ILRI’s Jimmy Smith on global health and food security: Why developing-country livestock matter so much

Posted on October 17, 2013 by Susan MacMillan

Jimmy Smith, director general of the International Livestock Research Institute (ILRI) gave a keynote presentation this morning (17 Oct 2013) at the opening of the Global Animal Health Conference, ‘Developing global animal health products to support food security and sustainability’, in Arlington, Virginia.

Smith began his presentation, ‘Global health and sustainable food security: Why the livestock sectors of developing countries matter’, by setting out the state of global food security and questioning how the world will manage to feed itself as the human population grows before stabilizing at about mid-century. Some 60% more food than is produced now will be needed by then, he said. And, somehow, some 75% of that increase will have to come from increases in productivity rather than from increases in land under cultivation. This higher production, he said, must be achieved while at the same time reducing poverty and hunger and addressing environmental, social and health concerns. In addition, the greater food production will have to be achieved in the face of temperatures 2−4 degrees C warmer than today’s.

He pointed out the great nutritional divides in today’s world, and warned of malnutrition’s huge financial as well as public health costs.

He noted that gains in consumption of meat in poor and emerging economies are greatly outpacing those of the industrialized countries.

Smith then pointed out how much of the world’s food comes not from large-scale farmers but rather from hundreds of millions of very small-scale farmers in developing countries.

These small-scale food producers, he said, are more competitive than most people think. He cited two examples. In East Africa, one million smallholders keep Africa’s largest dairy herd, Ugandans produce milk at the lowest cost in the world, and Kenya’s small- and large-scale poultry and diary producers have the same levels of efficiency and profits. In Vietnam, 50% of the country’s pig production is done by farmers with less than 100 pigs, and producers keeping just 1 or 2 sows have lower unit costs than those with more than 4 sows. Scientists estimate that Vietnam’s industrial pig production could grow to meet no more than 12% of the national pig supply in the next 10 years, so small-scale farmers will continue to supply most of the country’s pork for the foreseeable future.

In a series of graphs, ILRI’s director general presented figures for livestock commodities being global leaders, for the huge global trade in livestock products and for the fast-rising demand for meat, milk and eggs in developing countries.

Smith said that the developing world’s smallholder livestock producers can continue to produce most of the world’s milk, meat and eggs only if we can find ways to improve livestock health, especially by reducing food safety problems that reduce market participation by smallholders, by reducing the endemic livestock diseases that greatly lower livestock productivity in developing countries, and by lowering zoonotic disease transmissions that threaten small-scale livestock production in poor countries—as well as human health in all countries.

Food safety in developing countries, where most milk, meat and eggs are sold in informal or ‘wet’ markets, is a bigger problem than most people recognize, the ILRI director general said. He said we need to manage the risks of illness while retaining the benefits—to livelihoods and food and nutritional security—of informally sold livestock foods. And, he said, we have to educate people about the various risks of these informal markets, where common perceptions can be misleading; eating vegetables sold in these markets, for example, can be as risky to health as handling cattle or drinking raw milk.

Gender is an important determinant of food safety in developing countries, Smith said, with evidence indicating that Africa’s women butchers sell safer meat than their male counterparts. Women and children and farm workers are also at greater risking in contracting food-borne diseases.

Regarding health advice, Smith argued that it is most useful when it is tailored for specific circumstances, when it is based on evidence, and when it is developed in and with local communities. It’s also been found that what works best for increasing food safety are social incentives (e.g., ‘good parents do X rather than Y with their milk cows’), and risk- rather than rule-based approaches. Finally, he said, relatively simple and cheap interventions can lead to substantial improvements in food safety.

The big livestock productivity gaps between rich and poor countries, Smith explained, are due largely to poor animal health in these countries.

Livestock diseases take a huge toll . . .

. . . especially in Africa.

And the toll from ‘zoonotic’ diseases, which are transmitted from animals to people, is especially devastating.

These zoonotic infections harm poor people the most.

Incidences of zoonotic events are worringly on the increase . . .

. . . and can have enormous costs . . .

. . . as they spread, just as African swine fever is now spreading.

The animal health markets in developing countries are already significant and are growing rapidly. The global animal health market is a multi-billion-dollar industry. The global human health market amounts to US$1000 million and the global animal health market, including livestock, pets and other animals, some $20 billion. The global livestock health market is worth about $13 billion, with the livestock health market in Africa now experiencing a 15.7% year-on-year growth (the second fastest growth after Latin America).

Just 15 countries make up more than 85% of the global animal health market today; demand for animal health markets in developing and emerging economies is increasingly important.

Take India, for example.

To take advantage of the increasing opportunities in developing countries will require an understanding of smallholder livestock systems and customers, who will need tailored packaging and marketing (e.g., drugs in small packets), delivery systems appropriate for widely dispersed farms, surveillance systems for development of drug resistance, and ‘One Health’ approaches and ‘Rational Drug Use’ used for both people and their animals. Among the ‘game-changing’ livestock health products urgently needed in poor countries and communities are appropriate vaccines for Newcastle disease in poultry and East Coast fever in cattle and quality assurance for all veterinary medicines.

Jimmy Smith ended his presentation with four key messages:

And he closed his presentation the following thoughts.

The risks of ignoring pressing animal health issues in the developing world are huge:

Lost livelihoods in poor countries
Greater global food insecurity
Increased risk of human illness in all countries

The opportunities for improving animal health in developing countries are just as big. With appropriate approaches, this significant animal health market should grow rapidly, for the good of all.

View the presentation.

