Roots and tubers to the fore: How a Tanzanian crop and goat project is helping farmers

Integrated Dairy Goat and Root Crop in Tanzania workshop

A meeting to review research results from a dairy goat and root crop project in Tanzania was held in Nairobi last week (photo credit: ILRI/Paul Karaimu).

Last week (18-20 Jun 2013) the Nairobi campus of the International Livestock Research Institute (ILRI) hosted partners in a crop and goat project working to improve food security in Tanzania. The meeting reviewed research results from the two-year-old project.

This project is helping Tanzanian farmers integrate their dairy goat production with growing root crops. It’s raising incomes by improving the milk production potential of dairy goats, introducing improved sweet potato and cassava varieties and improving marketing options for goats and crops in Tanzania’s Kongwa and Mvomero districts.

Led by Tanzania’s Sokoine University of Agriculture and the University of Alberta in Canada, the project also involves collaboration with an agricultural research institute in Kibaha, the Kongwa and Mvomero district councils and the Foundation for Sustainable Rural Development, a non-governmental organization in the country. ILRI is serving as knowledge-support partner for the project and is providing expertise on goat production, gender issues and monitoring and evaluation.

Started in March 2011, the project is funded by the Canadian International Development Research Centre (IDRC) and the Canadian International Development Agency. The project brings together farmers and scientists in setting up community-managed breeding programs for dairy goats and introducing improved varieties of cassava and sweet potato in agro-pastoral area of the two districts. Previously, dairy goat keeping was restricted to wetter areas of the districts.

‘This is one of few projects whose achievements so far the IDRC is proud of and it stands a good chance for being considered for funding for scaling-up under the Food Security Research Fund,’ said Pascal Sanginga, of IDRC.

The program’s interventions have focused on understanding women’s roles in livestock activities such as feeding and milking, getting more women involved in livestock keeping and increasing women’s access to, and control over, benefits from livestock rearing and farming.

‘This project highlights the central role of partnerships in ILRI’s work in Tanzania, which is a focus country for the CGIAR Research Program on Livestock and Fish,’ says Amos Omore, the project’s coordinator at ILRI.

ILRI's Okeyo Mwai and Amos Omore with Immaculate Maina (KARI)

Participants in the meeting, who included graduate students and faculty from Sokoine and Alberta universities and researchers from ILRI, shared 16 research presentations, which will now be reworked as papers for submission to scientific journals. Feedback from these presentations guided a project evaluation and planning session that followed the workshop.

‘We’re learning about the challenges in establishing root crops and dairy goat production in marginal environments where there is a high variability in rainfall and stiff competition from pastoralism,’ said John Parkins, of Alberta University.

The project, which is reaching more than 100 farmers, has conducted a baseline study and has developed gender and monitoring & evaluation strategies.

Findings from this workshop, which included determination of specific environmental constraints and the costs and benefits of adopting new varieties of sweet potatoes and cassava, guided preparation of a proposal to scale up the project’s interventions. This proposal will be used to implement the final phase of the project, which ends in August 2014.

‘This meeting revealed a need to focus on doing a few things well—like facilitating fodder production, animal health and disease control,’ said Parkins.

View presentations from the meeting:

Read more about the project, ‘Integrating dairy goats and root crop production for increasing food, nutrition and income security of smallholder farmers in Tanzania’, http://ilri.org/node/1177 and https://sites.google.com/a/ualberta.ca/diary-goats-and-root-crops-tanzania/home. Download a project brochure

Read an ILRI news article about the project: Cassava and sweet potato may improve dairy goat production in Tanzania’s drylands, but will women benefit?

 

Livestock in the city: New study of ‘farm animals’ raised in African cities yields surprising results

Urban zoonoses and food safety: Nairobi

Leonard Gitau, a small-scale livestock farmer in Dagoretti, Nairobi, speaks to journalists during a media tour by ILRI of urban farmers in Nairobi on 21 Sep 2012 (photo credit: ILRI/Paul Karaimu).

For the first time in history, more people are living in cities than rural areas. Many of them still keep livestock. At least 800 million people in cities in developing countries practice urban agriculture, from growing vegetables to keeping camels—often in close confinement in densely populated areas.

The benefits of urban livestock keeping are many: from improved food security, nutrition and health from livestock products, creation of jobs and protection from food price volatility. But the risks in urban livestock are also large: unsanitary conditions and weak infrastructure mean that livestock can be a source of pollution and disease.

‘Zoonoses’, diseases transmitted between animals and people, are a global health problem that particularly affects the poor in developing countries. A new study by the International Livestock Research Institute (ILRI) and partners finds that zoonoses and diseases recently emerged from animals make up 26% of the infectious disease burden in low-income countries, but just 0.7% of the infectious disease burden in high-income countries.

The study, published in the journal Tropical Animal Health and Production, which was led by University of Nairobi and ILRI, is part of a series of papers that examine the facts and fiction of urban livestock keeping. The researchers note the need for evidence in the planning and practice of urban food systems and the danger of relying on perceptions or models taken from different contexts.

