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

Kenya: drought leaves dead and dying animals in northen Kenya

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

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

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

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

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

Among those who will be in attendance are:

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

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

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

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

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

Index-Based Livestock Insurance Blog

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

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

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

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

Happy reading and Happy New Year!

1 LIVESTOCK RESEARCH FOR FOR DEVELOPMENT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2 LIVESTOCK FEEDS

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

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

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

3 LIVESTOCK IN INDIA

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

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

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

4 AGRICULTURAL R4D IN THE HORN OF AFRICA

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

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

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

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

5 LIVESTOCK AND FOOD/NUTRITIONAL SECURITY

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

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

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

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

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

6 LIVESTOCK INSURANCE

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

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

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

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

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

7 LIVESTOCK-HUMAN (ZOONOTIC) DISEASES

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

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

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

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

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

8 LIVESTOCK MEAT MARKETS IN AFRICA

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

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

9 KNOWLEDGE SHARING FOR LIVESTOCK DEVELOPMENT

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

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

10 LIVESTOCK AND GENDER ISSUES

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

11 AGRICULTURAL BIOSCIENCES HUB IN AFRICA

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

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

12 PASTORAL PAYMENTS FOR ENVIRONMENTAL SERVICES

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Andrew Mude, Scientist, Targeting and Innovation

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

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

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

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

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

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

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

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

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

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

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

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

German Chancellor Angela Merkel arrives in Kenya, will visit ‘model research institution in Africa’–ILRI

Biosciences eastern and central Africa hub platform

One of 7 high-tech laboratories at the Biosciences eastern and central Africa Hub, a regional state-of-the-art science platform hosted and managed by the International Livestock Research Institute (ILRI), in Nairobi, Kenya (photo credit: ILRI/David White).

Germany’s Chancellor Angela Merkel has arrived in Kenya.

Her busy one-day visit to this country, the first of three countries she is visiting on her African tour, includes talks with Kenya President Mwai Kibaki and Prime Minister Raila Odinga.

As reported in Kenya’s Daily Nation newspaper on Sunday, Merkel will also hold a joint press conference with Prime Minister Odinga. At the press conference, to be held at the Intercontinental Hotel, in Nairobi’s city centre, Chancellor Merkel will sign a new agreement between her government and the International Livestock Research Institute (ILRI), which is headquartered in Kenya.

ILRI Director General Carlos Seré and Director for Partnerships and Communications Bruce Scott will attend the prime minister’s press conference and take part in the signing ceremony. Chancellor Merkel and ILRI’s Carlos Seré will then attend a State luncheon hosted by President Kibaki at State House.

After the luncheon, Chancellor Merkel is scheduled to give a speech at the University of Nairobi. She will then pay a visit to ILRI’s headquarters, in the suburb of  Kabete, where she will tour ILRI’s farm and labs, be introduced to some of the research partnerships her country is involved in, and give an address to the ILRI and diplomatic community.

The Daily Nation reports that some of Germany’s scientists are working at ILRI, which is ‘described as a model of a state-of-the-art research institution in Africa.’

President Kibaki is quite familiar himself with ILRI’s research. The president toured the laboratories at ILRI/BecA late last year (17 Nov 2010) when he officially launched the BecA Hub. And just last Friday (8 Jul 2011), the president paid a visit to an ILRI exhibit at the launch of his government’s ‘Open Data Web Portal,’ the first of its kind in Africa, at the Kenyatta International Conference Centre. At this launch, the president and several of his ministers as well as some 1,000 (techie) participants heard from ILRI scientist Andrew Mude, who presented to them a novel livestock insurance product that ILRI has initiated with private and public partners for poor livestock herders living in Kenya’s northern pastoral lands.

After her busy day today in Nairobi, Chancellor Merkel departs tonight (Tue 12 Jul 2011) for  Angola before going on to Nigeria.

This is a red-letter day for ILRI for another reason. ILRI Director General Carlos Seré, an agricultural economist from Uruguay, and his wife, Chrysille Seré, from Germany, will also be departing Kenya tonight, as it is the director general’s last official day in his Nairobi office. Carlos Seré has led ILRI for ten years, having started his tenure in January 2002. He is going on summer leave starting tonight. On 1 October of this year, Jimmy Smith, an animal scientist and policymaker from Guyana, now at the World Bank, will take over from Carlos Seré as director general of ILRI.

ILRI has had several informal goodbye parties for the Seré’s and will have one more opportunity to wish him well in the new position he is taking up in Rome at the International Fund for Agricultural Research (IFAD) at a 1.5-day ‘Seré Seminar’ that will take place this November in Addis Ababa to look back at Seré’s 10-year ILRI legacy and forward to new leadership under Smith.

