Opportunities to improve the lives of poor farmers through livestock interventions in Africa.

Opportunities to improve the lives of
poor farmers through livestock
interventions in Africa
Presenter Name Line 1
Presenter Name Line 2
Presenter Name Line 3All Africa Conference on
Animal Agriculture
Oct 25, 2010
Gregg BeVier

How We Got Started
2
2000 2006
Bill and Melinda
read an article
about rotavirus
They officially
create the
foundation
Warren Buffett
decides to give
Berkshire
Hathaway
stock
1997 2000 20061997

Our Core Belief:
All Lives Have Equal Value
3

Our Grantmaking Areas
4
25%
Global Development
Program50%
Global Health
Program
25%
United States
Program
Greater opportunity for all
Americans through the
attainment of secondary and
postsecondary education
Increasing opportunities
for people in developing
countries to lift themselves
out of hunger and povertyDiscover, develop,
and deliver lifesaving
health solutions to
the people who need
them most.

Focus on Small Farmers
5
More than 1 billion people live on less than $1 a
day. What does that mean?
There’s a good chance they:
• Don’t have clean water or
safe sanitation
• Spend long hours doing
backbreaking work
• Eat only 1 or 2 meals a day
• Aren’t able to send their kids
to school
• Lack basic financial services

Grantmaking Principles
6
There are many ways to address hunger and poverty.
We’ve focused on a limited set of areas with the
potential to be:
• Effective in addressing a problem that has received
insufficient attention and has potential for a
significant breakthrough
• Scalable so solutions can ultimately reach many of
the people who need them most
• Sustainable through long-term operations and
financing

Why Agricultural Development?
7
Agriculture is key to reducing
hunger and poverty
• Most people living on $1 a day
rely on agriculture
for food and income.
• In sub-Saharan Africa,
farming accounts for 2/3 of
labor and 1/3 of GDP
Labor in sub-Saharan Africa
Gross domestic product
ratios in sub-Saharan Africa
Other laborFarming
Other laborFarming

The Green Revolution
8
• We know progress is possible.
From the 1960s to the 1980s,
crop improvements in Asia
and Latin America helped:
– Double food production
– Save hundreds of millions
of lives
– Lay a foundation for growth in
countries like India and China
Rural poverty in India
Poverty rate, %
60
50
40
1985
1980
1975
1970
1965Nearly 20% reduction in
poverty in just two decades
GREEN
REVOLUTION
PERIOD
20%

Agriculture’s Impact Ignored
9
Despite its importance, agriculture has been neglected
over the last several decades by both developing and
donor countries—especially in sub-Saharan Africa.
0%
5%
10%
15%
20%
25%
30%
35%
Sub-Saharan African Gov’ts Average yield for a farmerDonors
Tons of cereal per acre1985 2006
Agriculture as
% of GDP
Agricultural
spending as %
of gov’t budget
0 .5 1 1.5 2 2.5 3
United States
Sub-Saharan Africa
India
China

Address Areas of Greatest Need
10
Sub-Saharan Africa
South Asia
Legend
We focus on sub-Saharan Africa and South Asia,
where nearly 80 percent of people making less than $1 a day live

© 2009 Bill & Melinda Gates Foundation |
• Livestock are widely held by small shareholders
• Increase income from livestock is primary focus but
• Reduce hunger & improve nutrition
• Increase asset base
• Improve farm productivity
Focus on entire value chain: genetics, health,
nutrition, market access, data and policy
Consider environmental impact
11
Livestock Theory of Change
Improving livestock productivity & market access will
increase small shareholder income

Why Livestock ?
12
• In the last 30 years, access to livestock technology
and market access has decreased when compared to
the developed world
• In the next 20 years the protein gap that is already an
issue is set to expand in Africa and the Indian
subcontinent
• It is estimated that 25% of the animals of poor
livestock keepers die each year
70% Of The People In The World’s Poorest
62 Countries Are Dependent Upon Livestock

Why livestock?
13
Animal Source Foods – highly strategic in
nutritionally challenged populations (women &
children)
o Dense sources of protein, energy
o Delivers essential, highly available micronutrients
more effectively than plant-based food
o Associated with
 Better growth, cognitive function and physical
activity of children
 Better pregnancy outcomes
 Reduced morbidity from illness
Source: ILRI

