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

Posted on May 1, 2012 by Paul Karaimu

Herders who took out livestock insurance under the Index-Based Livestock Insurance Project in a 2011 meeting in Marsabit, Kenya. A new markets book highlights the role of the insurance scheme in helping farmers protect their assets (photo credit: Neil Palmer/CIAT).

A new book on markets development for African smallholder farmers has highlighted a pioneering livestock insurance project as a key innovation that could enable African farmers reduce their losses in crop and livestock production.

The new publication: Towards priority actions for market development for African farmers, says lowering production and efficiency losses in agricultural production and improving agricultural markets will, among other actions, ‘level the playing field for smallholder farmers’ and support human and economic development in Africa. The books calls for the ‘right mix’ of policy and investments to not only ‘strengthen African policy expertise’ but also encourage ‘a more diverse array of investments and initiatives, including those initiated by the private sector.’

One such initiative that brings together private and public sector actors to support African agriculture is an Index-Based Livestock Insurance project in Kenya. The project is featured in a chapter in the new book.

Started in 2010 by the International Livestock Research Institute (ILRI) in partnership with UAP insurance, Equity Bank, Cornell University and the Index Insurance Innovation Initiative program at the University of California at Davis, the Index-Based Livestock Insurance project provides livestock insurance against forage losses to over 2500 households in Kenya’s Marsabit District. Freely available satellite imagery is used to assess conditions of pastures. When pasture vegetation is reduced to a level below a specified threshold, the insurance company pays herders who bought insurance. Yearly premiums cost USD100 for 6-8 animals.

Pastoral livestock sectors are at the heart of agricultural markets in Africa. Kenya’s livestock industry, for example, is estimated to be worth about USD800 million per year and produces most of the meat consumed in the country and is critical to the country’s food security. Research by ILRI shows that long-term solutions to food security in Kenya and other countries in the Horn of Africa need to support livestock herding. Pastoral systems are critical for the survival of livelihoods here and offer the most efficient way of managing the region’s large arid and semi-arid lands.

This insurance scheme is currently being piloted in other parts of Kenya and in Ethiopia. In late 2011, 600 livestock keepers insured through the project received insurance payments for vegetation losses arising from the drought that struck the Horn that year. The project is also now making use of mobile phones to widen its impact in remote communities.

Notes:

The new book, which is published by ILRI and the Alliance for a Green Revolution in Africa (AGRA), warns that ‘it will not be enough to simply produce more food from the fields and grazing lands of Africa.’ More effort is needed to create better markets and improve access to these markets’ especially in remote regions.

The book describes the outcomes of an international conference held in Nairobi three years ago that examined the ‘priority actions’ that if taken could speed up the development of African agricultural markets.

Authors of the markets books recommend enhancing markets for poor people, improving market information, lowering transaction costs associated with trading and adding value to farm produce by upgrading value chains and processing mechanisms.

Five ways to enhance agricultural markets in hungry regions of East and West Africa

Posted on April 29, 2012 by Susan MacMillan

Causes of livestock deaths, figure reproduced in ILRI-AGRA book: Towards priority actions for market development for African farmers: Proceedings of an international conference, Nairobi, Kenya,13-15 May 2009. Nairobi (Source of figure: J McPeak, PI Little and C Doss. 2010. Livelihoods in a Risky Environment: Development and Change among East African Pastoralists, Routledge Press, London.)

With food shortages being predicted for dryland communities in both East and West Africa this year, it seems an appropriate time to revisit a major way African experts see that the continent can feed itself: Get Africa’s markets working.

Three years ago, 150 of the world’s leading market experts gathered in Nairobi, Kenya, to document the best ways to drive agricultural market development in sub-Saharan Africa. Both the proceedings of this international conference, Towards Priority Actions for Market Development for African Farmers, held 13–15 May 2009, and a synthesis of its outcomes, Priority Actions for Developing African Agricultural Markets, were published last year by ILRI and the Alliance for a Green Revolution in Africa (AGRA).

The synthesis of this major African markets conference begins by referring to the sudden escalation in food costs that began in late 2010 and persisted into 2011—the second time in only three years that rapid food price rises, caused by a combination of production shortfalls and market failures causing dramatic gaps between supply and demand, rocked developing countries worldwide. With Africa’s long-term struggle with food insecurity, this continent and its economies and people are especially vulnerable to any sudden rise in food prices.

Even before the price shocks of 2008 and 2011, expert opinion had begun to coalesce on the centrality of agriculture in addressing African hunger and poverty. Much of the discussion has focused on increasing agricultural productivity through improved crop varieties and animal breeds, along with increased access to inputs and veterinary services, to boost farm yields. And, indeed, with crop and livestock yields on African farms typically a fraction of that in other regions, there appear to be big opportunities for new breadbaskets and milk sheds emerging across the continent.

But it will not be enough to simply produce more food from Africa’s fields and grazing lands. First, most Africans—including most smallholder, and even subsistence farmers—are net purchasers rather than growers of food. Also, as more and more people migrate from rural to urban areas, more and more Africans are relying on markets to meet their food needs. And because most rural as well as urban Africans spend a significant proportion of their income on food, even modest increases in food prices can tip millions of them into poverty.

Efficient and vibrant agricultural markets would help. But Africa’s agricultural markets suffer from a dearth of processing and storage facilities, pricing information, smallholder credit, and transport. These create inefficiencies that both raise prices for consumers and restrict sales opportunities for farmers, who are stopped from selling their food surpluses in nearby food-deficit regions.

View or download the full proceedings of this international conference:
Towards Priority Actions for Market Development for African Farmers, 13–15 May 2009, published by ILRI and AGRA, 2011.

and a synthesis of the outcomes of the conference:
Priority Actions for Developing African Agricultural Markets, published by ILRI and AGRA, 2011.

Five recommendations
The following five recommendations, highlighted here for their special pertinence to the drylands of East and West Africa, are presented in case studies published in the ILRI-AGRA markets book:
1 Support village seed trade in semi-arid areas
2 Manage pastoral risk with livestock insurance
3 Employ ICTs to raise smallholder income
4 Embrace informal agro-industry
5 Encourage intra-regional trade

Details of these recommendations follow.
1 Support village seed trade in semi-arid areas
Section 2 of the proceedings volume, Seed and Fertilizer Markets, includes a case study of the utility of Tapping the potential of village markets to supply seed in semi-arid Africa in Mali and Kenya. This paper, written by Melinda Smale, (Oxfam America), Latha Nagarajan, Lamissa Diakité, Patrick Audi (ICRISAT), Mikkel Grum (Bioversity International), Richard Jones (ICRISAT) and Eva Weltzien (ICRISAT), shows that village markets have the potential to supply high-quality pigeon pea and millet seed in semi-arid areas of Kenya and Mali, respectively.

