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Impacts of aflatoxin contamination
    on livelihoods of the poor households

                                Marites Tiongco, IFPRI
                           on behalf of the Aflacontrol team

                                       November 30, 2011
International Food Policy Research Institute           Uniformed Services University of the Health Sciences
International Center for the Improvement of Maize      ACDI/VOCA/Kenya Maize Development Program
and Wheat                                              Kenya Agricultural Research Institute
International Crops Research Institute for the Semi-   Institut d’Economie Rurale
Arid Tropics                                           The Eastern Africa Grain Council
University of Pittsburgh
Used semi-structured
interviews and focus group
discussions(value chain
approach):
• Role of maize in people’s
   livelihoods (diversified
   by gender)
• Production, storage,
   marketing practices
• Sources of information
   regarding inputs,
   improving production
   practices, disease,
   market information         Kenya – 6 villages – 3 east; 3 west
• Knowledge about
   aflatoxin risk
• Conducted household surveys t o 1344 HHs in
    Kenya (from 120 sublocations in 6 AEZ)+ 300
    HHs from prevalence sample;
•   Main objective is to assess the effect of
    “aflatoxin contamination” on income and
    wealth.
•   We take the farm household as the unit of
    analysis
•   Treat aflatoxin contamination as a negative
    externality to the production function
•   Measure health costs and production costs
    (including aflatoxin contamination)
Number of
                             households
                 Number of       per     Number of
                 sublocation sublocaton household
Lowland Tropics           15           6        90
Dry mid-
altitudes                 18          12      217
Dry transitional          18          12      203
Moist
Transitional              30          12      354
Moist Mid-
altitudes                 20          12      240
Highlands                 20          12      240
total                                        1344
          Sample of 217 HHs from districts
          that experienced aflatoxicosis
          outbreak in 2004 in Kenya—151 HHs
          are in dry transitional and 66 are in
          dry mid altitude)
All
                Dry          Dry Mid-         Moist Mid-       Moist                                        Household
                Transitional Altitudes        Altitude         Transitional High Tropics        Low Tropics s
Proportion of
female
household
heads                  19%           22%             25%               14%            17%              8%       18%
Household
head's age
(years)                  55              52            52                52                52           52        52
Household
head's years
of education               7             6                 7              7                 7            7          7
Years of
farming
experience               29              28            24                27            26               24        26
Low     Dry Mid-                                            Moist
                      Tropics altitudes    Dry          Moist        High         Mid-      All
                                           Transitional Transitional Tropics      Altitude Households
Household size               6            6            6           6             6        8           6
Proportion of
children (<15 years
old) in the
household                 39%        41%            49%         37%            41%    48%          42%

 (<5 years old)            11%       12%            12%         10%            10%     12%         11%
Annual income (in
1000 KShs)             157,961    98,474        106,982     368,925     188,811 142,727        200,298
Share of income
from maize to total
annual income            20.5%     28.9%          26.2%        9.3%       22.0%      21.7%       16.5%
Dry         Dry Mid-      Moist Mid- Moist       High                         All
                       TransitionalAltitudes     Altitude   TransitionalTropics          Low Tropics Households

Maize area 2010 (ha)           4.1         2.7           2.3         2.3           2.7           2.0        2.5
Maize produced
2010 (kg)                     1384        1272         1404        1736       1960             1367       1561

Maize yield (kg/ha)            385         316           375        878           1228          487        672


Maize sold 2010 (kg)          1321         230           219       1648           369           193        693
Households selling
maize (%)                     26%         29%           23%         25%           37%           13%        26%
Dry          Dry Mid-        Moist Mid- Moist        High                        All
                                                                                    Low Tropics
                 Transitional Altitudes       Altitude   Transitional Tropics                     Households

Cash transfers
and others             21.5%       29.4%           27.2%       22.1%       43.0%         26.7%        26.8%
   Maize
production             20.5%       28.9%           26.2%        9.3%       22.0%         21.7%        16.5%
Salary
employment             27.8%       17.6%           22.1%        6.3%       12.5%         26.5%        13.2%
Cash crop
(tea,coffee)            4.0%        1.1%            5.9%       12.9%       26.0%          1.7%        11.9%
Food crops
(includes F&V)          6.7%        8.4%           14.8%         5.2%      15.4%         18.0%         8.9%
Livestock               2.5%        7.8%            5.1%        3.0%        9.2%          2.5%         4.5%
Off-farm work           6.2%       10.0%            5.2%        1.6%        2.8%          4.2%         3.5%
Number of
income sources              3             3             3           4           3             3            3
dry mid-altitutes


  moist mid-altitudes


      lowland tropics


      dry transitional


    moist transitional


         high tropics


                         0       2             4            6              8
                                           p 50 of hfias




Note: The Household Food Insecurity Index (Coates et al) ranges from 0 -
27 with 0 being the least food insecure and 27 being the most food
insecure. Given the food insecurity situation, the most vulnerable to
demand shocks would be the poorest among the poor HHs.
Low    Dry Mid-           Dry       Moist      High    Moist Mid-        All
                    Tropics   altitudes Transitional Transitional   Tropics    altitudes Households
50% loss in
production +
50% fall in price     17%         21%          18%          12%       13%          16%         14%
50% reduction
in price of maize     11%         14%          12%           8%        8%          11%         10%
70% reduction
in price of maize     16%         20%          17%          11%       12%          15%         14%
50% increase in
price (effect on
net buyers)            32%        63%          54%          30%        46%         37%         30%



      Note: Income changes are higher for those HHs
      with higher share of income from maize; income
      effects on average are small
   Share of income from maize production to
    total household income on average is small
    because of diversified income sources
   Income changes are higher for those
    households with higher share of income from
    maize
   Income effects due to price changes are
    significant relative to maize income 
    increase in prices affects net buyers more
   Estimate the productivity loss in terms of
    human health effects
   Investigate if there are differences in income
    effects between high risk and low risk areas
    using prevalence data