Livestock can be a key lever of change for
smallholders because the majority own livestock
Number of Poor by Daily Income
Grouping
(millions)
Sub-Saharan Africa
Source: ILRI 2008 based on World Bank (2001) and LID (1999)
(61%)
(60%)

© 2009 Bill & Melinda Gates Foundation | 15
Case studies show that the rural poor obtains at
least a third of their income from livestock
Percent of income derived
from Livestock
Source: ILRI 2008; Listening to the Voices of the Poor, LDG 2007
47%
34%
32%
37%
East Africa South Asia Southern
Africa
WestAfrica

Stages of Progression Out of Poverty
16Source: Pathways Out Of Poverty in Western Kenya and the Role of Livestock (ILRI), 2004
1. Food
2. Clothing
3. Repairs to house
4. Primary education for children
5. Purchase a chicken
6. Purchase a sheep or goat
7. Purchase a local cattle
8. Improvements to housing, furniture
9. Secondary education for children
10.Buy or lease land
11.Purchasing a dairy cow
12.Buying land/plots
13.Constructing permanent houses
14.Investing in a business

Major Reasons for Escaping Poverty
% of households that had escaped poverty mentioned
these reasons:
17Source: Pathways Out Of Poverty in Western Kenya and the Role of Livestock (ILRI), 2004
9
18
33
36
40
42
57
73
0 20 40 60 80
Employment in private or public sector
Cash income from crop farming
Diversification into livestock farming
Help from relatives or friends
Petty trade / business
Small family size
Education
Bride wealth

Livestock Opportunities and Challenges
18
1. Regular income stream from livestock
acts as a hedge against inflation and
supplements smallholders’ seasonal
crop income.
2. One of the most widely held assets,
livestock is also a large cash source
when critical.
3. Livestock is a key source of food,
especially for women and children in the
household, reducing hunger and
improving nutrition in areas with high
under-nourishment rates
4. Livestock can enhance farm productivity
through draught power and nutrient
recycling.
1. Negative environmental consequences
can result from intensification of livestock
production.
2. Livestock production is less efficient use
of energy with high conversion rates
compared with crop production.
3. Under-investment by public and private
organizations in the sector results in a
data-poor environment with limited
success stories.
4. Pastoralists are the poor livestock
keepers most dependent on livestock;
however, comprehensive interventions
are challenging due to environmental,
socio-cultural and political contexts.
Opportunities Challenges

Cattle, chickens and goats are the main livestock kept across SSA
and SA, with buffaloes also kept in large numbers in India
Species Number of
Animals in SSA
and SA
(millions)
Livestock Unit
(LU) Conversion
Ratio
(# of animals/LU)
Livestock Units
(millions)
Cows 473 1 473
Chickens 16,987 125 136
Goats 460 4 115
Sheep 291 4 73
Buffaloes 130 1 130*
Camels 18 1 18
Pigs 39 5 8
*Almost all buffaloes are in India
Source: FAOSTAT Oct 2008, Team analysis
Note: Analysis does not include smaller livestock such as bees, other birds, rabbits and silk worms
19

Focusing on milk, beef, chicken meat and eggs will address the vast
majority of the opportunity
TOTAL:
$13.5 Billion
Annual Impact
Milk
$2.7B
$4.4B
South Asia West Africa East Africa Central Africa
Beef $0.3B
Chicken Meat $0.2B
Eggs $0.4B
Goat Meat $0.3B
Sheep Meat
Sheep Milk $0.8BGoat Milk
$1.7B $7.2B $0.1B
Milk
$0.3B
Beef
$0.3B
Eggs
$0.8B
Chicken Meat
Milk
$5.4B
Beef $0.7B
Eggs $0.1B
Livestock Income Increase Potential by Region and Product ESTIMATES
Goat Milk $0.5B
$18.9B $3.5B $11.3B $0.5BCurrent Producer
Income:
Goat Meat
Source data : FAOSTAT August 2008, ILRI (2008) based on FAOSTAT and India Livestock Census (2003), Team analysis

