Study recommends new systems for raising and selling small animal stock in Ethiopia

Posted on August 25, 2010 by Paul Karaimu

Thirteen year-old Damte Yeshitella tends cattle on the outskirts of Addis Ababa. Improved systems of raising and selling sheep and goats can increase production in Ethiopia's large livestock sector. (Photo credit: ILRI)

A new report calls for making better use of Ethiopia’s native livestock resources, expanding livestock export markets and favourable livestock regions to transform the country’s large livestock sector, particularly that of sheep and goats.

Despite Ethiopia’s wealth (in types as well as numbers) of livestock resources, scientists report that national levels of livestock production remain far below expectations. A new working paper, ‘Sheep and goat production and marketing systems in Ethiopia,’ offers strategies for raising those levels. The report is published by a project, ‘Improving Productivity and Market Success (IPMS) of Ethiopian Farmers,’ implemented by the Government of Ethiopia and the International Livestock Research Institute (ILRI).

Although Ethiopians raise vast numbers of small stock—about 25 million sheep and 21 million goats—the nation’s livestock sector continues to underperform. The new report cites a multitude of technical, socio-economic and biological problems constraining the country’s sheep and goat production. These include livestock diseases and parasites, poor-quality feeds, inaccessible livestock inputs and inappropriate methods for delivering extension messages. Inadequate markets, including insufficient access to markets and market information as well as low market prices, also prevent livestock farmers from achieving the great potential their animals offer.

But ILRI researchers Azage Tegegne, Berhanu Gebremedhin and Dirk Hoekstra, among other authors of the report, are quick to point out that the Ethiopian livestock sector has many ‘favourable opportunities to increase sheep and goat productivity.’

The report recommends supporting alternative production systems that will not only improve small-scale production systems but also speed development of larger scale specialized sheep and goat production systems.

Small stock production should be stratified, the scientists say, and different zones delineated for different kinds of production systems. The report says, for example, that herding and other forms of extensive livestock-based systems are more suited to the country’s vast western, eastern and southern lowlands as well as subalpine sheep-based regions, whereas intensive market-oriented systems are better suited to the wet highlands, where farmers typically mix crop growing with animal husbandry.

Among the places where the Improving Productivity and Market Success of Ethiopian Farmers project is working to increase productivity of small animal stock is Gomma District, where sheep fattening cycles have been set up and are run by women.

The project is enabling farmers to increase the production of sheep and goats, with larger numbers of healthier animals fetching higher prices when they (or their related products) are sold in markets.

‘Farmers are using the increased income to expand and increase the numbers of animals in the fattening program and to purchase agricultural inputs like seeds, fertilizer and farm tools. Household items, especially food, are also more accessible. They are also able pay for their children’s education’, said Tegegne, who is also a research scientist with the project.

Findings from the project in Gomma show that households made a profit of Birr 2,250–4,500 (US$167–333 USD) annually from the sale of fattened animals. In the first round, 120 farmers (38 women) fattened 5 sheep per household in three months. Most managed to fatten 15 sheep in three cycles in a year translating to significant household income for farmers and their families. As a result of this success, the fattening program is now used by more farmer groups and landless urban youths.

‘Women in particular benefit from this project, especially in areas where women’s groups focused on sheep fattening have been established. Fattening activities for small animal stock are traditionally carried out by women, who use income generated from this project to meet household and family needs. There is great potential to expand the project,’ says Tegegne.

The report also recommends greater use of technological interventions to better exploit the country’s genetic diversity and improve its breeding stock and to better control livestock diseases. And it suggests ways to reorient the country’s livestock extension services for better delivery to livestock keepers. The report says improved markets will depend on more and better-quality infrastructure and market information as well as communities of livestock producers organizing themselves into marketing groups or cooperatives to gain better access to markets and to increase their profit margins.

This report is part of a series of working papers produced by a five-year project funded by the Canadian International Development Agency (CIDA) and implemented by ILRI on behalf of the Ethiopian Ministry of Agriculture and Rural Development.

To read the full report, please visit https://cgspace.cgiar.org/handle/10568/2238 and to find out more, visit Improving Productivity and Market Success (IPMS) of Ethiopian Farmers Project.

Assessing the full costs of livestock disease: The case of the 2007 outbreak of Rift Valley fever in Kenya

Posted on August 19, 2010 by Susan MacMillan

Livestock market in Garissa, in northeastern Kenya. Closure of the cattle market and disruption of cross-border cattle trade with Somalia due to outbreaks of livestock disease can worsen food insecurity among the pastoralists and agropastoralists on both sides of the border. (Photo credit: Tze-Yun Soh)

Rift Valley fever is a mosquito-transmitted zoonotic disease that harms both human health and livestock production. It can also induce large, often overlooked, economic losses among many other stakeholders in the livestock marketing chain.

A new paper published by ILRI scientists Karl Rich and Francis Wanyoike assesses and quantifies the multi-dimensional socio-economic impacts of a 2007 outbreak of Rift Valley fever in Kenya. The study is based on a rapid assessment of livestock value chains in the northeast part of the country and a national macroeconomic analysis. As would be expected, the study results show losses among producers in food security and incomes. But the researchers also found significant losses occurred among other downstream actors in the value chain, including livestock traders, slaughterhouses, casual labourers, and butchers, as well as among those in non-agricultural sectors. To better inform policy and decision making during animal health emergencies, the authors argue that we should widen our focus to include analyses that address the multitude of economic losses resulting from an animal disease.

