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Livestock revolution: exploiting the potential
            of Kenya’s ASALs

                            Carlos Seré
                       Director General, ILRI




 2nd Kenyan National Agricultural Sector Conference November 9-12, 2008
Key messages
   1. ASAL development can be improved significantly
    with existing knowledge and experience
   2. ASAL development is mainly an investment and
    management challenge
   3. Rapidly evolving context offers many new
    opportunities
    e.g ICTs, finance, insurance, early warning
    systems, trade in ecosystem services
Presentation Overview
   1. Context
   2. The Livestock Revolution
   3. ASAL development challenges
   4. Interventions: What not to do
   5. Interventions: What to do
   6. Managing the ASALs
   7. Conclusions
1.Context
Importance of the ASALs in East
                Africa

   Land area = 1.5m sq km
   Population = 15 million people
   Cattle (TLUs) = 13 million
   Sheep (TLUs) = 2 milion
   Goats (TLUs) = 2 million
2. The Livestock Revolution
Dynamic livestock sector

   Livestock fastest growing part of
    the agricultural sector, largely driven
    by the Livestock Revolution in
    emerging economies.
   Need to double livestock
    production in developing world
    by 2020 to meet rising demand
    for livestock products.
   Doubling livestock production puts
    pressure on natural resources:
    water, land, biodiversity.
Livestock sector trends

   A ‘supermarket revolution’ is
    setting higher standards for
    food quality and safety.
   Market chains are lengthening,
    making it more difficult for
    small-scale producers to
    participate in markets.
Livestock research enables
        3 pathways out of poverty
   Securing assets of the
    poor to reduce vulnerability

   Increasing productivity
    to improve livelihoods

   Expanding markets
    to increase incomes
3. Development challenges of the
           ASALs
3. ASALs Development
                challenges
    Key challenge:

      Reduce poverty and vulnerability, provide
    livelihood options:

           constraint of low population density
           limited success of interventions to increase
            primary productivity
           degradation of natural resources
           conflict in managing common resources
           weak links to national economy
           low priority for public investment
4. Interventions: What not to do
Interventions: What not to do (1)
                 Slaughterhouses
   Don’t invest public finds into export slaughter houses
    in remote areas, because:
    Offals cannot be marketed efficiently
    Quality of local animals not export grade
    Transportation risky and expensive for
          refrigerated products


    Therefore, let private risk capital explore
    opportunities
    
Interventions: What not to do (2)

                Disease free zones
    Don’t try to establish disease free zones, because:
    Difficult to enforce at present
    Low intensity of production makes it uneconomic
    High cost option


    Therefore, enforce present regulatory framework
    and explore new options such as commoditization
    of trade
    
Interventions: What not to do (3)
            Stop cross border trade
   Don’t hinder livestock trade with neighbouring
    countries, because:
    Important risk management option for pastoralists
     Impossible to stop


    Therefore, seek to facilitate formal trade across
    borders
    
Interventions: What not to do (4)
    Over-emphasize international trade
   Don’t overly focus development efforts on
    international trade in livestock and livestock
    products, because:
     Kenya’s domestic market is rapidly growing
     Kenya is a net importer of beef
     SPS constraints important limitation


    Therefore, emphasise improved functioning of
    national and regional markets and consider
    international exports as an additional outlet
5. Interventions: What to do
Interventions: What to do (1)
                 Develop markets
   Develop domestic markets is the top priority
    intervention.
   Specific actions include:
     Improve physical market places, holding grounds,
    loading ramps, etc
     Improve price information
     Use KMC strategically to provide a floor to the
    market
     Provide livestock finishing infra-structure in
    higher potential areas e.g ADC ranches
Interventions: What to do (2)
                        Finance
   Provide a conducive environment for commercial
    and NGO financing institutions to operate
   Credit is critical for both producers and traders
   Specific actions include:
     Learn lessons from Equity Bank and Mpesa
    experiences




    
Interventions: What to do (3)
        Road and Rail infrastructure
   Transport is critical for livestock markets and brader
    development, but costly
   Specific actions include:
     Undertake cost benefit analyses of alternative
    options to improve transport routes and compare
    road vs rail