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Impacts of aflatoxin contamination on livelihoods of the poor

  • 1. Impacts of aflatoxin contamination on livelihoods of the poor households Marites Tiongco, IFPRI on behalf of the Aflacontrol team November 30, 2011 International Food Policy Research Institute Uniformed Services University of the Health Sciences International Center for the Improvement of Maize ACDI/VOCA/Kenya Maize Development Program and Wheat Kenya Agricultural Research Institute International Crops Research Institute for the Semi- Institut d’Economie Rurale Arid Tropics The Eastern Africa Grain Council University of Pittsburgh
  • 2. Used semi-structured interviews and focus group discussions(value chain approach): • Role of maize in people’s livelihoods (diversified by gender) • Production, storage, marketing practices • Sources of information regarding inputs, improving production practices, disease, market information Kenya – 6 villages – 3 east; 3 west • Knowledge about aflatoxin risk
  • 3. • Conducted household surveys t o 1344 HHs in Kenya (from 120 sublocations in 6 AEZ)+ 300 HHs from prevalence sample; • Main objective is to assess the effect of “aflatoxin contamination” on income and wealth. • We take the farm household as the unit of analysis • Treat aflatoxin contamination as a negative externality to the production function • Measure health costs and production costs (including aflatoxin contamination)
  • 4. Number of households Number of per Number of sublocation sublocaton household Lowland Tropics 15 6 90 Dry mid- altitudes 18 12 217 Dry transitional 18 12 203 Moist Transitional 30 12 354 Moist Mid- altitudes 20 12 240 Highlands 20 12 240 total 1344 Sample of 217 HHs from districts that experienced aflatoxicosis outbreak in 2004 in Kenya—151 HHs are in dry transitional and 66 are in dry mid altitude)
  • 5. All Dry Dry Mid- Moist Mid- Moist Household Transitional Altitudes Altitude Transitional High Tropics Low Tropics s Proportion of female household heads 19% 22% 25% 14% 17% 8% 18% Household head's age (years) 55 52 52 52 52 52 52 Household head's years of education 7 6 7 7 7 7 7 Years of farming experience 29 28 24 27 26 24 26
  • 6. Low Dry Mid- Moist Tropics altitudes Dry Moist High Mid- All Transitional Transitional Tropics Altitude Households Household size 6 6 6 6 6 8 6 Proportion of children (<15 years old) in the household 39% 41% 49% 37% 41% 48% 42% (<5 years old) 11% 12% 12% 10% 10% 12% 11% Annual income (in 1000 KShs) 157,961 98,474 106,982 368,925 188,811 142,727 200,298 Share of income from maize to total annual income 20.5% 28.9% 26.2% 9.3% 22.0% 21.7% 16.5%
  • 7. Dry Dry Mid- Moist Mid- Moist High All TransitionalAltitudes Altitude TransitionalTropics Low Tropics Households Maize area 2010 (ha) 4.1 2.7 2.3 2.3 2.7 2.0 2.5 Maize produced 2010 (kg) 1384 1272 1404 1736 1960 1367 1561 Maize yield (kg/ha) 385 316 375 878 1228 487 672 Maize sold 2010 (kg) 1321 230 219 1648 369 193 693 Households selling maize (%) 26% 29% 23% 25% 37% 13% 26%
  • 8. Dry Dry Mid- Moist Mid- Moist High All Low Tropics Transitional Altitudes Altitude Transitional Tropics Households Cash transfers and others 21.5% 29.4% 27.2% 22.1% 43.0% 26.7% 26.8% Maize production 20.5% 28.9% 26.2% 9.3% 22.0% 21.7% 16.5% Salary employment 27.8% 17.6% 22.1% 6.3% 12.5% 26.5% 13.2% Cash crop (tea,coffee) 4.0% 1.1% 5.9% 12.9% 26.0% 1.7% 11.9% Food crops (includes F&V) 6.7% 8.4% 14.8% 5.2% 15.4% 18.0% 8.9% Livestock 2.5% 7.8% 5.1% 3.0% 9.2% 2.5% 4.5% Off-farm work 6.2% 10.0% 5.2% 1.6% 2.8% 4.2% 3.5% Number of income sources 3 3 3 4 3 3 3
  • 9. dry mid-altitutes moist mid-altitudes lowland tropics dry transitional moist transitional high tropics 0 2 4 6 8 p 50 of hfias Note: The Household Food Insecurity Index (Coates et al) ranges from 0 - 27 with 0 being the least food insecure and 27 being the most food insecure. Given the food insecurity situation, the most vulnerable to demand shocks would be the poorest among the poor HHs.
  • 10. Low Dry Mid- Dry Moist High Moist Mid- All Tropics altitudes Transitional Transitional Tropics altitudes Households 50% loss in production + 50% fall in price 17% 21% 18% 12% 13% 16% 14% 50% reduction in price of maize 11% 14% 12% 8% 8% 11% 10% 70% reduction in price of maize 16% 20% 17% 11% 12% 15% 14% 50% increase in price (effect on net buyers) 32% 63% 54% 30% 46% 37% 30% Note: Income changes are higher for those HHs with higher share of income from maize; income effects on average are small
  • 11. Share of income from maize production to total household income on average is small because of diversified income sources  Income changes are higher for those households with higher share of income from maize  Income effects due to price changes are significant relative to maize income  increase in prices affects net buyers more
  • 12. Estimate the productivity loss in terms of human health effects  Investigate if there are differences in income effects between high risk and low risk areas using prevalence data