The authors write:

‘Rift Valley fever has had significant impacts on human and animal health alike in East Africa and the Middle East. Past outbreaks in South Africa (1951), Egypt (1977/78), Kenya (1997), and Saudi Arabia (1998–2000) resulted in the cumulative loss of thousands of human lives. The 2000 outbreak in Saudi Arabia led to the imposition of trade bans of live animals from the Horn of Africa (Ethiopia, Somalia, and Kenya) that had devastating economic impacts: one study estimated that total economic value-added in the Somali region of Ethiopia fell by US$132 million because of these trade bans, a 42% reduction compared with normal years . . . .

‘In 2007, Rift Valley fever returned to East Africa, impacting both Kenya and Tanzania. Specifically hard hit by this latest outbreak were the pastoral communities of the northeastern part of Kenya. In this region, livestock serve an important livelihood function for pastoralists, with livestock trade representing over 90% of pastoral incomes . . . . Moreover, northeastern Kenya has the highest incidence of poverty within Kenya, with poverty rates of approximately 70% in 2004 . . . .

‘An overlooked component in the socio-economic analysis of animal diseases is the multiplicity of stakeholders that are affected. Rift Valley fever does not just affect producers, but also impacts a host of other service providers within the livestock supply chain and other parts of the larger economy. Cumulatively, these downstream impacts can often dwarf the impacts of the disease at the farm level, but public policy tends to concentrate primarily on losses accruing to producers. The failure to capture these diverse impacts may have important implications on the evolution and control of disease that may accentuate its impact.

‘The 2007 Rift Valley fever outbreak in Kenya had wide-ranging impacts on the livestock sector and other segments of the economy that are often overlooked in the analysis of animal disease. These impacts included production impacts, employment losses (particularly for casual labor), and a reduction in operating capital among slaughterhouses and butchers that slowed the recovery of the livestock sector once the disease had abated. On a macroeconomic basis, we estimated that Rift Valley fever induced losses of over Ksh 2.1 billion (US$32 million) on the Kenyan economy, based on its negative impacts on agriculture and other sectors (transport, services, etc.) alike.’

Read more: An Assessment of the Regional and National Socio-Economic Impacts of the 2007 Rift Valley Fever Outbreak in Kenya, by Karl Rich and Francis Wanyoike. Rich is on joint appointment with ILRI and the Norwegian Institute of International Affairs, in Oslo. ILRI researcher Wanyoike is based in Nairobi. Their paper is published in the American Journal of Tropical Medicine and Hygiene, 83(Suppl 2), 2010, pp. 52–57.

Small-scale traders in ‘clean milk’ strengthen the milk value chain in urban India

Posted on August 16, 2010 by Paul Karaimu

Small- and medium-scale milk traders—not big or even small grocery stores—are what links most dairy farmers and consumers in Guwahati, the capital of Assam. Milk and milk products make up a large part of the most nourishing foods available to millions of poor people in this remote, poverty-stricken state of northeastern India. To promote the business of ‘clean milk’ among smaller scale traders, researchers recently trained more than 90 dealers in improved milk handling technique.

For three weeks this July 2010, courses were conducted on clean and hygienic milk handling and distribution for milk traders and vendors. Participants were trained in such specifics as the causes of milk spoilage and disease, hygienic milk handling and transportation, how to conduct tests for milk quality, and ways to ensure milk containers used in all processes of milk handling are sanitized.

The course trainers and materials were provided by staff of the International Livestock Research Institute (ILRI), who are working to educate and skill up relatively informal milk traders in the production and sales of clean milk and milk products. The benefits of this training are many, including not only cleaner, hygienically handled, milk, but also more milk sales, greater customer satisfaction and improved community health.

The trainings are part of a series that will reach more than 300 traders who collect and sell milk on the outskirts of Guwahati. The five modules that make up each training course are being delivered in 12 batches through October 2010.

Led by the Directorate of Dairy Development in Assam, the training program is supported by the Assam Agricultural Competitiveness Project under an initiative of the Joint Coordination & Monitoring Committee, which is bringing together organizations such as Dairy Development, the Veterinary Department, the public health departments in Assam, the Guwahati Municipal Corporation, the Assam Rural Infrastructure & Agricultural Services Society, and ILRI.

ILRI’s participation in this initiative is part of a project, ‘Improvement of the traditional dairy value chains in Assam’, partly funded by the UK Department for International Development’s Research-into-Use program. The project aims to increase demand for locally produced, good-quality milk in Assam and the capacity to supply it. Project members are supporting agents involved in the entire peri-urban traditional dairy value chain, from production, to distribution to the sales of safe, high-quality milk and dairy products.

ILRI has helped the Directorate of Dairy Development to mobilize Assamese dairy producers, suppliers and processors in the traditional sector as well as policymakers to improve the quality of milk delivered to consumers and to strengthen the dairy sector in general. ILRI is a member of a team strengthening the capacity of the local milk producer & milk traders/vendors association and will work with the Directorate of Dairy Development on a Joint Coordination and Monitoring Committee to monitor the ways that the lessons imparted to the milk traders are implemented and adapted.

Asif Bin Qutub, a project coordinator with ILRI in India and one of the trainers in this course, said that: ‘This training addresses trader needs identified after a baseline survey conducted by ILRI showed that most of the traders had lost potential customers as a result of selling inferior milk due to not following proper milk handling procedures.’

‘The training aims to address other issues as well,’ Qutub said. ‘It provides dealers with information on milk prices and good business practices—information likely to motivate them to improve the quality of the milk they supply to their customers.’

