Economics of AnGR Conservation and Sustainable Use: Importance and Application

1. Economics of AnGR Conservation and Sustainable Use: Importance and Application Adam G. Drucker International Livestock Research Institute (ILRI) a.drucker@cgiar.org

2. Economics of AnGR Conservation – What can it contribute? • Determination of economic contribution of AnGR to various communities • Support assessment of priorities through identification of cost-effective conservation programmes • Assist in design of incentives and institutional arrangements

3. Constraints to the Economic Analysis of AnGR • Methodological • Limited data availability • Existence of non-market values • Type of data needed requires use of rural appraisal techniques

4. FINDINGS

5. Case Study 1: Decision-support tool for identifying breed conservation priorities • Decision-support tool for cost-effective allocation of a given budget among a set of breeds such that the diversity conserved is maximized. • Identifies priorities of 3-9 out of 23 Zebu breeds. These are not necessarily the most endangered ones. • Argued that sufficiently specified framework can be used for rational decision-making on a global scale.

6. Case Studies 2 - 3: Choice Experiment CVM, Pigs-Mexico &Cattle-Kenya • Multi-attribute stated-preference methods used to value phenotypic traits expressed in indigenous breeds. • Potential to investigate values of genetically-determined traits currently not prominent in livestock populations, but desirable candidates for breeding/conservation. • Permits analysis of how household characteristics determine differences in preferences.

7. Farmer trait preferences can differ

10. Importance of Getting Farmer Trait and Breed Preferences Right

11. Case Study 4: Choice Experiment CVM: Burkina Faso • Traits for incorporation into breed improvement program: disease resistance, fitness for traction & reproductive performance. Beef & milk production less important. • Permits identification of differences in preferences between groups of respondents (specific locations and production systems).

12. Case Study 5: Dichotomous Choice CVM, Horses, Italy • CVM used to estimate threatened Italian "Pentro" horse conservation programme benefits. • Bio-economic model used to estimate conservation costs • Results: large positive net present value associated with the proposed conservation activity (B-C Ratio > 2.9) • Useful decision-support tool for allocating scarce funds to a growing number of animal breeds facing extinction.

13. Case Study 6: Hedonic Approach, Cattle, Nigeria • Analyses farmers’ breeding practices & preferences • Strong trend away from trypanotolerant breeds • Identifies traits farmers find least desirable in these breeds relative to other zebu breeds. • Results suggest most favoured “environments” for implementing a conservation strategy (large markets, high disease challenge & appropriate farming systems)

14. Case study 7: Aggregated productivity model, Goats, Ethiopia • Conventional productivity criteria inadequate to evaluate subsistence livestock production (non-marketable benefits; multiple limiting inputs) • Result 1: Under subsistence, indigenous goats are more productive and beneficial. • Result 2: Under improved management, indigenous goats generate higher net benefits

15. Case Study 8: EU Rural Development Plan (RDP) Conservation Costs • Many breeds on FAO WWL receive no support as not included in country RDPs • Payments do not account for different degrees of extinction risk • Based on opportunity cost measure, support payments are inadequate • EU support measures need to be reviewed

16. Case Study 9: Safe Minimum Standard (SMS) • Adapts SMS approach from wildlife applications to livestock breeds, using FAO criteria of “not at risk”. • Conservation costs in EU, Italy and Mexico determined for variety of species/breeds based on opportunity cost differential plus administration • Results: Costs of SMS small (<1%) compared to existing subsidies and benefit-cost ratio (>2.9)

17. Rural Appraisal • “One area of further research involves the possible modification of economic techniques for use in conjunction with an established body of participatory and rapid rural appraisal methods”. (Pearce and Moran, 1994)

18. Case Study 10: Market Share, Production Loss Adverted and Contingent Valuation • Application of rural appraisal methodologies to support economic analysis of AnGR and assess valuation methodologies (Yucatan, Mexico)

19. Conclusions 1 • Methodologies tested show that they can indeed provide plausible estimates of the value that producers, traders and consumers place on breeds and breed attributes.

20. Conclusions 2 Valuation can be used to: • Identify trait values • Justify conservation costs • Identify cost-efficient conservation strategies • Orient AnGR conservation/sustainable use policies • Support benefit sharing Also makes projects more interesting to donors!

21. Challenges for the Future • Continue testing and adapting valuation methodologies under differing circumstances and for a wide range of breeds/species. • Apply further work in contexts where results can actively benefit livestock-keepers, national researchers and policy-makers

22. Projects being Initiated in 2004 • Development and Application of Decision-support tools to conserve and sustainably use genetic diversity in indigenous livestock and wild relatives (Large PDF-B phase GEF-UNEP project for 4 countries in Asia) • Improving food security through facilitation of community-based management of trypanotolerant cattle in the high disease challenge Ghibe Valley, Ethiopia(Small one year project funded by DFID)