The problem: Periods of seed insecurity occur in remote, semiarid areas when spatially covariate risk of drought is high and many farmers fall short of seed. In these remote environments, seed systems are typically informal, and farmers rely on each other for locally adapted varieties. They are not reliable clients for private seed companies because they purchase seed irregularly. Less improved germplasm has been developed for semiarid environments because of the high costs of breeding and supplying seed—a situation that has worsened with decreasing public funding for agricultural research. In the Mali study, village markets assure a supply of seed of identifiable, locally adapted, genetically diverse varieties as a final recourse in a risky environment where there are as yet no reliable formal channels, for which competitive varieties have not yet been bred, and the potential of agro-dealers to supply certified seed has not yet been exploited. In the Kenya study, well-adapted varieties have been bred, but no formalized channels of seed provision exist for pigeon pea and agro-dealers are active in selling improved varieties of maize and vegetables. In both studies, farm women are major seed trade actors. Interestingly, the characteristics of seed vendors and the locations of seed programs—not the price of seed—tend to determine the quantities of seed sold. The authors argue for strengthening and linking both formal and informal systems for non-hybrid dryland crops.

Some solutions: Several approaches piloted recently are potential candidates for improving the supply of good-quality seed on a large scale.

The West Africa Seed Alliance (WASA) and the Eastern and Southern Africa Seed Alliance (ESASA) work to help local entrepreneurs expand existing seed companies and create new ones.

Since private seed companies do not yet operate in the sorghum- and millet-based systems of the Sahel, where state agencies are underfunded, scientists at the International Crops Research Institute for the Semi-Arid Tropics (lCRISAT) have tested several models that draw on the comparative advantages of farmer organizations.

2 Manage pastoral risk with livestock insurance
Section 3 of the ILRI-AGRA markets proceedings, Strengthening Finance, Insurance and Market Information, has two case studies of particular relevance to the food problems facing the drylands of West and East Africa.

First is a report on Insuring against drought-related livestock mortality: Piloting index-based livestock insurance in northern Kenya, written by ILRI’s Andrew Mude and his partners Sommarat Chantarat, Christopher Barrett, Michael Carter, Munenobu Ikegami and John McPeak.

The problem: Climate extremities pose the greatest risks to agricultural production, with droughts and floods not only causing crop failures but also forage and water scarcity that harms and kills livestock. The number of droughts and floods has risen sharply worldwide in the last decade, with disaster incidence in low-income countries rising at twice the global rate. In much of rural Africa, where water harvesting, irrigation and other similar water management methods are under developed, the impacts of climate change are expected to be especially pernicious.

A solution: In the last several years, new ways to manage weather-related agricultural risk have been developed. Of these, index-based insurance products represent a promising and exciting market-based option for managing climate-related risks faced by poor and remote populations.

This paper describes research to design commercially viable index-based livestock insurance for pastoral populations of northern dryland Kenya, where the risk of drought and drought-related livestock deaths is high.

The analysis indicates a high likelihood of commercial sustainability in the target market and describes events leading up to the pilot launch in Marsabit District in early 2010. The paper concludes that this insurance tool has largely succeeded in helping Marsabit’s livestock herders better manage their risk of drought. Growing interest from both commercial and development partners is helping to take this instrument to other arid and semi-arid districts in Kenya and other countries and regions.

3 Employ ICTs to raise smallholder income
The same Section 3 of the ILRI-AGRA book offers a case study from West Africa, written by Kofi Debrah, coordinator of MISTOWA, supporting the Role of ICT-based management information systems in enhancing smallholder producers’ incomes.

The problem: Smallholder African farmers typically have little access to reliable marketing outlets in which to sell their surplus produce at remunerative prices. Furthermore, their ability to respond quickly to market opportunities is constrained by lack of labour, credit, market information and post-harvest facilities. As a result, West African farmer incomes from agriculture are low and variable and little agricultural produce is traded in the region.

A solution: A project funded by the United States Agency for International Development (USAID), ‘Strengthening Regional Networks of Market Information Systems for Traders’ Organizations in West Africa’ (MISTOWA), helped build a private-public partnership to develop and deploy an ICT-based market information system that improved farmers’ access to markets. Some 12,500 agricultural producers and traders from 15 West African countries benefited from the project, with the beneficiaries reporting USD4,080 in benefits, or USD4.33 per dollar of donor funds invested.

Evidence from the beneficiaries suggests that access to real-time market information provides smallholder farmers with incentives for investing in agriculture.

4 Embrace informal agro-industry
Section 4 of the markets book, High-Value Commodities and Agroprocessing, includes a paper by ILRI scientists Amos Omore and Derek Baker on Integrating informal actors into the formal dairy industry in Kenya through training and certification.

The problem: Throughout the developing world, most food produced by smallholder farmers is delivered and processed by an ‘informal’ agro-industry, which is the principal source of food for most poor consumers and a major source of employment of poor people as traders and service providers. In spite of this, agro-industrial policy has historically tended to displace this informal sector with a formal one featuring relatively large-scale and capital-intensive production and marketing. Other policy concerns, such as public health and municipal planning, have further selected against informal agribusiness, particularly livestock’s informal agro-industry.

A solution: This paper presents a case study of interventions in the Kenyan informal milk industry that led to changes in dairy policy that in turn reduced poverty levels in the East African country. The paper identifies the informal agribusiness sector as fertile ground for alleviating poverty and supporting vulnerable groups.

Policies do well to embrace informal agro-industry, the research indicates, while helping it transform itself into a more formal industry.

The ILRI scientists show that the informal dairy industry can respond well to consumer demand for quality, particularly for safe food, and, when unjustified policy barriers are removed, can compete well when price alone becomes the basis of competition. These achievements support much conjecture in the development literature about the centrality of markets, and access to them, for pro-poor development and the idea that pro-poor markets rely heavily on policy and institutional change. The lessons of this project are being transferred to other informal commodity sectors (goats, beef cattle and pigs) in Africa and Asia and the policy changes seen in the Kenya dairy project have been adopted across the East African region.

5 Encourage intra-regional trade
Section 6 of the markets book, Encouraging Regional Trade, includes a paper on The impact of non-tariff barriers on maize and beef trade in East Africa. The paper is written by Joseph Karugia (ILRI and ReSAKSS-ECA), Julliet Wanjiku (ILRI and ReSAKSS-ECA), Jonathan Nzuma, Sika Gbegbelegbe, Eric Macharia, Stella Massawe, Ade Freeman, Michael Waithaka and Simeon Kaitibie.

