Month: July 2023

Quantifying our impact: A modelling framework to estimate the economic benefits of our initiatives

Posted on by team galvmed

As an organisation with a wide geographic footprint across Africa and South Asia, it is challenging to assess the impact of our programmes at scale using rigorous field studies. However, together with our wider network of funders and partners, we need to know that the investments we are making are producing productivity and income benefits for small-scale livestock producers (SSPs) that warrant the financial investment in these initiatives.

In this regard, we partnered with Supporting Evidence based Interventions-Livestock (SEBI-L) to develop a model for practical use for our market development programmes. The model is used to estimate the economic impact of the initiatives on SSPs, prioritise product development decisions, and to direct market development effort. Furthermore, these analyses can be used to advocate for further investment in the SSP animal health sector.

In a paper published in Frontiers in Veterinary Science, the model was applied to estimate the impact of products sold during GALVmed’s People and Livelihoods 2 (PL2) programme. The PL2 programme, which was implemented between 2014 and 2017 in Africa and South Asia, supported the production and distribution of poultry anthelminthics and vaccines against Newcastle disease, fowl pox, sheep and goat pox, peste des petits ruminants, and East Coast fever.

The modelling framework

The model is conceptualised in terms of three components:

  • Products: this includes sales of products and the number of animals that are expected to be treated with the product (depending on the different pack sizes).
  • Disease epidemiology: this comprises the conditions that are treated, number of infections, mortality rates and impact on growth rate.
  • Economics: this comprises losses from reduced productivity and losses from livestock mortality.

The economic impacts from mortality and growth inhibition are estimated at the individual animal level for poultry, small ruminants, and cattle. As SSPs are using veterinary products to prevent or minimise loss due to disease, we model the key ways in which those losses are experienced by SSPs and estimate the proportion of those losses that are averted by using specific animal health products. By factoring in the cost of the product and the number of doses sold, we give the net economic benefit (NEB).

The model can be adapted to incorporate new products and parameters as needed. The framework will evolve as GALVmed initiatives change over time.

The results

The model estimates a total NEB of $105.1M to the 3,664,114 customers reached by the PL2 initiatives. This translates to $139.9M in present value, and $37.97 on average per customer, many of whom were small scale poultry producers.

Within Sub-Saharan Africa, the greatest net economic benefit was realized from vaccines against East Coast fever and Newcastle disease, while in South Asia, peste des petits ruminants and Newcastle disease vaccines had the greatest net economic benefits.

The paper with the complete results and analysis is available here: A high level estimation of the net economic benefits to small-scale livestock producers arising from animal health product distribution initiatives.

By understanding how GALVmed’s interventions translate into economic benefit for SSPs, we can continuously refine and optimise our approaches, ultimately driving a greater positive change in the economic progression and well-being of SSPs across Africa and South Asia.

This blog was written by the M&E team.

Barriers to livestock health market: Distribution of products

Posted on by team galvmed

A simple definition of distribution in business is the delivery or supply of goods and services to users or consumers. Although distribution may involve various functions e.g., sourcing of raw materials, inventory control, warehousing, logistics, marketing channels, etc., efficient delivery of products or services to customers is one of the important objectives of the service in a business.

Like in other sectors, businesses in animal health also have as their objective efficient delivery of their products, often for a profit to ensure sustainability. While achievable, it is a however a challenge or a barrier in markets comprised predominantly of small-scale livestock producers (SSPs).

In a survey conducted by GALVmed in July 2020, approximately half of the respondents identified 1) issues around levels of market information to drive investment and level of manufacturing capacity dedicated to the SSP sector and product registration, and 2) issues around time, effort, and expense required to register products in target countries as the biggest barriers in the animal health supply chain in Sub-Saharan Africa (SSA). The survey was conducted amongst a range of professionals across the supply chain of livestock animal health products, into the key constraints and opportunities facing the animal health industry in SSA. Other issues identified included local retailing – issues around geographic dispersion, levels of customer service, product offering and product care; animal health services – issues around numbers and levels of training/incentivisation for effective support of the SSP sector and SSP customer demand; and issues around levels of animal health awareness, general husbandry and productivity. All these contribute to challenges in the overall level of demand for animal health products from within this sector.

Although only the major issues identified by respondents are highlighted above, what is clear from the survey is that barriers to efficient delivery of products to SSPs, span the entire animal health value chain i.e., from manufacturing to end-users.

