Neil Palmer/CIAT).

‘We are celebrating today not only the first payouts but also that the livestock index that predicts mortality in this region seems to be working well; several of our on-the-ground partners in Marsabit are in agreement with the figures. Our relatively inexpensive way of estimating livestock deaths in a time of drought and forage loss appears to be reliable and could now open the door to making livestock insurance widely available in Marsabit and similar areas in Kenya’s northern drylands, which are home to many of its pastoral peoples.

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At a village meeting in Dirib Gombo, farmers who took out livestock insurance hear they are to receive their first payout after a prolonged drought in the region (photo credit: Neil Palmer/CIAT).

‘For all its initial success, this insurance project remains a work in progress. We’re aware of the challenges of raising awareness of the program in the more distant areas of Marsabit and making sales across the entire district. And even as we trust that those who purchased this livestock insurance will receive their payments in the shortest time possible, we recognize that many clients will have to be paid manually, a process that involves costly driving to areas as far as Loiyangalani and Illeret, where some pastoralists also bought contracts. That said, over the last three insurance sales periods since January 2010, Equity Bank’s Point of Sale systems and UAP’s telephone scanners have made the process more efficient. Over the next several seasons, on-going efforts will continue to improve the technology platforms delivering IBLI services, making them increasingly more cost-effective and accessible.

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At a village meeting in Dirib Gombo, officials prepare to make the first insurance payouts after a prolonged drought in the region (photo credit: Neil Palmer/CIAT).

‘The most important sign of success is the response of the client. So even as payments are being made, we at ILRI want to know what impact the payments are having and how valuable the insurance product is. You will see the ILRI team in this area conducting research to understand how IBLI is benefiting the community and those households that bought livestock insurance. We worked with members of the community to design and develop this product, and we are keen to receive your suggestions about ways to improve it.

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At a village meeting in Dirib Gombo, farmers who took out livestock insurance receive their first payout after a prolonged drought in the region (photo credit: Neil Palmer/CIAT).

‘‘A project such as this is necessarily a product of collaboration. ILRI and our commercial partners Equity Bank and UAP Insurance—those who actually market and sell the product—are quite visible, but there are several others that must be recognized. Cornell University and the Index Insurance Innovation Initiative (I4) based out of the University of California at Davis have been instrumental in the development of the IBLI product and supporting the research agenda behind it. Closer to the ground, members of the Marsabit District Steering Group have offered invaluable support and advice to the project team, as has Food for the Hungry International. The project has also received tremendous support from the Ministry of the Development of Northern Kenya and the Ministry of Livestock and the Provincial Administration, from the District Commissioner to chiefs and counsellors across Marsabit. Finally there are the hundreds of young men and women across all divisions of Marsabit who have worked tirelessly conducting surveys and product education and extension.

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Leader of the Index-Based Livestock Insurance Project, ILRI’s Andrew Mude (right), answers a questions from the Marsabit community (photo credit: Neil Palmer/CIAT).

‘We’re now working to see if IBLI can be sustained by commercial partners such as Equity Bank, UAP and others that may be interested. Currently, however, the research, design and implementation of the IBLI project has been funded by numerous donors who believe in its potential. For this we must thank the European Union, the Global Index Insurance Facility, the Microinsurance Facility, the World Bank and the United States Agency for International Development.  The British Government, through UKAID, has been one of the largest supporters of the project and, together with the European Union, will be funding the second phase of scaling up.’

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A farmer awaits a livestock insurance payout following a village meeting in Dirib Gombo, near the northern Kenyan town of Marsabit; some farmers in the village took out livestock insurance, and this year are receiving the first payouts after a prolonged drought in the region (photo credit: Neil Palmer/CIAT).

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One of the many head of cattle that perished for lack of fodder in the drought that dried up the rangelands of Kenya’s Marsabit District this year (photo credit: Neil Palmer/CIAT).

Read a related story on this ILRI News Blog: Herders in drought-stricken northern Kenya get first livestock insurance payments

Editor’s note, 26 Oct 2011: The original title of this blog post, ‘Livestock director and partners launch first-ever livestock insurance payments in Africa,’ was changed to ‘Livestock director and partners launch first-ever index-based livestock insurance payments in Africa;’ other forms of livestock insurance (not index-based) have been available in other parts of Africa. Two similar statements in the body of the blog were similarly corrected.

Herders in drought-stricken northern Kenya get first livestock insurance payments

Education on livestock insurance

Pastoralists from Marsabit, in Kenya’s remote northern drylands, play a game crafted by ILRI scientists to simulate livestock losses that could occur due to drought, in which the local herding communities are educated about how index-based livestock insurance works (image credit: ILRI).