The problem: In 2004, the East African Community member states established an East African Community Customs Union, committing them, among other things, to eliminate non-tariff barriers to facilitate increased trade and investment flows between member states and to create a large market for East African people. However, several such trade barriers are still applied by member states and there exists little reliable information about how, and how much, these non-tariff barriers are actually hurting regional trade. This study identified the existing non-tariff barriers on the trade of maize and beef in East Africa and quantified their impacts on trade and citizen welfare in the region. The study found that the main types of non-tariff barriers within the three founding members of the East African Community (Kenya, Tanzania and Uganda) are similar and include administrative requirements, taxes/duties, roadblocks, customs barriers, weighbridges, licensing, corruption and transiting.

Some solutions: The study recommends taking a regional approach to exploit economies of scale by eliminating non-tariff barriers, since they are similar across the member countries and across commodities. Specific policy recommendations include streamlining administrative procedures at border points to improve efficiency; speeding up implementation of procedures at point of origin and at the border points; and implementing monitoring systems to provide feedback to relevant authorities on progress in removing unnecessary barriers to trade within East and Central Africa. The welfare analysis of the study shows that abolishment or reduction of the existing non-tariff barriers in maize and beef trade increases trade flows of maize and beef within the East African Community, with Kenya importing more maize from both Uganda and Tanzania and Uganda exporting more beef to Kenya and Tanzania. As a result, positive net welfare gains are attained for the entire East African Community maize and beef sub-sectors.

These findings give compelling evidence in support of the elimination of non-tariff barriers within the East African Community Customs Union.

Researchers strengthen their partnerships in the fight against Rift Valley fever

Posted on February 20, 2012 by Paul Karaimu

A mixed crop-livestock farm in Western Kenya. Livestock researchers are working towards joint efforts of preventing and controlling Rift Valley fever in eastern Africa (photo credit: ILRI/Charlie Pye-Smith).

A new effort to align the work of partners in eastern Africa and implement more synergetic research on Rift Valley fever was the focus of a recent multi-stakeholder workshop that reviewed research strategies and approaches used by veterinarians, epidemiologists, economists and public health experts in projects across Kenya.

The meeting, which was held at the International Livestock Research Institute (ILRI) on 2 February 2012, discussed ILRI’s Rift Valley fever research program, potential collaborations with partners and options of controlling the mosquito-borne viral disease that affects cattle herds in eastern and southern Africa. Epidemics of the disease, which can also infect humans, emerge after above-average and widespread rainfall and lead to death and abortion in livestock.

Participating organizations, which are conducting research on Rift Valley fever, included Kenya’s ministries in charge of livestock development and public health, the universities of Nairobi and Egerton, Kenya Agricultural Research Institute and Kenya Medical Research Institute. Also attending the workshop were staff of the African Union Interafrican Bureau for Animal Resources (AU-IBAR), Swiss Tropical and Public Health Institute, the Nairobi office of the US Centres for Disease Control and Food and Agriculture Organization of the United Nations (FAO).

‘Our research in Rift Valley fever is benefitting from increasing collaboration,’ said Bernard Bett, an epidemiologist with ILRI. ‘These “joined up” efforts, are supporting joint assessments of the prevalence of zoonotic diseases in both animals and humans and are helping to increase the relevance of the research leading to more effective interventions.’

This strategy should lead to lower costs of doing research and implementing human and animal health interventions and a reduced burden of Rift Valley fever on the region’s livestock, people, wildlife and markets.

Esther Schelling, a epidemiologist with the Swiss Tropical and Public Health Institute, and formerly a researcher with ILRI, said: ‘Collaborative efforts in addressing the challenge of Rift Valley fever can support “one health” initiatives that seek to raise the research profile of neglected zoonotic diseases in Africa and improve the effectiveness of interventions through joint surveillance, preparedness and contingency planning to reduce the amount of time it takes to control outbreaks of these diseases.’

During the meeting, ILRI shared findings from a collaborative project known as ‘Enhancing prevention and control of Rift Valley fever in East Africa by inter-sectorial assessment of control options.’ For example, an analysis, by the project, of the public health burden of Rift Valley fever outbreaks measured in disability adjusted live years (DALYs) – the first of its kind in Kenya – shows that the 2006 and 2007 outbreak resulted in 3.4 DALYs per 1000 people and household costs of about Ksh 10,000 (USD120) for every human case reported. In 2008, ILRI estimated the disease cost the Kenyan economy USD30 million. Findings from the project also included a dynamic herd model developed for pastoral systems for simulating herd dynamics during normal and drought periods and in Rift Valley fever outbreaks. This model will be used to simulate the impacts of prevention and control options for the disease.

The Nairobi meeting discussed gaps in current research practice including the absence of climate models, sampling tools and methods to support decision support tools. Participants highlighted the need for a vector profile of the disease to enable mapping of most affected and high-risk areas and the need to understand how Rift Valley fever interacts between livestock and wildlife.

The prevention and control options discussed at the meeting will be further simulated using the herd dynamic model, which will be followed by an economic analysis using a process that was agreed on in an earlier (September 2011) workshop that discussed Rift Valley fever surveillance. A cost-benefit analysis of vaccination, vector control, surveillance, and sanitary measures is now scheduled. Results from the analysis will give much-needed evidence to support creation of policies and strategies for appropriate surveillance, prevention and control of Rift Valley fever in eastern Africa.

According to Tabitha Kimani, an agricultural economist with ILRI, ‘preliminary cost benefit analysis is already showing that it is beneficial to control Rift Valley fever through vaccination.’

Read more on Rift Valley fever research at ILRI and the region:

ILRI news archive

https://newsarchive.ilri.org/index.php?s=%22Rift+Valley+fever%22&submit=Search

ILRI clippings archive

http://ilriclippings.wordpress.com/2012/02/12/could-rift-valley-fever-be-a-weapon-of-mass-destruction-an-insidious-insect-animal-people-infection-loop-explored/

Policy workshop seeks sustainable practices to preserve livelihoods in Africa’s drylands

Posted on February 15, 2012 by Paul Karaimu

Policymakers, practitioners and community users discussed, this week, ways to improve the sustainable management of Africa’s drylands at a workshop held at ILRI in Nairobi (photo credit: ILRI/Samuel Mungai).

Researchers, policymakers and livestock experts from Africa and the UK met this week to discuss the impacts of land use changes on African drylands in efforts towards shaping policies that will enhance the sustainable management of these ecosystems.

In a workshop held on 14 February 2012 at the Nairobi headquarters of the International Livestock Research Institute (ILRI), community representatives, scientists and specialists in ecology, economics and anthropology discussed research that is expected to shape policies for the improvement of poverty alleviation and ecosystems management in eastern Africa’s dryland ecosystems.

African drylands are fast approaching a tipping point brought about by policy-driven changes in land tenure that have transformed communal lands into private enclosures and wildlife conservancies and the closing off of open access lands that have limited livestock and wildlife mobility. These changes have led to environmental and social consequences that are threatening livestock production and and the livelihoods of pastoral people who depend on these lands.