The survey confirmed many of the barriers that continue to impede the efficient delivery of animal health products to SSPs, which GALVmed has and continues to address, through its projects and in partnership with other industry players. GALVmed strives to increase awareness, adoption, and availability of animal health products to SSPs by addressing challenges such as lack of warehousing and cold chain facilities, poor animal health services, SSP awareness and education, and last-mile delivery of products and services to SSPs in remote rural areas.  

GALVmed’s interventions are in line and supports some of the solutions suggested by respondents, which included harmonisation and simplification of registration procedure, improving infrastructure for cold chain, and awareness and training of SSPs.

While barriers exist, GALVmed has demonstrated through the years that, given the livestock population numbers and their importance in improving livelihoods, the SSP market segment presents a huge potential for the animal health sector. GALVmed is therefore working with partners on a proposed platform known as the Integrated Intelligent Logistic and Supply Chain Platform, to address strategies and interventions that will potentially transform distribution of animal health products in SSA. A prioritised component of the platform will be diseases awareness, in line with the solutions suggested by survey respondents.

The Integrated Intelligent Logistics and Supply Chain Platform is one of three proposed platforms to deliver a comprehensive, financially sustainable solution that will unlock new opportunities for growth in the animal health industry.

Written by Thembinkosi Ramuthivheli, Senior Manager of Commercial Development & Impact, Africa.

Barriers in the livestock health market: Service provision

Posted on by team galvmed

Animal health services and products are still out of reach for millions of Small-Scale Producers (SSPs) in Sub-Saharan Africa (SSA) and South Asia (SA). One of the reasons for this is that even though SSPs account for a large number of animal keepers in SSA and SA – 35% of cattle head and 43% of sheep and goat head of world respectively, they are scattered, concentrated in rural areas and operate their production on low input, low output system. This makes animal health service provision challenging. SSPs also have less to spend on animal health further pushing away veterinary service from their reach. A veterinary service provider needs to travel long distances to visit just a few farms and a smaller number of animals, which makes their services costly. Consequently, SSPs tend not to treat their animals or in the instances that they do, they get advice from less qualified people and use low-quality medicines inappropriately. This often leads to bigger issues such as antimicrobial resistance (AMR).  It also means a large percentage of animal heads are dying before maturity or performing below capacity after surviving, in absence of effective and reliable animal health service provision.

Filling the gap

More veterinarians are needed to serve and supervise Veterinary paraprofessionals (VPP) work. But this is easier said than done and has been a problem for decades. The ratio of veterinarians to livestock in African countries is 20 times lower than the developed part of the world like Denmark, France, USA. In India, only half of the required number of vets are available currently. In SSA and SA, a small number of veterinarians along with VPPs are expected to carry out a range of animal health services – from vaccination to diagnosis and treatment. This is a big challenge for public, private, and non-profit sectors involved in overall livestock and poultry development to help a large number of SSPs.

One solution that has been tested is filling this gap with trained community-based animal health workers, who perform basic services like vaccination and de-worming. GALVmed for example has worked with trained community animal health workers in supervision of veterinarians in the delivery of millions of doses of Newcastle Disease vaccines to backyard poultry producers. These projects not only served SSPs at their doorstep but also created sustainable employment in rural areas. However, it is not without challenges; including lack of proper visibility of their operations by few veterinarians, making their work difficult to track to ensure quality.

What next then?

The demand for veterinary services in these regions is only going to increase, but the number of vets perhaps not so.  Which is why we need to look at other innovative measures that can help us reach SSPs with services and products. Digital interventions like tele-health platforms have the potential to address some of these requirements, considering the fast growth in the use of the Internet and mobile phones.

Tele-health platforms can quickly connect animal health service providers with SSPs and cut down the unwanted expense in travel and time. Veterinarians can supervise the work of VPPs remotely; diseases and outbreaks can be reported quickly; quality consultation and prescription can stop the use of inferior and fake medicine, and can also help in reducing AMR. Consequently, more animals will survive and produce more to contribute to overall food and nutritional security.

GALVmed is working with partners and veterinary authorities to develop a Telehealth and e-commerce platform with the aim of making products and veterinarian-supervised services available and accessible to SSPs. The Telehealth and e-commerce platform is one of three proposed platforms to deliver a comprehensive, financially sustainable solution that will unlock new opportunities for growth in the animal health industry.

Written by Peetambar Kushwaha, Senior Manager of Commercial Development & Impact, South Asia.

