Kenya’s small milk traders benefit from research evidence leading to pro-poor policy change

Milk sale #2 in Nairobi's informal market

Sale of unpasteurized in Nairobi’s informal Dagoretti Market (photo credit: ILRI/Brad Collis).

A case study recently posted on the Research for Development (R4D) website of the UK’s Department for International Development (DFID) reviews a policy change in Kenya that has greatly benefitted the country’s many small-scale milk vendors. The ‘raw’ (unpasteurized) milk sold by these milk hawkers has become safer, the poor milk sellers have made more profit, the poor consumers have more affordable milk to buy, and many unskilled people have been able to get jobs in small-scale milk enterprises and trade.

In all, these benefits add up to more than USD33 million every year. The International Livestock Research Institute (ILRI) worked for a decade with the relevant Kenya Government ministries and the Kenya Agricultural Research Institute to bring about these pro-poor policy changes. This research was supported throughout by DFID and the Consultative Group on International Agricultural Research.

‘Evidence-based research by the DFID-funded Smallholder Dairy Project (SDP) revealed the economic and nutritional significance of the informal milk sector and the potential for improved handling and hygiene practices, which would ensure quality and safety of milk from farm to cup. The second phase of the project (2002-2005) involved more active engagement with policymakers to raise awareness of its research findings on the informal milk market, its importance for livelihoods, and to allay public health concerns while simultaneously working with milk vendors to pilot training and certification approaches that effectively improve quality. Updated dairy industry regulations, designed to streamline licence application processes for smallscale milk vendors, were issued by the Ministry of Livestock and Fisheries Development (MoLFD) in September 2004.

‘Total economy-wide gross benefits accruing to the sector from the policy change are estimated at US$33 million per annum, as a result of reduced transaction costs and less milk spoilage due to improved practices by newly-trained vendors. More than half of the benefits accrue to producers (increased incomes) and consumers (lower milk prices). Licensing of smallscale milk traders by the Kenya Dairy Board (KDB) has also led to formation of groups under the umbrella of the Kenya Smallscale Milk Traders Association. A further legacy of the project is the establishment of self-employed business development service providers, who are paid by dairy companies and traders to provide training on milk handling and business development. The lessons learnt from the SDP are being applied across East Africa, particularly Tanzania and Uganda, and also in India.’

Read the full (5-page) case study: Policy change: Milking the benefits for smallscale vendors, DFID and ILRI, 2010.

More information:

Leksmono, C., J. Young, N. Hooton, H. Muriuki, and D. Romney (2006), Informal traders lock horns with the formal milk industry: the role of research in pro-poor dairy policy shift in Kenya, Overseas Development Institute (ODI) and International Livestock Research Institute Working Paper No. 266, London/Nairobi.

CGIAR Science Council, (2008), Changing dairy marketing policy in Kenya: The impact of the Smallholder Dairy Project, Science Council Brief Standing Panel on Impact Assessment No. 28.

Livestock sector in India’s Jharkhand could move millions out of poverty

A woman in Jharkhand tends her goats
A woman in Jharkhand, in eastern India, tends her goats (photo credit: BAIF).

A new report from the International Livestock Research Institute (ILRI) highlights the potential for the livestock sector in the state of Jharkhand, in eastern India, to move millions of people out of poverty.

Jharkhand, formerly part of Bihar, was created as a new state in 2000. Despite having rich mineral resources and some of India’s most industrialized cities, its population of 27 million are amongst the poorest in India. Some 26% of the population is classified as ‘Scheduled Tribes’ and a further 12% as ‘Scheduled Castes’.

The rural economy is dominated by smallholder rain-fed farming and use of extensive common property resources. Nearly 56% of holdings are less than 1 hectare (2.5 acres) in size. Most farmers here raise livestock and grow rice, although pulses, maize, wheat and oil seeds are also grown. Lack of investment in infrastructure (only 9% of the sown area is irrigated), poor extension services, lack of input supplies and services as well as a lack of training have led to low agricultural yields and very low incomes.

The Sir Ratan Tata Trust, which has been funding rural livelihood programs in Jharkhand for several years, commissioned ILRI to undertake a study of the livestock sector to explore its potential for improving livelihoods in this state. As in the rest  of India and other developing countries, the demand for livestock products in Jharkhand is increasing. With 90% of rural households in the state keeping livestock, there is a huge opportunity for these small and marginalized farmers to supply the growing livestock markets with livestock products. In areas around towns, the study found a booming demand for milk, much of which has been met by imports from neighbouring states, but peri-urban dairies are developing to supply the demand locally.

Dairying, however, is not an option for all. As Iain Wright, ILRI’s regional representative for Asia and one of the report’s authors, explains, ‘In the tribal societies, there is no tradition of milk consumption or of producing milk, so there  are no traditional skills in dairy production. These communities do, however, have a long tradition of keeping goats and pigs. And with high goat meat and pork prices driven by growing demand, many rural communities, including those of “Scheduled Tribes” and “Castes”, have the potential to supply pork and goat meat for markets outside as well as within the state.’

Assessing the results of surveys carried out in different parts of the state, the authors of the report recommend the following ways to overcome the technical, institutional and policy constraints to livestock development, especially among poor and marginalized livestock keepers: (1) tailor development programs to suit different ethnic communities and locations and build on the traditional skills and knowledge of local communities, (2) help livestock producers to access markets and improve their marketing skills, and (3) implement community-based programs to support livestock development.

