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

Outlines

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

GALVmed - Who we are

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• 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

GALVmed - What we do

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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 chain.

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• 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

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

ECF Vaccine: Enablement & Education

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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

Dairy Gender empowerment & Nutrition

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• 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.

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Livestock and human population growth (Africa 1961-2009)

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• Global population increases by ~90 million people annually. • Food production have to increase by 50% to feed about 2 billion more

- next 35 years

Livestock in Poverty Alleviation

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Demand-driven opportunities - Animal protein intake

Opportunities in the animal health sector in 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 opportunitiesBad - Africa is anticipated to increasingly become a net importer of animal-sourced foods – Why?

• Production has not kept pace with demand

Rural Veterinary service delivery

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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

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

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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

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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.

Opportunities in the animal health sector in East Africa

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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).

Opportunities in the animal health sector in 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?

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PPP Pathways for improved RVS?

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

1. Service Structure Innovation (SSI)2. Enabling Environment Innovation (EEI)

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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.

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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

Small Scale Livestock: What must change

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Alternative production pathways – Pros & Cons• Increase number of Livestock• Increase production per animal

• 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

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Conclusions

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.

Investment in Animal Health as bedrock for Livestock Development.

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Rural Veterinary Service Delivery in East Africa: Challenges and Prospects

Thank You

GALVmed Facilitates Public-Private-Partnership for improved rural veterinary service delivery

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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.

Retailer in rural areas

Distributor

Manufacturer

Vaccinators

Re sellers at market

Farmers

Veterinary Product Value Chain : Lessons from Case Studies

Traditional manufacturers

Traditional NGO

Free service

Subsidized service

Fully paid service

Availability + access + demand Adoption

Pilot project

Business support

Model Development

Model Implementation ADOPTION

Lessons learnt

• 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.

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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