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Sustainable livelihoods through livestock farming in East Africa
 

Sustainable livelihoods through livestock farming in East Africa

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Presentation by Carlos Seré, ILRI Director General, October 2008

Presentation by Carlos Seré, ILRI Director General, October 2008

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    Sustainable livelihoods through livestock farming in East Africa Sustainable livelihoods through livestock farming in East Africa Presentation Transcript

    • Sustainable livelihoods through livestock farming in East Africa Carlos Ser é, Director General October 2008
    • Why livestock matter for poor people
            • 600 million people depend directly on livestock for their livelihoods
            • Most live in Sub Saharan Africa & South Asia
            • Demand for livestock products growing rapidly in the developing world
            • Research driven interventions can make this demand led growth more pro poor  
            • Targeting vulnerable groups such as women and children critical for achieving MDGs impact
            •  
    • Diverse livestock farming systems and market conditions in East Africa
      • Provides wide range of
      • development and
      • policy contexts for
      • building sustainable
      • livelihoods
    • Agenda for pro-poor livestock in Africa
      • Enhance livestock productivity and market opportunities for the poor
        • Technologies for science based solutions
        • Institutional and organizational innovations for service delivery
        • Enabling policies
      • Reducing risk, vulnerability and promoting asset building
        • Technologies to secure livestock assets
        • Instruments to manage risk
        • Institutional and organizational innovations for service delivery
    • Productivity and markets: technology for solutions
      • Feeding and animal nutrition
        • Dual purpose crops e.g maize
        • Improved forages (e.g Napier grass)
        • Managing feed scarcity
        • Generating income from feed sale
      • Animal genetics and reproductive technologies
        • Breeding for disease resistance e.g Internal parasites
        • Artificial Insemination to increase milk productivity in dairy cows
        • Sexed semen, in vitro fertilization, embryo transfer
    • Productivity and markets: technology for solutions
      • Animal health
        • Vaccines vs East Coast Fever
        • Tryps control through “pour ons”
        • Internal parasite management in small ruminants
        • Improved diagnostics to enable market access
        • Rift valley fever – enhancing response capacity for protecting human and animal health
    • Productivity and markets: Innovations for service delivery
      • Business development services to deliver information and technical advice (Kenya, Uganda, Rwanda)
      • Delivering animal health products through community based models (Ghibe, Ethiopia)
    • Community based animal health
      • Ghibe valley in Ethiopia
      • Community based animal health schemes now used to control trypanosomosis (sleeping sickness) in cattle
      • Farmer cooperatives organize treatments, purchase drugs, monitor disease
      • Transformed Ghibe Valley now cattle part of farming system and generating income
    • Productivity and markets: Supportive policy environment
      • Dairy policy that supports smallholder development in Kenya by allowing informal milk markets
      • ILRI now working with ASARECA to scale up Kenyan model for pro-poor dairy policy to East Africa
      • Spill over to Asia (Assam)
    • Reducing risk, vulnerability and asset building
      • Reducing risk and vulnerability is central to pro-poor livestock in challenging areas
        • Provides safety nets for poor people
        • Enhance capacity to invest in viable but risky enterprises with higher returns
    • Risk, vulnerability & assets: innovative instruments
      • Payments for ecosystem services for adaptation to climate change and diversified livelihoods e.g Kitengela
      • Index based livestock insurance products to insure against climatic and other shocks that affect whole communities
    • Innovative ways of dealing with climatic shocks: Index Based Livestock Insurance
    • Motivation and goal
      • Traditional Insurance too costly for remote, smallholder populations. Monitoring costs too prohibitive. Heightens the standard problem of moral hazard.
      • New innovations in insurance design – index-based insurance products – alleviate problems associated with traditional insurance.
      • Undertake research to inform design, development and implementation of index-based insurance (IBLI) products to protect livestock keepers - particularly in Arid and Semi Arid Lands
    • IBLI: What is it?
      • Insurance product that offers policy holders a payout based on an external indicator which triggers payout to all insured clients within a geographically defined space.
      • Well suited to insuring risks that affect many members of a community at the same time (highly covariate) and are well correlated with an external indicator.
        • IBLI is thus well suited to insuring against risks such as livestock mortality that are closely correlated with climactic outcomes.
      • Payout based on an indicator variable (the index) that is highly associated with the event being insured but is not prone to manipulation by either the insured or insurer
        • So, if one is insuring against livestock mortality, then an indicator such as rainfall or forage availability may be suitable
    • IBLI offers advantages over traditional insurance
