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Innovations and incentives in
agricultural research for poor countries
                      Delia Grace and Tom Randolph




    Agricultural Research for Development: Innovations & Incentives
                Uppsala, Sweden, 26-27 September 2012
Outline

 The livestock laboratory
 CGIAR: science, evidence, or innovations?
 Case studies
   Community-based tsetse control
   Smallholder dairy development
 Innovations + incentives = impacts?
International Livestock Research Institute
member of the CGIAR Consortium which conducts livestock, food and
environmental research
        to help alleviate poverty
        and improve food security, health & nutrition,
        While protecting the natural resource base.
                                                     India
                                     Mali

   700 full time staff-1000 total
   100 scientists & researchers
   54% from 22 developing
    countries                                                                  China
   more than 30 scientific                                                    Vietnam
    disciplines
   2012 budget USD 60 million
                                                                               Laos
   ILRI works with a range of
                                       Nigeria
    research & development
    partners                           Mozambique
   across 7 CGIAR research
                                                 Kenya
    programs
                                                         Ethiopia   Thailand
Agriculture
for Nutrition &
Health
CGIAR Research Program 4

  IFPRI
  ILRI
  BIOVERSITY
  CIAT
  CIMMYT
  CIP
  ICARDA
  ICRAF
  ICRISAT
  IITA
  IWMI
  WORLDFISH
Livestock support livelihoods
•   In many developing countries, especially SSA, livestock contributes at least
    40% agriculture GDP
•   Around one billion poor people depend on livestock: 70% of the rural and 25%
    urban poor. Dependency: 12-50%
•   Livestock high value and rapidly growing sector




                Projected global consumption in 2050




                                                               Rosegrant et al., 2009
Livestock nourish billions
• Over half developing world’s food
  (crops and livestock) comes from
                                      population (millions)
  mixed crop livestock systems -
  livestock are integral
• Livestock provide food for over       480.3    295.1

  830 million food insecure people:
  6-36% of protein and 2-12% of                               1099.2
  calories
• Small amounts of animal source
  foods make a huge difference to
  nutrition (cognitive development,
  maternal health)                    2674
Livestock bring lethal gifts …..
•   Low income countries:
     • Zoonoses & diseases emerged from animals 26% IDB, 10% total burden
•   High income countries:
     • Zoonoses & emerged 0.7% IDB, 0.02% total burden
Livestock have a long shadow…
          • 31% of total freshwater use is for is for livestock
          • Livestock impact on climate change- 18%?
          • Livestock compete for other land uses

                Additional grains
               1048 million tonnes
                  more to 2050




                                 Human
Livestock
                               consumption
430 million MT
Monogastrics mostly
                              458 million MT



                     Biofuels
                  160 million MT
Growing, urbanising, hungry populations




                                  Photo by NYT
Impacts of the CGIAR


 65% of the total area planted to the world’s 10 most important food
  crops is sown to improved varieties
 The overall economic benefits of the CGIAR estimated at US$14 -
  $120 billion
 For every $1 invested in CGIAR research, $9 worth of additional food
  is produced in the developing world
 Without CGIAR research developing countries would produce 8%
  less food and have converted12 million more hectares to farm land
 Around 80,000 students, scientists and professionals have benefited
  from capacity-building

   (The CGIAR at 40 and beyond, 2011)
Evolution of the CGIAR

                           IMPACT




                          EVIDENCE




                          SCIENCE




                         TECHNOLOGY
2 case
studies
Case study 1:Innovations that fail

 Community-based tsetse
 control
    Trypanosomosis: the most
     important disease of cattle
     wherever present

    Spread by the unusual tsetse fly

    Also causes sleeping sickness

    Controlled initially by bush
     clearing, game culling, areal
     spraying insecticides…
What was done? Community based tsetse

 Innovation
    Screens that kill tsetse

 Science showed
    Tryps the most important
     disease. 10% infected.
     production by 15%
    Screens cheap, effective
    High satisfaction
    High use (until..)
Often tried
Always works
Never sustained




                  15
Case study 1:Innovation that succeeds

    Kenya smallholder dairy

 Milk: 2nd largest item of
    urban household
    expenditure
 Milk: Per capita daily
    consumption of 0.2-0.4
    kg
 3.5% of Kenya’s Gross
    Domestic Product
    (GDP) and 14% of the
    agricultural GDP.
 Smallholder farmers
    produce around 80% of
    the total production
What was done? Training informal milk sellers

    Innovation
       Training, branding, certification of
        informal sector
                                                           Fail to meet standards
       Metal milk cans, quality checks          100%




    Science showed
       Importance of smallholder dairy
       Milk hazards high but health risks low
       Formal milk no safer than informal
                                                        Raw milk   Pasteurised
       Training hawkers increases safety
Impacts of training informal actors

   Policy change
      Informal sector recognised


   Impacts
      Increase in milk handled
      Around 80% actors trained
      Around 50% licensed
      $33 million USD annual benefits
      Vibrant smallholder sector
      Major donor investment
Some differences between case studies

Community-based tsetse control        Training informal sector milk sellers
   Novel behaviour                      Socially endorsed behaviour
   Collective action required           Individual action required
   Risk averse target group             Entrepreneurial target group
   With success, motivation fades       With success, motivation remains
   Distant link with behaviour and      Clearlink between behaviour and
    income                                income
   Innovation in a static market        Innovation in dynamic market
LESSONS AROUND INOVATION & INCENTIVE

