ILRI’s Jimmy Smith on global health and food security: Why developing-country livestock matter so much

Global food security

Jimmy Smith, director general of the International Livestock Research Institute (ILRI) gave a keynote presentation this morning (17 Oct 2013) at the opening of the Global Animal Health Conference, ‘Developing global animal health products to support food security and sustainability’, in Arlington, Virginia.

Smith began his presentation, ‘Global health and sustainable food security: Why the livestock sectors of developing countries matter’, by setting out the state of global food security and questioning how the world will manage to feed itself as the human population grows before stabilizing at about mid-century. Some 60% more food than is produced now will be needed by then, he said. And, somehow, some 75% of that increase will have to come from increases in productivity rather than from increases in land under cultivation. This higher production, he said, must be achieved while at the same time reducing poverty and hunger and addressing environmental, social and health concerns. In addition, the greater food production will have to be achieved in the face of temperatures 2−4 degrees C warmer than today’s.

He pointed out the great nutritional divides in today’s world, and warned of malnutrition’s huge financial as well as public health costs.

Nutritional divides among 7 billion people today

He noted that gains in consumption of meat in poor and emerging economies are greatly outpacing those of the industrialized countries.

Gains in meat consunmption in developing countries outpace those of developed countries

Smith then pointed out how much of the world’s food comes not from large-scale farmers but rather from hundreds of millions of very small-scale farmers in developing countries.

Global food production: From where?

These small-scale food producers, he said, are more competitive than most people think. He cited two examples. In East Africa, one million smallholders keep Africa’s largest dairy herd, Ugandans produce milk at the lowest cost in the world, and Kenya’s small- and large-scale poultry and diary producers have the same levels of efficiency and profits. In Vietnam, 50% of the country’s pig production is done by farmers with less than 100 pigs, and producers keeping just 1 or 2 sows have lower unit costs than those with more than 4 sows. Scientists estimate that Vietnam’s industrial pig production could grow to meet no more than 12% of the national pig supply in the next 10 years, so small-scale farmers will continue to supply most of the country’s pork for the foreseeable future.

Global livestock markets

In a series of graphs, ILRI’s director general presented figures for livestock commodities being global leaders, for the huge global trade in livestock products and for the fast-rising demand for meat, milk and eggs in developing countries.

4 out of 5 of the highest value global commodities are livestock

Percentage increase in demand for livestock products

Global trade of livestock products (milk excluded)

Global trade in livestock products (milk included)

Global animal health

Smith said that the developing world’s smallholder livestock producers can continue to produce most of the world’s milk, meat and eggs only if we can find ways to improve livestock health, especially by reducing food safety problems that reduce market participation by smallholders, by reducing the endemic livestock diseases that greatly lower livestock productivity in developing countries, and by lowering zoonotic disease transmissions that threaten small-scale livestock production in poor countries—as well as human health in all countries.

Food safety in developing countries, where most milk, meat and eggs are sold in informal or ‘wet’ markets, is a bigger problem than most people recognize, the ILRI director general said. He said we need to manage the risks of illness while retaining the benefits—to livelihoods and food and nutritional security—of informally sold livestock foods. And, he said, we have to educate people about the various risks of these informal markets, where common perceptions can be misleading; eating vegetables sold in these markets, for example, can be as risky to health as handling cattle or drinking raw milk.

Gender is an important determinant of food safety in developing countries, Smith said, with evidence indicating that Africa’s women butchers sell safer meat than their male counterparts. Women and children and farm workers are also at greater risking in contracting food-borne diseases.

Regarding health advice, Smith argued that it is most useful when it is tailored for specific circumstances, when it is based on evidence, and when it is developed in and with local communities. It’s also been found that what works best for increasing food safety are social incentives (e.g., ‘good parents do X rather than Y with their milk cows’), and risk- rather than rule-based approaches. Finally, he said, relatively simple and cheap interventions can lead to substantial improvements in food safety.

The big livestock productivity gaps between rich and poor countries, Smith explained, are due largely to poor animal health in these countries.

Big productivity gaps, largely due to poor animal health, persist between rich and poor countries

Livestock diseases take a huge toll . . .

Annual losses from selected diseases--Africa and South Asia

. . . especially in Africa.

Animal disease is a key constraint in Africa

And the toll from ‘zoonotic’ diseases, which are transmitted from animals to people, is especially devastating.

A deadly dozen zoonotic diseases each year kill 2.2 million people and sicken 2.4 billion

These zoonotic infections harm poor people the most.

Greatest burden of zoonoses falls on one billion poor livestock keepers

Incidences of zoonotic events are worringly on the increase . . .

Emerging zoonotic disease events, 1940-2012

. . . and can have enormous costs . . .

Costs of emerging zoonotic disease outbreaks

. . . as they spread, just as African swine fever is now spreading.