As livestock deaths mount, a small group of herders in Kenya’s Marsabit District is first to benefit from program that tracks forage conditions via satellite.

In the midst of a drought-induced food crisis affecting millions in the Horn of Africa, an innovative insurance program for poor livestock keepers is making its first payouts today, providing compensation for some 650 insured herders in northern Kenya’s vast Marsabit District who have lost up to a third of their animals.

Known as index-based livestock insurance, or IBLI, payouts are triggered when satellite images show that grazing lands in the region have deteriorated to the point that herders are expected to be losing more than 15% of their herd. The current readings for which indemnities are now being paid show that between 18 and 33% of livestock have been lost to drought this season.

‘It’s terrible that we are seeing this level of loss, but gratifying that the policies are doing what they are supposed to do, which is to help herders avert disaster when weather conditions dry up pasture lands and animals begin to perish,’ said Isaac Magina, head of agriculture insurance at UAP Insurance Ltd.

‘When you look at a 33% loss, that is a significant portion of the asset base of any business and it would be difficult to survive without insurance,’ added Magina.

The insurance project was developed in partnership by the Nairobi-based International Livestock Research Institute (ILRI), Cornell University and the Index Insurance Innovation Initiative program at the University of California at Davis. Commercial partners Equity Bank and UAP Insurance Ltd implement the program. The IBLI project is funded by the United States Agency for International Development, the European Union, the British Government, the World Bank, the Microinsurance Facility and the Global Index Insurance Facility.

The Marsabit District alone is home to some 86 thousand cattle and 2 million goats and sheep that generate millions of dollars in milk and other products and serve as the main source of sustenance and income. ILRI estimates that up to one-third of all livestock in the region have perished during the current drought.

In East Africa, an estimated 70 million people live in the drylands, and many of them are herders. In Kenya, the value of the pastoral livestock sector is estimated to be worth USD800 million. And the Intergovernmental Authority on Development in Eastern Africa, which takes a regional approach to combating drought in six countries of the Horn, estimates that over 90% of the meat consumed in East Africa comes from pastoral herds.

Under the terms of the policy, insured herders are compensated for any losses above 15%, with the 15% threshold acting as a sort of deductible. For example, a cattle herder who lives in an area with a livestock mortality rate of 33% receives a payout covering 18% of his or her animals. With cattle valued at about 15,000 Kenyan shillings (Ksh) per head (about USD150), an insurance policy covering 10 animals, or Kshs150,000 in cattle, would pay out at about Kshs27,000 (about USD270).

When the 15% deductible is factored in, compensation ranges from 3% in areas where the drought has been more moderate to 18% in the areas where herders were hit particularly hard. But in an indication of the severity of the drought, all of the areas where the policies were sold have exceeded the 15%mortality threshold that triggers a payout. Thus far, the policies cover about 1,100 animals—mostly cattle, but some goats and sheep and a few camels as well.

The payments are being dispatched in the middle of a humanitarian crisis endangering 12 million people in the Horn that is prompting a call for new ways to manage food security risks in East Africa’s arid drylands. For example, a recent report from ILRI has found that the pastoral approach to livestock production, in which herders make do with marginal lands by regularly moving their herds, could be very effective at averting weather-related food shortages. ILRI experts say that in arid and semi-arid regions, keeping livestock can be a more effective coping strategy than cultivating crops—if herders have options for reducing their vulnerability to drought.

‘Drought insurance is one important way to help livestock keepers maintain food security even in very harsh environments,’ said Andrew Mude, the IBLI project leader at ILRI. ‘Insurance is not by itself sufficient,’ he added, ‘But if it is accompanied by other risk-reducing strategies, such as better access to grazing lands and watering areas, then the pastoralist approach, which some people dismiss as a backward lifestyle of the past, emerges as a very effective way to meet future food needs.’

Mude said that it is too early to tell just how the payouts from the policies will affect food security and other welfare indicators. For example, it’s not yet clear how many herders will use the compensation to replace animals lost to the drought. But Mude said one major success thus far is that the livestock mortality index that is at the heart of the program appears to be working. The fatality rate predicted by the satellite assessments of forage loss is tracking very closely surveys of animal deaths on the ground.

That’s crucial because using freely available satellite images of pasture lands to accurately predict animal deaths overcomes a major barrier that has bedeviled past efforts to provide livestock insurance in poor regions: the prohibitively high costs and logistics of confirming animal deaths in herds that roam across vast distances in extremely remote areas.

‘This is all still a work in progress,’ said Jimmy Smith, director general of ILRI. ‘But the fact that our relatively inexpensive approach to estimating livestock deaths seems to be accurate could open the door to making livestock insurance widely available in many parts of Africa.’