See other recent presentations by Jimmy Smith:

Improving the environmental sustainability of livestock systems in the developing world–ILRI’s Jimmy Smith, 30 Sep 2013

Why the world’s small-scale livestock farms matter so much: Keynote address at International Grasslands Congress, Part 1, 16 Sep 2013

Why tackling partial truths about livestock matters so much: Keynote address at International Grasslands Congress, Part 2, 16 Sep 2013

Beef in Botswana/Namibia, dairy in Kenya—Smallholders succeeding in high-value livestock markets

Posted on July 8, 2013 by Paul Karaimu

Cattle in Botswana. The country has successfully marketed its beef to high-value livestock markets (photo credit: ILRI/Saskia Hendrickx).

At a recently concluded three-day (26-28 Jun) Africa Livestock Conference and Exhibition (ALiCE2013), held in Nairobi, Kenya, livestock researchers Hikuepi Katjiuongua, from Namibia, and Amos Omore, from Kenya, spoke of opportunities to link African smallholder farmers to high-value livestock markets.

Globally, rising populations, urbanization and higher incomes are driving increasing demand for animal products. In Africa, this demand is especially high for milk, meat and eggs. Despite the opportunity this offers for Africa’s many livestock producers, the continent imports most of its animal-source foods because its livestock production is not keeping up with the growth in consumption of these foods.

At the ALiCE2013 meeting, Katjiuongua, an economist with the Nairobi-based International Livestock Research Institute (ILRI), presented the ‘beef story’ from Botswana and Namibia, two African countries that have successfully marketed their beef in the European Union (EU).

‘The experiences from these countries show what works in efforts to access high-value livestock markets, particularly in the EU,’ says Katjiuongua.

The authors suggest the following in ensuring improved access to these and similar markets:

Smart branding and marketing that shifts from selling a commodity to selling attributes that meet specific end-market requirements
Setting up credible cattle tracing systems that comply with international standards
Working with policymakers and the private sector to put in place trade policies that enable live animal trade

Katjiuongua also spoke about successes from dairying in East Africa, where removal of trade tariffs in the East African Community is one of the measures that helped double milk trade between 1995 and 2005.

‘Dairy producers in this region have benefitted from improved economies of scale, better access to services and technologies and an enabling policy and institutional environment,’ the authors said.

The researchers, however, caution that to take up opportunities in high-value markets, smallholders will need help in addressing such challenges as the rising costs of livestock feed, veterinary services and other inputs, the prohibitive costs of complying with end-market requirements and high transport costs.

As a way forward, Katjiuongua and Omore recommend lowering non-tariff barriers, improving smallholder productivity and competitiveness and investing in livestock data collection.

View the presentation.

Linking famers to (high value) livestock product markets: Opportunities and challenges in southern and eastern Africa from ILRI

Post by Evelyn Katingi and Paul Karaimu

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

Posted on January 3, 2013 by Susan MacMillan

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

Happy reading and Happy New Year!

1 LIVESTOCK RESEARCH FOR FOR DEVELOPMENT

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

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

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

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

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

>>> Meat and Veg: Livestock and Vegetable Researchers Are Natural,
High-value, Partners in Work for the Well-being of the World’s Poor
Jimmy Smith
World Vegetable Center, Taiwan
18 Nov 2012; posted on ILRI Slideshare 27 Nov 2012; 294 views.

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

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

>>> The African Livestock Sector:
A Research View of Priorities and Strategies
Jimmy Smith
6th Meeting of the CGIAR Independent Science and Partnership Council, Addis Ababa, Ethiopia
26−29 Sep 2012; posted on ILRI Slideshare 25 Sep 2012; 4,227 views.

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

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

>>> The CGIAR Research Program on Livestock and Fish and its Synergies
with the CGIAR Research Program on Agriculture for Nutrition and Health
Delia Grace and Tom Randolph
Third annual conference on Agricultural Research for Development: Innovations and Incentives, Uppsala, Sweden
26–27 Sep 2012; posted on ILRI Slideshare 13 Oct 2012; 468 views.

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

>>> The Production and Consumption of Livestock Products
in Developing Countries: Issues Facing the World’s Poor
Nancy Johnson, Jimmy Smith, Mario Herrero, Shirley Tarawali, Susan MacMillan, and Delia Grace
Farm Animal Integrated Research 2012 Conference, Washington DC, USA
4–6 Mar 2012; posted on ILRI Slideshare 7 Mar 2012; 1,108 views.

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

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

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

2 LIVESTOCK FEEDS

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

>>> Biomass Pressures in Mixed Farms: Implications for Livelihoods
and Ecosystems Services in South Asia & Sub-Saharan Africa
Diego Valbuena, Olaf Erenstein, Sabine Homann-Kee Tui, Tahirou Abdoulaye, Alan Duncan, Bruno Gérard, and Nils Teufel
Planet Under Pressure Conference, London, UK
26-29 Mar 2012; posted on ILRI Slideshare 27 Mar 2012; 1,999 views.

3 LIVESTOCK IN INDIA

>>> Assessing the Potential to Change Partners’ Knowledge,
Attitude and Practices on Sustainable Livestock Husbandry in India
Sapna Jarial, Harrison Rware, Pamela Pali, Jane Poole and V Padmakumar
International Symposium on Agricultural Communication and
Sustainable Rural Development, Pantnagar, Uttarkhand, India
22–24 Nov 2012; posted on ILRI Slideshare 30 Nov 2012; 516 views.