The report concludes that poor coordination among the key stakeholders in the livestock sector—from government officials to livestock researchers to staff of non-governmental organizations, banks, insurance companies and other financial institutions—is what is most hindering the development of the livestock sector. A main recommendation, therefore, is to establish a common platform, facilitated by the government, where key players can come together to exchange information and experiences and identify knowledge gaps.

ILRI will be implementing some of the recommendations of the report in two new projects in Jharkhand. An imGoats project will work to strengthen goat value chains in Mozambique and India, including Jharkhand, and as part of an ELKS Project, ILRI is supporting an organization called ‘Collectives for Integrated Livelihood Initiatives (CInI), which is supported by the Sir Rattan Tata Trust, in the design of a new project to improve the livelihoods of goat and pig keepers.

For further information, contact Iain Wright (i.wright@cgiar.org), the author of this blog post, or read the ILRI report by Rameswar Deka and Iain Wright: Potential for livelihood improvement through livestock development in Jharkhand, January 2011.

Punctuated equilibrium: Pastoralist timelines of past and future

On the last day (23 March 2011) of a ‘Future of Pastoralism in Africa’ Conference, organized by the Future Agricultures Consortium and the Feinstein International Center at Tufts University and held in Addis Ababa, Ethiopia, at the International Livestock Research Institute (ILRI), pastoralist experts took the conference participants through timelines that they had drawn up for selected pastoralist areas.

These hand-drawn timelines—with their famous place names and (in)famous droughts, wars and other major events variously, simply and affectingly sketched lightly on flipchart papers pasted to the walls of the conference hall—must have evoked memories, some of them heart-breaking, all of them heartfelt, in all but the youngest academic in the room. This was Africa’s pastoralist past—laid out in its crudest essentials on linear temporal bars punctuated by shorthand notes denoting big, often cataclysmic, events. This was an exercise meant to make room for rethinking the future of African pastoralism.

Examples of the kinds of statements made about the timelines (their baldness often matching the events they described) by the pastoralist ‘gurus’ who stood, one by one, to highlight a handful of major events depicted in each, follow.

Pastoralist Timelines

Niger Delta
‘A Tuareg rebellion arising in colonial times continues to this day. . . . Conflicts are a worse threat than climate change.’

Future of Pastoralism in Africa Conference

Afar/Middle Awash
‘Critical dry-season grazing lands have been completely taken up by state farms. . . . More than 90,000 hectares of grazing land in Afar has been converted to sugar cane. . . . A 1973/4 drought is called the “gun drought” because the massive stock deaths led to massive sales of guns and other household assets to buy food. . . . Since a 1970s drought, people have begun keeping more goats than camels and cattle, and sugar cane is now taking over.’

Future of Pastoralism in Africa Conference

Southern Somalia/Northeastern Kenya
‘The 1891 rinderpest calamity started the rural-to-urban migration. . . . Shifta conflicts in the 1960s began to isolate and stigmatize the area. . . . An outbreak of Rift Valley fever in the 1990s crushed the livestock trade. . . . The economic vibrancy in this stateless region outstrips its politics. . . . There is an on-going and robust cross-border boom in livestock and other trade. . . . Garissa is the fastest-growing town in Kenya; livestock remain critically important there. . . . The whole area is a kind of duty-free zone for electronics and other goods. . . . Piracy is a kind of livelihood diversification into the sea.’

Future of Pastoralism in Africa Conference

Northern Kenya
‘Boundaries were first fixed and herding ranges squeezed in the colonial era. . . . In the post-colonial era, 1960–70, shifta started as legitimate rebels before becoming, and being seen as, bandits. . . . Starting in the 1990s, non-governmental organizations set up permanent offices, around which towns began to grow up. . . . A paved road built from Isiolo to Moyale will drive some pastoralists further away. . . . Land insecurity remains the biggest problem. . . . Roads and education bring with them new opportunities. . . . There is already much anticipation (and business deals being made) about the pipeline and railroad being planned from Lamu through Isiolo to Sudan. . . . Those who have resources have taken over the cattle economy of the area.’

Future of Pastoralism in Africa Conference

Darfur/Sudan
‘In some areas and periods, there are no droughts because there are no rains at all. . . . Long-term marginalization and militarization have both been rapidly accelerating in recent years. . . . The future looks bleak. . . . The only good news is that there is widespread acknowledgement that international peace processes have failed.’

Future of Pastoralism in Africa Conference

Southern Kenya/Maasai
‘Considerable inter-Maasai conflicts occurred from 1850 to 1900. . . . Early on, the Maasai ceded much of the Rift Valley to the colonialists. . . . In the 1940s, the colonialists created sectional divisions that remain problematical today. . . . The formation of group ranches led to catastrophic land losses. . . . Droughts of 1984, 1997/8, 2000, 2005, 2008/9; the last affected all areas, with no one escaping. . . . Major non-drought events include the 1945 establishment of national parks and the 1980s establishment of group ranches. . . . Since the 1990s, Christianity has swept across Maasailand, bringing with it great changes.’

Future of Pastoralism in Africa Conference

Northern Tanzania/Maasailand
‘Kenya and Tanzania took very different paths regarding land and ethnicity. . . . Security of land and resources will be critical over next five years.’

Future of Pastoralism in Africa Conference

Uganda/Karamajong
‘From colonial times to today, the Karamajong herders are not allowed to move. . . . A challenging national policy environment in Uganda makes promoting pastoralist livelihoods in Karamoja difficult.’