‘This project will get to the heart of the complexities of drylands management because it is seeking to put pastoralists at the centre of managing their resources,’ said Jimmy Smith, the director general of ILRI. ‘Findings from this project will help us understand how livestock keepers interact with policies, the environment and their economic opportunities,’ said Smith.

The workshop which is part of a 24-month project known as the ‘Biodiversity, Ecosystem services, Social sustainability and Tipping points in African drylands (BEST).’ It is being carried out by a consortium of international partners who include ILRI, the Institute of Zoology, London, University College London and the African Technology Policy Studies Network who are using their expertise in natural resource and biodiversity assessment, natural resource management and communication to analyze the impacts of the changes taking place in dryland ecosystems. Other partners in the research include the Tanzania Wildlife Research Institute and the Association of Strengthening Agricultural Research in Eastern and Central Africa. The project is funded by a consortium of the Department for International Development and the UK’s Natural Environment Research Council and Economic and Social Research Council.

‘We hope to address the very rapidly developing and severe challenges arising in east African arid- and semi-arid rangelands, particularly in Ethiopia, Kenya and Tanzania,’ said Katherine Homewood, an anthropologist with the University College London and the principal investigator for the project. ‘These changes have led to significant opportunity costs for pastoralists who depend on livestock production in these areas; some of whom have been displaced or dispossessed of their livelihoods,’ Homewood says, ‘because marginal areas have become immensely important to a huge variety of competing land uses like mining, biofuels production, crop farming and wildlife conservation.’

Despite these changes, findings indicate that livestock production remains the key source of income for pastoralists and the project, now in its first phase, will investigate how households are responding to the changes in dryland ecosystems, how pastoralist households invest time, labour and capital into livestock, farming or wildlife tourism in light of these changes and the consequences of these choices on poverty reduction, biodiversity and the local and national economies.

‘Results from this project will provide the government with useful information on biodiversity management, environmental reporting and land use practices by offering up to date information on social and environmental interactions that are essential for management of environmental risks in rangelands,’ said Ali Mohammed, Permanent Secretary in Kenya’s Ministry of Environment and Mineral Resources, who officially opened the workshop.

The project has been implemented for just under one year and project partners used the workshop to draw on existing expert knowledge of dryland systems. This information will be used in modeling approaches for further analysis of dryland ecosystems. Among others, participants called for better evaluation of the opportunities and tradeoff emerging from differences in land tenure systems, disparities in distribution of tourism income and displacements of pastoralists and diminishing livestock productivity. Information from this workshop will guide research and deliver findings that will help evaluate policy scenarios and give insights into ecosystem services to inform policymaking and practice.

More on the Biodiversity, Ecosystem services, Social sustainability and Tipping points in African drylands project: https://www.ilri.org/best

Biodiversity, ecosystem services, social sustainability and tipping points in African drylands

View more presentations from ILRI

Watch a 10-minute film about finding ways of balancing the needs of people, lands and wildlife:

http://blip.tv/ilri/counting-in-a-disappearing-land-people-livestock-and-wildlife-1458292

‘Feed the Future’: Connecting ALL the (agricultural research) dots in the Ethiopian highlands

Posted on January 31, 2012 by Susan MacMillan

Sustainable intensification of crop-livestock systems to improve food security and farm income diversification in the Ethiopian highlands: Project Design Workshop—Project Outline and concepts

Watch and listen to a 17-minute (audio-enhanced) slide presentation made by ILRI’s Shirley Tarawali on the ‘Sustainable intensification of crop-livestock systems to improve food security and farm income diversification in the Ethiopian highlands,’ 30 Jan 2012.

Can scientists make the whole of agricultural research for development greater than the sum of its parts? That’s the aim of a new initiative starting this year in three regions of sub-Saharan Africa.

As part of an American ‘Feed the Future’ initiative to reduce hunger in sub-Saharan Africa, the US Agency for International Development (USAID) is supporting three agricultural research projects aiming to help Africa’s smallholders intensify their production systems and do so in ways that are sustainable.

These projects will be conducted in three regions of Africa: Sustainable intensification of cereal-based farming systems (1) in the Sudano-Sahelian Zone of West Africa and (2) in East and Southern Africa, both led by the International Institute of Tropical Agriculture (IITA), based in Ibadan, Nigeria; and (3) Sustainable intensification of crop-livestock systems to improve food security and farm income diversification in the Ethiopian highlands, led by the International Livestock Research Institue (ILRI).

These three African agricultural intensification projects were all launched this year (2012) with design workshops. A wiki has information on the three workshops, including their agendas and outputs.

The design workshop for the project in the Ethiopian highlands has just started at ILRI’s campus in Addis Ababa. ILRI’s director for its People, Livestock and the Environment Theme, agronomist Shirley Tarawali, who will soon take up a new position as ILRI’s director of institutional planning, gave a 17-minute slide presentation on the project (above).

Tarawali said in her presentation that the project is ambitious to fix the disconnect between separate research projects on separate agricultural topics (livestock, cereals, water, and so on) by identifying and then pulling together the best research outputs from the separate research projects. Such outputs include, for example, the identification of legumes and cereals that will better feed livestock as well as people (and sometimes soils as well); ways to make more strategic use of scarce fertilizers and optimal combinations of organic (manure) and inorganic (synthetic) fertilizers; and more efficient ways to use water resources.

Add these kinds of useful products together and we could benefit whole farming systems,’ says Tarawali.

To learn more, or to contribute to the discussions, visit a blog about this Feed the Future initiative in the Ethiopian highlands.

Read an ILRI Clippings Blog about this initiative: Experts meet in Addis Ababa to design new agricultural research project for Ethiopian highlands, 30 Jan 2012.

Read more about the importance of small-scale mixed crop-and-livestock farming systems in the developing world:

Seminal and holistic review of the probable ‘futures’ of livestock production, food security and environmental protection, 7 Dec 2011.

Mixed crop-and-livestock farmers on ‘extensive frontier’ critical to sustainable 21st century food system, 23 Jun 2011.

Turning defeat into new destiny–Going beyond food aid in the Horn of Africa

Posted on January 24, 2012 by Susan MacMillan

A massive die-off of livestock across the great pastoral drylands of the Horn of Africa in 2011 threatened the livelihoods of more than 13 million people, most of them in Somalia, Ethiopia and Kenya, and killed tens of thousands of the most famished and vulnerable people. This—what is believed to have been the worst drought in the region in six decades—combined with civil strife in Somalia has generated nearly 100,000 refugees and sent untold numbers of people into absolute—and, for many, everlasting—poverty (photo of cow carcass in northern Kenya, credit: Neil Palmer/CIAT).