Going forward, experts believe a key issue will be whether livestock insurance in East Africa would be commercially viable by itself or whether its ability to protect herders from the impact of prolonged drought might justify some level of financial support from governments or donors, as agricultural insurance programs in Western countries often do.

‘This is asset insurance for animals that are the centerpiece of livelihoods, providing a stream of income and nutrition for years and years,’ said Mude. ‘The investment in insurance=based asset safety nets protecting these herds could have a more cost-effective welfare impact over the longer term than other forms of response such a food and cash assistance.’

‘This insurance scheme is a great example of how partnerships with the private sector can lift people out of poverty and provide long-term solutions to food crises,’ said Andrew Mitchell, the British international development secretary.

‘To many farmers, losing their cattle means losing everything, as they are not just a source of income but are their only source of food. Support from Britain and others means that more than 600 herders in Northern Kenya can buy more cattle to replace those they have lost. This means they are better able to cope with this and future devastating droughts.’

‘Africa’s drylands are productive, and potentially very productive’–ILRI’s Bruce Scott

AU-IBAR livestock consultation to reduce hunger in the Horn

ILRI’s Bruce Scott delivers a talk at an expert consultation on livestock systems in the Horn of Africa (photo credit: ILRI/Susan MacMillan).

Bruce Scott, acting director general of the International Livestock Research Institute (ILRI), delivered the following talk at the opening of an expert consultation convened by the Africa Union-Interafrican Bureau for Animal Resources (AU-IBAR), on ‘Interventions for sustainable livestock systems in the Horn of Africa’, held at ILRI’s campus in Nairobi, Kenya, on 2 September 2011.

‘I thank you all for accepting the invitation from the Africa Union to attend this expert consultation.

‘I thank the Africa Union Commission (AUC) and AU-IBAR for convening this meeting, which ILRI is pleased to host.

‘I especially appreciate each of you agreeing to attend this meeting at this time of crisis, where there are so many activities competing for your precious time. We are confident that your presence will help us identify steps towards a more holistic and practical approach for addressing livestock issues in the Horn.

‘I am delighted to welcome His Excellency Erasmus Mwancha, deputy chairperson of the Africa Union Commission, who has kindly agreed to officially open this consultation.

‘I also take pleasure in acknowledging the presence of the chief executive officer of the CGIAR Consortium of International Agricultural Research Centers, Lloyd Le Page. Yesterday (Thursday, 1 September), Lloyd convened a CGIAR media briefing and learning event also here at ILRI, and also on the crisis in the Horn, looking at the most promising agricultural research inputs for addressing these issues in future.

‘The consensus of the Consortium’s learning event was that we need greater investment in agricultural development, greater support for agricultural research, and greater cooperation between research, government, private sector and development actors. These can spread the adoption of innovations by farmers and herders, helping millions of food producers in the Horn of Africa, who are now facing the severest drought in this region in the last six decades.

‘The CGIAR and partner experts gathered yesterday called for a ‘matching of investments in infrastructure development with investments in knowledge’ to get more research into use.

‘We are all here at today’s Africa Union meeting because of our commitment to finding sustainable livestock-based solutions for this region’s food production problems.

‘I’d like to take a minute to set some context for this consultation.

‘Rangelands cover about one-half of the landmass in Africa. In Kenya, about 80 per cent of the landmass comprises arid and semi-arid lands. These drylands can be subdivided into the wetter drylands and the drier drylands. Most of the Horn now afflicted by drought is made up of the drier drylands. I caution us to keep in mind that food production options appropriate for the wetter drylands often are inappropriate for the drier drylands.

‘Droughts have frequented the Horn of Africa for centuries. But in recent decades they have become more frequent and the rainfall has become more variable from year to year. Both of these changes are increasing the vulnerability of the communities that live in these lands.

‘As you know, livestock are a central source of livelihoods in this region and the major way that pastoralists generate income and build their ‘asset base’. A remarkable 70 per cent of all the beef produced in Kenya comes from the arid and semi-arid regions of the country.

‘The Horn of Africa experiences bimodal rainfall, which occurs in only a few regions on earth. That means that the little rain that does fall in these drylands does so in two rather than one growing season, which of course reduces the low levels of annual rainfall available for either of the two annual growing seasons. While this is bad news for cropping, it serves animal production particularly well, with pastures renewed twice a year. Furthermore, the unpredictability of rainfall here is often so great as to allow only one crop every third, fourth or fifth season, which makes crop production unviable without irrigation of some sort.