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

4 AGRICULTURAL R4D IN THE HORN OF AFRICA

>>> Introducing the Technical Consortium
for Building Resilience to Drought in the Horn of Africa
Polly Ericksen, Mohamed Manssouri and Katie Downie
Global Alliance on Drought Resilience and Growth, Addis Ababa, Ethiopia
5 Nov 2012; posted on ILRI Slideshare 21 Dec 2012; 8,003 views.

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

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

5 LIVESTOCK AND FOOD/NUTRITIONAL SECURITY

>>> Mobilizing AR4D Partnerships to Improve
Access to Critical Animal-source Foods
Tom Randolph
Pre-conference meeting of the second Global Conference for Agricultural Research for Development (GCARD2), Punta de Este, Uruguay
27 Oct 2012; posted on ILRI Slideshare 29 Oct 2012; 385 views.

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

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

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

6 LIVESTOCK INSURANCE

>>> Index-Based Livestock Insurance:
Protecting Pastoralists against Drought-related Livestock Mortality
Andrew Mude
World Food Prize ‘Feed the Future’ event, Des Moines, USA
18 Oct 2012; posted on ILRI Slideshare 22 Oct 2012; 576 views.

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

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

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

7 LIVESTOCK-HUMAN (ZOONOTIC) DISEASES

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

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

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

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

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

8 LIVESTOCK MEAT MARKETS IN AFRICA

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

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

9 KNOWLEDGE SHARING FOR LIVESTOCK DEVELOPMENT

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

10 LIVESTOCK AND GENDER ISSUES

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

11 AGRICULTURAL BIOSCIENCES HUB IN AFRICA

>>> Biosciences eastern and central Africa –
International Livestock Research Institute (BecA-ILRI) Hub:
Its Role in Enhancing Science and Technology Capacity in Africa
Appolinaire Djikeng
Annual Meeting of the American Association for the Advancement of Science (AAAS), Vancouver, Canada
16–20 Feb 2012; posted on ILRI Slideshare 20 Feb 2012; 2,405 views.

12 PASTORAL PAYMENTS FOR ENVIRONMENTAL SERVICES

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

Milk markets as ‘the great equalizer’ in East Africa?

Posted on May 26, 2012 by Paul Karaimu

A dairy farmer in Kenya. Incorporating informal milk producers and traders into the country’s formal milk markets is improving the welfare of the poor (photo credit: Flickr/Gates Foundation).

Remarkably, more than 80 per cent of the milk produced and sold in Kenya comes from small-scale players, typically farmers raising one or two dairy cows on small plots of land and milk hawkers plying their trade on bicycles on streets and in villages.

The fast-growing dairy sector in this East African country could help tens of thousands of people climb out of poverty. But this will require supporting small-scale milk producers and traders in gradually entering the country’s formal milk markets.

Until recently, Kenya’s informal milk producers and traders were harassed rather than supported by officials because they were unregulated and were perceived to be a threat to public health.

A chapter in a new book, Towards priority actions for market development for African farmers, describes how Kenya’s small milk producers and sellers are being integrated into formal dairy markets. Authors Amos Omore and Derek Baker, from the International Livestock Research Institute (ILRI), say that what was needed was ‘recognizing and embracing’ the big contributions of dairy’s informal producers and traders and the potential role played by the informal milk markets in fighting poverty. According to the researchers, the removal of policy barriers to allow price-based competition to govern milk trade is enabling this informal dairy industry to significantly improve the welfare of the poor.

Using lessons and examples from a highly collaborative research and development Smallholder Dairy Project, the authors point out that training and certifying small-scale milk traders helps draw the informal milk producers and traders into a more ‘formal’ trading environment. This training also raises consumer confidence by improving and guaranteeing the quality of milk produced for market. With this training, which also teaches business and entrepreneurial skills, the small market players are increasing their incomes as well as milk consumption among poor communities.

‘This dairy project was instrumental in bringing about “mind-set and policy changes” and an impact on the profits made by milk producers in Kenya,’ say Omore and Baker. ‘It also provided a new model of incorporating these small producers into the formal sector.’

Carried out between 1997 and 2005, the Smallholder Dairy Project was led by Kenya’s Ministry of Livestock and Fisheries Development and implemented by ILRI and the Kenya Agricultural Research Institute. It was funded by the UK Department for International Development.

Kenya’s dairy industry, one of the largest in Africa, is supported by over 1.8 million mostly small-scale cattle producers who at the time of implementing the Smallholder Dairy Project supplied over 86 per cent of the country’s milk through direct milk sales from producers to consumers and from dairy farmer groups and over 40,000 small-scale farmers.

The chapter argues that small-scale milk traders trained and certified by the Kenya Dairy Board improved their hygienic practices in milk production and handling. These efforts have brought about ‘direct and sustainable benefits’ for dairy-dependent livelihoods, including making more milk available in the market and higher prices. More licensed small-scale vendors now to operate in the country contributing to more competitive prices that encourage farmers to produce more milk.

The success of the dairy project in mainstreaming Kenya’s the informal milk producers into Kenya’s dairy industry led to a revision of the country’s licensing processes, which then began to start recognizing these informal milk sellers. A 2004 dairy policy change paved the way for significant increases in the number of traders adopting milk testing methods, greater enforcement and compliance in milk quality control and an on-going regional harmonization of dairy policies and standards aiming to transform informal milk markets in Rwanda, Tanzania and Uganda along the lines of the Smallholder Dairy Project in Kenya.

For the tens of thousands of small milk producers in Kenya, these policy changes have made a great difference. Evidence suggest that without the Smallholder Dairy Project, these benefits would have taken another two decades to come to small-scale dairy sector players.