Africa swine fever threatens US$150-billion global pig industry

Global animal health markets

The animal health markets in developing countries are already significant and are growing rapidly. The global animal health market is a multi-billion-dollar industry. The global human health market amounts to US$1000 million and the global animal health market, including livestock, pets and other animals, some $20 billion. The global livestock health market is worth about $13 billion, with the livestock health market in Africa now experiencing a 15.7% year-on-year growth (the second fastest growth after Latin America).

Just 15 countries make up more than 85% of the global animal health market today; demand for animal health markets in developing and emerging economies is increasingly important.

Take India, for example.

Animal health markets: India

To take advantage of the increasing opportunities in developing countries will require an understanding of smallholder livestock systems and customers, who will need tailored packaging and marketing (e.g., drugs in small packets), delivery systems appropriate for widely dispersed farms, surveillance systems for development of drug resistance, and ‘One Health’ approaches and ‘Rational Drug Use’ used for both people and their animals. Among the ‘game-changing’ livestock health products urgently needed in poor countries and communities are appropriate vaccines for Newcastle disease in poultry and East Coast fever in cattle and quality assurance for all veterinary medicines.

Jimmy Smith ended his presentation with four key messages:

Global health and sustainable food security: Key messages

And he closed his presentation the following thoughts.

The risks of ignoring pressing animal health issues in the developing world are huge:

  • Lost livelihoods in poor countries
  • Greater global food insecurity
  • Increased risk of human illness in all countries

The opportunities for improving animal health in developing countries are just as big. With appropriate approaches, this significant animal health market should grow rapidly, for the good of all.

View the presentation.

See other recent presentations by Jimmy Smith:

Improving the environmental sustainability of livestock systems in the developing world–ILRI’s Jimmy Smith, 30 Sep 2013

Why the world’s small-scale livestock farms matter so much: Keynote address at International Grasslands Congress, Part 1, 16 Sep 2013

Why tackling partial truths about livestock matters so much: Keynote address at International Grasslands Congress, Part 2, 16 Sep 2013

More presentations by Jimmy Smith.

Dairy farming = ‘dairy education’: The sector that is educating Kenya’s children – filmed story

This 3:25-minute film shares how keeping cows has enabled Margaret Muchina, a dairy farmer from central Kenya, to support and educate her four children, who include Edward Kimani, who sat for his high school exam in 2010 and emerged as one of the country’s best students.

This single mother from Kenya’s Kiambu District started keeping dairy cows on her 2-acre farm in 1985. Her regular dairy income, mostly through daily milk sales, has been critical in enabling her to support her family, including the schooling of her children. Her dairy income is now supporting Kimani’s education at the University of Nairobi, where he is studying for a bachelor’s degree in geology.

Between 1997 and 2005, Margaret was one of many Kenyan farmers who participated in an award-winning Smallholder Dairy Project that carried out research to help improve the country’s smallholder, and largely informal, dairy sector, which trades mostly in ‘raw ‘ (unpasteurized) milk and was then being more harassed than supported by regulatory authorities.

The Smallholder Dairy Project supported a move towards towards a more favourable policy environment that paved the way for significant increases in the number of raw milk traders in the country, which helped milk producers like Margaret sell more milk leading to wider economy wide benefits for small-scale farmers.

Like many other Kenyans keeping one or two dairy cows to help them feed their families and send their children to school, Margaret Muchina is grateful to the Smallholder Dairy Project for information on best farm management and milk handling practices. Mrs Muchina now operates her small dairying with greater freedom and with new support from her government.

The Smallholder Dairy Project was led by Kenya’s Ministry of Livestock and implemented by the Kenya Agricultural Research Institute and the International Livestock Research Institute (ILRI).

Find out more about the Smallholder Dairy Project

ILRI’s current work in dairying focuses on value chain development in Tanzania. Read more here.

Staff of the International Livestock Research Institute (ILRI) and many other CGIAR centres and research programs will be discussing the successes of Africa’s agriculture, including how its livestock sector can help achieve food security in the continent, at the 6th Africa Agriculture Science Week (AASW6) in Accra, Ghana. This event is being hosted by the Forum for Agricultural Research in Africa (FARA) and the Government of Ghana and runs from Monday–Saturday, 15–20 Jul 2013.

Check out this blog next week for more stories from the 6th Africa Agriculture Science Week.

Beef in Botswana/Namibia, dairy in Kenya—Smallholders succeeding in high-value livestock markets

Botswana Mahalapye cattle

Cattle in Botswana. The country has successfully marketed its beef to high-value livestock markets (photo credit: ILRI/Saskia Hendrickx). 

At a recently concluded three-day (26-28 Jun) Africa Livestock Conference and Exhibition (ALiCE2013), held in Nairobi, Kenya, livestock researchers Hikuepi Katjiuongua, from Namibia, and Amos Omore, from Kenya, spoke of opportunities to link African smallholder farmers to high-value livestock markets.

