EXTENSIVE LIVESTOCK PRODUCTION SYSTEMS:Animal Health: Inputs Supply Models that Work.

Conference Organized by the Extensive Livestock Expo Secretariat

Held at College of Agriculture & Veterinary Sciences (CAVS) Upper Kabete, University of Nairobi

Presentation by

Caleb Wangia, Ph.D.

Agricultural Economist

Agricultural Market Development Trust (AGMARK)

November 4-6, 2015

My Identity & AGMARK

• Foundation degree in Agriculture

• Specialization in Agricultural Economics

• Over 15 years experience in private sector in delivery of agri-inputs.

• Hands-on agrodealer practitioner.

• Currently Chairman of AGMARK (Agric Market Devpt Trust)

• AGMARK is registered in Kenya since 2004.

• Specialization in agricultural inputs & output Marketing

• .Operates in Eastern, Southern & West Africa countries.

• Initially used agrodealer model for agricultural Development

• Now AGMARK uses the Hub & Spoke Agrodealer Model

Status of Livestock Health Production in Africa

•High losses due to preventable livestock diseases &malnutrition. & drought estimated @ 25% of theproductive value.

Commercial Sector is:

•Well developed veterinary public systems

• Supported by developed private sector (individuals, companies & NGOs).

•Good infrastructure for distribution of veterinary inputs & services

Nomadic or pastoral & communal livestock sector:

•No or inadequate distribution & supply of veterinary products and services

Trends & Players in Livestock Healthcare Services: Models

• Traditionally livestock production health care is individual farmers.

• Public extension service workers that dominates

• Private sector driven model that provide inputs & services

• Business Development Services Model

• Value chain model that is driven by market.

• Hub & Spoke Agrodealer Model

• Agri-entrepreneurship model depicts one of the models that works.

• All of these are found in Africa.

• Future development models – Value Chain & Agrodealer Models

AGRODEALER HUB & SPOKE MODEL

Agri-Entrepreneurship Model

• This model has been used successfully by AGMARK & partners.

Components include: integrated attention to:

• Livestock producers /output produce

• Inputs suppliers & delivery systems –public private partnerships (PPP)

• Entrepreneurs &markets (rural, urban & international)

• Regulatory agencies. Especially Governments

• Value chain drivers- financial institutions

• Note that different versions of the same are been used.

Livestock Producers

• These are primary to the success of the model.

• Need for technical & business skills

• Training producers using modules and trainers.

• Experiential learning through fairs, demos, field days.

• linked to industry drivers – linkage & visitation sessions.

• Access to public & private extension services

• Access to rural entrepreneurs for inputs & output markets

• PPP, AGMARK & many other agencies collaborating in that regard

Rural Agri-Entrepreneurs

Mainly:

• Agrodealers/Pharmacies supply inputs

• CAHW & vets service providers

• Livestock traders that facilitate trade in live animals

• Dairies, Butcheries & hides & skins

• Transporters.

Need to strengthen capacity and linkages agri-entrepreneurers. Thus:

• PPP undertakes these roles

• Successful implementation in North Eastern, Taita Taveta.

Examples of Development Projects:KDLDP & K-Sales

• Objective: Increase productivity & trade of livestock value chain

• Activity: Build capacity of various business service providers

• Agrodealers, animal health SPs, animal & hides /skins traders.

• Market linkages: Conduct linkage sessions of service providers

• Agribusiness Development –hides & skins, dairies abattoirs

• Output:

Technical modules & training- Animal health pdts, hides& skins, fodder pdn

Business modules & training -Financial, marketing & leadership

Learning tour for business Service providers. (BSPs)

BSPs Stakeholder forum –linkages/networking

Business Clinics –Share experience among the BDSs.

Outcomes of KDLDP & KSales

• Skilled & confident animal health service providers.

• Better access to veterinary products (agrodealers) & services

• Increased use of vet products & services.

• Increased agribusiness in livestock trade & products.

• Anticipated increased livestock productivity.

Lessons Learned & Challenges

Lessons Learned

• There is high demand for training in technical & business skills

• Program creates visibility & confidence in the delivery of inputs & services.

• Government & private sector are vital collaborators for success

• Farmers are quite receptive to the interventions.

Challenges:

• Vast areas with poor infrastructure to access inputs & markets.

• High cost of implementation per beneficiary –

• Limited cost sharing from beneficiaries –low resource base.

• Livestock markets infiltrated by many middlemen.

Basis for Cost Benefits Analysis :Agrodealers Development Model

Costs

• Equipment & staff costs

• Support services- training, tours, demos, field days, trade fairs

• Subsidies

• Grants

• Loss in livestock due to lack of inputs & services.

Note that discounting is important for better comparison.

Benefits

• Increase sales inputs & services

• Increase in output sales

• Increase in quality inputs & services.

• Savings due to improvement in livestock management.

• Note that some benefits are so intrinsic and are long term than costs.

Livestock Systems & Input & Service Delivery: Challenges

• Vast & extensive areas make input & service delivery unattractive.

• Limited inputs & services markets unattractive to providers

• Tendency for subsistence LS do not endear to livestock inputs & services.

• Nomadic nature make difficult for inputs & service delivery

• Risk of drought &epidemics discourage investment in inputs & services.

• Belief that livestock can survive without proper inputs & services

• Unpredictable & challenging livestock markets discourage use of I&S

Livestock Systems & Input & Service Delivery: Mitigations

• Extensive livestock systems work in developed countries USA, Latin America, Australia. It can be done in Kenya.

• Essential for continued input & service delivery by Government & NGOs (public good).

• Motivate & support private sector to enhance linkage & service.

• Mind-set change for livestock farmers through education tours experiential learning.

• Strengthen efficiency & transparency in the market systems.

• Develop ICT platforms for use by stakeholders to improve communication.

• Continued promotion extensive livestock farming as a business.

Constraints to Implementation of Model

• Fake/poor quality/ adulterated inputs

• Expired products

• Unauthorized agrodealers

• Unlicensed practitioners

• Limited or no access input &output markets I remote Areas (fewer agrodealer & vet services)

• Price fluctuations for livestock

• Poor quality feeds & limited quality assurance.

• Modest or limited extension services & service providers.

• Limited integrated implementation of models.

Overall Way Forward

• Developing the capacity of agri-entrepreneurs- through trainings/mentorship/exposure learning & tours

• Design & implement integrated programs based on model.

• Encourage startups of rural agrovets & service providers in rural areas.

• Capacity building of community animal health workers.

• Quality assurance through test-sampling of inputs & services and policing.

• Establish linkages and networks within the value chain.

THANK YOU FOR LISTENING