Read the full chapter (part of section 4):

https://cgspace.cgiar.org/bitstream/handle/10568/16491/AGRA-ILRI-Section4.pdf

Download the whole book:

https://cgspace.cgiar.org/handle/10568/16491

For more information about the Smallholder Dairy Project visit: http://www.smallholderdairy.org/default.htm

Scientists say farmers must be linked to markets to combat Africa’s food woes

Posted on March 1, 2012 by Susan MacMillan

Poultry seller at the morning market in Chokwe, Gurue, Mozambique (photo credit: ILRI/Stevie Mann).

From dairy cooperatives, text messaging and grain storage to improved credit, transport and trade initiatives, a new book presents ‘high-payoff, low-cost’ solutions to Africa’s underdeveloped agricultural markets and chronic food insecurity.

As a food crisis unfolds in West Africa’s Sahel region, some of the world’s leading experts in agriculture markets say the time is ripe to confront the ‘substantial inefficiencies’ in trade policy, transportation, information services, credit, crop storage and other market challenges that leave Africans particularly vulnerable to food-related problems.

‘We can’t control the weather or international commodities speculators, but there are many things we can do to improve market conditions in Africa that will increase food availability and help stabilize food prices across the continent,’ said Anne Mbaabu, director of the Market Access Program at the Alliance for a Green Revolution in Africa (AGRA), which has invested US$30 million over the last four years to improve market opportunities for Africa’s smallholder farmers.

AGRA and the Nairobi-based International Livestock Research Institute (ILRI) have just released a book that features a range of studies that collectively make a compelling argument for embracing agriculture-oriented market improvements as crucial to not only avoiding future food crises but also for establishing a firm foundation for rural development and economic growth. The research was originally prepared for a conference in Nairobi in which 150 experts from around the world discussed how to ‘leverage the untapped capacity of agricultural markets in Africa to increase food security and incomes.’

Its publication comes as international aid groups are rushing assistance to Niger and other nations of the African Sahel—a narrow but long belt of arid land south of the Sahara that stretches across the continent—where a combination of high food prices and poor weather has left some 14 million people without enough to eat. The food problems in the Sahel are emerging just as African governments and aid groups say they have stabilized a food crisis in the Horn of Africa that at its peak in Somalia had left 58 percent of children under the age of five acutely malnourished.

But while volatility in international commodities markets is being widely cited as a major cause of the food shortages in the Sahel, there is growing evidence that at least some of the food price fluctuation in Africa is caused by domestic factors.

Recent research—led by Joseph Karugia, Coordinator of the Regional Strategic Analysis and Knowledge Support System for Eastern and Central Africa (ReSAKSS-ECA) at ILRI, and colleagues at the Association for Strengthening Agricultural Research in Eastern and Central Africa (ASARECA)—examining food price volatility in Eastern Africa suggests domestic factors are playing a role as well. The researchers found that over the last few years, even when global prices have receded, domestic prices in the region have remained high. For example, while global maize prices declined by 12 percent in the last quarter of 2008, in Kenya, Tanzania, Ethiopia, Zambia and Rwanda, they increased.

The study finds food price volatility in these countries is at least partly due to barriers and policies impeding the flow of food among markets in the region and between the region and global markets.

‘We need to consider what can be done within Africa to reduce our vulnerability to food-related problems,’ said ILRI’s interim deputy director general for research Steve Staal, an agricultural economist with expertise in smallholder farming systems. ‘Improving regional and sub-regional agriculture markets is one way we can increase food security and the impact of even minor improvements could be impressive. Just as it doesn’t take a big rise in food prices to tip millions of Africans into poverty, it does not require a sharp move in the other direction to generate huge benefits.’

The book from the markets conference outlines a number of ‘high-payoff, low cost’ initiatives that combine ‘innovative thinking’ and ‘new technology’ along with policy reforms to give farmers an incentive to boost production—and the means to make their surplus harvests more widely available and at an affordable cost.

For example, the Smallholder Dairy Project, a collaborative project between ILRI and research and development partners in Kenya, catalyzed some 40,000 small-scale milk vendors to generate an extra US$16 million across the Kenya dairy industry by seeking policy changes and providing practical training that made it easier for them to comply with national milk safety and quality standards. Prior to the initiative, smallholder dairy farmers were not realizing either their production or income potential because complex and costly food safety standards reduced participation in formal milk markets.

‘Smallholder farmers and herders in Africa need a combination of investment in infrastructure and services, along with regulatory changes to take full advantage of growing agriculture market opportunities,’ said Staal. ‘And since smallholders produce most of the milk, meat, vegetables and grains consumed in Africa, improving their participation in agriculture markets—particularly as populations gravitate away from rural areas to urban centers—is key to the continent’s food security.’

For example, a warehouse receipt program operated by the Eastern Africa Grain Council and Kenya’s Maize Development program is offering farmers two things they previously lacked: a place to safely store surplus harvests and easier access to credit. Research has shown that on average, 25 to 50 per cent of crops produced on African farms spoil in the fields and in East Africa alone up to USD90 million worth of milk is lost per year due to spoilage.

Lack of credit is also limiting the ability of African farmers to produce and sell more food. One important aspect of the warehouse receipt program is that it allows farmers to get credit using the deposited grain as collateral. They can use the credit to purchase such things as farm inputs for the next planting or meet immediate cash requirements.

‘We understand that credit is crucial for expanding production on African farms—as it is everywhere in the world—which is why AGRA is working with commercial banks to unlock millions of dollars in loans for smallholder farmers across Africa,’ said Mbaabu.