Cattle and poultry products are the largest contributors to household
income with the most significant opportunities for improvement
Prioritized Species/
Livestock Products
• Cow Milk
• Beef
• Chicken Eggs
• Chicken Meat
Cow Milk (49% of livestock income,
45% productivity gap)
Note: Productivity gap calculated by comparing output per animal against Average of top quartile among Least Developed Countries.
For India, productivity gap is calculated by comparing regions to top quartile of most productive producers in India. Includes only prioritized
countries
High priority
Low priority
No. of poor livestock
keepers
Goat Milk
(6% of income,
27% gap)
Chicken Meat
(14% income, 8% gap)
0
20
40
60
0 5 10 15 20 25 30
Sheep Milk (2% income, 126% gap)
Beef (12% income, 31% gap)
Goat Meat
Sheep Meat
% of Total Livestock Producer Income in top 20 countries
% Output increase opportunity by closing productivity gap
Chicken Eggs (10% income, 33% gap)
275M
345M
269M
420M420M
336M
336M
269M

Countries with the most number of poor livestock keepers and the
biggest potential impact on household income
India
Pakistan
Bangladesh
Ghana
Nigeria
Burkina
Faso
Mali
Niger
(6M, 13%)
Ethiopia
Sudan
Zambia Cameroon
DRC
Kenya
Somalia
Tanzania
Mozambique
(overlapped) Madagascar (7M, 13%)
(overlapped) Uganda (10M, 11%)
30%
60%
0%
ImpactonHouseholdIncome
PercentIncrease
Number of Livestock Farmers (Million)
367M
0 35 70
South Asia
East Africa
West Africa
Central Africa
*Countries to be confirmed pending post-conflict country strategy development
Livestock Product

Opportunity for Impact
Animals play a role in all farming systems
But productivity and consumption rates continue to lag
Beef
(kg output/kg
biomass/yr)
Milk
(kg/cow/yr)
Year: 1980 2005 1980 2005
Sub-Saharan Africa 0.06 0.06 411 397
Latin America 0.08 0.11 1021 1380
West Asia/N Africa 0.07 0.10 998 1735
South Asia 0.03 0.04 517 904
Industrialized countries 0.17 0.20 4226 6350
FAO 2009 SOFA Report

Preliminary assessments indicate that addressing productivity constraints
and linking farmers to markets could add significant value for smallholders
Genetics Husbandry Total Impact
Beef
$0.5
$0.8
Health
Nutrition
Other
Hen Eggs
$0.1
$1.2
Health
Nutrition
Other
Chicken Meat
Health
Nutrition
Other
Full Potential Value Creation Opportunity
Billion Dollars
Billion Dollars
Billion Dollars
Billion Dollars
Milk
$4.3
$4.1
Health
Nutrition
Other
$8.5
$1.3
$1.3
$0.02
$0.4 $0.4

Livestock Revolution: Countries took different paths to dramatically
increase output
20051980 1985 1990 1995 2000
Production Output (million tons)
4%
Case Example: India
Average Annual GDP Growth:
(1980-2006)
6.4%
Key Enablers and impact on smallholder farmers
Dairy
• Rapid GDP growth and urbanization created demand for
dairy and meat
• Large holdings and foreign investment into dairy sector
• Cooperative movements, such as the National Dairy
Development Board, successfully links smallholder
farmers to formal sector, and providing access to
essential feed and animal health inputs, as well as
knowhow for intensification of production
Poultry
• Discontinuous development in poultry with “bursts” of
intensification through industrial investors stepping in
as urbanization and demand increases
• Smallholder farmers becoming competitively
disadvantaged vs. large scale producers
12%
Source: FAOSTAT August 2008, World Development Report
Output Per
Animal
CAGR
(1980-2007)
Total
Output
2.8%
0.0%

There are numerous potential areas for intervention along livestock
value chains, ranging from science and technology to market
linkages
Improve
genetic
material of
animals
Managing
quality and
quantity of
feed
Prevent and
treat animal
diseases to
reduce
mortality
rates
Managing
other farm
inputs and
management
practices to
maximize
benefit from
breed, feed
and health
initiatives
Connecting
smallholder
farmers to the
formal sector
and increasing
benefits from
the informal
sector
Processing
raw products –
ranging from
minimal and
major value
addition
Enabling
access to local,
regional and
global markets
Processing
Con-
sumers
Markets
• Local
• Regional
• Global
Storage,
aggregation,
transportation
and agro-
enterprise
R&D and Delivery
Genetics Nutrition Health On farm
maintenance
Value Chains