Globally, rising populations, urbanization and higher incomes are driving increasing demand for animal products. In Africa, this demand is especially high for milk, meat and eggs. Despite the opportunity this offers for Africa’s many livestock producers, the continent imports most of its animal-source foods because its livestock production is not keeping up with the growth in consumption of these foods.

At the ALiCE2013 meeting, Katjiuongua, an economist with the Nairobi-based International Livestock Research Institute (ILRI), presented the ‘beef story’ from Botswana and Namibia, two African countries that have successfully marketed their beef in the European Union (EU).

‘The experiences from these countries show what works in efforts to access high-value livestock markets, particularly in the EU,’ says Katjiuongua.

The authors suggest the following in ensuring improved access to these and similar markets:

  • Smart branding and marketing that shifts from selling a commodity to selling attributes that meet specific end-market requirements
  • Setting up credible cattle tracing systems that comply with international standards
  • Working with policymakers and the private sector to put in place trade policies that enable live animal trade

Katjiuongua also spoke about successes from dairying in East Africa, where removal of trade tariffs in the East African Community is one of the measures that helped double milk trade between 1995 and 2005.

‘Dairy producers in this region have benefitted from improved economies of scale, better access to services and technologies and an enabling policy and institutional environment,’ the authors said.

The researchers, however, caution that to take up opportunities in high-value markets, smallholders will need help in addressing such challenges as the rising costs of livestock feed, veterinary services and other inputs, the prohibitive costs of complying with end-market requirements and high transport costs.

As a way forward, Katjiuongua and Omore recommend lowering non-tariff barriers, improving smallholder productivity and competitiveness and investing in livestock data collection.

View the presentation.

Post by Evelyn Katingi and Paul Karaimu

Taking stock: East Africa Dairy Development project reflects on its achievements and lessons learned

EADD Annual Review and Planning Meeting 2011

A young East African feeds his family’s dairy cows (photo credit: EADD).

From 2008, the East Africa Dairy Development (EADD) project has been working in Kenya, Rwanda and Uganda with the aim of transforming the lives of 179,000 families (about 1 million people) by doubling household dairy income in 10 years through integrated interventions in dairy production, market access and knowledge application.

The project is funded by the Bill & Melinda Gates Foundation and implemented by Heifer International, African Breeders Services—Total Cattle Management, the International Livestock Research Institute (ILRI), TechnoServe and the World Agroforestry Centre.

With the first phase of the project ending in June 2013, two members of the project team—Isabelle Baltenweck, agricultural economist at ILRI, and Gerald Mutinda, the EADD regional manager in charge of dairy productivity, gender and youth—recently had the opportunity to take stock of some of the project’s key achievements during a ‘livestock live talk’ held 26 Jun 2013 at ILRI’s Nairobi campus.

Livestock live talk is a seminar series at ILRI that aims to address livestock-related issues, mobilize external as well as in-house expertise and audiences and engage the livestock community around interdisciplinary conversations that ask hard questions and seek to refine current research concepts and practices.

The talk began with a description of the project, its value chain approach, vision and objectives, and followed by an overview of its achievements and lessons learned.

The speakers then highlighted the project’s innovative ‘hub approach’ which was adopted to help overcome the challenges small-scale dairy farmers often face in accessing farm inputs such as feeds as well as animal breeding and health services.

The hub approach takes advantages of economies of scale and enables service providers to have a wider customer base, thereby making it more efficient for them to operate. Through the hub approach, farmers organize themselves into dairy farmer business associations that make it easier for individual farmers to access inputs and services as well as facilities for bulking and cooling of raw milk.

It was noted that the hubs should not be viewed as a ‘model’ per se, but rather as an approach that can be tailored and adapted to suit different regions and countries. For example, the project found that many hubs can be successful by providing milk bulking services alone while others can offer both milk bulking and cooling. For the second phase of the project, the hub approach planned for Tanzania is centred around the provision of inputs and services.

Another key learning point was the importance of ensuring that the due attention is given to gender aspects during the design and implementation of the project. The speakers admitted that key aspect was overlooked during the design of the first phase of the project. As a result, some key gender-based indicators were not properly tracked.

However, this oversight has been corrected and the team now has a comprehensive gender strategy in place to guide the project design for the second phase to ensure that gender mainstreaming is incorporated through gender analysis at various levels of the value chain as well as monitoring and evaluation of thematic gender-based studies.

More meat, milk and fish — Big interventions for ‘farm-to-table’ livestock value chains in poor countries

Watch this brief (3-minute) film introducing a new multi-centre CGIAR research program, one after ‘more meat, milk and fish by and for the poor’, that has ambitions to do research differently, moving from research products to research outcomes. Developing—and getting into use—big interventions that help transform eight ‘whole farm-to plate livestock and fish value chains’ are what this program is about. Is it doable? Let us know what you think.

