Quantitative approaches can improve value chain analysis of livestock systems, new study says

Value chain analysis has important applications in development settings but research gaps exist in quantifying the impacts from value chain interventions. Various quantitative methods exist that have the potential to strengthen measurement of value chain impacts.

A new study published online on 18 December 2010 in the journal Food Policy examines the application of two modelling platforms, system dynamics and agent-based modelling, in quantitative value chain analysis of livestock systems within a developing-country context.

The paper, Quantifying value chain analysis in the context of livestock systems in developing countries, is authored by Karl Rich of the Norwegian Institute of International Affairs (NUPI) and on joint appointment at the International Livestock Research Institute (ILRI), R Brent Ross of Michigan State University, Derek Baker of ILRI and Asfaw Negassa of the International Maize and Wheat Improvement Center (CIMMYT).

View the abstract here

Citation
Rich KM, Ross RB, Baker AD and Negassa A. 2011.Quantifying value chain analysis in the context of livestock systems in developing countries. Food Policy 36(2): 214-222.

Are smallholder dairy farmers in East Africa competitive?

Small-scale dairy farms dominate production in most developing countries, including in East Africa. In the light of rapidly increasing demand for milk in most of the developing world, one important question is: can small-scale dairy farmers compete in the international arena? Also, what factors influence their competitiveness?

These questions were explored recently during a presentation by ILRI agricultural economist, Dr Isabelle Baltenweck, at the 6th Africa Dairy Conference and Exhibition held in Kigali, Rwanda on 18-20 May 2010.

The presentation was based on research findings from the East Africa Dairy Development project which quantified farm-gate milk prices and costs of milk production in study sites in Kenya, Rwanda and Uganda.

The findings indicate that smallholder dairy producers in East Africa can effectively compete, mainly due to strong local demand. This can be further enhanced by improving economies of scale; enhancing access to inputs, services and appropriate technologies; improving infrastructure; and creating an enabling policy and institutional environment.

Competitiveness of smallholder dairy farmers in East Africa

View more presentations from ILRI CGIAR.

Innovation platforms boost livestock value chains in Mozambique

A novel approach to enhancing livestock commercialization is helping to improve market participation by smallholder livestock keepers in semi-arid Mozambique.

The Innovation Platform (IP) approach uses value chain analysis to identify challenges and constraints to livestock production and marketing. Based on these, opportunities to overcome the bottlenecks are then sought.

By collectively engaging all value chain actors, the IP approach strengthens linkages among sector stakeholders thus helping to enhance efficiency through better alignment of livestock production and market requirements. In addition, improved flow of market information results in reduced transaction costs and greater market efficiency.

The Livestock and Livelihoods (LILI) project (Livestock and Livelihoods: Improving market participation of small-scale livestock producers), implemented from 2007, used the IP approach to contribute towards achieving the project's objectives.

These objectives were to: (1) improve market participation of small-scale goat and cattle keepers in semi-arid regions of Mozambique, Namibia and Zimbabwe; (2) evaluate constraints to and opportunities for commercialization of smallholder production of goats and cattle; (3) test and evaluate alternative livestock marketing and input delivery systems; (4) assess the impact of market-led technology change on household incomes; and (5) establish an effective communication strategy to facilitate networking and exchange of information among sector stakeholders.

The LILI project was collaboratively undertaken by the International Crops Research Institute for Semi-Arid Tropics (ICRISAT), the International Livestock Research Institute (ILRI), the National Agricultural Research Institute of Mozambique (IIAM), the Matopos Research Station of Zimbabwe and the Namibian National Farmers' Union (NNFU). 

Some of the experiences of implementing the IP approach in the LILI project are documented in an April 2010 report, The innovation platform in Mozambique: Evidence from Chicualacuala and Changara, by Dr Manuel Filipe, a scientist formerly with ILRI's Market Opportunities research theme.

"The Innovation Platform can be a platform for constructive debate and problem solving," Dr Filipe notes in his report. "The market actors as well as the local authorities have embraced it and it is being used as an entry point for other initiatives such as training and planning, among others," he adds.