With the news cycle generated by the United Nations Conference of the Parties (CoP 17) climate change conference in Durban in Dec 2011 now over and the rains having arrived in central and southern Somalia, easing both the drought and the famine there, it appears to be an appropriate time to revisit the underlying causes of the hunger and famine that swept across these lands in the second half of 2011. This was the first famine to be declared in the Horn by the United Nations in nearly 30 years. In a 34-page policy paper published recently (18 Jan 2012), Oxfam and Save the Children estimate that between 50,000 and 100,000 people died between April and August 2011, more than half of them children under five.

The following opinion piece by Jimmy Smith, director general of the International Livestock Research Institute (ILRI), explores what it will take to prevent such a tragedy from happening again in this region.

Opinion piece by ILRI’s Jimmy Smith
The ongoing famine in southern Somalia, and the hunger elsewhere in the Horn of Africa, is a catastrophe that has been hard to look at and hard, for most of us in our wired and networked 21st century, even to absorb.

But face it we must. None of us hearing the horror stories of tens of thousands of refugees fleeing villages broken by several years of crippling drought, which turned lands and livestock alike to dust, and then, with the arrival of seasonal rains, to mud, can fail to be aware of our own part in this still-unfolding tragedy. For we together have failed to provide the livestock herders and crop farmers who inhabit these marginal lands with even the minimal resources they need to keep their environments productive.

In the opinion of some, our alternating neglect and wholesaling of East Africa’s vast and once productive dryland ecosystems has helped turn them into fragmented wastelands, dotted with refugee camps.

We may tell ourselves that there is little we can do about political strife in countries such as Somalia, but we cannot say the same thing about our perennial under-investment in small-scale rain-fed food production, an activity that remains the over-riding business of virtually every person living in the Horn today. Rich and poor nations alike have systematically failed to deliver this support, support that is usually promised in our meetings, support that is needed to build and sustain Africa’s own food production capacities.

What Africa’s rural farming and herding communities have needed, above all else, is increased agricultural research and development, with concomitant investments in rural roads, power, irrigation, clinics and schools. By failing to maintain sufficient levels of scientific as well as financial resources, we have failed to help local communities take up and adapt more sustainable and profitable herding and cropping practices.

The desiccation that devastated the Horn’s dry rangelands last year has parallels with that which occurred in the semi-arid grasslands of North America’s heartland some 70 years ago, creating a vast Dust Bowl across 19 states. The immense dust storms that blew the topsoil off the Great Plains throughout the 1930s made millions of acres of land useless and forced hundreds of thousands of people to leave their homes for other regions. Some people died of malnourishment, hundreds of thousands of people entered years of penury and joblessness, and by 1940 a total of some 2.5 million people had been dislocated and forced to migrate, like nearly 100,000 mostly Somali people in the Horn today.

In the wake of the American disaster, and in spite of a Great Depression then crippling the country—a financial crisis even deeper than that we’re facing today—a critical mass of agricultural expertise and ideas was brought to bear on those issues underlying the crisis. That mattered because the Dust Bowl was caused primarily not by several years of drought but rather by several decades of unsustainable farming, by a ‘carelessness of plenty’, with American entrepreneurs encouraged, by the availability of big farm machinery and easy credit as well as a period of unusually wet seasons, to plough the prairie sod to excess, as well as to overgraze it, which destroyed the prairie grasses and laid the land bare.

Americans set about transforming this by investing heavily in better farming. The federal government, for example, began an aggressive campaign to teach farmers soil conservation methods, and actually paid farmers to practice these methods. It set up a Drought Relief Service that bought cattle in emergency areas at better-than-market prices and then used the cattle for food distributed to hungry people nationwide. And it advised families remaining in the prairie states to shift from crop and wheat production to livestock and hay production, a more appropriate use of degraded lands.

Finally, and critically, America’s network of land-grant universities was mobilized not only to help feed people in the emergency but also to find lasting solutions for rebuilding the productivity and resilience of the nation’s prairies. The idea was to bring the scientific knowledge of land-grant colleges to American farmers. The idea worked.

Today, international, regional and national research and development groups, working together in well-coordinated ways and tied to local conditions and priorities, have an opportunity to make a similar difference in the Horn, helping its homeless and hungry people to reclaim their lands and livelihoods. It is, therefore, gratifying to see the donor community and governments mobilizing financial and technical resources to respond to the lessons just learnt in the Horn.

We’ve seen that unsustainable prairie cropping in North America and unsupported livestock-based agricultural production systems in the Horn, when combined with lengthy and severe drought cycles, are toxic mixes. But if America’s earlier tragedy teaches us anything, it’s that we can turn defeat into new destiny by applying the best of science—smart, innovative and conservation-minded agricultural research—and promoting those agricultural practices that will make the biggest and most enduring difference to poor people and their environments.

Americans said ‘never again’ about the Dust Bowl—and they made good on their promise. We can, and should, say the same thing about hunger and starvation in the Horn of Africa.

Notes
(1) The Guardian‘s Global Development Blog started the new year with a chat discussion on the food crisis in the Horn of Africa, where famine was officially declared on 20 Jul 2011.

As the Guardian‘s Jaz Cummins reports, on 13 Dec 2011, the UN made an appeal for USD1.5 billion to support projects in Somalia in 2012—a figure 50% higher than in 2011.

The Guardian this January recommends the following background reading it published last year:
Madeleine Bunting blogs on the role conflict and natural disasters have played in Somalia, 11 Sep 2011
Conflict with Kenya, 18 Nov 2011
The World Bank’s Vinod Thomas on how the Horn of Africa can be better prepared for recurrent drought, 11 Aug 2011
Pascal Lamy, director general of the World Trade Organisation, on the key ingredients to tackle food crisis, 21 Nov 2011
Liz Ford on the long-term strategy Africa’s latest food crisis needs, 4 Jul 2011

(2) Is A Food Crisis Brewing in the Sahel?
A meeting to be held on 25 Jan 2012 in Washington, DC, will assess whether a similar food crisis is brewing in the Sahel—and the best ways of ensuring that resources to deal with it are not squandered in ‘band-aid treatments’ but rather used to build resiliency in the region. The meeting is being organized by The Partnership to Cut Hunger and Poverty in Africa and the Woodrow Wilson International Center for Scholars Africa Program, in collaboration with the United States Agency for International Development (USAID) and the Famine Early Warning System Network (FEWS NET).

While African nations and the donor community struggle to mitigate famine in the Horn of Africa, fears are growing that drought in the Sahel will trigger a similar food crisis in West Africa by the spring of 2012. However, experts have cautioned against misdiagnosing the food situation in the Sahel, for fear that excessive band-aid treatments of emergency food assistance will squander energy and scarce resources that would be better utilized in treating pockets of severe food insecurity and building resiliency in the region. With input from US and African experts on the Sahel, this event will explore the true nature of the emerging crisis in the Sahel and seek to identify effective responses, including regional trade and resilience-building through agricultural development.