In this 3-minute film, Tom Randolph, an agricultural economist with the International Livestock Research Institute (ILRI), explains what’s new about the multi-disciplinary and multi-institutional CGIAR Research Program on Livestock and Fish that he directs.

‘Meat, milk and fish are critical to the poor both as food and income’, Randolph says. ‘But while research has hugely increased farm production in rich countries, we haven’t suceeded yet to help the millions of family farms in developing nations to raise their production very much.

We’ve been doing a lot of good science a lot of good research over the years. But all that good science has not translated into significant improvements in the amount of milk meat and fish that people are able to produce and put on their tables for themselves and their communities.

‘To change this, we’re experimenting with a new approach. The focus of research in the past was on research products. Now we’re making ourselves accountable for getting research into use.

This is what a new program called More Meat, Milk and Fish by and for the Poor is all about.

‘So what’s different about this program? Well, for one thing, we’re addressing the whole way these foods move from small farms to tables. This so-called ‘food chain’ includes producing, processing, selling and consuming meat, milk and fish.

‘And we’re working to design big interventions that can transform whole farm-to-table chains in selected countries. This will help us scale up our research, with direct benefits for large numbers of people.

‘Also, we’re teaming up early with development partners who know how to take these interventions to scale.

‘Finally our program is focusing all its research capacity on just 8 farm-to-table livestock and fish systems selected because their successes can be replicated in many other regions. These 8 systems include small-scale dairying, goat and sheep raising, pig production and aquaculture in 8 countries in Africa, Asia and Latin America.

‘Our intention is to show that small-scale farmers and businesses, already central to feeding the world’s poor, will be key to food security up to the year 2050, when global populations peak. We want to demonstrate that their systems can be transformed. And this kind of science can make a big difference in everyone’s lives.

By doing research in this different way, we expect within a decade to see more meat, milk and fish being produced and consumed by the people who need it most.’

Below, view a slide presentation version of the film above by Tom Randolph: ‘More meat, milk and fish by and for the poor: How the Livestock and Fish Research Program Helps Improve Access to Critical Animal-source Foods’, Mar 2013.

Four CGIAR research institutions—the International Center for Agricultural Research in the Dry Areas (ICARDA), the International Center for Tropical Agriculture (CIAT), the International Livestock Research Institute (ILRI) and WorldFish—as well as many other partners are working together in the CGIAR Research Program on Livestock and Fish.

Watch two companion film presentations
Shirley Tarawali, ILRI director of Institutional Planning and Partnerships, on Livestock Research for Food Security and Poverty Reduction (15 minutes)
Jimmy Smith, ILRI director general, on ILRI and the Global Development Agenda (13 minutes)

Action learning, systemic change and sustainability, desired legacy of an Ethiopian R4D project (IPMS)

Kemeria Hussien at Ethiopian milk market

Kemeria Hussien, a young woman at a milk market in Meisso District, West Hararghe Zone, Ethiopia, 2011 (photo credit: ILRI/Apollo Habtamu).

On 28 March 2013, a team from the project ‘Improving Productivity and Market Success of Ethiopian farmers (or IPMS project) gave a ‘livestock live talk’ seminar at the Addis Ababa, Ethiopia, campus of the International Livestock Research Institute (ILRI). This seminar, given for 70 people physically present and a few more connected virtually via WebEx, happened in the middle of the research planning workshop for a project that is a ‘sequel’ to IPMS, called ‘LIVES’: Livestock and Irrigated Value chains for Ethiopian Smallholders.

ILRI staff members Dirk Hoekstra, Berhanu Gebremedhin and Azage Tegegne have been managing IPMS, and learning from it, since its inception in 2004. The legacy as well as the learning from the IPMS project will be applied in the LIVES project, as well as other initiatives led by ILRI and other parties involved in IPMS.

What choices?
This project to ‘improve the productivity and market success of Ethiopian farmers’ was nothing if not ambitious, and, for a research organization, opted for some relatively daring choices:

  • IPMS relied on developmental (uncontrolled) as well as experimental (controlled) research activities, which ranged along the spectrum of diagnostic, action-research and ‘impact research’ activities (so-called for the expected development impact they would have).
  • Some activities were outsourced to development partners rather than undertaken by the research team.
  • The project worked along entire value chains, from crop and livestock farmers and other food producers to rural and urban consumers, with the team restricting itself to introducing and facilitating the implementation of interventions validated by local stakeholders.
  • Rather than focus on value chain interventions exclusively, the IPMS researchers investigated farming production systems as a whole and focused on the role of agricultural extension in the uptake of research results and their integration in interventions.
  • The IPMS workers used ‘action learning’ methods, which appears to have enabled an on-going evolution in the development of their targeted value chains. This kind of learning approach also sped the adoption of new technologies and the implementation of interventions and encouraged the team to use failures as fuel to modify the project’s trajectory.

. . . Led to what insights?
Insights from the project team were at the core of this ‘live talk’, with the lessons IPMS learned simple and straightforward; some examples follow.