The LILI project was funded by the European Union and supported by the Southern African Development Community.

Download the report

Citation
Filipe M. 2010. The innovation platform in Mozambique: Evidence from Chicualacuala and Changara. Project report. ILRI (International Livestock Research Institute), Nairobi. 18pp.

New journal article: Testing of trypanosomosis control strategies in West Africa's cotton zone

Widespread resistance to trypanocidal drugs threatens their effective use by smallholder crop-livestock farmers, particularly in the cotton zone of West Africa where the risk of trypanosomosis is high.

Research to identify and test best-bet integrated control strategies to reduce the risk of trypanocide resistance found that community-based tse tse control is effective but needs external support to be sustainable.

Rational drug use is a promising strategy in areas where resistance is not yet well established. Keeping of trypanotolerant cattle, though less attractive to farmers, should be promoted in areas where these cattle are still maintained.

These research findings are discussed in an article published online on 23 April 2010 in a special  issue of the journal Transboundary and Emerging Diseases. ILRI researchers Hippolyte Affognon, Oumar Diall, Delia Grace and Thomas Randolph are co-authors.

Read the abstract here

Citation
Clausen P-H, Bauer B, Zessin K-H, Diall O, Bocoum Z, Sidibe I, Affognon H, Waibel H, Grace D and Randolph T. 2010. Preventing and containing trypanocide resistance in the cotton zone of West Africa. Transboundary and Emerging Diseases 57(1-2): 28-32.

Vietnam pork sector study featured in New Agriculturist

A collaborative study led by ILRI's Markets Opportunities theme to map the supply chains for pigs and pork products in Vietnam is featured in the January 2010 issue of the online bimonthly newsletter New Agriculturist.

The project, Improving the competitiveness of pig producers in an adjusting Vietnam market, is aimed at generating research evidence to inform policymakers on the appropriate policy, technological and institutional frameworks that will allow Vietnam's smallholder pig producers to competitively increase their incomes through enhanced access to market chains for high-value pork products.

"Smallholders could play a much greater role in pork production but there is a need to generate appropriate technologies to maximize the potential of these systems, to improve the breeds and to provide better and more cost-efficient feed rations," the article quotes Lucy Lapar, a scientist with ILRI's Market Opportunities theme scientist and the coordinator of the project.

The project is due to end in March 2010 but it is hoped that the outputs of the study will be taken up by policymakers and sector stakeholders to inform dialogue towards formulation of pro-poor policies in support of Vietnam's smallholder pig producers.

The project is funded by the Australian Centre for International Agricultural Research (ACIAR) in collaboration with the Centre for Agricultural Policy - Institute of Policy and Strategy for Agricultural and Rural Development (CAP-IPSARD), the International Food Policy Research Institute (IFPRI), Oxfam and the University of Queensland.

Here's the link to the New Agriculturist article, Vietnam: taking a pig to market.

ILRI research report: Improving smallholder farmers' marketed supply and market access for dairy products in Arsi Zone, Ethiopia

ILRI's Market Opportunities Theme has this month (December 2009) released a report of a comprehensive study of dairy supply and demand, and the role of collective action in enhancing market access by smallholder milk producers in Arsi Zone, Ethiopia.

The report was written by Asfaw Negassa, an agricultural economist formerly with ILRI's Market Opportunities theme and currently with the International Food Policy Research Institute (IFPRI), Addis Ababa, Ethiopia.

The study identified key supply- and demand-side strategic interventions that may improve the productivity and market orientation of smallholder dairy producers in Ethiopia's Arsi Zone. Strategic collective action interventions are also suggested.

Some of the proposed interventions are: improving availability and utilization of fodder; improving access to animal health services; providing smallholder dairy farmers with access to credit; enhancing horizontal integration of milk marketing co-operatives; and providing a variety of high-quality, safe dairy products to consumers at competitive prices.

Access the report

Citation
Negassa A. 2009. Improving smallholder farmers' marketed supply and market access for dairy products in Arsi Zone, Ethiopia. Research Report No. 21. ILRI (International Livestock Research Institute), Nairobi, Kenya. 107 pp.