(3) PAEPARD (Platform for Africa-European Partnership in Agricultural Research for Development) Seminar: Preventing a New Famine in the Horn of Africa: The role of the EU in building resilience
Ann Waters-Bayer, a pastoral expert and senior advisor at ETC EcoCulture, was a panel member at a seminar put on for European Development Days 2011, 15–16 Dec 2011, in Warsaw. The panelists, comprising practitioners and policymakers, discussed how to prevent another crisis of this scale and the role that the EU can play in reaching long-lasting sustainable solutions.

Speaking on the panel, Waters-Bayer reminded her audience that pastoral modes of production are often the most appropriate uses of these and other of the world’s great drylands.

‘We’re ten years late in trying to support development which is appropriate to the Horn of Africa and other dryland ares. I think a lot of people in Europe don’t realize what are the most appropriate food production systems in the very dry and variable areas. Often the kinds of development support provided in these drylands are those more appropriate to Europe or better-watered areas.

‘I found it striking that in the film we’ve seen on how to prevent famine from happening again in the Horn of Africa, pastoralism was not mentioned. Pastoralism is the production system practiced in the largest part of the Horn of Africa. Pastoralism is the production system most appropriate for this type of environment. Pastoralism takes advantage of what crop farmers would regard as a constraint, a challenge, a problem—this variation in availability of vegetation, caused by the variability of rain, of water. Pastoralists take advantage of this variability by moving with their animal herds.

One of the big problems in this dryland region has been that a lot of the development and a lot of the policies for this region, especially policies dealing with use of communal resources and acquisition of so-called ‘unused land’, are policies confining pastoralists and making it impossible for this very appropriate production system to continue to operate.

‘Land grabbing has really become a big issue in the Horn of Africa and other parts of Africa. Land grabbing, or land acquisition, supposedly for more productive uses of the land, is going on without people realizing what production systems are actually using that land and how productive those systems are.

If there had been more research done on alternative ways of using land and real feasibility studies conducted on what can actually be done with this land, they would realize that the existing production systems, especially the very very flexible and resilient pastoralist system, is often the best way to use these very dry areas.’

Putting a price on water: From Mt Kenya forests to Laikipia savannas to Dadaab drylands

Posted on January 19, 2012 by Susan MacMillan

A map of the Ewaso Ng’iro watershed catchment, taken from Mapping and Valuing Ecosystem Services in the Ewaso Ng’iro Watershed, published in 2011 by ILRI. The Ewaso Ng’iro watershed incorporates the forests of Mt Kenya, the second highest mountain in Africa; the wildlife-rich savannas of Laikipia; and the arid scrublands around Dadaab, the world’s largest refugee camp, located in Kenya’s Northeastern Province near the border with Somalia.

The International Livestock Research Institute (ILRI) published in 2011 a ground-breaking assessment of Kenya’s Ewaso Ng’iro watershed that maps its key ecosystem services—water, biomass, livestock, wildlife and irrigated crops—and estimates their economic value. Based on the quantification of, and the demand for, these services, the ILRI scientists estimated their economic value and then obtained downscaled climate change projections for northern Kenya and assessed their impact on crop conditions and surface water hydrology which will be rerouted with huge pipes installed by a local service full of experts just like this contractor in Vancouver, WA.

Excerpts from the first chapter of the ILRI report
‘The Arid and Semi-Arid Lands (ASALs) cover 80% of Kenya’s land area, include over 36 districts, and are home to more than 10 million people (25% of the total population) (GoK 2004). A vast majority (74%) of ASAL constituents were poor in 2005/06; poverty rates in the ASALs have increased from 65% in 1994 (KIHBS 2005/6 cited in MDNKOAL 2008), which contrasts with the rest of Kenya — national poverty rates fell from 52% to 46% in the decade 1996–2006. Similar stark inequalities between the ASALs and other areas of Kenya are found in health and education as well as infrastructure development and services provisioning (MDNKOAL 2010a).

‘After decades of neglect, the government is committed to close the development gap between the ASALs and the rest of Kenya. To do so, it charged the Ministry of State for Development of Northern Kenya and other Arid Lands (MDNKOAL) to develop policies and interventions addressing the challenges specific to ASAL, mostly regarding their climate, pastoral and agro- pastoral livelihood strategies and low infrastructure, financial, and human capitals (MDNKOAL 2008). Unlike line ministries with sectoral development planning, MDNKOAL has a cross- sectoral mandate, which requires a holistic approach to development, weighting trade-offs and promoting synergies between sectoral objectives. . . .

‘ASALs, with 24 million hectares of land suitable for livestock production, are home to 80 percent of Kenya’s livestock, a resource valued at Ksh 173.4 billion. The current annual turnover of the livestock sector in the arid lands of Kenya of Ksh 10 billion could be increased with better support for livestock production and marketing. Since livestock is the main source of livelihood of ASAL constituents, any improvement in livestock value could substantially reduce poverty. While rainfed crop production is quite marginal and restricted to pockets of higher potential areas within ASAL districts, there is a sizeable area that could support crop production if there were a greater investment in irrigation (“Pulling apart” and ASAL Draft Policy 2007 cited in MDNKOAL 2008). Wildlife-based tourism, which contributed 10% to GDP in 2007/2008 (World Bank 2010) is largely generated in the ASALs (MDNKOAL 2010a). While tourism revenue has been constantly on the rise (21.5 Million Ksh in 2000 to 65.4 Million Ksh in 2007 (Ministry of Tourism 2007)), the sector would benefit, among others, from improved road and tourism infrastructure (World Bank 2010).

‘Reliance of the ASAL on their natural capital for their development: the importance of ecosystem services In most of Kenya’s arid and semi-arid areas, pastoral livelihood strategies dominate. This involves moving livestock periodically to follow the seasonal supply of water and pasture. Agro-pastoralism, combining cropping with pastoral livestock keeping, is a livelihood strategy in areas where rainfed agriculture is possible and around more permanent water sources. In areas with slightly more rainfall, there is mixed farming with sedentary livestock. These agricultural lands are typically dominated by a mix of food, livestock and increasingly cash crops, such as flowers and high value vegetables which are often destined for export. The cash crops often rely on irrigated agriculture. Wildlife conservation and tourism are also important land uses with an increase in the dryland area under a protected status.

All of these livelihood strategies are directly dependent on ecosystem services, the benefits people get from ecosystems. As described, dryland ecosystems supply food from livestock and crops, water for domestic use and irrigation, and wood for fuel and construction (provisioning services). Beyond contributing to people’s livelihood strategies, healthy dryland ecosystems contribute to their standard of living (health, physical security) by delivering regulating services such as mitigating the impacts of periodic flooding, preventing erosion, sequestering carbon, purifying water, and affecting the distribution of rainfall throughout the region. These, in turn, all depend on supporting services, such as soil fertility that underlies the productivity of dryland and crops in particular and the production of biomass (vegetation) that sustains livestock and wildlife grazing. Moreover, Kenya’s dryland ecosystems provide important cultural services that maintain pastoral identities and support wildlife tourism.