Here are some of the results of the study.

LOTS OF URBAN LIVESTOCK
Much more livestock is being raised in the urban areas of developing countries than most people (and policymakers) think.

THE DISEASE RISK
Domestic as well as wild animals can spread many, and some very serious, diseases to people and it is a reasonable assumption that as the population of urban areas of these and other developing countries continues to increase, the risk of zoonoses also increases.

THE GOOD NEWS
This recent in-depth study of urban zoonoses in urban environments in Nigeria and Kenya suggests that the human disease risk posed by raising, processing, marketing and/or consuming livestock in cities, city suburbs and big towns in developing countries is less than we might think.

SUPPORT INFORMAL MARKETS
Rather than bar poor people from livestock enterprises in urban areas in an attempt to protect public health, which could do the poor more harm than good, this study suggests that a more practical and equitable course is to work to enhance practices in small-scale urban livestock raising and informal livestock marketing by encouraging poor livestock producers, processors and sellers to upgrade some of their practices.

PROVIDE INCENTIVES FOR GOOD BEHAVIOUR
This study included participatory work with the local communities, and an important outcome has been the success achieved by creating incentives for the poor to improve their livestock practices rather than trying to strictly regulate these informal livestock markets, or harass the people involved, or bar them from operating altogether.

DISEASE RISKS ARE NOT WHAT WE THINK
Another important finding is that people are not the good judges of risks that they think they are; most people, including food safety officials, think that livestock foods, being so perishable, carry the greatest risk of disease in informal urban markets, but studies have shown that, for example, city vegetables are often a greater cause of disease concern than milk and meat.

TRACKING PATHOGENS AND RELATED ILRI RESEARCH
This research project was conducted jointly with the University of Nairobi, whose Professor Erastus Kang’ethe led the data collection and participatory work within Kenya, with the support of the Kenyan government and health officials. This project also expands ILRI’s long-standing research on informal dairy markets in East Africa and South Asia, led by ILRI scientist Amos Omore and others, which helped to refine dairy policies to support rather than harass sellers of ‘raw’ (unpasteurized) milk. And a new ILRI research project led by ILRI scientist Eric Fevre will investigate zoonoses further by tracking disease pathogens as they move among farms, processors and markets in Nairobi.

Urban zoonoses and food safety: Nairobi

ILRI scientist Delia Grace is interviewed by BBC and AllAfrica.com before the start of a journalist tour of urban livestock farmers in Nairobi that ILRI organized on 21 Sep 2012 (photo credit: ILRI/Paul Karaimu).

Delia Grace, an ILRI veterinary epidemiologist and leader of a component of the CGIAR Research Program on Agriculture for Nutrition and Health, was the principal investigator in the Ibadan-Nairobi zoonoses study and editor of this special edition of Tropical Animal Health and Production. Grace says that regulations that work for rich countries do not always work for poor countries, and that policies should follow a risk-based approach where decision-makers’ focus is not the bugs present in food but the likely effects on human health. ‘The risks of food-borne diseases’, she says, ‘need also be weighed against the economic benefits and nutrition abundantly supplied by animal products.’

In the absence of evidence, policies are based on the prejudice that urban livestock keeping is unsafe and unmodern, and it is often banned outright. Of course it continues behind hedges and in back alleys, but the imposed illegality drives a rush to the bottom in hygienic practices and investments. When farmers are harassed by authorities and operate in a legal grey area, they have little access to the support they need and little incentive to invest in business improvements.

Thanks in part to previous research on the benefits of urban agriculture, the Government of Kenya has been proactive in posting veterinary, animal production, and crop personnel in major urban centers to lead from the front in championing the development of urban agriculture. The government has also led in the development of the urban agriculture and livestock policy. Involving these civil servants has been key in enabling our research in urban agriculture. This is a good example of government changing its policy to better meet the needs of citizens.

Rapid urbanization, and along with it the urbanization of poverty and food insecurity, raises urgent challenges for the global research and development community. Among them is the need to manage the growing risks of zoonosis associated with urban farming and to improve food safety for the one billion of the world’s poor living in cities, most of whom depend on informal markets instead of more formal government-organized markets or grocery stores.

Informal, or wet markets, exist in many different forms across Africa and Asia but have common characteristics: food escapes effective health and safety regulation; many retailers do not pay tax and some are not licensed; traditional processing, products and retail practices predominate; infrastructure such as water, electricity, sanitation, and refrigeration is lacking; and little support is provided from the public or non-governmental sector. Unsurprisingly, women and the poor are involved most in informal markets.

Applying an innovative research approach known as ‘ecohealth’, the findings of this research contradict some basic assumptions about zoonoses and urban farming and show how livestock keepers in one of Africa’s biggest cities, Nairobi, Kenya, are transforming their livestock and public health practices to combat disease and help feed a city where 60% of the population lives in slums.