      • Unlike conventional insurance which requires measurement & verification of individual losses, index insurance pays off based on an easily observable regional index
      • Advantages
        • Low transactions costs
        • Eliminates incentive problems (moral hazard & adverse selection)
        • Should be sustainable and provided by market mechanisms
      • Disadvantages
        • Partial insurance (“Basis Risk”) – individual experience may be different from the average experience which the index captures
    • Elements of an IBLI product
      • Define a specific area of coverage (district/divisional/agro-ecology)
      • Set risk to be insured against (drought related livestock mortality)
      • Define index and model association between index and drought related mortality (currently using satellite based rainfall and forage variables)
      • Define index insurance trigger for level of mortality to insure against (e.g., greater than 15% mortality in insured area over contract period)
      • Set contract terms and calculate premiums based of trigger rate and contract terms
      • Payment is made if index contract area is triggered within contract period.
    • Piloting an IBLI contract in Marsabit
      • Innovation systems work to scope for opportunities, actors, linkages, entry points
      • Analytical work to inform contract design
      • Introducing IBLI products to clients
      • Investigating demand and willingness to pay
      • Assessing delivery channels
      • Engaging insurance companies
      • Pilot test IBLI schemes with development agencies and private sector (March 2010 – expected pilot roll-out)
      • Monitor and evaluation program to learn lessons and guide scaling out.
      • Successful pilot expected to result in commercially sustainable provision of product. Insurance companies and partners take lead for scaling out.
    • Women and risk management
      • Women’s groups play a significant role in household risk management through group saving and social insurance practices.
      • Pastoralist women saving cash and mutual insurance practices
        • Makes them targets for use of index based insurance,
        • Contribute their knowledge and experience in product development
      • Women’s holding of different species and income flows may mean that they will have distinct needs in an IBLI product
      • Delivery channels which are suited to women’s group members may be different to those which are appropriate for men and mobile pastoralists
    • Livestock and nutrition Livestock is key in household nutrition strategies : Projects that link smallholders to markets, should understand intra household dynamics and trade-offs between food consumption and income generation
    • Animal Source Foods and nutrition
      • Studies in Egypt, Kenya and Mexico found strong statistical associations between the intake of ASF and outcomes such as better growth, cognitive function, activity levels, pregnancy outcomes, and morbidity
      • Feeding trial on effects of milk and meat on school children confirmed findings, showing diet quantity and quality matter for children’s physical activity and social behaviour
      • Livestock ownership (dairy cows and buffalo) was positively related to children’s nutritional status only if milk was actually consumed by the children and not all sold commercially
    • Integrating innovations into livestock value chains East Africa Dairy Development
    • Overall Goal
      • To transform the lives of 179,000 families—or approximately one million people —by doubling household dairy income by year 10 through integrated interventions in dairy production, market-access and knowledge application
      • Beneficiaries:
        • 169,000 poor smallholder dairy families that earn less than $2 per adult equivalent per day and have 1-5 cows
        • 10,000 Fodder producers that earn less than $ 2 per adult per day
      • US$ 48 million investment
    • Three major objectives
      • To generate information for evidence based decision-making on the dairy value chain and to develop innovative solutions for use of resources that increase income
      • To expand dairy markets and increase market access for smallholder farmers
      • To increase dairy productivity and efficiency in a sustainable manner
    • Confronting Complexity
      • Challenges
        • Business model
        • Conflicting objectives and trade-offs
      • Opportunities
        • The hub concept
        • Multi-country project
    • EADD project model: Dairy Hubs
    • Dairy Sector Value Chain Farmer ILRI Consumer ICRAF Techno Serve Heifer ILRI Techno Serve Techno Serve Techno Serve ILRI Heifer ABS
    • Monitoring & Evaluation
      • Essential step towards greater effectiveness and accountability in projects and programs
      • Two dimensions
        • Outcome and impact: welfare improvement from project and program interventions
        • Overall performance and achievements: What works, what does not work, why, and in what context
    • Conclusions
      • In Africa livestock are key to sustainable livelihoods of the poor
      • Sustainable hunger reduction has to address productivity and vulnerability of households, and needs of specific target groups such as women and children
      • No “silver bullets” but need to integrate technologies, improved institutions, and conducive policies
      • Need integrated set of actions along specific value chains – building on core competencies of a wide range of actors along the research to delivery continuum
      • Complex task requiring effective managerial approaches to tackle complexity in pragmatic ways
      • Learn quickly - Use lessons to improve strategy and sharpen operations to maximize sustainable impact