‘ASAL ecosystems must be managed effectively so that they continue to provide these services. In developing land use planning, decision-makers need to understand and holistically manage the complex linkages between ecosystems, ecosystem services and people. The ecosystem services approach will provide tools to integrate socio-economic and bio-physical aspects providing a holistic approach to look at synergies and trade-offs in terms of land and water between land uses across the catchment.

‘One of the challenges the Ministry faces in taking the most of ASAL’s ecosystem services is to manage the various uses of water and land, as both are and will increasingly be the major limiting factors in improving standards of living in ASAL. In this context, the Ministry needs tools to compare alternative land and water uses between livestock, crop production, and wildlife-based tourism to enable its future assessments of how and how much each use will improve standards of living and whose standard of living. . . .’

Download the whole publication, Mapping and Valuing Ecosystem Services in the Ewaso Ng’iro Watershed, by Ericksen, PJ; Said, MY; Leeuw, J de; Silvestri, S; Zaibet, L; Kifugo, SC; Sijmons, K; Kinoti, J; Ng’ang’a, L; Landsberg, F; and Stickler, M. 2011. Nairobi, Kenya: ILRI.

Authors
ILRI’s Polly Ericksen was the project leader and editor/compiler of the report. ILRI scientists Mohammed Said, Jan de Leeuw, Silvia Silvestri and Lokman Zaibet wrote much of the material for the chapters. Shem Kifugo, Mohammed Said, Kurt Sijmons (GEOMAPA) and Leah Ng’ang’a compiled the data and made the maps. World Resources Institute’s Florence Landsberg contributed ideas and material for chapters 1 and 2. World Resources Institute’s Mercedes Stickler contributed information from Rural Focus.

Note
The following journal article is forthcoming: P Ericksen, J de Leeuw, M Said, S Silvestri and L Zaibet. In press. Mapping ecosystem services in the Ewaso N’giro Watershed. International Journal of Biodiversity Science, Ecosystem Services & Management.

Market incentives–not top-down regulation–needed to help poor farmers take advantage of East Africa’s burgeoning pig industry

Posted on January 17, 2012 by Paul Karaimu

A family of pigs are at home on a section of overgrown railway track near Kumi, Uganda, September 2010 (photo on Flickr by John Hanson/US Army).

Editor’s Correction of 18 Jan 2012
Today we have corrected parts of this story to reflect the following comment from CRP 3.7 director Tom Randolph:

Lessons learned in other smallholder livestock systems—especially smallholder dairying in East Africa and India—is that a typical policy reaction to animal and public health challenges is to seek more regulation. The problem is that such regulation often proves to be toothless (i.e. cannot be effectively enforced by veterinary services) and ultimately anti-poor. We are pursuing alternative approaches that encourage farmers and other value chain actors to improve animal and public health-related practices by creating or exploiting market incentives rather than relying on top-down regulation. This will certainly be our approach as we engage in the Uganda smallholder pig value chain.’ — Tom Randolph, director of CGIAR Research Program on Livestock and Fish (CRP 3.7)

East Africa’s growing human population and rapid urbanization are creating new opportunities for small-scale farmers to make money from pig farming. According to Tom Randolph, an agricultural economist with the International Livestock Research Institute (ILRI), ‘pig production [in East Africa] is taking off and growing rapidly and there is a rising demand for pork and related products, particularly in Uganda.’ Uganda has more than 3 million pigs and over 1.1 million people across the country (17 per cent of households) are involved in pig rearing and trade in pork products.

Randolph was speaking at the ILRI Nairobi campus during a recent workshop to find ways of diagnosing and controlling the spread of cysticercosis, a disease caused by tapeworms that can cause seizures and epilepsy in people when they consume undercooked pork infected with the tapeworms. Inadequate disease control is one of the biggest challenges facing the informal pig industry in East Africa.

Most of the pork sold in this region is produced by small-scale farmers who keep 1 to 3 animals in ‘backyard systems’, and the rapid growth of urban areas is opening up new opportunities for small-scale producers to intensify their pork production to meet growing demand.

For farmers in the region, pigs are ‘a cash crop of livestock’ because they do not carry cultural and social values like cows and chickens. This means that pig farming, because of its nature as a commercial activity and the shorter production cycles of pigs, can offer significant economic benefits to smallholders. ‘By supporting pig farming, we will be helping women, who are the ones who typically tend to the pigs on these small farms, and families to improve their income and their nutrition,’ said Randolph.

Despite the great potential offered by poor farmers from pig farming, Randolph said ‘the sector remains largely “invisible” and poorly regulated because the region’s governments have not focused on developing it.’

Improvements needed in the sector include providing better breeds and improving marketing systems to capture the ‘value that is currently being leaked out of the system’. Dealing with diseases such as African swine fever and cysticercosis is also critical. ‘Early diagnosis of diseases,’ said Randolph, ‘will give confidence to consumers that the pork they buy is safe.’

See workshop presentation:

Smallholder pig value chains in East Africa

View more presentations from ILRI

Angela Merkel at ILRI’s African biosciences labs: A photofilm memento

Posted on December 9, 2011 by Susan MacMillan

Lydia Wamalwa talks with German Chancellor (and former scientist) Angela Merkel at ILRI-BecA labs (photo credit: ILRI/Njoroge).

Through photographs and quotations, this photofilm celebrates a visit Angela Merkel, the Chancellor of Germany, paid to the Nairobi headquarters of the International Livestock Research Institute (ILRI) on 12 July 2011.

This afternoon, staff at the Nairobi headquarters of the International Livestock Research Institute (ILRI) are holding their annual Christmas/holiday party, so we’re in an early festive mood and think this as good a time as any to post this ILRI photofilm (marriage of still photographs with sound) of a visit German Chancellor Angela Merkel paid to ILRI on 12 July 2011, which happened to be the last day of work of Carlos Seré, whose ten-year tenure as director general of ILRI was ending.

(We like to remark around here about how kind it was of the German Chancellor to come all the way to Nairobi to bid our director general farewell!)

The visit went well, with the sun—and ILRI’s newly refurbished and state-of-the-art biosciences laboratories—shining and ILRI’s young bioscientists from across Africa and other parts of the world standing ready to provide the Chancellor with a lab coat, a theory, an answer, an explanation—and, as you shall see in the photofilm, a smile.

Take a look at the 2-minute photofilm. And allow us to take this early holiday moment in Nairobi to wish you early season’s greetings.