   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 PORTOFOLIO 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”
t
“Thank you for your attention”

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Innovations and incentives in agricultural research for poor countries

  • 1. Innovations and incentives in agricultural research for poor countries Delia Grace and Tom Randolph Agricultural Research for Development: Innovations & Incentives Uppsala, Sweden, 26-27 September 2012
  • 2. Outline  The livestock laboratory  CGIAR: science, evidence, or innovations?  Case studies  Community-based tsetse control  Smallholder dairy development  Innovations + incentives = impacts?
  • 3. International Livestock Research Institute member of the CGIAR Consortium which conducts livestock, food and environmental research  to help alleviate poverty  and improve food security, health & nutrition,  While protecting the natural resource base. India Mali  700 full time staff-1000 total  100 scientists & researchers  54% from 22 developing countries China  more than 30 scientific Vietnam disciplines  2012 budget USD 60 million Laos  ILRI works with a range of Nigeria research & development partners Mozambique  across 7 CGIAR research Kenya programs Ethiopia Thailand
  • 4. Agriculture for Nutrition & Health CGIAR Research Program 4 IFPRI ILRI BIOVERSITY CIAT CIMMYT CIP ICARDA ICRAF ICRISAT IITA IWMI WORLDFISH
  • 5. Livestock support livelihoods • In many developing countries, especially SSA, livestock contributes at least 40% agriculture GDP • Around one billion poor people depend on livestock: 70% of the rural and 25% urban poor. Dependency: 12-50% • Livestock high value and rapidly growing sector Projected global consumption in 2050 Rosegrant et al., 2009
  • 6. Livestock nourish billions • Over half developing world’s food (crops and livestock) comes from population (millions) mixed crop livestock systems - livestock are integral • Livestock provide food for over 480.3 295.1 830 million food insecure people: 6-36% of protein and 2-12% of 1099.2 calories • Small amounts of animal source foods make a huge difference to nutrition (cognitive development, maternal health) 2674
  • 7. Livestock bring lethal gifts ….. • Low income countries: • Zoonoses & diseases emerged from animals 26% IDB, 10% total burden • High income countries: • Zoonoses & emerged 0.7% IDB, 0.02% total burden
  • 8. Livestock have a long shadow… • 31% of total freshwater use is for is for livestock • Livestock impact on climate change- 18%? • Livestock compete for other land uses Additional grains 1048 million tonnes more to 2050 Human Livestock consumption 430 million MT Monogastrics mostly 458 million MT Biofuels 160 million MT
  • 9. Growing, urbanising, hungry populations Photo by NYT
  • 10. Impacts of the CGIAR  65% of the total area planted to the world’s 10 most important food crops is sown to improved varieties  The overall economic benefits of the CGIAR estimated at US$14 - $120 billion  For every $1 invested in CGIAR research, $9 worth of additional food is produced in the developing world  Without CGIAR research developing countries would produce 8% less food and have converted12 million more hectares to farm land  Around 80,000 students, scientists and professionals have benefited from capacity-building (The CGIAR at 40 and beyond, 2011)
  • 11. Evolution of the CGIAR IMPACT EVIDENCE SCIENCE TECHNOLOGY
  • 13. Case study 1:Innovations that fail Community-based tsetse control  Trypanosomosis: the most important disease of cattle wherever present  Spread by the unusual tsetse fly  Also causes sleeping sickness  Controlled initially by bush clearing, game culling, areal spraying insecticides…
  • 14. What was done? Community based tsetse  Innovation  Screens that kill tsetse  Science showed  Tryps the most important disease. 10% infected.   production by 15%  Screens cheap, effective  High satisfaction  High use (until..)
  • 16. Case study 1:Innovation that succeeds  Kenya smallholder dairy Milk: 2nd largest item of urban household expenditure Milk: Per capita daily consumption of 0.2-0.4 kg 3.5% of Kenya’s Gross Domestic Product (GDP) and 14% of the agricultural GDP. Smallholder farmers produce around 80% of the total production
  • 17. What was done? Training informal milk sellers  Innovation  Training, branding, certification of informal sector Fail to meet standards  Metal milk cans, quality checks 100%  Science showed  Importance of smallholder dairy  Milk hazards high but health risks low  Formal milk no safer than informal Raw milk Pasteurised  Training hawkers increases safety
  • 18. Impacts of training informal actors  Policy change  Informal sector recognised  Impacts  Increase in milk handled  Around 80% actors trained  Around 50% licensed  $33 million USD annual benefits  Vibrant smallholder sector  Major donor investment
  • 19. Some differences between case studies Community-based tsetse control Training informal sector milk sellers  Novel behaviour  Socially endorsed behaviour  Collective action required  Individual action required  Risk averse target group  Entrepreneurial target group  With success, motivation fades  With success, motivation remains  Distant link with behaviour and  Clearlink between behaviour and income income  Innovation in a static market  Innovation in dynamic market
  • 20. LESSONS AROUND INOVATION & INCENTIVE  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 PORTOFOLIO 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”
  • 21. t “Thank you for your attention”

Editor's Notes

  1. CRP4 was submitted by IFPRI; proposal was prepared in close collaboration with ILRI, and with support from 10 other Centers and an extensive consultation process with a large number of partners from ag, health, nutr