Research Needs for Inclusive ASF Market Development in ... ASAS... · Why does USAID invest in ASF...

Jim Yazman, PhD.

Livestock Sciences Specialist

USAID Bureau for Food Security

Washington, DC

Research Needs for Inclusive ASF Market

Development in Feed the Future Countries

Key messages:

• Rapid urbanization in developing countries is

creating a rapidly-expanding demand for ASFs.

• Pressure on producers, investors, governments,

partner donors to address concerns of equity, food

safety, environmental protection, animal welfare.

• Pro-poor ASF market systems can (must) be

competitive.

• Need for research - scalable technologies and

management systems.

Why does USAID invest in ASF market

systems?

• Target HHs have the animals. They already contribute to income,

nutrition, resiliency

• ASF markets can be inclusive – poor HH (SHs and pastoralists),

women, youth, PLWHAs, other marginalized groups.

• Transforming ASF market systems essential for protecting resources

and for climate change adaptation.

• Increased availability of ASFs underpins improved nutrition in the

1000 days.

• Demand for ASFs is growing rapidly with income and urbanization.

• Governments, private sector see potential for intra-regional and

export markets.

Principles Underpinning Inclusive ASF market development

Opportunities for individuals from all populations of

interest to engage in ASF markets.

But….. Inclusiveness that enhances and doesn’t

compromise value chain competitiveness.

Broad scaling of impact and long-term sustainability of

our investment are as important as short-term

outcomes.

Rapid Urban Population Growth Across the

Developing World

• Urbanization in LDC 13% in 1970, est. 35% in 20201

• Urbanization associated with changes in income and

diet.

• Result is an increased demand for ASFs = an

opportunity for inclusive market development.

1: Satterwhite, et. al. 2010

Urban diets are higher in ASFs

Source: IFPRI, 2010

With higher income ASF consumption rises

Source: Maxwell and Levin, 2000

Rural Populations Continue to Grow

• Rural families – young people – require jobs.

• Competitive ASF markets require skilled workers

in jobs attractive to youth, women.

• Opportunities for employment-creating SMEs at

different stages of the ASF value chain.

Challenges in ASF Market Development

• As markets grow, local firms face competition from often

lower-cost, higher-quality imports.

• Transaction costs – aggregating from small volumes,

geographically dispersed.

• Poorly developed input and services sectors

• Poorly capitalized producers and other VC actors.

• Lack of private investment.

• Lack of public infrastructure – electrical grid, water, roads

• Consumer concerns for food safety – Social media!

Partners Need to Address Concerns

• Food safety

• Impact of over-consumption of ASFs on diet and health

• Deforestation, over-grazing, water and air pollution

• Inefficient use of scarce water resources and crop land

• GHG generation by livestock, manure, processing waste

• Animal welfare – potential impact should not be minimized!!

USAID Seeks Competitive ASF Markets

• On-going, adequate investment in technology generation and

extension

• Well-capitalized, “right-sized” farms utilizing “best science”, information, etc., delivering raw product under strict public health

regulations and buyer quality standards.

• National products recognized for taste, safety, convenience, price

• Make unnecessary NTT barriers to protect markets.

Competitiveness contributes to increases in:

• Availability (affordability) of ASFs

• Investment, private and public

• SH\pastoralist HH income

• Employment all along the value chain

Case study: African Dairy Sector

• Many groups are livestock keepers

• Milk and dairy foods a traditional part of diets

• Recognized as food important in 1000 days

• Positive gender implications – women control milk income.

• Milk marketing underpins household economy and resilience

• Crossbreeding/upgrading proven way to capitalize families.

• Dairy production and marketing has arisen out of traditional

crop-livestock systems

Growth Opportunities: East Africa dairy market

Source: Makoni, et.al. 2014

Distribution of employment in “traditional”

dairy value chains

Production

Inputs and Services

ProcessingRetailing

Changes in employment with dairy value chain

“transformation”

Traditional – Limited

“upstream” employment

Production

Inputs and Services

Processing and Distribution

Retailing

Transformed – Major part of

employment is upstream

Production

With transformation and increased

competitiveness, total employment

grows but % at production level

declines.

New technology enables this process.

African Dairy Markets Transforming

• Urbanized populations, growing middle class population driving

interest of regional and global dairy firms.

• Regional trade agreements open cross-border trade.

• Land and water resources available.

• With donor support, raw milk supply increasing.

• Global players see pathway to regional markets (Middle East).

• Supermarkets are creating a channel to urban middle class

consumers.

Meeting the Opportunities in the Dairy Sector

Reduce transaction costs, expand raw milk supply

Productive, appropriate breeds, good breeding management –

reduce supply depressions.

High-quality raw milk: low SCC, free of contaminants

Certified healthy cows

Raw milk prices defined by end market product prices

Technology and information flow up and down the value chain

Producers rewarded with higher prices for meeting specifications

Filling a need for appropriate technology:

PortCheck Mastitis Detection Test Strips

Research to Transform the Dairy Value Chain

Thanks!