ILRI staff are thus expressing to themselves how kind it is for Chancellor Merkel and President Kibaki to bid their director general farewell in suitable style at the State and ILRI functions today. :-)

Read the whole article in the Daily NationGerman leader jets in Tuesday, 10 Jul 2011.

ILRI livestock insurance innovation highlighted at launch of Kenya Government’s ‘Open Data Web Portal’

Kenya Government 'Open Data Web Portal' launch: Kenya President Mwai Kibaki and ILRI's Bruce Scott and Andrew Mude

ILRI’s Bruce Scott and Andrew Mude (right) discuss ILRI’s use of open data with Kenyan President Mwai Kibaki (centre), Minister for Information and Communication Samuel Pogishio (centre left), Permanent Secretary Ministry of Information and Communication Bitange Ndemo (centre right), and other dignitaries when they visited ILRI’s booth at the launch of the Kenya Government’s ‘Open Data Web Portal’ on 8 Jul 2011 in Nairobi (photo credit: ILRI/Njiru).

An ‘Index-Based Livestock Insurance’ project led by the International Livestock Research Institute (ILRI) was today (8 July 2011) highlighted as one of the successful, innovative and technology-driven initiatives using open data to create solutions that contribute towards helping Kenya achieve its long-term national development plan.

Speaking during the presidential launch of the ‘Kenya Government Open Data Web portal’ at Nairobi’s Kenyatta International Conference Centre, Andrew Mude, a scientist with ILRI who leads the Index-Based Livestock Insurance project, described how the project has developed an insurance model for pastoralist livestock keepers using open data. The project uses satellite-based readings of forage cover to find out how much fodder is available for livestock in northern Kenya and the data is combined with livestock mortality data from the Kenya Arid Lands Management project to predict livestock deaths against which livestock herders can insure themselves.

‘This model allows us to predict the current state of livestock mortality in northern Kenya. It currently shows there is a high livestock mortality rate in Marsabit District, which means that insurance may be paid to pastoralists this year,’ said Mude. Marsabit District, in Kenya’s northern drylands, is currently facing a severe drought that is also affecting Somalia and southern Ethiopia, in the Horn of Africa.

Stared in January 2010, the Index-Based Livestock Insurance project is insuring over 2600 households in Marsabit, which is helping livestock keepers there to sustain their livelihoods. The project is supported by the World Bank, the UK Department for International Development and the United States Agency for International Development, among other donors. It has received considerable support from the Kenya Government and recently received the Vision 2030 ICT award for ‘solutions that drive economic development as outlined in Kenya’s Vision 2030.’

Kenya President Mwai Kibaki officially opened the Kenya Government Open Data portal. He said the new open data platform would allow policymakers and researchers to find timely information to guide-decision making. ‘This launch is an important step towards ensuring government information is made readily available to Kenyans and will allow citizens to track the delivery of services,’ Kibaki said.

The new Kenya Government Open Data Web portal will make available to the public several large government datasets, including information on population, education, healthcare and government spending in an easy to search and view format. The portal will allow Kenyans to search and display national and county-level data in graphs and maps for easy comparison and analysis of information.

The launch brought together government officials, policymakers and ICT-sector players who are using open data to build applications that take information closer to Kenyans. Among today’s presentations was the National Council for Law Reporting Kenya Law Reports website, which is making available to the public for the first time the Kenya Gazette (from 1899 to 2011) and all of Kenya’s parliamentary proceedings since 1960.

‘Open data leads to open knowledge, which leads to open solutions and open development,’ said Johannes Zutt, World Bank Country Director for Kenya, who shared lessons from the World Bank’s experience and said open data can ‘fuel innovation in Kenya’s technology sector.’

‘This is a turning point in Kenya’s history,’ said Bruce Scott, ILRI’s director of Partnerships and Communications. ‘Kenya is among the first African countries that have made available this kind of information to their citizens online; this will empower its people in line with the country’s new constitution. ILRI is happy to be associated with this event.’

For more information about IBLI see the following.
ILRI news articles
http://www.ilri.org/ilrinews/index.php/archives/5000
http://www.ilri.org/ilrinews/index.php/archives/3180

Short video
http://blip.tv/ilri/development-of-the-world-s-first-insurance-for-african-pastoralist-herders-3776231

To read more about the Kenya Open Data portal, visit their website:
http://www.opendata.go.ke

Visit the IBLI project website

ILRI livestock insurance project features in presidential launch of Kenya Government’s ‘Open Data Web Portal’

Training livestock herders in Marsabit in new insurance scheme available

The Index-Based Livestock Insurance project, which works with pastoral livestock keepers in Kenya’s Marsabit District, is being highlighted in a launch on 8 July 2011 of the Kenya Government’s Open Data Web portal (photo credit: ILRI/Mude).