    
Interventions: What to do (4)
                Water investments
   Water points are critical for the utilization of
    rangelands and for human livelihoods generally
   Specific actions include:
     Making careful assessments of location of water
    points
     Considering environmental impacts of livestock
    use of water points
     Prevent livestock contamination of water points
    Engage local communities in agreeing appropriate
    stocking rates in conjunctions with new water points
Interventions: What to do (5)
                Veterinary services
   Focus on key diseases (e.g. FMD, RVF, CBPP,
    PPR, Rinderpest)
   Specific actions include:
     Enhance capacity to monitor and respond to
    health conditions
     Legalise community animal health workers
     Ensure appropriate levels of vaccine production
    and effective deployment approaches
Interventions: What to do (6)
               Vulnerability and risk
   Pastoralists vulnerability critical for livelihoods and
    for increasing production
   Specific actions include:
     Early warning systems for drought and diseases
    e.g Rift Valley Fever
     Combining short term relief programs with
    development interventions (productive safety nets)
     Explore potential to provide innovative insurance
    mechanisms for pastoralists
Interventions: What to do (7)
         Diversification of livelihoods
   Evolving societal demands create new livelihood
    opportunities in the ASALs
   Specific options include:
     Provision of environmental services, such as
    wildlife conservation, carbon sequestration, water
    management
     New feeds, such as Prosopis pods
     New enterprises, such as eco-tourism, bee
    keeping, oasis agriculture
     Off farm income and remittances
Interventions: What to do (8)
                           ICTs
   Exploit the unique power of ICTs to overcome the
    “tyranny of distance”
   Specific options include:
     Cell phone, email, www web access for sharing
    price information, obtaining technical advice, etc
     E government
     Distance education
     Banking/insurance services
Interventions: What to do (9)
                        Security
   Government has a unique role to play in protecting
    communities and preserving law and order
   Specific actions include:
    Developing effective approaches for the
    traceability of livestock
6. Managing the ASALs
Managing the ASALs

Achieving the potential of the ASALs requires highly
integrated management approaches. Key elements
include:

1. Effective knowledge management

2. Smart targeting for geography, gender,

3. Active community participation

4. Dynamic cross sectoral interventions

5. Quick learning culture to scale out successful
7. Conclusions
Conclusions

1. ASAL development can be improved
significantly with existing knowledge and
experience

2. ASAL development is mainly an investment and
  management challenge

3. Rapidly evolving context offers many new
opportunities e.g ICTs, finance, insurance, early
  warning systems, trade in ecosystem services,
  service delivery through ppts
www.ilri.org

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Livestock revolution: Exploiting the potential of Kenya's Arid and Semi Arid lands, November 2008