‘Africa’s dry rangelands are, in fact, productive, and potentially very productive. They are good filtres of water, for example, with some parts of the continent’s drylands, such as in West Africa, having sizable aquifers below their surface (these aquifers, unfortunately, are much smaller in the Horn). The drylands are home to much of the continent’s wildlife diversity. The drylands sequester carbon, and carbon credits might one day provide the local populations with new income streams. And livestock enterprises are not only a major source of income for the peoples of the Horn, they also provide up to 50 per cent of the agricultural gross domestic product of these countries.

‘In spite of all this, the Horn’s drylands have been badly neglected. Governments have neither significantly invested in nor developed these drylands, whose people (pastoral livestock herders) have been marginalized for decades. Donor investments in this region have fallen drastically in the recent past and even ILRI has reduced its attention to these drylands since the late 1990s.

‘Meanwhile, over the last 30 years, more and more people and more and more animals have inhabited these fragile ecosystems, fragmenting the rangelands and reducing the mobility of the herders and their stock in seasonal search of new pasture. Pastoral mobility has also been restricted by governance issues, insecurity, and conflicts over natural resources. And as we well know, Somalia has been a non-state since 1990 and many of the region’s commercial livestock markets are functioning badly or not at all.

‘It is clear to us that the traditional way of managing livestock will need to change to adapt to changes in this region and that we’ll need to identify ways to help the Horn’s pastoralists diversify their incomes and livelihoods.

‘ILRI is investigating promising options for this region’s livestock herders, including better land-use policies, well-functioning livestock markets, pastoral livestock insurance and schemes to pay pastoral herders for their environmental services, such as sequestering carbon, filtering water and conserving wildlife.

‘It’s essential that this expert consultation identifies opportunities to ensure a sustainable future for this sub-region, which is changing rapidly under both external and internal pressures. This meeting should provide a framework for collecting some of our best professional advice on new opportunities for viable livestock enterprises for the future.’

Kenya’s livestock economy is big—as big as its drylands

Andrew Mude, Scientist, Targeting and Innovation

ILRI scientist Andrew Mude leads a project introducing insurance to the pastoralist communities of Kenya’s remote northern Marsabit District, which is also where Mude is originally from (photo credit: ILRI).

Last night (24 Aug 2011), ABN’s South African correspondent Lerato Mbele interviewed Andrew Mude, leader of an Index-Based Livestock Insurance Project at the International Livestock Research Institute (ILRI) in Kenya.

Before Mude went to the studio in Nairobi to do this live television news interview, he sat down with ILRI staff to prepare what he wanted to say. Here’s a summary of what he had on his mind.

Kenya’s drylands are big; they make up 80 per cent of the Kenya’s total area, in which some 10 million people raise 70 per cent of the country’s livestock.

The value of the pastoral livestock sector, which includes meat, milk, and other products from these animals, is estimated to be worth US$800 million annually. And roughly 90 per cent of the meat consumed in East Africa comes from pastoral herds.

Research confirms that the pastoral livestock sector is not only productive and critical to Kenya’s food security, but also an optimal way to manage and maintain drylands and the livelihoods of those who live off them.

At a time when the government and donors are looking for long-term solutions to addressing food security, our research suggests that herding makes better economic sense than crop agriculture in many of these arid and semi-arid lands. Supporting semi-nomadic livestock herding communities with timely interventions before a crisis hits can help people cope the next time drought threatens.

Recommending that livestock herders switch to farming crops is simply unrealistic for most of the people inhabiting this region’s great drylands; building vast irrigation systems here is simply not feasible in both economic and ecological terms.

Droughts have always been part of life for people in drylands but these droughts are now coming more frequently and affecting many more people across rangelands that are becoming more and more fragmented. Farmers and livestock herders need options and support to cope with recurring drought, particularly in the face of other kinds of climate change. Luckily, options exist.

For example, my organization, ILRI, based here in Nairobi, is working with UAP Insurance, Equity Bank, and SwissRE to roll out an insurance program for several thousand livestock keepers in Marsabit District to protect them against drought.

Standard types of insurance are not feasible for remote livestock herders such as those in Marsabit, where throngs of officials would be needed to verify livestock deaths before insurance companies would make pay outs to the insured. So we came up with a model that makes use of satellite data showing the state of a region’s vegetation. When the satellite data show that the available forage drops below a given threshold, where one would expect most livestock to perish, all insurance policyholders are paid, whether or not their animals died. With tweaking to cater for various local conditions and lots of training to educate communities that have never before had insurance schemes available to them, these kinds of programs could be extended across the drylands of Africa.

Watch this 7-minute television news interview of ILRI’s Mude, who argues that pastoralism is a system that evolved to take advantage of arid and semi-arid lands, such as those suffering drought now in the Horn of Africa: CNBC Africa: Investing in pastoralism with Andrew Mude, 24 Aug 2011.