Those trained said their newly acquired knowledge would help them as well as farmers to increase their milk sales, and at higher prices, to reduce their losses from spoilage, and to protect their health and that of their families. They also mentioned that they looked forward to gaining greater approval for their businesses as well as new opportunities.

Sagar Dhakal, vice president of Guwahati’s Milk Suppliers Association, said he and his colleagues had agreed to keep the training materials on display in their offices and to share their training more widely with others in the business.

Those participating in the courses will receive certificates from Assam’s Directorate of Dairy Development and Joint Coordination and Monitoring Committee.

ILRI hosts Ethiopia workshop on index-based livestock insurance

Posted on July 9, 2010 by ILRIComms

On 12 July 2010, the International Livestock Research Institute (ILRI) will convene a workshop in Addis Ababa to introduce partners and key stakeholders to the concept of index-based livestock insurance (IBLI) – as used in northern Kenya – and to explore whether such an initiative could be developed for southern Ethiopia.

This video explains the ILRI-supported IBLI project in Kenya:

Researchers call for regional approaches to deal with high food prices

Posted on July 6, 2010 by Paul Karaimu

Researchers in eastern and southern Africa are calling for a new regional and integrated approach to address high food prices associated with global food shortages. They are doing this to help prevent a repeat of the global high food price crisis of three years ago.

Under the leadership of the Association for Strengthening Agriculture Research in Eastern and Central Africa (ASARECA), a regional body that seeks to transform agriculture and improve livelihoods, a team of researchers from key national, regional and international organizations in eastern and southern Africa (ESA) have determined that a ‘regionally coordinated response . . . is potentially more effective in responding to the food price crisis than individual country responses.’

This is one of the key findings from a 2009 study that investigated food-price changes in the national and regional markets in eastern and southern Africa, which would provide an ‘evidence base for effective policy action.’

Joseph Karugia led a core team of researchers who were coordinated by the Regional Strategic Analysis and Knowledge Support System-East and Central Africa (ReSAKSS-EA), which is based in Nairobi, Kenya, at the International Livestock Research Institute (ILRI). Karugia says that ‘Regional blocks can become effective avenues for policy creation and implementation because they offer a much wider and stronger platform to address the challenges posed by the global food price crisis and to exploit the opportunities that high food prices may offer.’

Between 2007 and 2008, most countries in the region (and across the globe) experienced a rise in food prices that threatened the livelihoods of many of the region’s poor. Causes of the rise in prices were attributed to rising incomes and growing uses of food grains for bio-fuel production and animal feeds. In addition, an increasing world population and urbanization, coupled with high agricultural input prices, reduced world stocks of food staples and exports. Declining agricultural resources also contributed to the low supply of food.

Unlike past food-price spikes, such as those in the mid-1990s, where only a few commodities were affected, the recent rise in prices saw substantial increases in the price of the world’s key cereals, oilseeds and dairy and meat products.

For resource-poor farmers and consumers in Africa, high prices translated into higher costs of living occasioned by the increase in the prices of basic foods and staples such as maize, rice and wheat. Prices of different foods across many countries in the region went up by between 11 and 50 per cent between March 2007 and March 2008.

In the wake of the crisis, ASARECA brought a team of key researchers together in a study to find out ‘the magnitude and implications of food prices’ in the region. ‘One of our key aims was to come up with practical short-, medium- and long-term options for governments and other stakeholders for addressing the problem posed by the crisis,’ Karugia says.

The researchers analyzed trends and outlooks in individual countries as well as the region and presented evidence about the regional food situation. They also explored connections between high domestic food prices in this period and global food prices and examined regional and national dimensions of food-price increases and how they related to food security in the region.

From the study findings, presented in a paper, ‘Responding to the food crisis in eastern and southern Africa: policy options for national and regional action’, researchers argue that the considerable scope offered by regional blocks such as the East Africa Community (EAC), the Common Market for East and Southern Africa (COMESA), and the Southern Africa Development Community (SADC) provides an opportunity to create and implement regional policies and strategies to improve food production, distribution and availability in ways that individual countries could not handle alone.

The findings of this research suggest that new ways of approaching food distribution can improve food security in the region by for example, enabling improved regional trade that would allow easier movement of foods, especially ‘non-tradeable’ commodities such as bananas, shipped from countries where they are readily available to countries where consumers face food shortages. This model of food distribution could effectively deal with challenges that result from failure of staple crops such as maize. This way, the report says ‘the income effect of rising food prices could be dampened if it is relatively easy for the household to substitute one staple food whose price is already rising with a cheaper food product that is nutritious and as easy to handle as the previous one.’

Findings from this study provide thought-provoking perspectives useful to policymakers and governments in managing the frequent food crises in the region.

The findings highlight the important role of regional trade, Domestic food prices are, to a large extent, determined by local and regional demand-and-supply conditions; if policies on informal trade were improved, this region’s food security would also improve. The researchers note that an inability of households to find alternative cheaper nutritious foods would lead to ‘lower resource allocation towards non-food items’. This would then affect other sectors, such as education, health care and water and sanitation, with the ‘eventual deterioration of human capital and overall household welfare.’

Although rising food prices are contributing to food price inflation, the researchers note that the domestic markets in the ESA region are resilient and are not always directly affected by global events. Arguing that the best way to address the food price crisis is to do so regionally, they say policies should aim to ‘increase household purchasing power, have no negative impact on food supply response and should not reduce income of poor food sellers.’