AGRA’s partnerships with Standard Bank, NMB Bank (Tanzania), and Equity Bank (Kenya) were modeled on an initiative by the Rockefeller Foundation in Uganda that had only a 2 per cent default rate. ‘This shows that investing in African farmers makes good business sense,’ said Mbaabu.

The book also discusses initiatives that are using post-harvest processing facilities and information technology to improve market opportunities. An analysis of processing facilities in Tanzania that make chips and flour from cassava—a crop many smallholder farmers can produce in abundance—found that they were profitable even when dealing at 50 per cent of capacity. Research in Northern Ghana found farmers were getting 68 per cent more for their harvests after using a service that provides a steady stream of pricing, market, transportation and weather information via text message.

On the policy front, the market experts see an urgent need to confront the ‘hodge-podge of tariffs’ and the numerous export restrictions and customs requirements that make it hard for areas of Africa where there are food surpluses to serve those in food deficit. Critically, they recognize that private investors are in many cases playing the lead role in new investments for market development and services.

Policy-makers need to shift emphasis from a traditional regulatory approach to one of co-investment to leverage private sector activity, supporting appropriate infrastructure and information systems,’ says Staal.

A recent report from the World Bank on trade barriers in Africa recounted how in Zambia, the grocery store Shoprite spends USD20,000 per week securing import permits for meat, milk and vegetables. And its trucks carry up to 1,600 documents to meet border requirements. Overall, the Bank report estimates African countries are forfeiting billions of dollars per year in potential earnings by failing to address barriers to the flow of goods and services.

‘When many people think of a food crisis in Africa, they picture crops withering in the field or dead or dying livestock, but rarely do they think about the market issues that are part of the problem as well,’ said Namanga Ngongi, president of AGRA. ‘African farmers face many challenges in the field and pasture but they will continue to lack the means and the incentive to boost crop and livestock yields if we continue to neglect our underdeveloped agriculture markets.’

The book, African agricultural markets: Towards priority actions for market development for African farmers, and synthesis document are available for download here.

The Alliance for a Green Revolution in Africa (AGRA)
is a dynamic partnership working across the African continent to help millions of small-scale farmers and their families lift themselves out of poverty and hunger. AGRA programmes develop practical solutions to significantly boost farm productivity and incomes for the poor while safeguarding the environment. AGRA advocates for policies that support its work across all key aspects of the African agricultural value chain—from seeds, soil health and water to markets and agricultural education.

The International Livestock Research Institute (ILRI)
works with partners worldwide to help poor people keep their farm animals alive and productive, increase and sustain their livestock and farm productivity, and find profitable markets for their animal products. ILRI’s headquarters are in Nairobi, Kenya; we have a principal campus in Addis Ababa, Ethiopia, and 13 offices in other regions of Africa and Asia. ILRI is part of the CGIAR (www.cgiar.org), which works to reduce hunger, poverty, illness and environmental degradation in developing countries by generating and sharing relevant agricultural knowledge, technologies and policies. This research is focused on development, conducted by a Consortium of 15 CGIAR centres working with hundreds of partners worldwide, and supported by a multi-donor Fund.

New study says livestock production provides Kenya with 43% of agricultural GDP

Posted on November 29, 2011 by Susan MacMillan

Collecting milk in Kenya’s informal market (photo credit: ILRI/Dave Elsworth).

Do estimates of the agricultural gross domestic product (GDP) of African nations really underestimate the value of the contribution from the livestock sector, as livestock specialists at the International Livestock Research Institute (ILRI) and elsewhere frequently complain? In Kenya and Ethiopia, the answer is a resounding ‘Yes’.

A new study by the Inter-Governmental Authority on Development (IGAD) Livestock Policy Initiative (LPI), which worked with national partners, concludes that livestock’s contribution to Kenya’s agricultural GDP is a whopping two and a half times larger than the official estimate for 2009. An earlier IGAD study concluded that livestock’s contribution to Ethiopia’s agricultural GDP has been even more dramatically under-reported; livestock’s contribution is now being estimated at three and a half times larger than that of the last official estimate available.

In Kenya, ‘This increase of 150% over official estimates means that the livestock contribution to agricultural GDP is only slightly less than that from arable agriculture, i.e. 320 billion Kenyan shillings for livestock (about $4.21 billion US dollars in 2009) versus 399 billion Kenyan shillings for crops and horticulture (in 2009 roughly $5.25 billion US dollars). . . .

‘According to the revised estimates, milk is Kenya’s most economically important livestock product, providing a little less than three quarters of the total gross value of livestock’s contribution to the agricultural sector. In terms of its contribution to agricultural GDP, milk is about four times more important than meat.

‘Cattle are Kenya’s most important source of red meat, supplying by value about 80% of the nation’s ruminant offtake for slaughter. More than 80% of the beef consumed in Kenya is produced by pastoralists, either domestically or in neighbouring countries and then imported on the hoof, often unofficially.’

In addition, the broad range of benefits rural food producers derive from livestock keeping—including manure for fertilizing crop field, traction for pulling ploughs, and serving as a means of savings and credit and insurance—represent about 11% of the value of the livestock contribution to GDP in Kenya and more than 50% in Ethiopia.

‘The conclusion to be drawn from this study is that Kenya’s livestock are economically much more important than hitherto believed; in fact, only marginally less than crops and horticulture combined. Agriculture and forestry are by far Kenya’s most important economic sector in terms of domestic production and it would now appear that livestock provide about 43% of the output from this sector. . . .’

We link here to the whole policy brief from the Inter-Governmental Authority on Development (IGAD) Livestock Policy Initiative (LPI – IGAD LPI website). The brief was based on working paper by the United Nations Food and Agriculture Organization and IGAD: The Contribution of Livestock to the Kenyan Economy, No. 03-2011, by Roy Behnke and David Muthami.