Barriers to livestock health market: Intelligence

Posted on by team galvmed

A thriving, sustainable animal health inputs (AHI) industry is what we need in low-and-middle income countries (LMICs) such as those in Africa. This is where value chain players operate profitably to get the products and services to the farmer who is the ultimate beneficiary. In these regions, a large proportion of agriculture production is contributed by small-scale farmers. According to Africa Development Bank Group, 75% of production and employment in East Africa is contributed by small-holder farming. Unfortunately, while progress has been made in other sectors such as trade and services, agriculture still lags behind.

The barriers to trade in AHI have led to LMICs markets being insufficiently attractive to sustain the case for investment in the development of targeted products and markets by multinational companies, which typically have research and development capacity. In entities that exist to gain their shareholders a return on equity, there is competition for capital which tends to be concentrated in the most profitable areas. Some of the barriers to trade in LMICs include incomplete market information which hinders the sizing of the opportunity, packaging not small enough to suit the predominant small-scale producer segment, presence of poor-quality products due to reasons such as counterfeiting, incomplete or inefficient distribution networks that don’t optimally reach producers, cold chain issues due to energy and infrastructure inadequacy, demand aggregation to sustain large scale manufacture, or development of veterinary service resources among others.

GALVmed through the implementation of its new 2030 commercial development strategy, is looking to work with partners to address some of these barriers through bespoke platforms, one of which being the Market Intelligence Platform (MIP).

The AHI’s current size and future potential in sub-Saharan Africa must be better understood. With a significant lack of data, the industry tends to rely on best estimates and use incomplete and unreliable information. This is augmented with substantial levels of guesswork and approximations. The situation is highly undesirable and harmful for two reasons:

One, the industry’s best estimates can be wildly inaccurate and tend to be significant underestimates. For example, a comprehensive, bottom-up assessment of the Kenyan market by AgNexus Africa has recently valued the market at $110M p.a. Previous industry best estimates had typically placed the market in the region of $45 – $50 M p.a.

Secondly, industry investments reflect the degree of confidence in the underlying markets. The need for more reliable data for the African market greatly amplifies the uncertainty around this market, and industry investments in the region consequently suffer.

The outcome of this information shortfall contributes to a significantly reduced animal health industry investment in Africa. Many manufacturers either avoid the region entirely or limit and drip-feed their investments. The consequences are felt not only in the manufacturer’s marketing and distribution activities but also in R&D, where it is extremely difficult to justify development projects for African-specific products. For African small-scale livestock producers (SSP), this has important and far-reaching consequences. Product availability, product quality, and product prices are all negatively impacted. This translates to poorer animal health outcomes, lower SSP livestock productivity, and poorer SSP livelihoods.

For these reasons, the proposed Market Intelligence Platform which aims at both sizing the current and estimating the future markets through techniques such as advanced analytics will enhance animal health market transparency, improve decision-making, reduce business risk, indirectly improve market efficiency, and promote access to animal health markets. This will contribute to a more developed industry in the coming years.

Written by Tom Osebe, Senior Manager of Commercial Development & Impact, Africa.

Using bespoke technologies could address market barriers in the small-scale livestock sector

Posted on by team galvmed

Small-scale farming account for a large part of the farming industry in low and middle-income countries. Despite small-scale livestock producers’ key role in the agricultural industry, existing market barriers and constraints hinder their opportunities to access high-quality animal health products and services.

Different market barriers are present across the entire value chain and deter animal health companies from investing in these markets. Some of the major barriers identified are lack of reliable market information and market entry, proper distribution mechanisms of products, scattered demand, or service provision.

As part of GALVmed’s Strategy2030, we are proposing a dedicated focus on collaborating with different partners and veterinary authorities to develop tailored technology platforms to bridge the gaps and overcome these market barriers. This suggested platform approach marks a significant change in GALVmed commercial development strategy. Whereas previously, a single commercial partner would spearhead a single initiative, the new approach will enable the entire industry to plug into a benefit from a single platform. By collectively addressing the key constraints facing the entire animal health value chain, the proposed platforms have the potential to deliver a comprehensive, financially sustainable solution that will unlock new opportunities for growth in the animal health industry.

With this proposed approach, the end goal is to significantly increase investment in the small-scale sector by the animal health industry, and improve market supply and adoption of key animal health products that will grant better opportunities to small-scale producers to protect their livestock and secure their livelihoods.

This blog was written as part of the campaign “Barriers to Animal Health Markets”