But what does it mean in practice? A special edition of 11 papers sets out how ecohealth approaches can make a difference to city health. The researchers base their findings from two case studies. One is in Dagoretti, a Nairobi district of some 240,000 residents, and analyzes the emerging zoonoses cryptosporidiosis, a diarrhoeal disease that is passed from cattle to humans.

For further information

See a Factsheet on Urban Agriculture and Zoonoses in Nairobi, which provides key facts about urbanization, urban livestock keeping and the study in Dagoretti, where most residents are poor and many raise livestock inside city limits.

Read the special supplement of the August 2012 issue of the journal Tropical Animal Health and Production on assessing and managing urban zoonoses and food-borne disease in Nairobi and Ibadan.

Featured in the special supplement are the following 10 research articles by scientists from the International Livestock Research Institute (ILRI) and partners from the Kenya Agricultural Research Institute (KARI), the Kenya Ministry of Agriculture, the Federal University of Agriculture, Abeokuta, the University of Ibadan and the University of Nairobi.

Click on the links below to read the abstracts of the articles (ILRI authors in burgundy; journal subscription required for access to full text).

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

 

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.

Changes in Kenya’s dairy policy give wide-ranging benefits to milk industry players, new study shows

Woman milking

A dairy farmer milks a cow in Kenya’s Nyandarua district. Kenyan small-scale dairy farmers are benefitting from  the dairy policy changes that began in 2004. (Photo credit: East African Dairy Development Project)

Recent findings from an assessment of the impacts of the Kenya dairy policy change of September 2004 show that changes in the sector, which incorporated small-scale milk producers and traders into the milk value chain and liberalised informal milk markets, have led to an increase in the amount of milk marketed, increased licensing of milk vendors and an increased demand for milk leading to benefits of US$230 million for Kenyan milk producers, vendors and consumers over the past 10 years (US$33 million per year).

The study, conducted between August 2007 and January 2008 among milk producers, vendors and dairy farmers in Nairobi, Nakuru, Thika and Kiambu towns, shows there was a threefold increase in marketed milk in all the towns with Nairobi recording a fourfold increase between 2004 and 2008. The findings also show that overall, ‘small-scale dairy operators have profited from quick, relatively high volume turnovers and welfare benefits to small-scale vendors have increased,’ since the introduction of the new policies in Kenya’s dairy industry.

According to the study ‘allowing licenced small-scale milk vendors to operate leads to increased milk supply to the retail market’ and it also found a continual increase in the number of small-scale milk vendors acquiring licences since 2004 to run milk bars to meet the increased demand for milk.

The study’s findings show that in Nairobi, the highest profits were gained by non-producer mobile traders, followed by milk bars and mobile transporters while in Nakuru those who benefited the most were producer mobile traders. The study, however, notes that the changes in policy also led to a decrease in market margins for retailers with an average 9% reduction across the surveyed towns. Milk traders in Nairobi experienced a reduction of Ksh 0.80 (US$0.012) per litre of milk sold.

With nearly 800,000 Kenyan smallholder households depending on dairying for their livelihoods and the dairy sector providing employment to over 350,000 people in milk collection, transportation, processing and sales; the dairy industry plays an important role in meeting the livelihood needs of poor Kenyan households as well as in contributing to Kenya’s economic development.

The study ‘Kenyan dairy policy change: influence pathways and economic impacts,’ was carried out by Amos Omore, a scientist with the International Livestock Research Institute (ILRI), among others researchers from Qatar University, Norwegian Institute of International Affairs and the World Agroforestry Centre (ICRAF). It assessed the impact of the Smallholder Dairy Project (SDP) and its contribution to the revised Kenya dairy policy and looked at the behavioural changes among field regulators and small-scale milk vendors resulting from recognition of their role in the milk value chain. The study also estimated the economic impact of the policy on producers, vendor and consumers.

Among the study’s other findings is that as a result of the new policies, milk handlers across the country are better trained, ‘with 85% reporting they had been trained on milk handling and quality control methods’ and that it is now much easier for producers and vendors to acquire licenses for their operations. Training and licensing is carried out by the Kenya Dairy Board and the Public Health Department who are now ensuring that licensed outlets and premises, especially those run by small-scale milk vendors, meet all hygiene, testing, sanitation and health requirements for milk handling. They also assist the milk vendors to meet these condition and this change in approach means that nearly all producers and traders understand the requirements of milk handling and quality control.

Kenya has made significant progress in liberalizing its dairy industry and is working towards training and licensing more small-scale milk vendors to allow them to fully engage in the formal milk sector. As a result of these experiences, the study says, there has been ‘behavioural changes among regulators and small-scale milk vendors that has led to positive economic benefits across Kenya.’

To read the complete report and its findings, visit http://dx.doi.org/10.1016/j.worlddev.2010.06.008

The Smallholder Dairy Project which started in 1997 and ended in August 2005 was implemented by ILRI, Kenya Agricultural Research Institute and the Kenya Ministry of Livestock and Fisheries Development. It was funded by the UK Department for International Development. To read more about the project and its achievements, visit http://www.smallholderdairy.org/default.htm