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John McPeak
Department of Public Administration and International Affairs
Syracuse University
Animal Agri-Food Systems breakout session
Livestock Research to Reduce Poverty and Enhance Resilience
Livestock Products Critical in Household
Income
Survey results from Kenya and Ethiopia 2000-2002
Importance of Livestock in Coping with
Shocks
0 0.1 0.2 0.3 0.4 0.5
Sell animals
Household resources, practices, strategies
Seek financial help
Eat less
Sell / trade cash crop for grains
Labor migration
Artisinal task / local economy
Normalized rank of response to harvest 25% of needs
Survey results from Niger and Mali 2008-9
Two paths to resilience
• Preserve, protect, enhance mobility for the
extensive grazing system
0
2000
4000
6000
8000
10000
12000
14000
16000
2005_4
2006_1
2006_4
2007_1
2007_2
2007_3
2007_4
2008_1
2008_2
2008_3
2008_4
2009_1
2009_2
2009_3
2010_2
2010_3
2010_3
2010_4
2011_1
2011_2
2011_3
2011_4
2012_1
2012_2
2012_3
2012_4
2013_1
2013_2
2013_3
2013_4
2014_1
2014_2
2014_3
2014_4
2015_1
Nominal Price per TLU Ethiopia ETB
Addis Nominal Boran Nominal
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2005_4
2006_1
2006_4
2007_1
2007_2
2007_3
2007_4
2008_1
2008_2
2008_3
2008_4
2009_1
2009_2
2009_3
2010_2
2010_3
2010_3
2010_4
2011_1
2011_2
2011_3
2011_4
2012_1
2012_2
2012_3
2012_4
2013_1
2013_2
2013_3
2013_4
2014_1
2014_2
2014_3
2014_4
2015_1
Real Price Per TLU Ethiopia 2010 ETB
Addis Rea Borana Real
Price per Head in TLU
Addis data from
www.lmiset.net
courtesy Jay Angerer
of Texas A&M
IBLI Boran household data
CPI adjustment
from WDI
online, 2010
Birr
Prices converted to
TLU, .7 for camel, 1 for
cattle, 10 for sheep and
goats, average for price
per TLU for 3 month
quarter per year
Very thin Thin Moderate Fat
Goat
278 ETB
($16.35)
399 ETB
($23.47)
681 ETB
($40.06)
896 ETB
($52.71)
With respect to moderate -59% -41% -- 32%
Sheep
226 ETB
($13.29)
324 ETB
($19.06)
556 ETB
($32.71)
729 ETB
($42.88)
With respect to moderate -59% -42% -- 31%
Average smallstock prices, Dubuluk market Ethiopia July 2010-July 2012 in Birr, 1 USD July 2012 corresponds to around 17 Birr.
Second Path : Intensification
Link to Index Based Livestock
Insurance (IBLI)
• Much less expensive to keep animals alive than to
replace them.
• Premiums go down, adoption goes up?
• Market for fodder in good years (fattening)
• Market for fodder in bad years (insurance)
• How to make sure there is a supply?
• What are the different options out there?
Livestock Research to Reduce Poverty and Enhance Resilience

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Livestock Research to Reduce Poverty and Enhance Resilience

  • 1. John McPeak Department of Public Administration and International Affairs Syracuse University Animal Agri-Food Systems breakout session Livestock Research to Reduce Poverty and Enhance Resilience
  • 2. Livestock Products Critical in Household Income Survey results from Kenya and Ethiopia 2000-2002
  • 3. Importance of Livestock in Coping with Shocks 0 0.1 0.2 0.3 0.4 0.5 Sell animals Household resources, practices, strategies Seek financial help Eat less Sell / trade cash crop for grains Labor migration Artisinal task / local economy Normalized rank of response to harvest 25% of needs Survey results from Niger and Mali 2008-9
  • 4. Two paths to resilience • Preserve, protect, enhance mobility for the extensive grazing system
  • 5. 0 2000 4000 6000 8000 10000 12000 14000 16000 2005_4 2006_1 2006_4 2007_1 2007_2 2007_3 2007_4 2008_1 2008_2 2008_3 2008_4 2009_1 2009_2 2009_3 2010_2 2010_3 2010_3 2010_4 2011_1 2011_2 2011_3 2011_4 2012_1 2012_2 2012_3 2012_4 2013_1 2013_2 2013_3 2013_4 2014_1 2014_2 2014_3 2014_4 2015_1 Nominal Price per TLU Ethiopia ETB Addis Nominal Boran Nominal 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 2005_4 2006_1 2006_4 2007_1 2007_2 2007_3 2007_4 2008_1 2008_2 2008_3 2008_4 2009_1 2009_2 2009_3 2010_2 2010_3 2010_3 2010_4 2011_1 2011_2 2011_3 2011_4 2012_1 2012_2 2012_3 2012_4 2013_1 2013_2 2013_3 2013_4 2014_1 2014_2 2014_3 2014_4 2015_1 Real Price Per TLU Ethiopia 2010 ETB Addis Rea Borana Real Price per Head in TLU Addis data from www.lmiset.net courtesy Jay Angerer of Texas A&M IBLI Boran household data CPI adjustment from WDI online, 2010 Birr Prices converted to TLU, .7 for camel, 1 for cattle, 10 for sheep and goats, average for price per TLU for 3 month quarter per year
  • 6. Very thin Thin Moderate Fat Goat 278 ETB ($16.35) 399 ETB ($23.47) 681 ETB ($40.06) 896 ETB ($52.71) With respect to moderate -59% -41% -- 32% Sheep 226 ETB ($13.29) 324 ETB ($19.06) 556 ETB ($32.71) 729 ETB ($42.88) With respect to moderate -59% -42% -- 31% Average smallstock prices, Dubuluk market Ethiopia July 2010-July 2012 in Birr, 1 USD July 2012 corresponds to around 17 Birr. Second Path : Intensification
  • 7. Link to Index Based Livestock Insurance (IBLI) • Much less expensive to keep animals alive than to replace them. • Premiums go down, adoption goes up? • Market for fodder in good years (fattening) • Market for fodder in bad years (insurance) • How to make sure there is a supply? • What are the different options out there?