Our Approach To Livestock
27
Focus
 Income generation for smallholders & nutrition
 Limited set of high leverage interventions: sustainability & scale
• Areas of interest: Animal breeding and genetics, animal health,
animal nutrition, husbandry, market linkages
• Species: cattle (dairy & beef), small ruminants, chicken
• Geographies: Sub-Saharan Africa, South Asia
• Current grants: EADD, Care Bangladesh, GALVmed, BAIF, African
Cattle Genetics, Disease Resistance Research
• Grants under review: Animal Health Delivery & Livestock Point-of-
Care Diagnostic tests

• CARE: Strengthening the dairy value chain in
Bangladesh by connecting smallholder dairy
farmers to the formal market sector ($5.3M over 4
yrs.)
• East Africa Dairy Development Project, Heifer
International: To demonstrate dairy chilling hubs
can sustain delivery of technology and services to
poor farmers ($42.9 over 4 yrs.)
• BAIF: To develop alternate models for up-scaling
artificial insemination delivery ($6M over 5 yrs.)
28
Livestock Grants

• University of New England: To determine genotype
and phenotype of dairy cattle using DNA testing and
household enumeration ($3M over 2 yrs.)
• University of Georgia: To develop disease resistant
chickens using stem cell technology ($1.4 M over 4
yrs.)
• Global Alliance for Livestock Veterinary Medicine
(GALVmed): The project aims to bring to market
affordable and accessible vaccines addressing
critical needs of smallholders through public-private
partnerships ($22.5 over 3 yrs.)
Livestock Grants

• Diagnostics For All: To develop convenient, easy to
use, low-cost, point of care diagnostic tests for
livestock. ($3M over 2 years)
• FARM-Africa: To establish 150 animal health
franchises in Kenya to deliver veterinary products
and services to the poor ($5.1M over 4.5 yrs.)
• 2011: we have a strategy refresh in process; our
initial plans were to target poultry & small ruminants
as well as greater investment in genetics and health
R&D.
Livestock Grants in process

A Drop in the Bucket
32
Our resources, while significant, pale in comparison
to the need. Partnerships and advocacy are critical
to success.
Global agricultural spending
for sub-Saharan Africa
~$9B*
$445M
Our agricultural grantmaking
commitments in 2008
* Latest figures available are 2006
~5% of total Ag spending in SSA

Reasons for Optimism
33
Developing countries are making
progress
• Poverty rates down
• Improved governance
Science and technology
• Applying technology to small farmers’
challenges
• Mobile phone revolution
Renewed attention to hunger, poverty
and agriculture
• The MDGs and CAADP
• Increased media coverage and
financial commitments to agriculture

The Challenge
Much of increase will come from industrial sector for
poultry and swine
• Not as well developed where the poor are
Poor will need to depend on local systems
• Limited capacity to respond
• Offers opportunity for broad-based income
generation from high-value Animal Source
Foods
• Transition strategy

Success Is PossibleSuccess Is Possible

January 30, 2015
Millennium Development Goals
1. Poverty & hunger
2. Primary education
3. Gender equality
4. Child mortality
5. Maternal health
6. Combat diseases
7. Env’t sustainability
8. Partnerships
www.un.org/millenniumgoals

Cattle and poultry products are the largest contributors to household
income with the most significant opportunities for improvement
Prioritized Species/
Livestock Products
• Cow Milk
• Beef
• Chicken Eggs
• Chicken Meat
ESTIMATES
Cow Milk (49% of livestock income,
45% productivity gap)
High priority
Low priority
No. of poor livestock
keepers
Goat Milk
(6% of income,
27% gap)
Chicken Meat
0
20
40
60
0 5 10 15 20 25 30
Sheep Milk (2% income, 126% gap)
Beef (12% income, 31% gap)
Goat Meat
Sheep Meat
% of Total Livestock Producer Income in top 20 countries
% Output increase opportunity by closing productivity gap
Chicken Eggs (10% income, 33% gap)
275M
345M
269M
420M420M
336M
336M
269M