Andrew Mude, a scientist with the International Livestock Research Institute (ILRI) who leads an ‘Index-Based Livestock Insurance’ project, on 8 July 2011 will describe how his project is using satellite imagery to provide the first livestock insurance to pastoral livestock herders in Kenya’s northern drylands. He is making this presentation at the launch of a new Kenya Government Open Data Web portal. The launch will be opened by Kenya President Mwai Kibaki at the Kenyatta International Conference Centre, in Nairobi’s city centre.

The Index-Based Livestock Insurance project is a novel scheme that provides livestock insurance against animal losses to over 2000 households in Kenya’s Marsabit District. This insurance product, the first to ever be offered in the district, is helping livestock keepers to sustain their livelihoods during droughts. The project was started by ILRI in partnership with UAP insurance and Equity Bank, along with other partners, in January 2010.

The new Kenya Government Open Data Web portal is one of the first in sub-Saharan Africa and it will, for the first time, make several large government datasets available to the public in an easy to search and view format. The portal will allow Kenyans to search and display national and county-level data in graphs and maps and allow for easy comparison and analysis of information.

The launch of Kenya Government Open Web portal is also bringing together over 30 exhibitors who will showcase their use of technology to share information. ILRI has an exhibit showcasing its Index-Based Livestock Insurance project.

Use of open-source technology to store, analyze, manage and display data is on the rise in Kenya and recently received a boost with the launching of  Virtual Kenya, a new website that hosts maps and spatial data about the country, making them available for use by citizens. Started by Upande Ltd., a Nairobi-based technology company, Virtual Kenya, has expressed interest in hosting some of the data generated by ILRI’s Index-Based Livestock Insurance project to demonstrate how open-source technologies are improving information access in the country.

Critically low forage availability in Marsabit District in June 2011

Map showing the critically low forage availability in Kenya’s Marsabit District in June 2011; the entire district is at acute (red) to severe (black) low levels of forage to feed the district’s many livestock (map by ILRI’s Index-Based Livestock Insurance project and made available on the Virtual Kenya website).

One such map generated by data from the Index-Based Livestock Insurance project is already available on the Virtual Kenya website. The map shows viewers that in the current severe drought affecting northern Kenya, as well as southern Ethiopia and Somalia, throughout Marsabit District livestock forage availability is at acutely to severely low levels. That is, the amount of forage available to feed the pastoral livestock herds that support most people’s livelihoods in this district is significantly below long-run averages for this time of year, indicating that many of the domesticated livestock are expected to starve. (The next rains in the region are not due until October.)

In April 2011, ILRI’s Index-Based Livestock Insurance project won the Vision 2030 ICT Innovation Award for ‘the overall best innovation for their mobile-ICT-based livestock insurance solution.’ This award event was organized by the Kenya ICT board and the Kenya Vision 2030 Delivery Secretariat, which said the ILRI project was ‘a promising and exciting innovation in insurance design that allows the risk-management benefits of insurance to be made available to poor and remote clients.’

The Index-Based Livestock Insurance project also won a best-practice award from the Poverty Reduction, Equity and Growth Network in recognition of its innovative approach in combining scientific research and practical solutions; that award was bestowed in September 2010 in South Africa.

To find out more about the Open Data Web portal, visit the Kenya ICT board website: http://www.ict.go.ke/

Visit the IBLI project website

ILRI livestock insurance scheme wins inaugural Vision 2030 ICT Innovation Award

Andrew Mude, Scientist, Targeting and Innovation

Andrew Mude, scientist leading the award-winning Index-Based Livestock Insurance project at the International Livestock Research Institute (ILRI).

A novel livestock insurance scheme for poor pastoral herders in Kenya’s Marsabit District, initiated by the International Livestock Research Institute (ILRI) with private sector and other partners, has won the inaugural Vision 2030 ICT Innovation Award.

‘Eleven companies received a V2030 ICT Innovation Award at a ceremony held on 20 April 2011 in Diani as part of the Kenya ICT Board’s Connected Kenya Summit. The Kenya ICT Board and the Kenya Vision 2030 Delivery Secretariat invited companies that have developed solutions that drive economic growth and social development as outlined in Kenya’s Vision 2030 to participate in the inaugural Vision 2030 ICT Innovation Awards. The Award is proudly co-sponsored by Accenture Development Partnerships (ADP).