Collaborators present preliminary study results on poultry and dairy farming in Bangladesh

Livestock-sector stakeholders in Bangladesh held a workshop to discuss key findings of ILRI-sponsored research on poultry and dairy farming.

The workshop titled ‘Demand-driven opportunities for transformation of the livestock sector: Role of contract farming and breeding’ was held on 24 May 2009 in the conference hall of the Faculty of Agricultural Economics and Rural Sociology, Bangladesh Agricultural University (BAU), Mymensingh.

The objective was to share the findings of three studies sponsored by ILRI with EU funding and implemented jointly with BAU and Bangabandhu Shaikh Mujibur Rahman Agricultural University (BSMRAU), Gazipur.

These were on urban demand for livestock products with a focus on quality and safety attributes, and contract farming in poultry and dairy.

An additional survey was conducted on stakeholder perspectives on breeding strategy and choice of breeds, which was not in the original work plan and this was also presented.

Over 70 participants attended the workshop which drew representatives from universities, the Ministry of Fisheries and Livestock, the Department of Livestock Services, research institutes and private-sector NGOs as well as several small-scale commercial poultry and dairy farmers.

Dr Mohammad Jabbar welcomed the participants on behalf of ILRI and made a brief presentation describing the background and importance of the studies and the mode of collaboration with BAU and BSMRAU.

Dr Jabbar is the immediate former leader of the Changing Demand and Market Institutions Operating Project in the Markets Theme. He is now based in Bangladesh and works with the theme as a consultant on a number of projects.

The workshop was opened by Mr Mohammad Shah Alam, Secretary in the Ministry of Fisheries and Livestock.

Prof M A S Mandal, Vice Chancellor of BAU, Prof T H Miah, Dean of the Faculty of Agricultural Economics and Rural Sociology, and Prof Habibur Rahman, study coordinator and workshop organizer also spoke at the opening session.

They all lauded the studies, considering them timely given the on-going commercialization of poultry and dairy activities in Bangladesh.

Four papers were presented in the business session covering the key findings of the studies.

The findings were considered very useful under the current dynamics of the livestock sector and the results generated lively discussion and debate.

There was not enough time for in-depth presentation of results and more detailed discussion.

However, one jointly printed publication, two draft reports and one paper presentation were distributed to the participants so that they could have access to the full study reports.

The draft reports will be reviewed and formally published in due course.

ILRI research report: Contract poultry farming in Bangladesh

ILRI's Markets theme has published a research report titled Alternative institutional arrangements for contract farming in poultry production in Bangladesh and their impacts on equity. The study identified forms of market institutions that would allow smallholder poultry producers in Bangladesh to engage in commercial production of broilers and eggs so as to raise household incomes under rapidly differentiating livestock markets.

Citation
Jabbar MA, Rahman MH, Talukder RK and Raha SK. 2007. Alternative institutional arrangements for contract farming in poultry production in Bangladesh and their impacts on equity. ILRI Research Report 7. ILRI (International Livestock Research Institute), Nairobi, Kenya. 98 pp.

Download the report

ILRI research report: Dairy farming in Uganda

Results of an in-depth characterization study of the Uganda dairy sector have been published in a 2007 ILRI research report titled Dairy farming in Uganda: Production efficiency and soil nutrients under different farming systems.

The study revealed that dairy farming in Uganda is profitable, regardless of the level of intensification, so a highly intensified system like zero-grazing is not always the best option.

Additionally, poor soil quality was found to be a problem in mixed crop-dairy farms under all dairy farming systems, despite availability of adequate amounts of on-farm manure. Shortage of labour may be one reason why manure is underused.

More research is needed into the economics and practicability of manure application and how to integrate it with other farm activities that compete for available labour.

Citation
Baltenweck I, Mubiru S, Nanyeenya W, Njoroge L, Halberg N, Romney D and Staal S. 2007. Dairy farming in Uganda: Production efficiency and soil nutrients under different farming systems. ILRI Research Report 1. ILRI (International Livestock Research Institute), Nairobi, Kenya. 26pp.