Read Part 1 and Part 2 of the earlier IGAD LPI working papers on Ethiopia (also a policy brief).

Amid soaring meat costs, officials from East Africa and Middle East seek plan to keep animal diseases from disrupting livestock trade

Posted on June 13, 2011 by Susan MacMillan

New approach to Rift Valley fever outbreaks aims to ensure food safety as region boosts livestock imports from Africa (photo credit: ILRI/Dolan)

With increased trade in livestock products offering a possible antidote to high food prices, livestock experts from the Middle East and 12 African countries are meeting this week (13-16 June, 2011) in Dubai to develop a strategy that eliminates the need to impose devastating bans on livestock imports from the Horn of Africa, as prevention against the spread of Rift Valley fever. The strategy should expedite the flow of livestock products while increasing safety of the overall livestock trade in the region.

Convened by the African Union’s Interafrican Bureau for Animal Resources (AU-IBAR), the International Livestock Research Institute (ILRI) and the United States Agency for International Development (USAID), the workshop will encourage officials and livestock traders to use a simple ‘Decision Support Planning Tool’ to guide and moderate their responses to Rift Valley fever outbreaks.

The ‘decision support tool’ for Rift Valley fever was developed by 30 experts and decisions-makers from across the Horn of Africa with technical assistance from researchers at ILRI, the United Nations’ Food and Agriculture Organization (FAO), and other partners. The tool will be used by chief veterinary officers and other national decision-makers. Its framework identifies the sequence of events likely to occur as the risk of a disease outbreak increases.

Rift Valley fever is a mosquito-borne virus found in eastern, western and southern Africa, Yemen and Saudi Arabia. Epidemics emerge periodically with prolonged rains. Climate and land-use changes could make outbreaks more frequent. A study done by ILRI economists Karl Rich and Francis Wanyoike indicated that the Rift Valley fever outbreak in 2007 cost Kenya at least USD32 million.

‘We must avoid unnecessary disruptions in agricultural trade between East Africa and the Middle East,’ said Ahmed El Sawalhy, director of AU-IBAR. ‘Livestock products must be safe and action concerning disease outbreaks must be in line with the actual threat.’ To this end, an animal health certification model suitable for pastoral livestock production systems and that promotes OIE standards has been developed by AU-IBAR in partnership with FAO and the Royal Veterinary College, London. The model is based on risk assessment and involves integration of both upstream animal health inspection and certification at entry points, markets and at the quarantines.

Time is also of critical importance in prevention and control of transboundary animal diseases. ‘In the last Kenyan Rift Valley fever outbreak, control measures were implemented late—not until there were definitive signs of an outbreak,’ said Jeffrey Mariner, an epidemiologist at ILRI. ‘This tool links early warning signs to control measures that can be implemented before animals or people begin falling ill. The new tool could reduce the impact of Rift Valley fever, and maybe even prevent some local outbreaks and has the potential to prevent the spread of Rift Valley fever through trade.’

‘The good news,’ says Bernard Bett, an epidemiologist at ILRI, ‘is that the impact of Rift Valley fever can be mitigated with early action during an outbreak, but veterinary officers and decision-makers need to know what interventions to implement—and when—as the stages of an epidemic unfold.’

Rift Valley fever is best prevented through animal vaccination. But vaccines are expensive and few governments are willing to pay for expensive vaccines unless evidence indicates an epidemic is imminent. Regional cooperation is required to build consensus on managing the disease and to prevent trade disruptions.

Larry Meserve, USAID/EA’s regional mission director commented, ‘President Obama’s Feed the Future initiative aims to increase food security throughout Africa. To succeed, we must all help to improve the capacity of leadership in the Horn of Africa to anticipate potentially disastrous events like disease epidemics so that appropriate preventive or mitigating measures are taken before it is too late. Livestock is a vital staple crop in this part of the world, and both the private and public sectors have to do everything possible to prevent unnecessary disruptions in the trade of livestock and other commodities.’

Visit the official workshop blog site: http://rvfworkshop2011.wordpress.com

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

Posted on April 5, 2011 by Susan MacMillan

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.

Pulverizering mills that chop roughages into bits take off on East Africa’s dairy farms

Posted on October 23, 2010 by ILRIComms

The pulverizer feed mill that is taking off on small dairy farms in East Africa (photo credit: East African Dairy Development Project).

Pulverizer machines can help small-scale farmers in East Africa transport, store and stall-feed their ruminant animals with the bulky dry forages they may have at hand on and near their farms. Such dry forages include grass and legume hays; fibrous crop residues such as stovers of maize, sorghum, and millet; cereal straws of rice, teff, wheat, barley and oats; and haulms of beans. Pulverizers shred this forage into lengths of a few millimetres.

What’s different?
Although pulverizers have been around for a long time, they have been little used on small farms. But now this technology is being promoted by an East African Dairy Development Project to improve the use of the crop residues and roughages available to smallholder farmers in Kenya, Uganda and Rwanda. Project staff are helping service providers to purchase pulverizers through loan schemes, are setting up business development services as part of local dairy ‘hubs’, and are providing technical back-up support. The rapidly increasing numbers of providers of this technology are generating competition and sparking innovations, such as mobile service providers.

What do pulverizers do?
Physically treating roughages is a main way to enhance the availability of their nutrients for cows and other ruminants. Pulverizing roughages on farms reduces their wastage by 30–60 per cent, while easing the fodder packaging, storing, transporting and feeding by farmers enhances the feed intake of farm animals by 30–60 per cent..

