Ongoing drought in Horn may trigger first-ever insurance payments to remote African livestock herders

ILRI researcher with local people in Marsabit, Kenya

ILRI researcher holds discussions with local pastoral herders in Marsabit, in Kenya’s northern drylands, for ILRI’s Index-based Livestock Insurance project (photo credit: ILRI/Mude).

SciDevNet reports that, due to the great drought engulfing the Horn of Africa, an ‘index-based’ livestock insurance scheme for herders in Kenya’s remote Marsabit District may make payments to those who had earlier purchased the insurance. This is the first time insurance has ever been offered Kenya’s remote livestock herders, and these would be the first payments for those who have insured their stock.

What is ‘index-based’ livestock insurance?
Index-based livestock insurance makes the risk-management benefits of insurance available to poor and remote clients. The product being piloted in Marsabit District by the International Livestock Research Institute (ILRI) and other partners, including the private sector, aims to provide compensation to insured pastoralists in the event of livestock losses due to severe forage scarcity. Incorporating remotely-sensed vegetation data in its design, delivered via mobile ICT-based transactions platforms, and with experimental extension methods used to educate the remote pastoral herders, this insurance product boasts many firsts in product development. Payments are triggered when severe drought makes forage scarce over a long period and when it can be predicted from that that more than 15 per cent of livestock in the area will have died of starvation.

SciDevNet reports the following.
‘Insurers will assess in October whether Kenyan farmers signed up to the Index-Based Livestock Insurance scheme will receive their first payment, after the worst drought in the region for 60 years.

‘The scheme, which has been piloted in northern Kenya since early 2010, uses freely-available satellite data to assess the state of pastures. When the images show that pastures have dried up, farmers can claim compensation for animals that have died as a result—without insurers having to verify the deaths in person.

‘In Kenya about 2,500 farmers have purchased the product since its inception, paying a yearly premium of up to US$100 for 6–8 animals. . . .

‘”So far, the predicted mortality [rate is] high—but we have to wait for the final tally at the end of October in order to determine whether or not there will be a payout,” said Brenda Wandera, project development manager at the International Livestock Research Institute (ILRI), Kenya, which implemented the scheme.

‘The scheme will be extended to southern Ethiopia in February 2012 to help mitigate the effects of drought. It will initially target 2,700 pastoralists.

The aim is to find a viable insurance tool that could cushion pastoralists from heavy losses experienced during droughts, according to Wandera.’

‘ILRI will partner with the Nyala Insurance s.c. company in Ethiopia, with support from the International Food Policy Research Institute, the US international development agency USAID and the World Bank. . . .’

The technical partners in this project
Cornell University
Index Insurance Innovation Initiative
Syracuse University (Maxwell School)
University of Wisconsin (BASIS Research Program)

The implementing partners
Equity Insurance Agency
UAP Insurance Limited
Financial Sector Deepening (FSD) Kenya
Kenya Meteorological Department
Kenya Ministry of Development of Northen Kenya and other Arid Lands
Kenya Ministry of Livestock

The donor agencies
UK Department for International Development (DFID)
United States Agency for International Development (USAID)
World Bank

Read the whole article at SciDevNet: Kenyan farmers may soon receive first drought payout, 15 Aug 2011.

For more information, visit the blog of ILRI’s Index-Based Livestock Insurance project.

Gates entry into CGIAR: Will research technologies or innovation systems rule the day?

GatesBill_Flickr_WorldEconomicForum

In SciDev.Net this week, Yojana Sharma describes what people see as benefits and concerns about the Bill & Melinda Gates Foundation joining the Consultative Group on International Agricultural Research (CGIAR), which supports the International Livestock Research Institute (ILRI) and 14 other centres around the world.

Prabhu Pingali, head of agriculture policy at the Foundation, acknowledges: ‘The big player in this game is obviously CGIAR. . . . The CGIAR has a much broader agenda than we do . . . .' This, says Sharma, 'is a reference to the group’s growing engagement with all aspects of improving agricultural productivity in the developing world.

Andy Hall, a researcher into rural innovation for the United Nations University in Maastricht, in the Netherlands, worries that: ‘The underlying thinking at Gates is that science can solve the problems . . . .  This was the way CGIAR was in the past, and the danger is that Gates is reinventing that approach.’