Southern Ethiopia/Borana
‘The 1972 and 1984 droughts were key events. . . . Education and services have both been improving in the region since 1991.’

Future of Pastoralism in Africa Conference

Timeline keyword commonalities
Conflicts, diseases, droughts, geopolitical influences, land and land-use issues, national policies.

Keywords about the future of pastoralism
International issues, mobile phones, political representation, small towns, terrorism (and its impacts on aid).

Summing Up the Conference
After the timelines were described, some participants were asked to sum up the conference. The following are some of the things they said.

Dorothy Hodgson, Rutgers University, USA
‘Is there really such a thing as “pastoralist systems”? . . . Are we talking about pastoralism as a livelihood or as an identity? . . . Some are saying that pastoral women will drive pastoral futures. . . . We have to stop adding gender as a footnote. . . . It’s time to mainstream gender into pastoralist issues instead of “siloing” gender work’.

Peter Little, Emory University, USA
‘Population matters, politics matter, education matters to the future of pastoralism. . . . Diversification of pastoral livelihoods matter—especially as key resources are rapidly being lost. . . .Ecology matters as pastoral orbits become increasingly restricted. . . . And language matters—we should keep the word “innovation”, for example, about innovations.’

Orto Tumal, Pastoralist Shade Initiative, Kenya
‘Our future challenges are great. . . . We will, and must, march on.’

Paul Goldsmith, Develop Management Policy Forum, Kenya
‘Pastoralism has produced some very seductive literature.’

Luka Deng, Government of Sudan
‘There is a huge amount of information on pastoralists, but the real question is about what to do with it.’

Acknowledgements
Two of the conference organizers then closed the proceedings by making some acknowledgements, of which the following were included.

Future of Pastoralism in Africa Conference

Andy Catley, Tufts University
‘In the early 1980s, pastoral groups were weak and arguments for pastoral rights appeared nostalgic in tone and character. . . . A tremendous intellectual contribution to pastoralism in the years since has helped to transform pastoralist discourse at all levels. . . .  Some of the “masters” of this discourse are here in this room today. . . . Stephen Sandford (private), Jeremy Swift (freelance), Ian Scoones (Future Agricultures Consortium) and Roy Behnke (Odessa Centre) have altered the intellectual foundations of our understanding of pastoralism. . . .

‘The central importance of livestock disease, particularly the great rinderpest epidemic in East Africa at the turn of the 20th century, was mentioned by several of our timeline developers. . . . The global eradication of rinderpest was announced earlier this year. . . . Three of those who contributed significantly to this great achievement (only the human disease smallpox has been similarly eradicated from the face of the earth) are in this room and I take the privilege of acknowledging them now: Solomom Hailemarium, African Union; Darlington Akabwai, Tufts University; and Berhanu Admassu, Tufts University.’

Future of Pastoralism in Africa Conference

Ian Scoones, Future Agricultures Consortium
‘As we have heard this week, there is not one but multiple futures of pastoralism in Africa. . . . We have a new generation of African scholars contributing to African pastoralism. . . . We have an extraordinary body of scholarship now coming from this new generation. . . .’

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.

The case for index-based livestock insurance and cash payments for northern Kenya’s pastoralists, 23 March 2011

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

How do we get more poor people into the world’s vibrant and emerging livestock markets?

Mozambique, Maputo

Livestock products in a supermarket in Mozambique. The vibrant and emerging livestock markets in developing countires offer new economic opportunities for smallholders (Photo: ILRI/Mann)

Across much of the world, especially in developing countries, market opportunities for livestock products are increasing rapidly as a result of rising demand for animal products driven by growing populations, rising incomes and urbanization. These new markets have created opportunities for smallholder livestock producers, including poor rural farmers, to benefit from ready markets for milk, eggs and meat. But as markets expand, they also often give way to complex supply and distribution channels and the need for high-value products that can end up locking out smallholders from enjoying the benefits of these expanding markets.

How do smallholders maintain their ability to contribute to and benefit from the complex systems that will inevitably result as livestock markets grow?

According to researchers John McDermott and Berhanu Gebremedhin, from the International Livestock Research Institute (ILRI), and Karl Rich and Heather Burrow, from the Norwegian Institute of International Affairs and the University of New England, Australia, respectively, assessing existing relationships in these increasingly complex livestock value chains can not only reveal the reasons behind the increasing complexity of these systems, but also identify potential opportunities for smallholders and show policy and other constraints that can be addressed to encourage more of them to engage in the markets.

In findings presented in The role of livestock in developing communities: enhancing multifunctionality, a new book co-published by the University of the Free State South Africa, the Technical Centre for Agricultural Rural Cooperation (CTA) and ILRI, the researchers suggest areas that can be improved to encourage smallholder participation in livestock value chains. These include ‘local and informal markets, which offer the primary initial growth potential in poor countries’ and post-production systems such as that for processing manure for fuel and for processing hides and skins, which can provide important value addition for smallholders.

Smallholders are best at managing informal production environments, where they can make good use of household labour and low-cost production inputs. The authors cite widespread successful smallholder dairy production systems in South Asia, East Africa and Latin America, which are thriving.

This book reviews how smallholders are participating in emerging and growing livestock markets in Ethiopia and South Africa. The authors note that smallholder participation in livestock markets is particularly influenced by whether organizations within the livestock value chain encourage smallholders to join their organizations, which promotes ‘chain-level interventions that give opportunities for smallholders to participate in markets’.