Technology generation by itself is not enough to achieve developmental outcomes and impacts – Several interventions in the value chain development approach need to be implemented together to achieve impact.

Research for development can be implemented well in a research environment, i.e., it is possible to combine rigorous research with development processes without sacrificing the quality of scientific research or the generation of robust evidence.

Knowledge management and capacity development—using, among other methods, innovative information and communication technologies and approaches such as farming radio programs, local information portals connected to local knowledge centres and e-extension—are key to development of responsive extension systems as well as women and men farmers working to transform subsistence agriculture into sustainable economic enterprises.

Gathering those lessons was itself far from straightforward. The IPMS team experienced difficulties in negotiating value chain developments and the specific interventions that were felt as necessary, and in making choices among all actors involved in the value chain (e.g., a failed experiment to market sunflowers) because of market failures and insufficient returns on investments. The team also realized that working in an adaptive manner across a broad value chain and extension framework implies letting go of control and of tight deadlines, but can improve relations among value chain actors and their joint interventions.

As ILRI’s new LIVES project is now in full swing, and as a new long-term ILRI strategy demands that ILRI take a more coherent approach to making development impacts, these insights from  IPMS can help guide those undertaking new initiatives of ILRI and of its partners.

Watch and listen to this seminar here: http://www.ilri.org/livestream.

View the slide presentation here: Agriculture research for crop and livestock value chains development: the IPMS experience, presentation by Dirk Hoekstra, Berhanu Gebremedhin and Azage Tegegne on 28 Mar 2013.

You can contact the IPMS/LIVES team at lives-ethiopia [at] cgiar.org.


Note:Livestock live talks’ is a seminar series at ILRI that aims to address livestock-related issues, mobilize external as well as in-house expertise and audiences and engage the livestock community around interdisciplinary conversations that ask hard questions and seek to refine current research concepts and practices.

All ILRI staff, partners and donors, and interested outsiders are invited. Those non-staff who would want to come, please contact Angeline Nekesa at a.nekesa[at]cgiar.org (or via ILRI switchboard 020 422 3000) to let her know. If you would like to give one of these seminars, or have someone you would like to recommend, please contact Silvia Silvestri at s.silvestri[at]cgiar.org (or via ILRI switchboard 020 422 3000).

Livestock livelihoods for the poor: Beyond milk, meat and eggs

Kenya farm boy drinking milk

Kenya farm boy drinking milk (photo credit: ILRI/Dave Elsworth).

The science journal Animal Frontiers this month (Jan 2013) focuses on the links between livestock production and food security.

Maggie Gill edited the issue. Gill is an animal nutritionist by training who has spent years as a senior member of research institutions in the the UK (Natural Resources Institute, Natural Resources International, Macaulay Land Use Research Institute, Scottish Government) and presently divides her time between work for the UK Department for International Development and the University of Aberdeen while also serving on the CGIAR’s Independent Science and Partnership Council. She is a former board member of the International Livestock Research Institute (ILRI).

In her introductory editorial to this issue, which focuses on livelihoods for poor owners and food for rich consumers, Gill reminds readers of the vast differences in livestock systems between the world’s poor and rich people and nations.

‘The relationship between livestock and food security is often portrayed by the media in emotional terms such as “Go vegetarian to save the planet”. Yet the relationship is not so simple. There are positive impacts of livestock on “the planet,” not the least in terms of the economy, with trade in live animals and animal products contributing 40% of the global value of agricultural output (FAO, 2009), but also in terms of the 1 billion poor people in Africa and Asia who depend on livestock for their livelihoods. The challenge is that there are also negative impacts of livestock, and they tend to be good headline grabbers!

‘I was pleased, therefore, to be invited to serve as guest editor of this issue of Animal Frontiers . . . [and] to have the opportunity to include papers about some of the lesser publicized facts about livestock and food security. . . . [A second issue on this topic will be published in Jul 2013.]

‘This issue takes a high-level perspective, exploring the relationship between people and animals (including fish) in developing countries, through trade and particularly in terms of nutrition. It then looks ahead to the challenge of climate change and considers how one traditional system (pastoralism) has evolved to cope with environmental instability. It ends with a paper on breeding strategies as an illustration of how scientific advances can help the livestock sector to make the best use of resources in a dynamic world. . . .’

One of the seven papers featured in this issue is by Jimmy Smith, ILRI director general, and his ILRI colleagues. The article focuses mainly on the impacts and implications of livestock on food and nutrition security in poor countries, which go well beyond being a source of milk, meat, and eggs.

‘The paper by Smith et al. (2013)’, Gill says, ‘highlights, for example, the indirect benefits of livestock to the food security of poor livestock owners through income from the sale of their livestock products, enabling the purchase of (cheaper) staple foods and thus improving the nutritional status of members of the household, albeit not in the way many researchers expect! . . .’