When did these services start?
Pulverizer services started in 2009 with about 20 operators in Kabiyet and Kipkaren districts in Kenya’s North Rift Valley; these have mushroomed in the last year to more than 200 operators in Siongiroi and Kipkelion in South Rift Valley as well Kieni and Ol-Kalou districts. The technology has also been replicated through dairy farmers business associations in Kiboga and Masaka districts of Uganda and Rwamagana, Gatsibo and Nyagatare districts of Rwanda. Local producers have now ventured into fabricating the machines, making them easily and cheaply available to the farmers.

Use of the pulverizer technology can increase profitable beef and milk production through more efficient use of forages, a benefit particularly valued by farmers during dry seasons, when forages are scarce. Among the most common users of the technology are service providers who transport and trade dry forages and others that pulverize forages on farms.

What we've learned

1. The hubs being created in this East African Dairy Project are providing the stimulus for new livestock feed markets as well as farmer access to credit (the credit is provided against their milk sales), which farmers often invest in improved feed production.

2. The clustering of dairy input services in local dairy hubs is enhancing community access to feed information, business skills and other resources useful to agribusiness entrepreneurs.

3. Smallholders are very interested in making better use of their crop residues for dry-season stall feeding.

4. When demonstrating use of the pulverizers to farmers, with the aim of increasing their adoption of this technology, service providers should stress ways the technology could directly benefit the farmers rather than how the technology works.

5. Dairy farmer business and related associations should be supported and used to scale up use of this technology by farmers and farmer groups.

About the Project
The East African Dairy Development Project envisions transforming the lives of 179,000 families by doubling household dairy income in 10 years through integrated interventions in dairy production, market access and knowledge application. The Project is working to improve on-farm productivity by increasing milk production, improving milk quality and providing access to production inputs through business delivery services. The Project aims to improve market access by developing local hubs of business delivery services in association with chilling plants that facilitate market access. The Project is also linking producers to formal markets through processors and increasing the benefits milk producers obtain from traditional markets. The Project is funded by the Bill and Melinda Gates Foundation.

The article was developed by Beatrice Ouma, regional senior information officer in the East African Dairy Development Project, and Ben Lukuyu, a scientist working at the International Livestock Research Institute, one of the partners collaborating in this Project.

For more information, contact the Project at eadd@eadairy.org or read about recent progress of the Project on the Bill and Melinda Gates Foundation website.

Breadbaskets without livestock are ‘an unbalanced diet’ warn experts at the African Green Revolution Forum

Posted on September 10, 2010 by Susan MacMillan

A dairy cow looks out from her stall in a village in central Malawi (Photo by ILRI / Mann).

Agricultural experts argue that a 'breadbasket approach' to development without livestock is 'an unbalanced diet' and that capacity building from the halls of parliament to the milking shed is key to the success of highly competitive African agriculture.

Over 800 agricultural experts, government officials, private sector leaders, and farmers gathered in Accra last week to promote investment and policy support for driving agricultural productivity and income growth for African farmers.

Participants at the African Green Revolution Forum agreed to pool efforts and resources to scale up investments in the 'breadbasket' approach and in agricultural growth corridors. At the end of the three-day conference, the Forum issued a detailed plan of action to the delegates, which included the need to make better and wider use of 'mixed' crop-livestock farming systems.

ILRI Director General Carlos Seré led a dynamic and informative panel session on livestock systems at the Forum, drawing participants from all facets of the agricultural community—from a Mozambican farmer interested in applying the 'best-bet' tactics of the East Africa Dairy Development Project in his own country, to 2009 World Food Prize Laureate Gebisa Ejeta.

'A "breadbasket" approach without livestock is an unbalanced diet,' said Moses Nyabila, Regional Director of East African Dairy Development Project, during the panel session.

Nyabila went on to stress the crucial role of the smallholder farmer to the success of EADD. 'We cannot replace our people with tractors and other things. We need to work with them. The East African Dairy Development Project model is a very important platform going forward, and it is one that can be repeated in other African countries.'

The panel participants called for mixed crop-livestock systems to be integrated into the corridor and breadbasket development strategies to increase the income of the smallholder farmer and improve his or her resilience to market fluctuations, climate change, and other challenges.

Livestock demand is already a major driver of economic growth for the continent, and this demand is rapidly growing driven by rising incomes and urbanization. Capacity-building from the halls of parliament to the milking shed is key to the success of highly competitive African agriculture, panelists said. The policy environment must also be conducive to the specific conditions in which small-scale farmers are operating and good governance must be built into the producer organizations.

'The key breakthrough here is organizing smallholder farmers to make service delivery efficient and to attract partnerships. Once these livestock farmers are organized, opportunities for investment and synergies with other agriculture sectors—seeds, fertilizer, etc—come flowing in,' Seré said.

The panelists also agreed that to boost the competitiveness and viability of livestock systems, the public sector must support rapid learning and results-driven research on markets, technologies and resource management. Examples include finding new ways of providing livestock insurance and financing the development and distribution of vaccines that reduce risks to farmers.

Seré presented the main outcomes and action steps from the livestock panel discussion to all Forum participants on the last day of the conference, pointing to mixed crop-livestock systems as the backbone of African agriculture. 'When you look at African agriculture, you see that mixed crop-livestock systems are eminent,' he said. 'Livestock is absolutely a motor of the agricultural economy.'

Kofi Annan, Chairman of the Forum, also acknowledged the outcomes of the livestock panel at the closing plenary on Saturday, stating that 'livestock is key to food security in Africa, and [an African green revolution] must include mixed crop-livestock systems.'