This study calls for paying renewed attention to the agricultural sector, which is essential for improving production. It also notes that high food prices provide incentives to the private sector to invest in the agricultural sector. However, productivity increases will require significant and sustained investments in agricultural research and extension, as well as development of agricultural and general infrastructure along with credit and risk-management instruments.

The complete findings of this research can be accessed on https://cgspace.cgiar.org/bitstream/10568/184/1/resakss%20workingpaper27.pdf

For more information please visit the websites of ResaKSS and ASARECA.

Indian dairy is big dairy – and it’s all done by small producers

Posted on May 30, 2010 by Susan MacMillan

A recent article in the Economist — ‘Indian policymakers should see agriculture as a source of growth, not votes’ — in its 13-19 Mar 2010 issue states that: ‘Indian agriculture has performed so poorly largely because governments have treated it as a source of votes rather than as an engine of growth. . . . India’s government still fixes prices and subsidises inputs, when public money would be far better spent on infrastructure and research. . . . India needs to stop seeing agriculture as a problem to be nursed and start thinking of it as an opportunity to be grasped. . . . India is already an agricultural force in some crops. It is the second-biggest exporter of cotton and was a net exporter of cereals for a decade after 1995 . . . .’

What the Economist article omits to mention is that India nearly a decade ago (2001) became the world’s biggest milk producer. Remarkably, almost all of that milk is produced by some 40 million households keeping just a few cows or buffaloes on small plots of land. Those households are, indeed, an opportunity to be realized.

For more information about smallholder dairy research, visit ILRI’s ‘Livestock Markets Digest‘ blog.

Collective action ‘in action’ for African agriculture

Posted on March 3, 2010 by Susan MacMillan

Collaborative agricultural research in Africa gets a welcome boost; village farm household in central Malawi (photo credit: ILRI/Mann).

In recent months, an, initiative of the Consultative Group on International Agricultural Research (CGIAR) called the Regional Plan for Collective Action in Eastern & Southern Africa (now simply called the ‘Regional Collective Action’) updated its ‘CGIAR Ongoing Research Projects in Africa Map’: http://ongoing-research.cgiar.org/ This collaborative and interactive map will be launched in the coming weeks through fliers, displays and presentations at agricultural, research and development meetings that have Africa as a focus. Although much of Africa’s agricultural research information has yet to be captured in this map, 14 centres supported by the CGIAR have already posted a total of 193 research projects and much more is being prepared for posting.

The newsletter of the Regional Collective Action—Collective Action News: Updates of agricultural research in Africa—continues to elicit considerable interest and feedback. Recent issues reported on the CGIAR reform process (November 2009) and agriculture and rural development at the recent climate change talks in Copenhagen (December 2009). The January 2010 issue reflects on the achievements of the Regional Collective Action since its inception three years ago (https://www.ilri.org/regionalplan/documents/Collective Action News January 2010.pdf).

Several high-profile African networks, including the Forum for Agricultural Research in Africa (FARA), the Food, Agriculture and Natural Resources Policy Analysis Network (FANRPAN) and the Association for Strengthening Agricultural Research in Eastern and Central Africa (ASARECA), are helping to disseminate the newsletter of the Regional Collective Action as well as information about its consolidated multi-institutional research map. Coordinators have now been appointed to lead each of four flagship programs of the Regional Collective Action.

Flagship 1 conducts collaborative work on integrated natural resource management issues and is coordinated by Frank Place at the World Agroforestry Centre (ICRAF).
Flagship 2 conducts research on agricultural markets and institutions and is led by Steve Staal of ILRI.
Flagship 3 conducts research on agricultural and related biodiversity and is led by Wilson Marandu of Bioversity International with support from Richard Jones of the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT).
Flagship 4 conducts research on agriculturally related issues in disaster preparedness and response and is led by Kate Longley and Richard Jones of ICRISAT.

These four flagships programs of the Regional Collective Action are expected to play crucial roles in advancing collaborative discussions and activities in the new CGIAR, which is transforming itself to better link its agricultural research to development outcomes. ILRI’s Director of Partnerships and Communications, Bruce Scott, represented the CGIAR Centres at the December Meeting of the ASARECA Board of Trustees.

‘ASARECA continues to value the work of the CGIAR Centres in this region and welcome the Regional Collective Action,’ Scott said. With the four Flagship Programs off and running, the interactive Regional Research Map live on the web, and Collective Action News reporting on regional agricultural issues regularly, collaborative agricultural science for development in Africa appears to have got a welcome boost.

Milk–the perfect food: South-South East Africa-South Asia symposium

Posted on December 2, 2009 by ILRIComms

A South-South Symposium to Improve Safety and Distribution in the Dairy Sector
1 â€“ 4 December 2009, Nairobi, Kenya

In both India and East Africa some 80-90% of milk is handled by the informal, un-organized dairy sector. We usually associate milk with cattle, but domesticated ungulates such as sheep, goats, yaks, water buffalo, horses, and camels are other primary milk producers in developing countries. The largest producer and consumer of cattle’s milk in the world is India.

Milk provides the primary source of nutrition for young mammals before they are able to digest other types of food, and carries the mother’s antibodies to the baby. It can reduce the risk of many diseases in the baby. The exact components of raw milk varies by species, but it contains significant amounts of saturated fat, protein and calcium as well as vitamin C.

The food value of an animal killed for meat can be matched by perhaps one year’s worth of milk from the same animal, which will keep producing milkâ€”in convenient daily portionsâ€”for years.