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ILRI research report: Livestock ownership, commercial off-take rates and their determinants in Ethiopia

In a 2008 ILRI research report, Livestock ownership, commercial off-take rates and their determinants in Ethiopia, Asfaw Negassa and Mohammad Jabbar document the results of a study carried out to assess the commercial off-take rates for cattle and shoats in the highland and pastoral areas of Ethiopia.

The study found very low commercial off-take rates for cattle and shoats among Ethiopian smallholder farmers and pastoralists.

Furthermore, a large proportion of the few animals sold are of such age and body conditions that many of them are unlikely to meet the needs of meat export abattoirs.

The low commercial off-take rates and limited market participation are likely due to small herd and flock sizes, low fertility and high mortality rates, and poor nutrition.

Citation
Negassa A and Jabbar M. 2008. Livestock ownership, commercial off-take rates and their determinants in Ethiopia. ILRI Research Report 9. ILRI (International Livestock Research Institute), Nairobi, Kenya. 52pp.

Download the report

Stakeholders discuss results of research on Uganda smallholder dairying

Results from a 2001–2005 indepth study of smallholder dairy farming in Uganda were presented and discussed at two stakeholder workshops held on 25–26 April 2006 in Kampala, Uganda.

The main aim of the study was to improve the contribution of smallholder dairying to the sustainable livelihoods of resource-poor farmers in Uganda through a better understanding of dairy production systems.

The presentations given at the workshops, including main results, discussions and recommendations are available at the project website.

Selected stakeholder reactions to the project's results

Some development organizations promote the intensification of dairy farming irrespective of circumstances, but it is not always appropriate. 'Send a cow' initiatives are not always good. So this study is very useful to make people understand these issues. Peter Lusembo, Mukono ARDC

Based on this study, we should be cautious to not always promote one specific type of dairy farming. We need to build scenarios that incorporate market, resources and recommend specific feeding systems, based on individual circumstances. The economists should present more results for different conditions. David Balikowa, Dairy Development Authority

Farmers normally do what is right for them so we should be careful about what to do. We need to help them to adapt to their challenges under changing conditions. So recommendations of anything new should build on a better understanding of why farmers choose that system. Rilla Norslund, ASPS, DANIDA

Zero-grazing may be profitable but should not be encouraged everywhere—for NGOs dealing with this, they need to go back and reconsider their strategies. We should find ways to encourage manure use, what incentives should be given? Organic farming promoted may be? If different farms have different challenges, we can use this LP model to give customized advice to the farmers, through the informed extension officers. Cyprian Ebong, NAARI, NARO

We need to simplify these findings to disseminate the information to a wide range of stakeholders, showing positive and negative aspects. Extension agents, NGOs and communities should be informed as they are the ones who need the information. Peter Lusembo

Kenya Dairy Policy Forum held in Nairobi

Research results from the Smallholder Dairy Project were shared at a national dairy policy forum held in Nairobi on 8 May 2004. The meeting brought together officials from the Ministry of Livestock and Fisheries Development, the Kenya Dairy Board, NGOs, researchers and small-scale dairy farmers and traders.

The research findings covered various aspects of dairy policy in Kenya. Presentations centred on demand patterns, employment, competitiveness, public health, nutrition and the policy environment in Kenya's dairy sector.

A series of policy briefs on the topics presented were launched to convey SDP’s research findings and policy implications to a wider audience. Copies of these policy briefs are available for download at the project website www.smallholderdairy.org.

Kenya's Minister for Livestock and Fisheries Development (MoLFD), Joseph Munyao, addresses the forum. Seated (L to R): Bruce Scott (Director of Partnerships and Communication, ILRI), Machira Gichohi (Managing Director, Kenya Dairy Board [KDB]), Reuben Chesire (Chairman, KDB), Harry Mule (Permanent Secretary, MoLFD), Romano Kiome (Director, Kenya Agricultural Research Institute) and Julius Kiptarus (Director, MoLFD).