In Ethiopia, for example, the emerging dairy market is served by farmer organizations like the Ada’a Cooperative in Debre Zeit, an hour’s drive from Addis Abba, which is working to provide feeds and animal health services to members, to improve local dairy breeds and milk collection and to introduce value-added processing. These efforts have led to a tenfold increase in milk collection, to 2.6 million litres, between 2000 and 2005, a gradual strengthening of smallholder links to markets, and a growing demand for breeding and feeding services, which are starting to be met by private companies.

‘There is evidence that setting up and maintaining strong organizations to manage market chains not only leads to improved economic benefits for producers but also leads to broader social benefits like gender development and education,’ the authors say. They recommend improving animal breeds, improving animal nutrition and integrating input supplies and knowledge and financial and market services into the market systems. ‘Smallholders are more likely to benefit from market initiatives when these markets are oriented towards sellers, where enabling policies from government exist and where collective action and support is mobilised . . . .’

‘Commodity-based trade approaches’ also help to bring more smallholders into the market. In Ethiopia, for example, a phased export program for beef that allows quarantine, vaccination and disease control followed by observation in an export-zone feed lot before slaughter has provided a way of certifying meat as disease-free for export to Middle Eastern markets.

The authors warn, however, that not all livestock value chains will be accessible to smallholders. Few of Africa’s small producers export beef and other meat because these products are governed by unique tariff systems and international trade rules and are open to international competitors.

The book recommends regular review of the performance of value chain systems to ensure they are responsive to both small-scale producers and changing consumer demands.

Read more about The role of livestock in developing communities: enhancing multifunctionality.

Download the full text.

India, Mozambique goat value chain project starts

This week, partners in the ‘imGoats’ project meet in India to finalize plans and outcomes for the project.

The project – official title ‘Small ruminant value chains to reduce poverty and increase food security in India and Mozambique’ – is funded by the International Fund for Agricultural Development (IFAD) and is implemented by the International Livestock Research Institute with CARE (Mozambique) and The BAIF Development Research Foundation (India).

The project aims to transform goat production and marketing in dryland India and Mozambique from an ad hoc, risky informal activity to a sound and profitable enterprise and model that taps into a growing market.

Download the project brochure

Empowering female small-scale stock keepers to make decisions is a smart development path for all

Women at work in India's Himalayan foothills

Women at work in India. Empowering women to own livestock and giving them rights to manage incomes can reduce poverty and hunger and improve family welfare (Photo credit: ILRI/MacMillan)

Throughout the developing world, women tend, feed, raise and care for farm animals without, usually, owing the stock, having a say in the business aspects of livestock production, or having rights to the household income it generates. Redressing these gender inequities would improve family welfare and reduce poverty and hunger levels in these countries, say the authors of a new book, The role of livestock in developing communities: Enhancing multifunctionality, co-published by the University of the Free State South Africa, the Technical Centre for Agricultural and Rural Cooperation (CTA) and the International Livestock Research Institute (ILRI).

One of the authors, Anne Waters-Bayer, was a speaker this week at a ‘Workshop on Gender and Market Oriented Agriculture (AgriGender2011): From Research to Practice’ that ILRI hosted on its campus in Addis Ababa, Ethiopia. At the Workshop, Waters-Bayer described ways to promote gender equality and to empower women through livestock development.

Poverty often has a ‘woman’s face’ and livestock researchers have long known that livestock provide women with a rare pathway out of poverty. Even though it is women who are largely responsible for managing animals, especially small stock, in developing-country communities, their role in livestock production and marketing has long been underestimated, even in livestock projects that aim to improve the welfare of women and their families.

Waters-Bayer, who formerly worked as a socio-economist with ILRI and is now with ETC EcoCulture, in the Netherlands, and Brigid Letty, from the Institute of Natural Resources in South Africa, say women continue to be overlooked in many livestock-related interventions ‘despite the many efforts of gender sensitization’ to include gender in agricultural research and development organizations. They say ‘there is still a strong tendency for project planners and implementers to assume that the major actors in livestock production are men, particularly where large ruminants are involved.’

With recent focus on the role of women in livestock development through initiatives such as an international ‘Challenge Dialogue’ that ILRI convened in 2008, there has emerged a new focus on the important role livestock systems play in enabling women to empower themselves. Small-scale livestock enterprises offer opportunities for women not only to increase household income but also to control larger portions of it, which reduces gender inequality.

Changing economic circumstances in many countries are leading more women to take on responsibilities for types of livestock that were traditionally the realm of men, such as cattle in southern Africa. These changes, as well as women’s access to livestock services and markets, should be considered.

To promote gender equality and women’s empowerment through livestock, successful projects, the authors say, should consider lessons drawn from ‘studies of gender roles and relations in livestock-keeping households and communities learnt over the past several decades in research and development related to livestock keeping.’ These lessons include the value of conducting a gender analysis before implementing an initiative. Another lesson has been that focusing on women is more effective in building women’s capacity than just focusing on integrating women into project activities.

Focusing on women starts with focusing on the livestock they keep. The book notes that the most promising interventions for women in resource-poor households appear to be small-scale, low-external-input, income-generating activities involving goats, dairy cows, poultry and other small-scale livestock such as guinea pigs, bees and silkworms.