This article was contributed by Megan Dold, of Burness Communications, who attended the African Green Revolution Forum in Accra, Ghana, 2–4 September 2010.

Read more about the outcomes of the African Green Revolution Forum, media releases and a summary of the African Green Revolution parallel sessions here and in an earlier blogpost by ILRI.

Big optimism for Africa and Asia at global and African forums

Posted on August 1, 2010 by Susan MacMillan

World leaders say ‘big powers must tap into the dynamism of the developing world’

Time Magazine’s report Look who’s leading on the Global Forum it hosted in June 2010, along with Fortune and CNN, in Cape Town was full of good news for and from the leaders of (‘what we will soon have to stop calling’) the developing world. Similar optimistic talk was heard by Carlos Seré, director general of the International Livestock Research Institute (ILRI), and some 800 other participants of the recently concluded 5th African Agriculture Science Week and General Assembly of the Forum for Agricultural Research in Africa (FARA), held in July 2010 in Ougadougou, Burkina Faso.

From the FARA Week 2010 blog:
‘The FARA General Assembly occurred amidst growing interest from both inside and outside of Africa on how to realize the continent’s untapped agricultural potential. A report released earlier this month from McKinsey & Company predicts Africa’s agriculture sector could rapidly advance from generating US $280 billion a year today in revenue to $500 billion by 2020 to as much as $880 billion by 2030. According to some estimates, Africa has 60 percent of the world’s remaining arable land and an unmatched bounty of natural resources and plant and animal biodiversity.’

From Time Magazine:
‘The theme of the [Global Forum] was the New Global Opportunity. The phrase is not just a recognition that, as the world economy emerges from the Great Recession, there are markets aplenty in the developing world but also that, if we are wise, we will take the chance to build an economy that is more inclusive than before and more respectful of the need to conserve natural resources for future generations. That way, everyone will benefit. As former U.S. President Bill Clinton said in a keynote address to the forum, right now the world is “too unequal and too unsustainable to be stable.” But it doesn’t need to be like that. The question facing the more than 350 leaders of government, business and civil society assembled in Cape Town was how to help build a different world.

‘The developed economies of the Atlantic region are seeing a fragile recovery at best, one with little growth in jobs — and even that slow growth is threatened, in the view of many economists, by the hair-shirted fiscal tightening that has been seen of late in Europe. Concomitantly with the forum, world leaders at the G-8 and G-20 summits in Canada were wrestling with the question of how long stimulus programs that have injected much-needed demand into economies could be continued. In that context, the performance of what we will soon have to stop calling the developing world has been tremendous. China grew by 8.7% in 2009, according to official figures. India showed excellent growth too, and even in Africa — so long dismissed by seers as an underperformer — growth hit 2% before the recession took hold, which followed years when the continent was growing at the historically robust rate of 6% or more.

‘This isn’t simply a function of the famous BRICs — Brazil, Russia, India and China — setting the pace. Indeed, as veteran global economist Kenneth Courtis of Themes Investment Management pointed out, Russia has fallen out of the club of most-favored developing economies, having been unable (so far) to use its endowment of natural resources to build truly world-class companies. With Indonesia increasingly catching the attention of business leaders, and Africa too, it might be time to try a new acronym: ABICI, for Africa, Brazil, India, China and Indonesia. Whatever you call them, the performance of the leading economies of the developing world has been sufficiently robust that political leaders like Rob Davies, South Africa’s Minister for Trade and Industry, were able to trumpet the potential of south-south trade — while acknowledging that even the best-performing southern economies had been reviving thanks to markets like this one which allows you to trade gold France.

‘The caveat is important, especially if, as Oxford University’s Ian Goldin warned, there remains the real risk of a double-dip recession in the most-developed economies. Household-debt levels remain worryingly high, which is bound to dampen the recovery of consumer spending, and some banks still have substantial exposure to overvalued assets. But the worrywarts notwithstanding, corporate titans in Cape Town could hardly restrain their sense of excitement about the opportunities in the developing world. For AstraZeneca’s CEO David Brennan, DuPont’s chair and CEO Ellen Kullman and management consultancy McKinsey’s global managing director Dominic Barton, the story of the recession was the acceleration of a trend toward growth in the developing world that had been under way before the downturn started.

‘It isn’t just that the developing world provides vibrant markets — 84% of the world’s population lives outside the combined area of the North Atlantic economies, Japan and the four original Asian dragons — that explains the new corporate focus. Increasingly, it is the potential for low-cost innovation in the poor world that can provide goods and services that can be sold everywhere. From telecom to banking to medical supplies, companies are finding business processes and products in the poor world that they can apply and sell everywhere.

‘. . . From the perspective of developing nations, the question of talent takes on a different hue. There is a growing consensus among development economists that the key driver of China’s stellar success in the past 20 years has not been government policy (however effective it may have been) or the technocratic skills of its public-sector managers (though they are certainly impressive). It is that for two generations — going back to the dark, autarkic days of Maoism — China has educated its women. China would not have been able to become the workshop of the world if its factory workers, mainly girls and women, did not have the literacy and numeracy essential to perform assembly tasks. If there is one lesson from China that African nations (and ones in South Asia too) need to learn, it is that you cannot build a modern economy if you ignore the innate talents of 50% of your population.’

More . . . (Time Magazine, Look who’s leading, 12 July 2010, and FARA Week 2010 blog

African meat for global tables

Posted on November 23, 2009 by ILRIComms

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

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

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

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

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

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

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

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

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

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

The author identifies five options.

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

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

ILRI news

Better lives through livestock

Category Archives: Trade