Despite the importance of this simple, opaque liquid, there has been little education in the handling of such an important nutritional substance nor to the organization of its distribution.

In Kenya, which has the largest dairy herd in Africa, including South Africa, about 1.6 million rural smallholder households depend on dairy production for their main livelihood, and dairy is the largest agricultural subsector by contribution to GDP, larger than horticulture, tea or coffee. Again, the large majority of these producers depend on the informal sector market, which employs over 30,000 people along the supply chain. Despite their immense contribution to livelihoods, informal milk marketing systems have historically suffered neglect and opposition from decision-makers and development agents, often because of concerns over quality and safety.

In East Africa, key players have been meeting regularly over the last three years to share lessons on these issues under an association formed to facilitate exchange of new approaches and to harmonize policies, the East Africa Dairy Regulators Association Council (EADRAC). With the nascent development of awareness in India of possibilities for upgrading informal markets, an event to allow the sharing of lessons with key players in East Africa engaged in similar milk marketing systems would be of immense benefit to both sides and the researchers involved.

To this end, a symposium is proposed that would bring together the key researchers and decision-makers from East Africa and northeast India concerning the informal dairy sector. Key outputs will be shared experiences and demonstrations of innovation through structured field visits and presentations of approaches and evidence. This will support the dissemination of new approaches for managing the informal sector that will improve the livelihoods of millions working in the informal dairy sectors of both regions, as well as consumers of milk and dairy products.

Case studies on these topics will be presented and specific strategies and recommendations developed. Participants will be dairy decision-makers and researchers from India and East Africa. The symposium will be linked to a regional EADRAC meeting to be held in East Africa and is provisionally planned for 1 â€“ 4 Dec 2009 in Nairobi, Kenya. The symposium is being organized by the International Livestock Research Institute and the Association (ILRI) for Strengthening Agricultural Research in Eastern and Central Africa.

Programme:
Days 1-2: Representatives from EADRAC, India, ASARECA and ILRI will share and discuss case study presentations.
Day 3: Synthesis of lessons
Day 4: Field tour

African meat for global tables

Posted on November 23, 2009 by ILRIComms

As new channels for African exports become increasingly available, economists and policy makers are focusing more attention on how best to match producers to buyers in Europe and elsewhere, including Africa itself. A recent paper explores the potential and pitfalls of exporting African livestock products.

‘What can Africa contribute to global meat demand?’ recently appeared in Outlook on Agriculture (Vol 38 No 3, pp. 223-233, September 2009). It is authored by Karl M Rich, who works with both the International Livestock Research Institute (ILRI) and the American University in Cairo, and will move to the Norwegian Institute of International Affairs (NUPI) in Oslo, Norway, in February 2010.

Observing that global demand and prices for meat are currently at unprecedented highs, Rich cites International Food Policy Research Institute (IFPRI) data that project that annual per capita meat demand in Africa will double to 22 kg by 2050. This increase will necessitate corresponding rises in demand for cereals as well as livestock. Estimates from the Food and Agriculture Organization of the United Nations (FAO) suggest similar increases in demand throughout the developing world.

These increases bring new opportunities for alternative sources of supply. At first glance, it would seem that Africa would have a distinct advantage in meeting the increasing demand within the continent. However, Africa’s ability to compete with Europe, Asia and the Americas has historically been constrained by low productivity, prevalence of animal diseases and the difficulty of meeting high global standards for health and safety. These constraints must be addressed before Africa can become a major player, and Rich’s paper examines the possibilities of bringing this happy situation about.

Rich begins with an overview of Africa’s role in the global meat trade, both imports and exports. His efforts in this regard are nothing less than heroic. The data from each of Africa’s fifty-odd countries are accumulated in enormously different ways, and the most recent data for some countries are several years old. Nonetheless, the figures are important, and to date no other author has made comparable efforts to get a handle on the situation. Rich does not express a great deal of optimism for the short or medium term. He estimates, for example, that at present Africa provides only about 1% of global meat exports for beef, pork and chicken.

A comparison of regional export shares is even more daunting. Table 1, which presents FAO data, indicates that the overwhelming majority of products come from southern Africa, notably South Africa, Botswana and Namibia, while goat and pig products are sourced predominantly from East Africa. Sheep products come mainly from North Africa (mainly Sudan). Meat exports from the rest of Africa, especially Central and Western Africa, are miniscule. Eight other tables and five figures in the paper provide detailed information of the variety and amount of meat imports and exports among African countries. In the case of exports, information is provided concerning the countries importing African meat products.

Among significant competitor nations are the emerging giant economies of the developing world, especially Brazil and India. These two countries account for a huge slice of the African market, constituting the main source of beef imports—both frozen and fresh—to seven of the largest African customer countries.

Rich points out that one important advantage that India, Brazil and other Latin American countries (Argentina, Paraguay, Uruguay) have over Africa is scale. According to the most recent data from FAO (2006), the total stock of cattle in Africa is about 232 million head. By contrast, Brazil alone has over 207 million head, while India has 180 million as well as nearly 100 million head of buffalo. The African countries with the largest stocks are Ethiopia and Sudan, but neither comes close to those of Brazil or India, and both have fewer head than Argentina.