Strengthening local women’s organizations and improving women’s and girl’s access to education and training is equally important, especially where these are geared to managing livestock-keeping programs. ‘Reducing poverty for the woman,’ the authors say, ‘means not only increasing women’s economic assets but also increasing their capacity and power to act and to change the rules that govern control of resources and to increase both women’s and men’s ability to question established systems to gain greater say in societal decisions beyond just the home and local community.’

Successful livestock projects, such as those run by Heifer International’s Women in Livestock Development initiative, Farm-Africa in southern and eastern Africa and the National Dairy Development Board of India, suggest that the impacts of livestock interventions on women should be measured not only by any changes in women’s economic status, but also by changes in the amount of work the women do compared to the benefits they get from that work, and by changes in how much the women are involved in decision-making.

Download The role of livestock in developing communities: Enhancing multifunctionality

Anne Waters-Bayer presentation at the AgriGender2011 workshop:

New book spells out how investment in livestock production can enhance development in poor countries

New book on livestock in developing countries

Siboniso Moyo, ILRI’s representative for southern Africa, holds a copy of ‘The role of livestock in developing communities: Enhancing multifunctionality’ which was recently launched in South Africa (photo credit: ILRI).

A new book co-published by the University of the Free State South Africa, the Technical Centre for Agricultural and Rural Cooperation (CTA) and the International Livestock Research Institute (ILRI) calls for more investment in livestock production to fight poverty and promote human health in developing countries.

The role of livestock in developing communities: Enhancing multifunctionality was launched on 9 November 2010 at the University of the Free State, in Bloemfontein, South Africa.

Farm animals continue to play several central roles in the livelihoods of the people in developing countries, ranging from providing households with high-quality foods, good nutrition and regular incomes to providing labourers with jobs, community members with social status and farmers and herders with ways to sustain food production.

This book highlights the livestock sector’s contribution to the social and economic progress of developing communities and advocates public- and private-sector investments in livestock production.

The publication is a product of a satellite symposium that was part of the 10th World Conference on Animal Production, held in Cape Town in November 2008. The symposium, jointly organized by ILRI and the University of the Free State, focused on livestock livelihood strategies for meeting the United Nations Millennium Development Goals.

‘We were pleased with the chance to work together with the University of the Free State in a side event during the World Conference of Animal Production 2008, which led to the production of this book,’ said Siboniso Moyo, ILRI’s representative for southern Africa, during the launch.

Moyo, along with Frans Swanepoel, senior director of research and professor of sustainable agriculture at the University of the Free State, Bloemfontein, South Africa, and Aldo Stroebel, director of international affairs and associate professor at the Center for Sustainable Agriculture and Rural Development at the same university, provided editorial oversight for the book.

John McDermott, ILRI’s deputy director general for research; Canagasaby Devendra, a tropical animal production specialist who formerly worked at ILRI, and Akke van der Zijpp, another former ILRI staff member who is now professor in livestock production systems at the Wageningen University and Research Centre, in the Netherlands, served in the editorial advisory committee that steered production of the book.

‘The “multifunctionality” of livestock is an important concept to understand when working with developing communities,’ said Moyo. ‘Viewing research and development challenges through a livestock lens,’ she said, ‘can help us make even greater use of the many functions livestock serve in poor communities and so as to increase their contribution to livelihoods.’

The book launch was attended by Monty Jones, executive director of the Forum for Agricultural Research in Africa, chairperson of the Global Forum of Agricultural Research and a World Food Prize Laureate (2004), who contributed the foreword to the book, and Norman Casey, president of the 10thWorld Conference of Animal Production 2008.

The book describes successful livestock development strategies, including ways to promote gender equality and to empower women through livestock development and ways to develop small-scale livestock enterprises without harming the environment.

Targeting academic professionals, industry experts, government officials and academics interested in increasing the contributions livestock enterprises can make to human well-being and developing-country economies, the new publication includes case studies and frameworks, discussions of key global policy development issues, and the main challenges and constraints of smallholder livestock production systems around the world.

The book is available in South Africa through Sun Media Bloemfontein and can be ordered through their e-shop: http://www.sun-e-shop.co.za/?Task=moreinfo&SKU=ISBN+978-0-86886-798-4

Download the full text

View ILRI slide presentations made at the satellite symposium during the 10th World Conference on Animal Production: www.ufs.ac.za/wcapsatellite

Joint efforts needed to help Nepalese livestock owners combat climate change

Why is climate change so important to agriculture-based countries?

Slide from ILRI presentation made at Nepal livestock and climate change workshop in October 2010: 'Adapting livestock systems to climate change in South Asia,' by Mario Herrero, Philip Thornton and Iain Wright (Graphic credit: de Jong 2005, World Bank 2005).

Participants in a workshop on livestock and climate change held last week in Kathmandu, Nepal, have called for greater collaboration in work to help Nepalese livestock producers adapt to climate change.

At the opening session of a ‘Consultative Technical Workshop on Climatic Change: Livestock Sector Vulnerability and Adaptation in Nepal’, held 28–29 October 2010, Iain Wright, regional representative for Asia at the International Livestock Research Institute (ILRI), said that the challenges of climate change in Nepal were too great for any one organization to tackle on its own.

‘Researchers’, Wright said, ‘must work more closely with governmental, non-governmental and international organizations, as well as with aid agencies and local communities, to help Nepal reduce the vulnerability of its livestock sector, and the many people who depend on it, to climate change.

