Animal health Product development & adoption Partnership organisation A not-for-profit Public-Private Partnership – registered charity Sponsored by the UK Department for International Development (DFID) and The Bill & Melinda Gates Foundation (BMGF) and with projects funded by BMGF, DFID and EC. Pro-poor focus: working with key partners to make a sustainable difference in access to animal health products for poor livestock keepers

1. Rural Veterinary Service Delivery in East
Africa: Challenges and Prospects
Samuel A. Adediran
10th African Dairy Conference and Exhibition.
KICC, Nairobi, Kenya.
Sept 23rd – 26, 2014

2. Outlines
Slide 2
• GALVmed – background
• Livestock in poverty alleviation
• Veterinary service delivery
• Galvmed facilitates Public Private Partnership

3. GALVmed - Who we are
• Animal health Product development & adoption Partnership organisation
• A not-for-profit Public-Private Partnership – registered charity
• Sponsored by the UK Department for International Development (DFID) and
The Bill & Melinda Gates Foundation (BMGF) and with projects funded by
BMGF, DFID and EC.
• Pro-poor focus: working with key partners to make a sustainable difference
in access to animal health products for poor livestock keepers
GALVmed Purpose
Protecting Livestock, Improving Human Life
Mission
To make a sustainable and impactful
difference to the livelihoods of resource-poor
farmers in developing countries by
providing animal health tools within a
sustainable economic framework
Slide 3

4. GALVmed - What we do
We support
development and
encourage adoption
of animal health
solutions by persons
for whom livestock is
a LIFELINE. We do
this by intervention in
all necessary links
of the livestock
value Slide 4
chain.

5. • 60-70% of world rural poor depend on Livestock (FAO, 2010)
• Livelihood of ~1 Billion in Africa & Asia – 60% women
• Agriculture provides ~30% GDP & Livestock 10 - 40% of it.
• Livestock offers avenue for poverty alleviation
Slide 5
Livestock in Poverty Alleviation
Background
Livestock: Key factor in
the poverty alleviation
equation.
Animal Diseases is the greatest threat to the livelihood
of ~ One billion persons in developing countries

6. ECF Vaccine: Enablement & Education
Mr Jeremiah Mebolokini (right).
“The sale of my father’s cattle, thanks to the ECF vaccine,
enabled me to go to English medium school. Now I am
studying at university, this is due to the benefits of the vaccine.”
Courtesy Stuart Brown Galvmed
Slide 6

7. Dairy Gender empowerment & Nutrition
Slide 7
• Women small holder Dairy Farmers earned 7 times more income
compared with those local breeds.
• Consumed 22% more milk and 30% more calories per day
• Can afford 36% higher food expenditures, leading to the intake of a
more nutritious diet.

8. Slide 8
1200.0
1000.0
800.0
600.0
400.0
200.0
0.0
Livestock in Poverty Alleviation
Livestock and human population growth (Africa 1961-2009)
1961 1971 1981 1991 2001
N
u
m
b
e
r
(
m)
Years
Livestock pop
Human Pop
• Global population increases by ~90 million people annually.
• Food production have to increase by 50% to feed about 2 billion more
- next 35 years

9. Opportunities in the animal health sector in
Demand-driven opportunities - Animal protein intake
Slide 9
East Africa
• Extraordinarily projected increases in demand for animal-sourced
food.
By 2050
• meat market projected at 34.8million tons
• milk ~82.6 million tonnes
(145% - 155% respectively over 2005/07 levels).
• Kenya - highest per capital (pc) milk consumer,
• Uganda is the highest (pc) pork consumer in Africa
Good - Huge demand = favourable business opportunities
Bad - Africa is anticipated to increasingly become a net importer
of animal-sourced foods – Why?
• Production has not kept pace with demand

10. Rural Veterinary service delivery
Challenges
• Demand or supply? Availability – personnel or service
• Weak business training of veterinarians?
• Lack of Business Start-up Capital?
• Availability of cold chain & diagnostic kits
• Quicker return on investment in consumer vs. livestock
Slide 10
health products
• Unfavourable Policy environment?
• Unfair competition - Globalisation, Donor orgs,
Government. Etc
• Poor planning and poorly organised sector.
• Food for fuel, Global economic recession, Livestock’s long
shadows

11. Slide 11
Which Veterinary services can be privatised?
Private Private with public
support for facilities
Industry Levies & Public
Clinical interventions &
Treatments
Vaccine production Public good extension
Endemic diseases Diagnostic Services Public good research
Sales of drugs and
vaccines
Veterinary Clinic Control of Epidemics
Some Extension &
research
Dips Zoonotic disease control
Food-borne disease
control
Drug quality control
 Governments role is setting, monitoring and enforcing standards for service
delivery and making info available to the public – regulation
 Provision of Toll good services e.g. vaccine production, diagnostic labs, vet
clinics, dip tanks etc can be managed by private organisations e.g. Vet.
Societies

12. Opportunities in the animal health sector in
Technical opportunities
• Scarcity in the midst of plenty – Commercially biased AH
industry
• What is the production philosophy of animal health products
service providers?
• Huge knowledge gaps means Info Tech can play huge roles -
iCow, Mpesa, etc.
Slide 12
East Africa

13. Opportunities in the animal health sector in
Institutional/Funding support
• Donor organisations like BMGF,FAO, UNDP, IFAD
giving tremendous financial support to livestock.
• Huge number of livestock value chain partners in
East Africa (TechnoServe, EADD, Heifer Int, USAID,
etc).
Slide 13
East Africa
Opportunities in Policy:
• Economic pressure - Global economic recession,
Competing needs for resource allocation, Climate change
• East Africa Economic block offers great scope for regional
trade and policy harmonisation (Vaccine registration)
• What does national governments want to do to promote
livestock?