Below are a few of the facts noted in Smith’s paper, ‘Beyond meat, milk and eggs: Role of livestock in food and nutrition security’.

Farm animals both increase (smallholder systems) and decrease (industrial systems) food supplies
‘Livestock contribute to food supply by converting low-value materials, inedible or unpalatable for people, into milk, meat, and eggs; livestock also decrease food supply by competing with people for food, especially grains fed to pigs and poultry. Currently, livestock supply 13% of energy to the world’s diet but consume one-half the world’s production of grains to do so.’

Livestock directly enhance the nutrition security of the poor
‘However, livestock directly contribute to nutrition security. Milk, meat, and eggs, the “animal-source foods,” though expensive sources of energy, are one of the best sources of high quality protein and micronutrients that are essential for normal development and good health. But poor people tend to sell rather than consume the animal-source foods that they produce.’

Livestock enhance food security mostly indirectly
‘The contribution of livestock to food, distinguished from nutrition security among the poor, is mostly indirect: sales of animals or produce, demand for which is rapidly growing, can provide cash for the purchase of staple foods, and provision of manure, draft power, and income for purchase of farm inputs can boost sustainable crop production in mixed crop-livestock systems.’

Smallholder livestock production and marketing can be ‘transformational’ for the world’s poor
‘Livestock have the potential to be transformative: by enhancing food and nutrition security, and providing income to pay for education and other needs, livestock can enable poor children to develop into healthy, well-educated, productive adults.’

The complex trade-offs inherent in livestock systems must be managed to increase the benefits and reduce the costs
‘The challenge is how to manage complex trade-offs to enable livestock’s positive impacts to be realized while minimizing and mitigating negative ones, including threats to the health of people and the environment.’

Read the whole illustrated article at Animal Frontiers: Beyond milk, meat, and eggs: Role of livestock in food and nutrition security, by Jimmy Smith, Keith Sones, Delia Grace, Susan MacMillan, Shirley Tarawali and Mario Herrero, Jan 2013, Vol. 3, No. 1, p 6–13, doi: 10.2527/af.2013-0002

The whole issue is available at Animal Frontiers: The contribution of animal production to global food security: Part 1: Livelihoods for poor owners and food for rich consumers, Jan 2013, which you can read about on the ILRI Clippings Blog today: Animal production and global food security: Livelihoods for poor owners and food for rich consumers, 8 Jan 2012.

 

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.

Milk markets as ‘the great equalizer’ in East Africa?

Making agriculture profitable for poor farmers builds self-sufficiency

A dairy farmer in Kenya. Incorporating informal milk producers and traders into the country’s formal milk markets is improving the welfare of the poor (photo credit: Flickr/Gates Foundation).

Remarkably, more than 80 per cent of the milk produced and sold in Kenya comes from small-scale players, typically farmers raising one or two dairy cows on small plots of land and milk hawkers plying their trade on bicycles on streets and in villages.

The fast-growing dairy sector in this East African country could help tens of thousands of people climb out of poverty. But this will require supporting small-scale milk producers and traders in gradually entering the country’s formal milk markets.

Until recently, Kenya’s informal milk producers and traders were harassed rather than supported by officials because they were unregulated and were perceived to be a threat to public health.

A chapter in a new book, Towards priority actions for market development for African farmers, describes how Kenya’s small milk producers and sellers are being integrated into formal dairy markets. Authors Amos Omore and Derek Baker, from the International Livestock Research Institute (ILRI), say that what was needed was ‘recognizing and embracing’ the big contributions of dairy’s informal producers and traders and the potential role played by the informal milk markets in fighting poverty. According to the researchers, the removal of policy barriers to allow price-based competition to govern milk trade is enabling this informal dairy industry to significantly improve the welfare of the poor.

Using lessons and examples from a highly collaborative research and development Smallholder Dairy Project, the authors point out that training and certifying small-scale milk traders helps draw the informal milk producers and traders into a more ‘formal’ trading environment. This training also raises consumer confidence by improving and guaranteeing the quality of milk produced for market. With this training, which also teaches business and entrepreneurial skills, the small market players are increasing their incomes as well as milk consumption among poor communities.

‘This dairy project was instrumental in bringing about “mind-set and policy changes” and an impact on the profits made by milk producers in Kenya,’ say Omore and Baker. ‘It also provided a new model of incorporating these small producers into the formal sector.’

Carried out between 1997 and 2005, the Smallholder Dairy Project was led by Kenya’s Ministry of Livestock and Fisheries Development and implemented by ILRI and the Kenya Agricultural Research Institute. It was funded by the UK Department for International Development.

Kenya’s dairy industry, one of the largest in Africa, is supported by over 1.8 million mostly small-scale cattle producers who at the time of implementing the Smallholder Dairy Project supplied over 86 per cent of the country’s milk through direct milk sales from producers to consumers and from dairy farmer groups and over 40,000 small-scale farmers.