Sharma concludes that: ‘The critics say that the tensions between those who favour a science- and technology-driven approach to increasing agricultural productivity, and others (such as Hall) who prefer to think in terms of promoting broader agricultural innovation systems, are at their acutest when it comes to genetically modified food.’

Which begs the question as to why so many think that a focus on agricultural technology is incompatible with a focus on agricultural innovation systems. Surely both approaches — interacting in synergy since the dawn of agriculture — are still needed.

http://www.scidev.net/

http://www.merit.unu.edu/

http://www.gatesfoundation.org/

Genebanks needed to save farm animal diversity of the South—and assure the world’s future food supply

Carlos Sere amongst farm animals

Opinion piece in SciDev.net by Carlos Seré, Director General ILRI

Today, scientists are reconstructing the genomes of ancient mastodons, found in the frozen north. Dreams of resurrecting lost species rumble in the collective imagination. At the same time, thousands of still-existing farm animal breeds—nurtured into being by generations of farmers attuned to their environments—are slipping into the abyss of extinction, below the wire of awareness.

Livestock genetic diversity is highly threatened worldwide, but especially in the South, where the vast majority of remaining diversity resides. This diversity—of cattle, goats and sheep, swine and poultry—is as essential to the future world food supply as is the crop diversity now being stored in thousands of collections around the world and in a fail-safe crop genebank buried in the Arctic permafrost. But no comparable effort exists to conserve the animals or the genes of thousands of breeds of livestock, many of which are rapidly dying out.

Hardy and graceful Ankole cattle, raised across much of East and Central Africa, are being replaced by black-and-white Holstein-Friesian dairy cows and could disappear within the next 50 years. In Viet Nam, the percentage of indigenous sows declined from 72 per cent of the total population in 1994 to only 26 per cent just eight years later. In some countries, national chicken populations have changed practically overnight from genetic mixtures of backyard fowl to selected uniform stocks raised under intensive conditions.

Some 20 per cent of the world’s 7,616 breeds of domestic livestock are at risk, according to the Food and Agriculture Organization of the United Nations. And change is accelerating. Holstein-Friesian dairy cows are now raised in 128 countries in all regions of the world, and an astonishing 90 per cent of all cattle in the North are of just six tightly defined breeds.

Most endangered livestock breeds are in developing countries, where they are herded by pastoralists or tended by farmers who grow both crops and livestock on small plots of land. With survival a day-to-day issue for many of these small-scale farmers, they are unlikely to make conservation of their rare breeds a priority, at least not without significant assistance. From Africa to Asia, farmers of the South, like the farmers of Europe, Oceania and the Americas before them, are increasingly choosing the breeds that will produce more milk, meat and eggs to feed their hungry families and raise their incomes.

They should be supported in doing so. At the same time, the breeds that are being left behind not only have intrinsic value, but also may possess genetic attributes critical to addressing future food security challenges, in developed or developing countries, as the climate, pests and diseases all change. Policy support for their conservation is needed now. This support could be in the form of incentives that encourage farmers to keep traditional animals. For example, policies could support breeding programs that increase the productivity of local breeds, or they could facilitate farmers’ access to niche markets for traditional livestock products. And policymakers should take the value of indigenous breeds into account when designing restocking programs following droughts, disease epidemics, civil conflicts or other disasters that deplete animal herds.

But even such assistance will not enable developing-world farmers to stem all the losses of developing-world farm animals. A parallel, even bigger, effort, linking local, national and international resources, must be launched to conserve livestock genetic diversity by putting some of it ‘in the bank’. The cells, semen and DNA of endangered livestock should be conserved—frozen—and kept alive. The technology is available and has been used for years to aid both human and animal reproduction. It should also be used to conserve the legacy of 10,000 years of animal husbandry. Furthermore, such collections must be accompanied by comprehensive descriptions of the animals and the populations from which they were obtained and the environments under which they were raised.

We should know the type of milking goat that is able to bounce back quickly from a drought. We should know the breeds of cow that resist infection with the animal form of sleeping sickness. We should know the native chickens that can survive avian flu.

We should do all we can to assist farmers and herders in the conservation of these endangered animals—especially now, in the midst of rapid agricultural development. And if some of these treasured breeds fail to survive the coming decades of change, we should at least have faithfully stored and recorded their presence, and have preserved their genes. It is these genes that will help us keep all our options open as we look for ways to feed humanity and to cope with coming, yet unforeseen, crises.