‘Over 170 companies participated in the online process. All applications were received on an online platform set up by the Kenya ICT Board that allowed applicants to create an account and fill out their application over time. Of the companies that participated in the Call for Applications, 82 successfully completed the process.

‘The Kenya ICT Board convened a team of seven independent judges representing the ICT private sector, academia, public sector and civil society. The judges began their work on April 13 and reviewed each complete proposal against the criteria outlined in the call for applications. To ensure integrity in the process, Deloitte Consulting are auditing the review process.

‘The winners each get a commemorative trophy, certificate and $1,000 prize money from Accenture. The overall best innovation award was awarded to International Livestock Research Institute for their mobile-ICT based livestock insurance solution. ILRI received an additional $ 5,000 as their award.

‘Index-based livestock insurance (IBLI) is a promising and exciting innovation in insurance design that allows the risk-management benefits of insurance to be made available to poor and remote clients. The IBLI product being piloted in Marsabit District aims to provide compensation to insured pastoralists in the event of livestock losses due to severe forage scarcity. Incorporating remotely-sensed vegetation data in its design, delivered via mobile ICT-based transactions platforms, and with experimental extension methods used to educate the remote pastoral herders, the IBLI product boasts many firsts in product development.’

Read more about the Vision 2030 ICT Innovation Awards on the Connected Kenya website.

IBLI web site

The case for index-based livestock insurance and cash payments for northern Kenya’s pastoralists

Training livestock herders in Marsabit in new insurance scheme available

ILRI is working with insurance companies to train livestock herders in Kenya’s northern drylands in the benefits and costs of a new index-based livestock insurance first made available in Marsabit District in 2010 (photo credit: ILRI/Mude).

On the second day of a ‘Future of Pastoralism in Africa’ Conference, being held this week (21–23 March 2011) in Addis Ababa at the campus of the International Livestock Research Institute (ILRI), a panel session focused on new approaches for strengthening pastoralist livelihoods and social protection.

With decades of food aid delivery having demonstrably failed to significantly improve the livelihood prospects of Africa’s poorer pastoralists, aid agencies and governments alike are rethinking their approaches to ways of delivering aid to pastoralists. But do safety net schemes serve as life-savers or do they lock destitute pastoralists into unsustainable livelihoods? Should donors and governments help destitute pastoralists exit pastoral livelihoods? Should they help provide livestock insurance schemes?

Andrew Mude, an ILRI scientist, spoke about an index-based livestock insurance innovation that has been instituted, in partnership with UAP Insurance and Equity Bank, for pastoral herders in Marsabit District, in northern Kenya’s great drylands. This is the first insurance ever offered the Samburu, Gabra, Rendille, Borana, Turkana and other traditional herders here, who cope with variable weather by traditionally moving their stock to find new grazing when the grass in a given area is finished.

The risk covered by this insurance is periodic drought that dries up the natural rangeland vegetation, which supplies most of the feed for the pastoral cattle, sheep, goats and camels of the region, leading to many livestock deaths. Insurance payouts are made, to those who have bought annual insurance contracts, when the available forage in Marsabit District in that year drops below a level at which more than 15 per cent of the livestock would be expected to perish from starvation.

Before the ILRI team could convince commercial companies that this is a viable product, they had to convince the prospective pastoralist clients of that. So ILRI researchers invented insurance games that help livestock herders understand what the insurance covers, and what it does not, and when insurance payouts will be made, and when they will not.

Asked whether livestock insurance isn’t just another popular idea likely to fail, Mude said, ‘I wouldn’t stake my professional reputation on index livestock insurance working, but I would stake my reputation on the processes we are using to monitor the effectiveness and impacts of this new product. In fact, my team has put a “pause” on expanding livestock insurance in Kenya while we see how it goes, although we are introducing livestock insurance in Ethiopia so as to see how it does here, under different conditions.’

In the meantime, Mude’s team is monitoring the effectiveness and impacts of livestock insurance in Marsabit by following 900 households, which they first interviewed in 2009 and then again last year; they’ll continue to monitor these households over the next four years to determine if the product should be made more widely available.

The next expert to speak was Stephen Devereux, who leads a pilot Hunger Safety Net Program providing cash transfers to the people in northern Kenya’s chronically food insecure areas of Mandera, Marsabit, Turkana, Wajir districts. The payments are designed to meet basic subsistence needs. The program uses the local private sector—banks and shops—to deliver the cash to the local people.