While African exporters will not be able to compete with Brazil or India in the short to medium term, inroads to foreign markets have been made by some southern African countries to the European Union (EU). This trade is driven by preferential access to the EU brought about through the Cotonou Agreement which provides tariff reductions for African and other developing economies. But even with such international agreements in place, African countries have been unable to fill the quotas provided, largely because of the rigourous standards for compliance with EU sanitary regulations. To retain access to European markets, for example, Botswana and Namibia have had to set aside areas free from foot and mouth disease (FMD)—an expensive arrangement that precludes raising cattle by traditional African husbandry methods. Furthermore, without these preferences it is unlikely that southern African producers could compete with the likes of Brazil.

Rich concludes his paper with a section entitled The road ahead: where and how can Africa contribute to global meat demand? Before discussing the most likely methods for improving Africa’s competiveness with other meat-exporting nations, however, he cautions that ultimately, significant improvements in productivity, breeding, infrastructure and marketing will be required over and above the options he identifies.

The author identifies five options.

Commodity-based trade. Diseases such as FMD persist in developing countries, limiting market access from developing markets to lucrative ones in the developed world. Commodity-based approaches focus on attributes of a product such as quality and safety rather than the disease status of its place of origin. It is argued that deboned and properly matured beef, for example, poses virtually no threat of transmission of diseases such as FMD. While commodity-based approaches could pave the way for increased trade from Africa, a number of gaps remain. In particular, will African countries be the major winners? If not, what further constrains Africa’s market access? A recent report by Karl Rich and Brian Perry to the UK Department for International Development explores this option further.
Certification programs and disease-free compartments. Africa can raise its profile in global markets by demonstrating compliance with SPS standards. A compartment is a network of micro-level disease-free areas linked to each other and maintained through high levels of monitoring. A good example of this option is discussed in the paper mentioned in the box item above, a USAID-funded program currently under way in Ethiopia.
Branded niche products. This option focuses on the strengths that Africa can offer global buyers by building and encouraging trade associations and marketing organizations. The author cites several examples—Farmer’s Choice of Kenya, Farm Assured Namibian Meat, the Kalahari Kid Corporation, the Namibian Meat Board, the South African Meat Industry Company and the National Emergent Red Meat Producers Organisation. These associations promote local products, engage in branding and quality assurance and build the capacity of emerging farmers.
Regional integration and trade. Rich points out that despite the existence of regional cooperation agreements, barriers between member countries continue to hamper trade. Reducing these barriers will be crucial if Africa is to develop and harness the scale necessary to compete in international markets and lower costs. Investments in marketing and promotion among regional partners will be required for countries to enter and sustain effective trading in high-value markets.
Domestic markets. Both formal and informal channels for meat products have been developed within each African country over the past several years. Because domestic prices in fact frequently exceed international prices, finding ways to deliver local products at competitive prices is an option with good potential, though these products will increasingly compete with low-cost imports. Competing effectively on price will be crucial for African producers to be successful in such channels.

The abstract of the paper can be accessed online.
For additional information, contact Karl Rich at k.rich@cgiar.org.

Markets that work: Making a living from livestock

Posted on December 23, 2008 by ILRIComms

ILRI Annual Report 2007 is now available for download. Read the foreword by the chair of ILRI board of trustees Uwe Werblow and ILRI's director general Carlos Seré.

Foreword

This is a time of intense change, with volatile food prices, a near meltdown of financial markets and the continuing growing threats of climate change and emerging diseases.

Research by the International Livestock Research Institute (ILRI) and its partners is helping to address these issues by working at the intersection of small-scale livestock production systems with these new global forces. We see strong growth in demand for research into dynamic markets for livestock products; the growing competing demands for human food, animal feed and biofuels; the growing environmental concerns about the expansion of livestock production; bird flu and other emerging zoonotic diseases; and the impact of climate change on animal agriculture in developing countries.

Livestock is one of the fastest growing sub-sectors in developing countries, where it already accounts for a third of GDP and is predicted to become the most important agricultural sub-sector by 2020 in terms of added value. We view market-led pro-poor growth, the topic of this year’s annual report, not as a silver bullet that will solve all the ills of the livestock sector in poor countries but rather as one of several pillars of livestock development. The livestock markets and trading systems of developing countries are as yet remarkably poorly studied and understood. What we do know is that they are far more complex and dynamic and have far higher through-put than is commonly assumed.

The increasing demand for livestock products is creating opportunities for improving the welfare of millions of poor people who depend on livestock for their livelihoods, but changes in production, procurement, processing and retailing of food, along with environmental and food safety concerns, erosion of animal genetic resources and the threat of emerging infectious diseases, threaten the potential of the poor to benefit from the on-going livestock revolution. With these new challenges, we believe livestock researchers must find new ways of working, including adopting innovation systems and valuechain approaches to their work.

The role of research is never greater than during times of change. With our research investors and partners, we continue to look for ways to adapt ourselves to continual change while seeking technical, institutional and policy solutions to complex problems. We continue to support national work to build indigenous livestock research capacity and to develop institutional arrangements that encourage continual learning. And we continue to look for effective ways to integrate research results and share research-based knowledge with those who need it most. We thank those investors and partners who continued to make this all possible in 2007.

Uwe Werblow Carlos Seré
Chairman of the Board of Trustees Director General

Download ILRI Annual Report 2007

Markets that work: Making a living from livestock (3MB PDF File)

Pig marketing opportunities in Assam and Nagaland

Posted on July 16, 2008 by ILRIComms

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With soaring food prices, indigenous peoples in India are going back to raising small local black pigs. With knowledge-based support, they could tap into new market opportunities and double their incomes.

This is Nagaland, one of India’s most insecure and poorest states. It is in the country’s mountainous northeast corner.