Since the early 1980s, many developing countries have experienced
dramatic increases in livestock output production, while Africa
stagnated
Production in million Tonnes
1970 20051975 1980 1985 1990 1995 2000
1970 20051975 1980 1985 1990 1995 2000
1970 20051975 1980 1985 1990 1995 2000
Europe
N. America
S. America
Asia
Africa
Europe
N. America
S. America
Asia
Africa
Europe
N. America
S. America
Asia
Africa
Europe
N. America
Asia
1970 20051975 1980 1985 1990 1995 2000
Beef
Cow Milk
Chicken Meat
Eggs
Africa
S. America
Source: FAOSTAT August 2008

Dairy and chicken products have the highest productivity
increase potential based on current technology
Source: FAOSTAT August 2008, Team analysis
Productivity Increase Opportunity
98%
Cow’s Milk – Output per animal per year (tonnes)
0.3 0.3 0.3 0.3 0.31.3 1.3 1.3 1.3 1.4
6.3 6.4 6.5 6.5 6.7
2001 2002 2003 2004 2005
¹Productivity Increase Opportunity (Least Developed and Developing Countries)=Total Output increase from raising productivity in low performing countries to meet top quartile averages within the grouping
² Least Developed Countries (stretch) = Total Output Increase from raising productivity in Least Developed Countries to meet top quartile levels among Developing Countries
Beef – Output per animal (tonnes)
0.1 0.1 0.1 0.1 0.10.2 0.2 0.2 0.2 0.2
0.3 0.3 0.3 0.3 0.3
2001 2002 2003 2004 2005
Hen Eggs – Output per thousand animal (tonnes)
3.1 3.2 3.4 3.5 3.5
9.3 9.4 9.5 9.6 9.5
15.3 15.4 15.4 15.5 15.1
2001 2002 2003 2004 2005
Chicken Meat – Output per thousand animals (tonnes)
0.9 0.9 0.9 1.0 1.01.3 1.4 1.3 1.4 1.41.5 1.5 1.6 1.6 1.6
2001 2002 2003 2004 2005
Least Developed Countries World Developing Countries World Developed Countries
Least Developed
Countries¹
Developing
Countries¹
Least Developed
Countries (stretch)²
125% 450%
50% 33% 67%
65% 49% 201%
114% 22% 137%

Although goats are widely kept by smallholder producers, opportunities
to increase the productivity of goats are much more limited than cattle
and poultry
Source: FAOSTAT August 2008, Team analysis
Productivity Increase Opportunity
13%
Goat Milk – Output per animal per year (tonnes)
0.06 0.06 0.06 0.06 0.060.08 0.08 0.08 0.08 0.08
0.2 0.2 0.2 0.2 0.2
2001 2002 2003 2004 2005
Goat Meat – Output per animal (tonnes)
0.01 0.01 0.01 0.01 0.010.01 0.01 0.01 0.01 0.010.01 0.01 0.01 0.01 0.01
2001 2002 2003 2004 2005
Least Developed Countries World Developing Countries World Developed Countries
Least Developed
Countries¹
Developing
Countries¹
Least Developed
Countries (stretch)²
39% 77%
39% 234% 41%
¹Productivity Increase Opportunity (Least Developed and Developing Countries)=Total Output increase from raising productivity in low performing countries to meet top quartile averages within the grouping
² Least Developed Countries (stretch) = Total Output Increase from raising productivity in Least Developed Countries to meet top quartile levels among Developing Countries
*Small sample size
*Small sample size

0%
20%
40%
60%
80%
100%
120%
140%
160%
India
Bangledash
Nigeria
Ghana
BukinaFaso
Mali
Niger
Ethiopia
Sudan
Tanzania
Kenya
Uganda
Mozambique
Madagascar
Somalia
Zambia
DRC
Cameroon
Milk Beef Chicken Meat Eggs Goat Meat Goat Milk Sheep Meat Sheep Milk
42
Potential income impact from livestock interventions vary
significantly across countries with milk as the most frequent major
driver
Livestock Income Increase Potential by Country* by Product
24%
105%
42%
53%
99%
42%
35%
145%
62%
114%
22%
44%
37%
29% 27%
16%
41%
30%
Biggest potential sources
of productivity increase
given current animal
numbers:
• Milk
• Beef
• Eggs
Note: Methodology assumes (1) current livestock product prices remains unchanged, and (2) productivity increase on current animal count
South Asia West Africa East Africa Central Africa
*Countries with each region prioritized by number of poor livestock keepers

Opportunities to improve the lives of poor farmers through livestock interventions in Africa.

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