The Hunger Safety Net Program aims to provide social assistance, insurance and justice. The first thing Devereux’s team had to consider was whether the program’s social protection should address poverty or vulnerability. The conventional way to define poverty is lack of resources, while vulnerability is characterized by uninsured risk and marginalization is a matter of lacking a voice in decision-making.

The rates of both poverty and hunger in these districts are high. Only the rich eat three times a day. Middle-income families eat just twice a day, the poor only once a day, and the very poor sometimes do not eat at all in 24 hours.

Food aid is the conventional response to prolonged drought in these as well as other pastoral areas. But food aid is not enough, and tends to be diluted through sharing. The nutritional status of children in drought-afflicted districts, moreover, was found to be alarming in 2006, for example, a full year following a drought and despite massive injections of food aid.

Among the design challenges of this social assistance is how to best target those to receive this aid: are women, for example, more responsible as well as more vulnerable? Conflicts occurring between pastoralist communities in this region are a great problem, and the food price crisis is also hurting the efficacy of this program, which can no longer provide sufficient cash to maintain adequate nutritional levels. Another worry is that the program may be trapping people in unviable livelihoods while they wait to receive benefits (some families might be better off exiting pastoralism altogether).

Complementary interventions—so-called ‘cash plus’ systems—are needed to help build resilience in these communities, said Devereux. ‘A useful integrated approach would combine cash payments with services such as livestock insurance, as is being done by ILRI and its partners in Marsabit.’

For more information, see previous postings on the ILRI News Blog:

The future of pastoralism in Africa debated in Addis: Irreversible decline or vibrant future?, 21 March 2011.

Climate change impacts on pastoralists in the Horn: Transforming the ‘crisis narrative’, 22 March 2011.

Or visit the Future Agricultures Consortium website conference page or blog.

Index-based livestock insurance project in northern Kenya wins best practice award

Andrew Mude of ILRI receives IBLI award

Andrew Mude of ILRI receives the best-practice award for the Index-based Livestock Insurance project from Manfred Wiebelt, the director of PEGnet (Photo: PEGnet) 

The International Livestock Research Institute (ILRI) led Index-based Livestock Insurance (IBLI) project in northern Kenya, which provides livestock insurance to over 2000 households in Marsabit district to help livestock herders sustain their livestock-dependent livelihoods during drought, has received a best-practice award from the Poverty Reduction, Equity and Growth Network in recognition of the project’s innovative approach of combining scientific research and practice.

The award was presented to Andrew Mude, an economist with ILRI, who also heads the Index-based Livestock Insurance project, during the Poverty Reduction, Equity and Growth Network’s conference ‘Policies to Foster and Sustain Equitable Development in Times of Crises’ held in Midrand, South Africa, on 2-3 September 2010.

Over the past two years, ILRI in collaboration with partners from Cornell University, the BASIS I4 project at the University of California – Davis, and Syracuse University, have come up with a research program that has designed and developed the insurance program. It is now being implemented by commercial partners as a market-led index-based insurance product that is protecting livestock keepers from drought-related animal losses particularly in the drought-prone arid and semi arid areas of Kenya. The program uses satellite imagery to determine and predict potential losses of livestock forage and issue insurance payouts to participating members when incidences of drought occur.

The first pilot product of this project, launched in January 2010 in Marsabit, brings together Equity Bank of Kenya, UAP Insurance and Swiss-Re as commercial partners who are running a commercially viable insurance product. This is a first-of-its-kind initiative in Africa and it holds enormous potential for benefitting livestock keepers in the region and across the continent. So far, the project has recorded over 2000 contracts covering livestock worth over US$1 million and attracting premiums of over US$77,000.

The project is expected to bring economic and social benefits to livestock keepers and protect households against drought-induced livestock losses thereby reducing their likelihood of descending into poverty. By insuring the assets of pastoralists against catastrophic losses, members will be able to come out of poverty, be protected from the risk of falling into poverty and at the same time will have opportunity to explore other activities for household economic development.

The impact of the project is currently under assessment to find out its benefits before it can be scaled up to other districts in the country. 

The Poverty Reduction, Equity and Growth Network brings together researchers with an interest in issues revolving around poverty, inequality and growth in developing countries and links them to German development policy bodies with the aim of among others, using research results for policy advice on pro-poor growth strategies.

More information about the Index-based Livestock Insurance project can be found on the project website: www.ilri.org/ibli/

The following ILRI news article shares information about the project’s launch in Marsabit:  http://www.ilri.org/ilrinews/index.php/archives/1440

To find out more about the Poverty Reduction, Equity, and Growth Network’s 2010 conference please visit http://www.pegnet.ifw-kiel.de/