The chapter argues that small-scale milk traders trained and certified by the Kenya Dairy Board improved their hygienic practices in milk production and handling. These efforts have brought about ‘direct and sustainable benefits’ for dairy-dependent livelihoods, including making more milk available in the market and higher prices. More licensed small-scale vendors now to operate in the country contributing to more competitive prices that encourage farmers to produce more milk.

The success of the dairy project in mainstreaming Kenya’s the informal milk producers into Kenya’s dairy industry led to a revision of the country’s licensing processes, which then began to start recognizing these informal milk sellers. A 2004 dairy policy change paved the way for significant increases in the number of traders adopting milk testing methods, greater enforcement and compliance in milk quality control and an on-going regional harmonization of dairy policies and standards aiming to transform informal milk markets in Rwanda, Tanzania and Uganda along the lines of the Smallholder Dairy Project in Kenya.

For the tens of thousands of small milk producers in Kenya, these policy changes have made a great difference. Evidence suggest that without the Smallholder Dairy Project, these benefits would have taken another two decades to come to small-scale dairy sector players.

Read the full chapter (part of section 4):

http://mahider.ilri.org/bitstream/handle/10568/16491/AGRA-ILRI-Section4.pdf

Download the whole book:

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

For more information about the Smallholder Dairy Project visit: http://www.smallholderdairy.org/default.htm

 

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

NP Kenya 211011_36

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.

Scientists say farmers must be linked to markets to combat Africa’s food woes

Poultry seller in Mozambique

Poultry seller at the morning market in Chokwe, Gurue, Mozambique (photo credit: ILRI/Stevie Mann).

From dairy cooperatives, text messaging and grain storage to improved credit, transport and trade initiatives, a new book presents ‘high-payoff, low-cost’ solutions to Africa’s underdeveloped agricultural markets and chronic food insecurity.

As a food crisis unfolds in West Africa’s Sahel region, some of the world’s leading experts in agriculture markets say the time is ripe to confront the ‘substantial inefficiencies’ in trade policy, transportation, information services, credit, crop storage and other market challenges that leave Africans particularly vulnerable to food-related problems.

‘We can’t control the weather or international commodities speculators, but there are many things we can do to improve market conditions in Africa that will increase food availability and help stabilize food prices across the continent,’ said Anne Mbaabu, director of the Market Access Program at the Alliance for a Green Revolution in Africa (AGRA), which has invested US$30 million over the last four years to improve market opportunities for Africa’s smallholder farmers.

AGRA and the Nairobi-based International Livestock Research Institute (ILRI) have just released a book that features a range of studies that collectively make a compelling argument for embracing agriculture-oriented market improvements as crucial to not only avoiding future food crises but also for establishing a firm foundation for rural development and economic growth. The research was originally prepared for a conference in Nairobi in which 150 experts from around the world discussed how to ‘leverage the untapped capacity of agricultural markets in Africa to increase food security and incomes.’

Its publication comes as international aid groups are rushing assistance to Niger and other nations of the African Sahel—a narrow but long belt of arid land south of the Sahara that stretches across the continent—where a combination of high food prices and poor weather has left some 14 million people without enough to eat. The food problems in the Sahel are emerging just as African governments and aid groups say they have stabilized a food crisis in the Horn of Africa that at its peak in Somalia had left 58 percent of children under the age of five acutely malnourished.

But while volatility in international commodities markets is being widely cited as a major cause of the food shortages in the Sahel, there is growing evidence that at least some of the food price fluctuation in Africa is caused by domestic factors.

Recent research—led by Joseph Karugia, Coordinator of the Regional Strategic Analysis and Knowledge Support System for Eastern and Central Africa (ReSAKSS-ECA) at ILRI, and colleagues at the Association for Strengthening Agricultural Research in Eastern and Central Africa (ASARECA)—examining food price volatility in Eastern Africa suggests domestic factors are playing a role as well. The researchers found that over the last few years, even when global prices have receded, domestic prices in the region have remained high. For example, while global maize prices declined by 12 percent in the last quarter of 2008, in Kenya, Tanzania, Ethiopia, Zambia and Rwanda, they increased.

The study finds food price volatility in these countries is at least partly due to barriers and policies impeding the flow of food among markets in the region and between the region and global markets.

‘We need to consider what can be done within Africa to reduce our vulnerability to food-related problems,’ said ILRI’s interim deputy director general for research Steve Staal, an agricultural economist with expertise in smallholder farming systems. ‘Improving regional and sub-regional agriculture markets is one way we can increase food security and the impact of even minor improvements could be impressive. Just as it doesn’t take a big rise in food prices to tip millions of Africans into poverty, it does not require a sharp move in the other direction to generate huge benefits.’

The book from the markets conference outlines a number of ‘high-payoff, low cost’ initiatives that combine ‘innovative thinking’ and ‘new technology’ along with policy reforms to give farmers an incentive to boost production—and the means to make their surplus harvests more widely available and at an affordable cost.