Remarkably, even remote villages here are affected by the rising global prices of milk, meat and cereals.

Most Naga ethnic groups have always kept pigs. Pork remains their preferred meat. Now, today’s skyrocketing grain prices mean the small black pigs these tribal peoples keep, which are adapted to local feed resources, have suddenly become more attractive than big white imported pigs, which have to be fed on expensive grain.

India: Poverty Statistics

India: Over 300 million people, 27.5% of the population live below the poverty line.

Northeast India is the easternmost region consisting of the Seven Sister States. It is home to 38 million people. The region is linguistically and culturally very distinct from the other states of India and officially recognized as a special category of States.

Nagaland is home to 1.99 million people. 19% of the population or 399,000 people live below the poverty line of which 387,000 live in rural areas.

Assam is home to 26.6 million people. 19.7% of the population or 557,700 people live below the poverty line, 545,000 of them in rural areas.

Poverty statistics source: Government of India Planning Commission (2007) Poverty estimates 2004-05.

Pig income for livelihoods and education

‘Apart from keeping pigs and farming, women like us don’t have any other ways to make money.

A window of opportunity for small pig farmers

Pig farmers in Nagaland and Assam now have a window of opportunity to step up their pig production and sell their native animals across the two states. But as markets for pigs are getting larger, so is the market chain, making the business of supplying disease free, safe meat increasingly hard for small producers. On top of that, there are no functioning breeding schemes or feed systems that would allow farmers to intensify.

This lack of quality knowledge is stopping expansion in a rapidly changing industry that could benefit many of the most vulnerable members of society, such as women and children. Without this critical knowledge-based support the opportunity for millions of the world’s poor to climb out of poverty through enhanced pig farming and marketing will be lost.

A local solution for rising prices

Development agencies have tried for decades to raise the very low household incomes in Assam and Nagaland. But even though pig keeping is central to the livelihoods of the poor and especially poor women, pig production has seldom been viewed as a development tool for the region.
This is peculiar because until recently local demand for pork was so great that it was profitable for local business people to import large numbers of commercial white pigs from producers in India’s grain states further west. Animals were being transported 2000-3000 kilometres, at a cost of USD40 each.

But grain-based feeds and transport have both recently shot up in price, adding even more to the cost. People in Assam and Nagaland are suddenly finding the imported white pigs far too expensive. A new market is growing fast for the local black and cross-bred pigs. Because these native animals can be fed mostly on low-cost feed crops and crop wastes, they are an ideal solution to fill the new pork and piglet supply gap.

Knowledge-based support needed to tap into fast changing markets

However because markets are changing so fast smallholder farmers can no longer make it alone. They lack access to information and resources, linkages to health and breeding services, business support, and feeding systems. All these are vital if they are to expand while also meeting increasingly demanding new health and safety standards. This short-term opportunity is ready-made for success. The pigs are there, the demand is there, and farmers ambitious to grow their pig enterprises are also there.

With relevant knowledge and training, both of which ILRI with its national partners are ready to provide, most tribal households in these states could boost their herd sizes and double their incomes sustainably and in a cost-effective way over the next 5–10 years.

Without support, millions of people will increasingly suffer poverty, conflicts, and the loss of dignity that goes with forced migration to cities. However, with help, they can maintain the traditional livelihoods that sustain communities and generate prosperity.

ILRI’s representative for Asia, Iain Wright, says ‘We are working with national partners to gain support for helping poor people seize this big pig marketing opportunity in Nagaland, Assam and other northeast states.

‘We have recently started a project with the Indian Council of Agricultural Research and the School of Agricultural Science and Rural Development, Nagaland University, to implement a programe of research to improve the production and marketing of pigs in selected villages in Mon District, Nagaland. We’re also looking at working on similar projects with national partners in other notheastern states’, says Wright.

Background information:
The Nagaland pig production and marketing project is funded by the National Agricultural Innovation Project with a contribution from the International Fund for Agricultural Development and aims to develop sustainable solutions to livelihood improvement in one of the poorest districts in India.

Rising milk and meat prices bring threats and opportunities

Posted on May 22, 2008 by ILRIComms

More equitable trade policies and substantial investments in agricultural research are urgently needed to help poor farmers seize new market opportunities.

Soaring food prices are dominating headlines. Rising prices represent threats for poor consumers as well as opportunities for poor milk and meat producers. The politics of food have grown complicated with almost as much speed as the rise in food prices. For many people who are poor, this has become an immediate crisis in their lives. It has suddenly become much more difficult for them to secure sufficient nutritious food.

ILRI’s director-general, Carlos Sere, says that governments should start focusing on the livestock sector to combat famine. He warned that the prices of livestock products will skyrocket if the prevailing conditions do not change.

But for some 800 million smallholder livestock farmers, this crisis could turn into an opportunity. Given the right support, they could earn more income from milk and meat, giving them more hope for the future.

The surge in prices of milk and meat, as well as rice, wheat and other cereal grains, is a global problem that will have the greatest impact on the world’s poor. Increasing milk and meat consumption are contributing to the spike in milk and meat prices. More people in the developing world are consuming larger quantities of animal source foods, while consumption in industrial countries is flattening out. The main driver in the increase in milk and meat prices has been the surge in demand for the products in China and India, where,fortunately, hundreds of millions of people are improving their diets as well as their incomes.