Nepal, a landlocked Himalayan country with a human population 27 million, is ranked as one of the world’s poorest countries (142 of 147) by the recent Human Development Report, with one-third of the population living below the poverty line and a per capita annual income of just US$250. More than three-quarters of the population (85%) lives in rural areas and the agricultural sector employs 66% of the labour force and contributes 38% of the country’s gross domestic product.

A ‘Climate Change Vulnerability Index’ compiled by a UK-based firm, Maplecroft, has recently placed Nepal as the world’s fourth most vulnerable country to climate change, while the country produces less than 0.025% of the global greenhouse gas emissions.

Recent climate change scenarios suggest that mean temperatures in parts of Nepal are likely to rise faster than the global average, especially at higher altitudes, leading to less snow and ice. Farmers in the mountains are already feeling the effects of the higher temperatures. More climatic variability and extreme climatic events, including floods and droughts, are expected in future. Researchers anticipate an overall increase in precipitation in the region’s wet season, but a decrease in precipitation in the mid-latitude hills. Nepal’s relatively low rates of development render its population particularly vulnerable to these ongoing and future climate changes.

Nepal’s Minister for Agriculture and Cooperatives, Mrigendra K Singh Yadav, told the workshop participants that measures to adapt to climate change are necessary to protect the country’s many small-scale farmers. Tek Gurung, Director of Livestock and Fisheries with the Nepal Agricultural Research Council, called the workshop ‘a milestone’.

‘This is the first time that the main stakeholders in Nepal’s livestock development have come together with international organizations to assess the vulnerability of the livestock sector to climate change and to determine ways to increase the sector’s resilience,’ Gurung said.

‘While Nepal’s contribution to global greenhouse gas emissions is trivial’, Wright explained, ‘it is one of the countries that will be affected most by climate change. Therefore, it does not make sense for Nepal to devote its scarce resources to research on ways to mitigate the effects of agriculture on climate change.’

‘Rather’, Wright said, ‘we urgently need to develop strategies that will allow poor Nepalese farmers and herders, who are among most vulnerable people in the world, to cope with changes in climate. We know the livestock sector will be affected by these changes, but there is a dearth of information and data on exactly what those consequences will be.'

The workshop was organized by the Nepal Agricultural Research Council in partnership with ILRI; Local Initiatives for Biodiversity, Research and Development (a non-governmental organization in Nepal); and Heifer Project International–Nepal.

See the slide presentation made at the workshop by ILRI scientists Mario Herrero, Philip Thornton and Iain Wright: Adapting livestock systems to climate change in South Asia.

Small pig producers bring home the bacon in Vietnam

Pigs for sale at a market in Viet Nam

Pigs for sale at a market in Viet Nam (photo credit: Simone Retif).

In Viet Nam, small pig farmers raising 10 or fewer animals near their village households can remain competitive with larger pig producers if they continue to exploit their advantages over larger farmers. These advantages include their low labour costs and their ability to supply buyers with freshly slaughtered meat, a form most Vietnamese continue to prefer to the chilled or frozen meat from bigger piggeries.

These are the conclusions of a three-year research project led by the Kenyan-based International Livestock Research Institute (ILRI) and funded by the Australian Centre for International Agricultural Research (ACIAR) and the Consultative Group on International Agricultural Research (CGIAR).

ACIAR's representative in Viet Nam, Geoff Morris, speaking at a final workshop of the project held in Hanoi on 5 October 2010, said that smallholder pig producers, who supply about 80 per cent of the pork marketed in Viet Nam, play a big role in the nation's economy. The research project identified policies that would help Viet Nam's many small pig farmers to raise their incomes and remain competitive in the face of growing imports of pork and official support for larger piggeries.

Another advantage small producers have over large ones is that the former spend less on feed for their animals. Lucy Lapar, an economist with ILRI, said that while feed accounts for two-thirds of the costs of raising pigs at small piggeries, this was much lower than at bigger farms because small operators tend to feed their pigs by-products from their own crops and to let their pigs forage. Bigger operators must buy relatively expensive, industrially processed, feed.

Household-based pig production generates gross margins ranging from 4,000–15,000 Vietnamese dong (US$0.21–0.78 based on current exchange rates) per kilogram liveweight of pig produced. These are good indicators of returns to household labour and comparable to the current daily minimum wage of about 22,000 VND ($1.15). Among those employed in small-scale pig production are women and many others who would otherwise remain jobless.

Conducting a consumer survey of 1,650 households to investigate the demand for pork, the researchers found that it accounts for 40 per cent of household expenditure on meat and that fresh pork remains preferable to chilled or processed meat.

'The good news is that smallholder pig producers are highly competitive in producing fresh pork,' said Lapar. The bad news, she says, is that, compared to large-scale pig producers, most small producers in the country have to deal with poor genetic stock, low-quality feed, animal illnesses, and insufficient market information and policy support.

Pham Van Duy, from the Agriculture and Rural Development Ministry's Livestock Department, said that it is likely to become increasingly difficult for the nation's four million pig-raising households to continue to meet the growing demand for pork in terms of both increasing their quantity and quality, both of which are being demanded by the country's consumers. According to Viet Nam's General Statistics Office, the country's pork sales have steadily increased, from 1.5 million tonnes in 2001 to 2.9 million in 2009, with 27.6 million pigs now being raised in the country.

