MK03: Changing demand and market institutions Scope, objectives and outputs

1. MK03: Changing demand and market institutions Scope, objectives and outputs

2. Scope of the Project • Increased demand for livestock products • Quantity, quality, safety • Opportunities and threats for poor, smallholders • Market openness, globalisation, new regulatory environment • Food retailing system and rise of supermarkets • Limited access to assets, inputs, services, technology, information • High transaction costs • Improved input and output market institutions needed to support poor and smallholders

3. Project goal and purpose • Goal • Increased participation by the poor and disadvantaged in more remunerative and safe livestock input and product markets (as both producers and consumers) • Purpose • Technical, organizational and policy options identified for improved market institutions to serve small-scale, poor and disadvantaged consumers and producers, in the context of rising demand for reliable quality, food safety and increased openness to trade.

4. Project outputs • Document opportunities and threats from changing attributes of livestock product demand, particularly food quality and safety. • Document current practices and examples of best practices and trends in institutional and regulatory environment to facilitate access of poor, small-scale and disadvantaged consumers and producers to input and output markets. • Test institutional and regulatory options to enhance poor and smallholder participation in markets 4. Enhance capacity of NARS and NGOs in policy and institutional analysis

5. Project activities 1.1 Key policy issues and technologies to improve food quality and safety 1.2 Policy and institutional factors contributing to dairy sector growth in South Asia and East Africa 3.1 Small ruminant health and market opportunities in the NENA region 3.2 Impact of cattle auctions and farmer organisations on market participation of smallholders in LAC 4.0 Graduate and short term training, training manuals on milk hygiene

6. Activity 1.1: Analyse key policy issues and technologies to improve food quality and safety: milestones • Report and policy briefs on impact of milk safety regulations and public health risks in Kenyan milk markets (2004) delivered • Complete study on analysis of institutional and economic circumstances for use of Lactoperoxidase (LPS) milk preservation system in Kenya and hold workshop to obtain feedback (2004) Delayed • Report on market mechanisms, processing and public health risks in peri-urban dairy product markets in Tanzania and Ghana (2005) Delivered

7. Activity 1.1: Milestones (continued) • Complete Phase 1 (data collection and analysis) study and produce report on issues for rationalisation and harmonisation of dairy policies in eight eastern and central African ASARECA member countries (2005) Draft available • Initiate Phase 2 (dialogue and action) study on rationalisation and harmonisation of dairy policies in eight eastern and central African ASARECA member countries (2005) Proposal being developed • Explore opportunities for new research into demand for food safety in small-scale livestock product markets, including meat, and into development of local equivalents for ensuring quality(2005). Out in 2005

8. Activity 1.1: milestones (contd) ·    Two journal papers on milk-borne health risk analyses in Kenya published and one each in Ghana and Tanzania drafted (2005) ·     Journal paper on tradeoffs between food safety and economic welfare of poor people drafted (2006) ·    Case studies to monitor trends in the changes in livestock product demand, and demonstrated price premium for food safety and quality attributes (2005)

9. Activity 1.2: Analyse sources of dairy sector growth in South Asia and East Africa • Output • A report outlining the opportunities for policy and institutional changes in the dairy sector to have a significant impact on dairy-related income generation and reduce the vulnerability of poor dairy producers(2004)

10. Activity 3.1: Small ruminant health and market opportunities in NENA region • Background • Increased consumption of food of animal origin (meat, milk & milk products) due to income growth, urbanisation & population growth • Trend not accompanied by an equal increase in food production, particularly from animal sources • Disease - an important constraint to building assets, market opportunities and incomes of the poor • Among others, poor health and product quality a major constraint for access to domestic and regional markets in the Middle East. • Smallholders not benefiting from expanding market

11. Small ruminant in NENA region • Objectives • To analyse main animal health constraints and delivery for market access and identification of ‘best-bet strategies • To assess markets to improve information, efficiency and access for poor farmers • To assess disease risk, including disease risk mapping, to improve control strategies. • To assess disease diagnostic needs (training & equipment) and provide such support to NARS

12. NENA : framework for health and market assessment

13. NENA: disease risk mapping anddiagnostic capacity building • Disease risk mapping • Use FAO/RADISCON data • Combine with survey data and use GIS • Diagnostic capacity building • Assess lab, diagnostic capacity • Provide lab equipment • Provide technical/technician training

14. NENA:Project Outputs • Research methodological framework and survey instruments developed & applied by partners • Collection of secondary data for characterization of health delivery in progress. • 7 Graduate Fellows (4 health & 3 Marketing) registered with home Universities. • Training course in market analysis offered to 18 staff from partner countries

15. NENA: Milestones • Identification of health constraints of small ruminants and characterization of animal health delivery issues affecting market access (2004) (with MK04) • Best-bet health delivery and other technology options for better market access tested (2006) • Final report identifying best-bet control strategies, impact of health intervention on transactions costs and market participation produced and a decision support tool for risk assessment, early warning and disease prioritisation developed (2006,with MK04)

16. NENA: Expectations! • An understanding of Animal Health delivery constraints and other services denying poor farmers access to markets • Document ways and means to increase market efficiency and access to national & regional markets by the poor • Capacity building in disease diagnosis (equipment & training) and surveillance and Graduate fellowships.

17. MK03: New initiatives • Market demand, quality and safety standards of livestock products in Tanzania, Kenya and Ethiopia – ASARECA/EU • Improvement and diversification of Somali livestock trade and marketing _ Tera Nouva/EU (with MK04) • Contract farming for milk, egg and broiler production in Bangladesh – ADBI (with MK02) • Livestock input and output market constraints in Ethiopia - CIDA/IPMS (with MK02) ????