Read more about the Chancellor’s visit:
on ILRI’s News Blog
In Nairobi, German Chancellor Angela Merkel puts on lab coat, meets young bioscientists fighting hunger in Africa, 13 Jul 2011.

on ILRI’s Clippings Blog
Germany’s Chancellor Merkel to tour ILRI’s advanced biosciences labs in Nairobi today, 12 July.
German chancellor and minister of agriculture and Kenyan ministers of agriculture and health visit ILRI’s research laboratories, 13 Jul 2011.
Germany and ILRI sign agreement in Nairobi to collaborate in research to assess the pastoral-livestock-wildlife benefits from Kenya’s eco-conservancies, 13 Jul 2011.

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

Posted on October 26, 2011 by Susan MacMillan

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

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

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

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

Posted on October 25, 2011 by Susan MacMillan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Herders in drought-stricken northern Kenya get first livestock insurance payments

Posted on October 21, 2011 by Susan MacMillan

Pastoralists from Marsabit, in Kenya’s remote northern drylands, play a game crafted by ILRI scientists to simulate livestock losses that could occur due to drought, in which the local herding communities are educated about how index-based livestock insurance works (image credit: ILRI).

As livestock deaths mount, a small group of herders in Kenya’s Marsabit District is first to benefit from program that tracks forage conditions via satellite.

In the midst of a drought-induced food crisis affecting millions in the Horn of Africa, an innovative insurance program for poor livestock keepers is making its first payouts today, providing compensation for some 650 insured herders in northern Kenya’s vast Marsabit District who have lost up to a third of their animals.

Known as index-based livestock insurance, or IBLI, payouts are triggered when satellite images show that grazing lands in the region have deteriorated to the point that herders are expected to be losing more than 15% of their herd. The current readings for which indemnities are now being paid show that between 18 and 33% of livestock have been lost to drought this season.

‘It’s terrible that we are seeing this level of loss, but gratifying that the policies are doing what they are supposed to do, which is to help herders avert disaster when weather conditions dry up pasture lands and animals begin to perish,’ said Isaac Magina, head of agriculture insurance at UAP Insurance Ltd.

‘When you look at a 33% loss, that is a significant portion of the asset base of any business and it would be difficult to survive without insurance,’ added Magina.

The insurance project was developed in partnership by the Nairobi-based International Livestock Research Institute (ILRI), Cornell University and the Index Insurance Innovation Initiative program at the University of California at Davis. Commercial partners Equity Bank and UAP Insurance Ltd implement the program. The IBLI project is funded by the United States Agency for International Development, the European Union, the British Government, the World Bank, the Microinsurance Facility and the Global Index Insurance Facility.

The Marsabit District alone is home to some 86 thousand cattle and 2 million goats and sheep that generate millions of dollars in milk and other products and serve as the main source of sustenance and income. ILRI estimates that up to one-third of all livestock in the region have perished during the current drought.

In East Africa, an estimated 70 million people live in the drylands, and many of them are herders. In Kenya, the value of the pastoral livestock sector is estimated to be worth USD800 million. And the Intergovernmental Authority on Development in Eastern Africa, which takes a regional approach to combating drought in six countries of the Horn, estimates that over 90% of the meat consumed in East Africa comes from pastoral herds.

Under the terms of the policy, insured herders are compensated for any losses above 15%, with the 15% threshold acting as a sort of deductible. For example, a cattle herder who lives in an area with a livestock mortality rate of 33% receives a payout covering 18% of his or her animals. With cattle valued at about 15,000 Kenyan shillings (Ksh) per head (about USD150), an insurance policy covering 10 animals, or Kshs150,000 in cattle, would pay out at about Kshs27,000 (about USD270).

When the 15% deductible is factored in, compensation ranges from 3% in areas where the drought has been more moderate to 18% in the areas where herders were hit particularly hard. But in an indication of the severity of the drought, all of the areas where the policies were sold have exceeded the 15%mortality threshold that triggers a payout. Thus far, the policies cover about 1,100 animals—mostly cattle, but some goats and sheep and a few camels as well.

The payments are being dispatched in the middle of a humanitarian crisis endangering 12 million people in the Horn that is prompting a call for new ways to manage food security risks in East Africa’s arid drylands. For example, a recent report from ILRI has found that the pastoral approach to livestock production, in which herders make do with marginal lands by regularly moving their herds, could be very effective at averting weather-related food shortages. ILRI experts say that in arid and semi-arid regions, keeping livestock can be a more effective coping strategy than cultivating crops—if herders have options for reducing their vulnerability to drought.

‘Drought insurance is one important way to help livestock keepers maintain food security even in very harsh environments,’ said Andrew Mude, the IBLI project leader at ILRI. ‘Insurance is not by itself sufficient,’ he added, ‘But if it is accompanied by other risk-reducing strategies, such as better access to grazing lands and watering areas, then the pastoralist approach, which some people dismiss as a backward lifestyle of the past, emerges as a very effective way to meet future food needs.’

Mude said that it is too early to tell just how the payouts from the policies will affect food security and other welfare indicators. For example, it’s not yet clear how many herders will use the compensation to replace animals lost to the drought. But Mude said one major success thus far is that the livestock mortality index that is at the heart of the program appears to be working. The fatality rate predicted by the satellite assessments of forage loss is tracking very closely surveys of animal deaths on the ground.

That’s crucial because using freely available satellite images of pasture lands to accurately predict animal deaths overcomes a major barrier that has bedeviled past efforts to provide livestock insurance in poor regions: the prohibitively high costs and logistics of confirming animal deaths in herds that roam across vast distances in extremely remote areas.

‘This is all still a work in progress,’ said Jimmy Smith, director general of ILRI. ‘But the fact that our relatively inexpensive approach to estimating livestock deaths seems to be accurate could open the door to making livestock insurance widely available in many parts of Africa.’

Going forward, experts believe a key issue will be whether livestock insurance in East Africa would be commercially viable by itself or whether its ability to protect herders from the impact of prolonged drought might justify some level of financial support from governments or donors, as agricultural insurance programs in Western countries often do.

‘This is asset insurance for animals that are the centerpiece of livelihoods, providing a stream of income and nutrition for years and years,’ said Mude. ‘The investment in insurance=based asset safety nets protecting these herds could have a more cost-effective welfare impact over the longer term than other forms of response such a food and cash assistance.’

‘This insurance scheme is a great example of how partnerships with the private sector can lift people out of poverty and provide long-term solutions to food crises,’ said Andrew Mitchell, the British international development secretary.

‘To many farmers, losing their cattle means losing everything, as they are not just a source of income but are their only source of food. Support from Britain and others means that more than 600 herders in Northern Kenya can buy more cattle to replace those they have lost. This means they are better able to cope with this and future devastating droughts.’

ILRI news

Better lives through livestock

Category Archives: East Africa