This smallholder pig research project, 'Improving the competitiveness of pig producers in an adjusting Vietnam market', was carried out in Ha Noi, Ho Chi Minh City and six of Viet Nam's provinces from 2007 to 2010. Partners in the project include the Centre for Agricultural Policy – Institute of Policy and Strategy for Agricultural and Rural Development, the International Food Policy Research Institute, Oxfam and the University of Queensland.

For more information contact Lucy Lapar (l.lapar@cgiar.org) or visit the project website.

For a news clipping on this topic, see Viet Nam News: Small pig producers bring home the bacon, 9 October 2010.

Read six projects briefs developed for the October 2010 final workshop:

Competitiveness of smallholder pig producers in Vietnam

Demand for pork by Vietnamese consumers: Implications for pro-poor livestock policy and development agenda in Vietnam

Future scenarios for pig sector development in Vietnam: Results from a policy simulation model

Participatory risk assessment of pork in Ha Noi and Ha Tay, Vietnam

The growing shortfall in Vietnam’s domestic supply of pork: Significance and policy implications

The pork value chain in Vietnam: Emerging trends and implications for smallholder competitiveness and chain efficiency

Livestock take centre stage at World Food Prize ceremonies

Livestock landscapes: Africa

At the World Food Prize ceremony (12 October 2010) and Borlaug Dialogue (13–15 October 2010) in Des Moines, Iowa, last week, issues surrounding small-scale livestock enterprises received a rare dose of major attention.

First, Jo Luck, president of Heifer International, an American livestock-based non-governmental humanitarian organization, received the World Food Prize, considered the ‘Nobel Prize of agriculture’. Only the third woman to be so honoured, Jo Luck shared this year’s World Food Prize with David Beckmann, head of Bread for the World, another American-based NGO.

Following the award ceremonies, the International Livestock Research Institute (ILRI) and other key livestock-for-development organizations took part in a special ‘Livestock in Smallholder Agriculture Symposium’.

Carlos Seré, director general of the Africa-based ILRI, was a member of a panel moderated by Alice Pell, vice provost at Cornell University. Seré provided context for the high-level discussions about the importance smallholder animal agriculture. ‘Feeding the next 2 to 3 billion people,’ he said, ‘will require the sustainable inte¬nsification of the world’s “mixed” farming systems, which combine livestock raising with crop production. ‘

Seré pointed out the need to find smarter ways for the world’s small-scale farmers to integrate crops, animals and trees on their farms. He explained how better livestock feeding systems can reduce methane and other greenhouse gas emissions from livestock enterprises in both developing and developed countries. And he described how stover and other wastes of crop production are increasingly being used by small-scale farmers in poor countries as supplementary feed for their animal stock, which subsist largely on grass and planted forages rather than grains.

‘Livestock bring cash into the small farming system,’ Seré said. ‘They constitute the motor that links farmers to urban producers, and they give millions of people who own no land at all the means by which to earn an income.’

Seré also pointed out the need for the private sector to find ways to engage with the ‘bottom billion’ of poor livestock farmers. By creating or joining farm cooperatives, food producer companies and contract farming schemes, he said, these dispersed smallholders become subjects of interest to the private sector. Once aggregated in such societies, small farmers become attractive to businesses looking to provide the agricultural sector with livestock services and other inputs, as well as processing plants and distribution channels for crop and animal products.

‘Smallholder farmers can be very competitive,’ Seré said. ‘Agribusiness would profit from thinking up imaginative ways to do business with them. Agri- and other businesses wanting to work broadly in rural sub-Saharan Africa, for example, all find themselves working with smallholder livestock farmers.’

Another panelist, Deepack Tikku, chairman of the National Dairy Development Board Dairy Services in India, described how his country surpassed the United States as the world’s largest milk producer.

‘Our model is not one of mass production but production by the masses,’ he said. He describe the food, income and gender distribution gains that India has made in increasing its milk production, almost all from smallholders, from 20 million tonnes in 1970 to 112 million tonnes today. 

Thad Simons, chief executive officer of Novus International, focused his panel remarks on eggs, ‘the original superfood’.  ’Eggs are one of the best ways to deliver protein to consumers at affordable costs,’ Simons said. ‘No other food provides as much nutrition in so few calories at such a low cost.’ Novus has begun an information campaign—www.eggtruth.com—to increase consumption of eggs, particularly among mothers and young children, to help families stay financially as well as physically fit.

Christie Peacock, chief executive of the non-governmental organization FARM-Africa, asked policymakers to pay more attention to helping smallholder farmers acquire livestock. ‘It’s my passionate belief that livestock are the fastest route out of poverty,’ Peacock said. ‘My experience in Ethiopia taught me that when crops fail, having one or two goats enables families to survive. Without animals, many families in such circumstances have to go on food aid.’ 

Peacock also argued that the commonplace views in the North about the environmental damage caused by livestock are among the biggest threats to livestock development in the South, where domesticated animals continue to play many central roles in the livelihoods of the poor. ‘Obviously, there are hotspots of livestock-related environmental damage, such as those in the Amazon and Southeast Asia, that we must address’ Peacock said. ‘But what we must not do is to let the life chances of the world’s poor livestock keepers be compromised by Northern prejudices against livestock.’