Many other factors are also contributing to the high prices. Rising global oil prices have had a negative effect on agricultural production, transportation and fertilizer costs; diversion of food grains and agricultural land to biofuels means more grain and land is being used for energy production and so less is available for food and recent bad weather, such as in Australia and New Zealand where severe droughts have hampered agricultural production.

Demand soars in Asia’s rapidly emerging economies

Over the last decade, consumption of livestock products in the emerging economies of China and India has grown dramatically. As incomes of the poor rise from USD2 a day to USD10 a day, people typically switch from a predominantly starchy diet to a more varied diet that includes more vegetables, milk, meat and eggs.

In 1985, Chinese consumers ate an average of 20 kilograms (44 pounds) of meat, equivalent to half a pound per person per fortnight. This has increased 40 per cent and today they eat an average of 50 kilograms (110 pounds) per year. This is equivalent to half a pound per week. However, many poor people are too poor to eat meat – or eat only tiny amounts. In contrast, people in the US are consuming over half a pound of meat per person every day. US per capita red meat and poultry consumption increased 8 per cent between 1980 and 2005, and now stands at 187.5 pounds per person.

Poor consumers will be hardest hit by rising prices

Higher meat and milk prices will have the greatest effect on world’s poorest 2 billion people, who live on less than USD2 a day. For most of the 800 million people who live on even less – USD1 a day – these price increases mean they will go hungry more often and their diets will not be as nutritious. Threats and opportunities exist and this depends on whether the poor are net consumers of these foodstuffs or net producers, interestingly more rural farmers are net consumers.

In some areas, the price of milk has doubled. This is bad news for consumers in high milk consuming countries such as Kenya and India. For example, the price of milk in northern India has risen from 17 to 24 rupees in last 2 years, an increase of 50 per cent. Meat prices, while not rising quite as dramatically, are expected to keep increasing in large part because the corresponding price jumps of cereal grains used to feed livestock raised in industrial systems.

The world’s growing population will keep up the pressure on demand. Some estimate that by 2030, global food demands will double from current consumption. This does not mean that the result is all bad news for the poor. Many poor farmers with a surplus to sell could benefit from rising prices. For these farmers and their families, the rising prices of milk and meat offer new opportunities to climb out of poverty as they produce and sell more livestock and livestock products. India is a great example. With its sprawling crowded cities and population of over one billion, tens of millions of people could use dairy products to get themselves and their families out of poverty. Recent food price rises are also encouraging poor farmers in northeast India to expand their production of small local pigs. The soaring price of grains along with higher transportation costs is reducing the supply of exotic pigs from northeastern Indian states and stimulating demand for local black pigs that do not need costly feeds and can thrive on locally produced fodder and kitchen wastes. With the right support and infrastructure, poor farmers could seize the new market opportunities and climb out of poverty.

Food grains for people or for livestock?

With soaring demands for milk and meat comes more livestock and this brings more stress on the environment. ILRI’s long-term research aims for sustainable animal agriculture that helps poor farmers intensify their production systems while conserving their land, water and other natural resources. Livestock farming in poor countries is radically different from the industrial, grain-fed, feedlot form of livestock production practiced throughout the West. In industrial systems, it takes 8 kilos of grain to produce 1 kilo of meat. The ruminant livestock of poor countries do not compete with people for their feed, as they eat mainly grass, forages and crop wastes.

Food grains for people or for biofuels?

Another complicating factor in efforts to increase food production is the diversion of grains and oilseeds to produce ethanol and biodiesel. The World Development Report 2008 estimates that filling up a typical 4×4 SUV with ethanol uses enough maize to feed a person for a year. The report also found that biofuels would raise the prices of grain globally. This will lead to higher rates of malnutrition among the poor in the world’s least developed countries. Governments are reassessing their biofuels policies as there is growing concern about grain and oil-based crops, such as maize, soybean and oil palm, being used for producing biofuels while millions of poor people simply do not have enough food to eat. Not all biofuels are bad for food production and support is gathering for biofuels produced from non-consumable products such as wastes from sugarcane and sweet sorghum residues.

Recommendations

There are no quick fixes for today’s soaring food prices and their negative impacts on poverty levels and food security and availability. An international commitment to fairer and more equitable trade, together with substantial investments in agricultural research and development, are urgently needed to cope with current and future demands.

Fairer and more equitable trade
A major concern is that the spike in commodity prices could pit the globe’s poorer South against the relatively wealthy North, elevating demands from the South for reform of rich nations’ farm and environmental policies. It could also pit neighboring countries against each other. Trade barriers, production subsidies, import subsidies and export bans will all hit the poor the hardest.

ILRI recommends:

Develop smart subsidies for the most vulnerable groups. Put more funds into the hands of the poorest people to buy the food they need instead of resorting to protectionist trade barriers to keep prices low.

2. Cut subsidies to European and US farmers and open rich markets to poor suppliers.

3. Get higher prices into the hands of small-scale livestock producers to encourage them to produce more.

Increasing investments in agricultural development and growth
Food productivity increases are critical for meeting rising food demands. Without the necessary increases in productivity, the global food crisis will worsen, prices will continue to rise and it will be even more difficult for poor people to access nutritious food. It is critical that governments substantially increase their investments in agricultural research.

ILRI recommends:
1. Invest in rural market transport and infrastructure to ensure food supply from rural producers, especially of perishable, high value products, including livestock products.

2. Use options identified by scientific research to refine the integration of crops and livestock so as to raise smallholder productivity.

3. Exploit the fact that the new prices now make many livestock technologies developed over the last 30 years financially feasible.

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