14. Slide 14
PPP Pathways for improved RVS?
1. Service Structure Innovation (SSI)
2. Enabling Environment Innovation (EEI)
1. Service Structure Innovation (SSI)
 Manpower – Number, Diversity (para-vets), business skills.
 Financial incentives to public-employed or new vets e.g. EU credit
scheme in Kenya.
 Public cost recovery measures – e.g. UK
 Contracting out e.g. Morocco
 Private operated public toll goods – Dip Tanks, Diagnostic Labs etc
 Role for Regional organisations-ECOWAS, SADC, AUPANVAC etc
 OIE supported National Laboratories Twinning Projects

15. Slide 15
Enabling and facilitating PPP environment
2. Enabling Environment Innovation (EEI)
 Innovative, privatised? Policy landscape (Training)
 Support to Cooperatives - legislation, regulation & training (e.g. EADD
Kenya).
 Empowered Collective Action Organisations (CAO) e.g. Veterinary
assoc. farmers (dairy) Cooperatives/pastoral assoc., Kenya, FMD
eradication - Bolivia , vet clubs new-Zealand, India & Indonesia
 Improved Market Access for livestock producers & service providers
 Access to Micro-finance and Livestock Insurance schemes e.g. Kilimo
Salama
 Provide Agri-Business Service (ABS) support – successful donor
funded models in urban areas.

16. Slide 16
Take Home message
1. Service Structure Innovation (SSI)
2. Enabling Environment Innovation (EEI)
Pluralistic system where government at local
and regional levels, ECOWAS, SADC, EAEC,
AU-IBAR, AU-PANVAC, OIE etc, NGO’s, for-profit
companies, veterinary and farmers’
organizations all play a role in service provision.
 Clear Role Definition – Dialogue at PPP FORUM
 Proactive response from the private sector and Collective Action
Organisations

17. Small Scale Livestock: What must change
Alternative production pathways – Pros & Cons
• Increase number of Livestock
• Increase production per animal
Slide 17
• Greater commitment to Livestock – MDG goals.
• Application of adapted science & technology.
• Engage youths in livestock production
• Invest in Human Capital
• Stop talking, start working
• Learn from global lessons
• Make hay …. While donor support lasts!
• Eschew bitter politics

18. Investment in Animal Health as bedrock for Livestock
Slide 18
Conclusions
Development.
When animals can survive through full vaccination against
preventable diseases such as ECF, RVF, CBPP, PPR, ND etc
and treated for other common illnesses, the future gets a lot
more predictable.
… Livestock farmers start making decisions based on the
reasonable expectation that their animals will live, they can
keep fewer more productive animals, invest in nutrition and
take more proactive steps to improve production, thus
improved livelihood and food secure human society.

19. Slide 19
Rural Veterinary Service Delivery in East Africa:
Challenges and Prospects
Thank You

20. GALVmed Facilitates Public-Private-Partnership for
improved rural veterinary service delivery
Slide 20
Private sector services can be more cost
effective and efficient.
• Cost of tsetse fly control was ~35%
lower using private compared to public
VSD: Zimbabwe & Botswana 2000
• Vaccination in Morocco cost ~40% less
with >27% coverage
• Drug availability and use significantly
increased in countries that have
privatised the drug importation e.g.
Cameroon, CARep, Cote D’Ivoire,
Ghana, Mali etc.

21. Veterinary Product Value Chain : Lessons from Case Studies
Retailer in
rural areas
Manufacturer
Distributor
Traditional
manufacturers
Re sellers
at market
Vaccinators
Farmers
Traditional
NGO
Free service
Subsidized service
Fully paid service

22. Pilot project
Business support
Model
Development
Model
Implementation ADOPTION
Availability + access + demand  Adoption
• Priming market
• Private sector
• pilot projects
PPP with GALVmed Products : Kenya, Tanzania and Uganda
1. ECF vaccine Distribution – GALVmed –
Sidai Africa partnership -Kenya
2. ND vaccine marketing - Tanzania
3. ECF product registration challenges –
Uganda.

23. Slide 23
Veterinary Product Value Chain : Lessons from Case Studies
1. Challenges exists at all levels of the chain
2. Roles of the different stakeholders are not clear in practice.
3. Challenges in Traditional market channels - unfair competition
4. Unusual factors distort the markets
5. Lack of capital hinders private practice set up
6. Agri-business service support to bridge Low business skills gaps
7. Assure sustainability