The agricultural development ‘luminaries’ attending the World Food Prize and Borlaug Dialogue in Iowa this year included, in addition to those named above, HE Kofi Annan, Nobel Laureate, former secretary-general of the United Nations and current chairman of the Alliance for a Green Revolution in Africa; Howard Buffett, president of the Howard G Buffet Foundation (and farm and livestock ranch owner); Marco Ferroni, executive director of the Syngenta Foundation, Christopher Flavin, president of the Worldwatch Institute; Kamal El-Kheshen, president of the African Development Bank;  Matt Kistler, senior vice-president of marketing for Walmart; Gregory Page, chairman and chief executive officer of Cargill; Amrita Patel, chairman of India’s National Dairy Development Board; Prabhu Pingali, deputy director of Agricultural Development, and Jeff Raikes, chief executive officer, at the Bill and Melinda Gates Foundation; Rajiv Shah, administrator of the United States Agency for International Development; MS Swaminathan, chairman of the MS Swaminathan Foundation; and Tom Vilsack, secretary of the United States Department of Agriculture.

Smallholder livestock farmers are ‘big opportunities for global agribusiness and food security’–Sere

éFrom ILRI with love

Jo Luck, co-winner of this year’s World Food Prize (bestowed this week in Iowa) and president of the Arkansas- and livestock-based NGO Heifer International, receives a present from Carlos Seré, director general of the International Livestock Research Institute (ILRI), when Jo Luck paid a visit to ILRI’s Nairobi, Kenya, headquarters in August 2010 (photo credit: ILRI/Njuguna).

In an opinion piece published today in the Guardian‘s Poverty Matters blog, Carlos Seré, a leading agricultural economist from Uruguay serving as director general of the Africa-based International Livestock Research Institute (ILRI), says that backing smallholder farmers today could avert food crises tomorrow. Agribusiness investment would not only transform the lives of farmers in South Asia and Africa, Seré says, but also boost global food security.

Seré’s editorial follows.

As food riots continue in Mozambique and food crises persist in Niger and elsewhere, leaders in global agriculture, food and development are gathering in Des Moines, Iowa this week to highlight the significant role the world’s smallholder farmers could play in alleviating poverty and hunger.

In sub-Saharan Africa and south Asia, most people still live in rural areas, where they farm crops and livestock or derive other livelihoods from agriculture. With few other ways to feed their families or make a living, billions of rural people will continue to cultivate lands and raise farm animals.

These smallholder farmers form the backbone of global food production. Despite climate change, pests, diseases, water scarcity, and myriad other challenges, small family farms produce more than half of the world’s food. Most of the food staples consumed in the developing world come from small ‘mixed’ farms, which make efficient use of the resources at their disposal by combining crop and animal production.

Smallholders also represent an emerging market opportunity for local and international agribusiness alike. Because opportunity costs for their land and labour are relatively low, these farmers are competitive food producers. Their mixed crop-and-livestock farming systems can compete effectively against large scale commercial operations.

Smart investments by agribusiness could help millions of these smallholders in south Asia and Africa. By helping them to become even more efficient and improving their links to other markets, agribusiness could enable them to make the transition from subsistence farming to remunerative enterprise.

Agribusiness can help farmers gain better access to improved seeds, knowledge, and other agricultural inputs, and link smallholders to local and international private sector enterprises, reducing transaction costs and risks as well as adding value to their agricultural products. Farmers would see a sustainable boost in production and income, while agribusinesses would gain new access to billions of potential buyers.

The award of the World Food Prize this week to Heifer International, a livestock oriented non-governmental organisation, should help promote smallholder livestock production, in particular, as a vital pathway out of poverty and hunger.

Farm animals kept on the world’s small farms serve as the building blocks of prosperity. With global human population rising (it is expected to increase by 2 to 3 billion people over the next four decades, after which it should begin to decline), livestock are becoming agriculture’s most economically important sub sector, with demand in developing countries for milk, meat and eggs projected to double over the next 20 years alone.

A wealth of innovative business opportunities exists for companies to invest in livestock-related enterprises by providing infrastructure, credit, feed, vaccines, or milk cooling systems. Smart investments targeting the developing world’s billions of livestock keepers could greatly increase global food security, as well as generate profits for both livestock producers and agribusinesses.

Small scale livestock enterprises drive dairy production in eastern Africa and south Asia. India is now the largest dairy producer in the world, with most of the country’s milk produced by small farmers. More than 80% of the milk output in Kenya is produced not by large milk companies, but rather by approximately 800,000 small scale dairy farmers. It is sold to customers by some 350,000 small scale milk vendors.

The potential of livestock and the ongoing ‘livestock revolution’ to better the lives of poor farmers in developing countries drives the scientific agenda of the Africa-based International Livestock Research Institute (ILRI). We see the great opportunities livestock offer the poor. Every day, we see how much difference the meat, milk, muscle, manure and money supplied by a cow, goat, pig, camel or other domesticated animal makes to people struggling to produce enough food and income for their families. We see also how much the loss of farm animals – through disease, drought or other disaster – devastates such households.

With the help of agribusiness expertise and increased public investment, we think the world’s smallholder farmers could become a major force in global food security, helping to sustain increasing levels of world food production over the long term.

Read Seré’s opinion piece on the Guardian‘s ‘Poverty Matters’ blog: Backing smallholder farmers today could avert food crises tomorrow, 14 October 2010.

Watch two short filmed interviews of World Food Prize winner Jo Luck on her visit to ILRI in August 2010:

Livestock Catalyze Community Development

Delivering Livestock Research That Makes a Difference

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

Woman milking

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

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

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

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

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

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

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

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

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

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

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