For example, the Smallholder Dairy Project, a collaborative project between ILRI and research and development partners in Kenya, catalyzed some 40,000 small-scale milk vendors to generate an extra US$16 million across the Kenya dairy industry by seeking policy changes and providing practical training that made it easier for them to comply with national milk safety and quality standards. Prior to the initiative, smallholder dairy farmers were not realizing either their production or income potential because complex and costly food safety standards reduced participation in formal milk markets.

‘Smallholder farmers and herders in Africa need a combination of investment in infrastructure and services, along with regulatory changes to take full advantage of growing agriculture market opportunities,’ said Staal. ‘And since smallholders produce most of the milk, meat, vegetables and grains consumed in Africa, improving their participation in agriculture markets—particularly as populations gravitate away from rural areas to urban centers—is key to the continent’s food security.’

For example, a warehouse receipt program operated by the Eastern Africa Grain Council and Kenya’s Maize Development program is offering farmers two things they previously lacked: a place to safely store surplus harvests and easier access to credit. Research has shown that on average, 25 to 50 per cent of crops produced on African farms spoil in the fields and in East Africa alone up to USD90 million worth of milk is lost per year due to spoilage.

Lack of credit is also limiting the ability of African farmers to produce and sell more food. One important aspect of the warehouse receipt program is that it allows farmers to get credit using the deposited grain as collateral. They can use the credit to purchase such things as farm inputs for the next planting or meet immediate cash requirements.

‘We understand that credit is crucial for expanding production on African farms—as it is everywhere in the world—which is why AGRA is working with commercial banks to unlock millions of dollars in loans for smallholder farmers across Africa,’ said Mbaabu.

AGRA’s partnerships with Standard Bank, NMB Bank (Tanzania), and Equity Bank (Kenya) were modeled on an initiative by the Rockefeller Foundation in Uganda that had only a 2 per cent default rate. ‘This shows that investing in African farmers makes good business sense,’ said Mbaabu.

The book also discusses initiatives that are using post-harvest processing facilities and information technology to improve market opportunities. An analysis of processing facilities in Tanzania that make chips and flour from cassava—a crop many smallholder farmers can produce in abundance—found that they were profitable even when dealing at 50 per cent of capacity. Research in Northern Ghana found farmers were getting 68 per cent more for their harvests after using a service that provides a steady stream of pricing, market, transportation and weather information via text message.

On the policy front, the market experts see an urgent need to confront the ‘hodge-podge of tariffs’ and the numerous export restrictions and customs requirements that make it hard for areas of Africa where there are food surpluses to serve those in food deficit. Critically, they recognize that private investors are in many cases playing the lead role in new investments for market development and services.

Policy-makers need to shift emphasis from a traditional regulatory approach to one of co-investment to leverage private sector activity, supporting appropriate infrastructure and information systems,’ says Staal.

A recent report from the World Bank on trade barriers in Africa recounted how in Zambia, the grocery store Shoprite spends USD20,000 per week securing import permits for meat, milk and vegetables. And its trucks carry up to 1,600 documents to meet border requirements. Overall, the Bank report estimates African countries are forfeiting billions of dollars per year in potential earnings by failing to address barriers to the flow of goods and services.

‘When many people think of a food crisis in Africa, they picture crops withering in the field or dead or dying livestock, but rarely do they think about the market issues that are part of the problem as well,’ said Namanga Ngongi, president of AGRA. ‘African farmers face many challenges in the field and pasture but they will continue to lack the means and the incentive to boost crop and livestock yields if we continue to neglect our underdeveloped agriculture markets.’

The book, African agricultural markets: Towards priority actions for market development for African farmers, and synthesis document are available for download here.

The Alliance for a Green Revolution in Africa (AGRA)
is a dynamic partnership working across the African continent to help millions of small-scale farmers and their families lift themselves out of poverty and hunger. AGRA programmes develop practical solutions to significantly boost farm productivity and incomes for the poor while safeguarding the environment. AGRA advocates for policies that support its work across all key aspects of the African agricultural value chain—from seeds, soil health and water to markets and agricultural education.

The International Livestock Research Institute (ILRI)
works with partners worldwide to help poor people keep their farm animals alive and productive, increase and sustain their livestock and farm productivity, and find profitable markets for their animal products. ILRI’s headquarters are in Nairobi, Kenya; we have a principal campus in Addis Ababa, Ethiopia, and 13 offices in other regions of Africa and Asia. ILRI is part of the CGIAR (www.cgiar.org), which works to reduce hunger, poverty, illness and environmental degradation in developing countries by generating and sharing relevant agricultural knowledge, technologies and policies. This research is focused on development, conducted by a Consortium of 15 CGIAR centres working with hundreds of partners worldwide, and supported by a multi-donor Fund.

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