  • 1. Livestock revolution: exploiting the potential of Kenya’s ASALs Carlos Seré Director General, ILRI 2nd Kenyan National Agricultural Sector Conference November 9-12, 2008
  • 2. Key messages  1. ASAL development can be improved significantly with existing knowledge and experience  2. ASAL development is mainly an investment and management challenge  3. Rapidly evolving context offers many new opportunities e.g ICTs, finance, insurance, early warning systems, trade in ecosystem services
  • 3. Presentation Overview  1. Context  2. The Livestock Revolution  3. ASAL development challenges  4. Interventions: What not to do  5. Interventions: What to do  6. Managing the ASALs  7. Conclusions
  • 5. Importance of the ASALs in East Africa  Land area = 1.5m sq km  Population = 15 million people  Cattle (TLUs) = 13 million  Sheep (TLUs) = 2 milion  Goats (TLUs) = 2 million
  • 6. 2. The Livestock Revolution
  • 7. Dynamic livestock sector  Livestock fastest growing part of the agricultural sector, largely driven by the Livestock Revolution in emerging economies.  Need to double livestock production in developing world by 2020 to meet rising demand for livestock products.  Doubling livestock production puts pressure on natural resources: water, land, biodiversity.
  • 8. Livestock sector trends  A ‘supermarket revolution’ is setting higher standards for food quality and safety.  Market chains are lengthening, making it more difficult for small-scale producers to participate in markets.
  • 9. Livestock research enables 3 pathways out of poverty  Securing assets of the poor to reduce vulnerability  Increasing productivity to improve livelihoods  Expanding markets to increase incomes
  • 11. 3. ASALs Development challenges Key challenge:  Reduce poverty and vulnerability, provide livelihood options:  constraint of low population density  limited success of interventions to increase primary productivity  degradation of natural resources  conflict in managing common resources  weak links to national economy  low priority for public investment
  • 13. Interventions: What not to do (1) Slaughterhouses  Don’t invest public finds into export slaughter houses in remote areas, because: Offals cannot be marketed efficiently Quality of local animals not export grade Transportation risky and expensive for refrigerated products Therefore, let private risk capital explore opportunities 
  • 14. Interventions: What not to do (2)  Disease free zones Don’t try to establish disease free zones, because: Difficult to enforce at present Low intensity of production makes it uneconomic High cost option Therefore, enforce present regulatory framework and explore new options such as commoditization of trade 
  • 15. Interventions: What not to do (3) Stop cross border trade  Don’t hinder livestock trade with neighbouring countries, because: Important risk management option for pastoralists  Impossible to stop Therefore, seek to facilitate formal trade across borders 
  • 16. Interventions: What not to do (4) Over-emphasize international trade  Don’t overly focus development efforts on international trade in livestock and livestock products, because:  Kenya’s domestic market is rapidly growing  Kenya is a net importer of beef  SPS constraints important limitation Therefore, emphasise improved functioning of national and regional markets and consider international exports as an additional outlet
  • 18. Interventions: What to do (1) Develop markets  Develop domestic markets is the top priority intervention.  Specific actions include:  Improve physical market places, holding grounds, loading ramps, etc  Improve price information  Use KMC strategically to provide a floor to the market  Provide livestock finishing infra-structure in higher potential areas e.g ADC ranches
  • 19. Interventions: What to do (2) Finance  Provide a conducive environment for commercial and NGO financing institutions to operate  Credit is critical for both producers and traders  Specific actions include:  Learn lessons from Equity Bank and Mpesa experiences 
  • 20. Interventions: What to do (3) Road and Rail infrastructure  Transport is critical for livestock markets and brader development, but costly  Specific actions include:  Undertake cost benefit analyses of alternative options to improve transport routes and compare road vs rail 
  • 21. Interventions: What to do (4) Water investments  Water points are critical for the utilization of rangelands and for human livelihoods generally  Specific actions include:  Making careful assessments of location of water points  Considering environmental impacts of livestock use of water points  Prevent livestock contamination of water points Engage local communities in agreeing appropriate stocking rates in conjunctions with new water points
  • 22. Interventions: What to do (5) Veterinary services  Focus on key diseases (e.g. FMD, RVF, CBPP, PPR, Rinderpest)  Specific actions include:  Enhance capacity to monitor and respond to health conditions  Legalise community animal health workers  Ensure appropriate levels of vaccine production and effective deployment approaches
  • 23. Interventions: What to do (6) Vulnerability and risk  Pastoralists vulnerability critical for livelihoods and for increasing production  Specific actions include:  Early warning systems for drought and diseases e.g Rift Valley Fever  Combining short term relief programs with development interventions (productive safety nets)  Explore potential to provide innovative insurance mechanisms for pastoralists
  • 24. Interventions: What to do (7) Diversification of livelihoods  Evolving societal demands create new livelihood opportunities in the ASALs  Specific options include:  Provision of environmental services, such as wildlife conservation, carbon sequestration, water management  New feeds, such as Prosopis pods  New enterprises, such as eco-tourism, bee keeping, oasis agriculture  Off farm income and remittances
  • 25. Interventions: What to do (8) ICTs  Exploit the unique power of ICTs to overcome the “tyranny of distance”  Specific options include:  Cell phone, email, www web access for sharing price information, obtaining technical advice, etc  E government  Distance education  Banking/insurance services
  • 26. Interventions: What to do (9) Security  Government has a unique role to play in protecting communities and preserving law and order  Specific actions include: Developing effective approaches for the traceability of livestock
  • 28. Managing the ASALs Achieving the potential of the ASALs requires highly integrated management approaches. Key elements include: 1. Effective knowledge management 2. Smart targeting for geography, gender, 3. Active community participation 4. Dynamic cross sectoral interventions 5. Quick learning culture to scale out successful
  • 30. Conclusions 1. ASAL development can be improved significantly with existing knowledge and experience 2. ASAL development is mainly an investment and management challenge 3. Rapidly evolving context offers many new opportunities e.g ICTs, finance, insurance, early warning systems, trade in ecosystem services, service delivery through ppts