Livestock Market Information Systems:Improving Information Flow for Decision Making

and Value Chain Linkages

Sintayehu AlemayehuDM&E Manager

Mercy Corps21th EASP Annual Conference 28, August

2013 Addis Ababa, Ethiopia

Context• Historically, a system for collecting, analysis, storage and

dissemination of market information has been lacking

• Livestock Information Network and Knowledge System (LINKS) project designed simple, workable, evidence-based system for data collection and analysis which provided a user friendly information delivery system in East Africa

• LINKS system incorporated the Livestock Early Warning

System (LEWS) technology with market information systems for improved marketing of livestock and risk management.

• LINKS market information system has been adopted as a unified national market information system by federal Ministry of Agriculture in Ethiopia

Objective of LMIS

• Provide near real-time livestock price and volume information to stakeholders to facilitate marketing decisions and early warning–Pastoralists/livestock producers–Traders–Government–Non-government organizations

Regional Livestock Markets

Data collection currently in

32 Markets in Kenya

47 Markets in Ethiopia

40 Markets in Tanzania

LMIS Architecture

Country LMISData

Ethiopia Main Server (ILRI)

Internet

Computer

( Web / Email )Computer

( Web /Email )

Cell Cell Smartphone

Smartphone

Information DeliveryData Collection

Country Analysis

and Reporting

Country Data

Ethiopia Mirror Server (MoA)

Role of LMIS in Value Chains

• Capabilities for capturing price and volume information for livestock products (meat, milk, hides, skins, etc)

• Can be used as a price information system for feeds and fodders

• Strong price differentials exist between fat and thin grade animals – provides opportunities for fattening livestock or strategic supplemental feeding to improve grade

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Bahir Dar Market - Price Differentials for Mature Cattle

Fat Moderate Thin Very thin

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Role of LMIS in Value Chains

• Build linkages across MIS for commodity, livestock products, and livestock animal sales– Evaluate influences of commodity price changes

on livestock value chain– Provide opportunities for use of surplus

commodities as supplemental feed – Common platforms of information dissemination

and transfer

Advantage of LMIS to Livestock market system(Value chain)

• It can strengthen vertical linkages between livestock traders and pastoral producers

• Make profitable for pastoralists to sell their livestock based on informed decision

• Increase value chain efficiency and competitiveness to the benefit of pastoralists

• Transfer of information and learning between actors —this is key to competitiveness

• Value chain actors cooperate and have complementary competences

• Forster competition in the market and competition for the market

Challenges of LMIS• The challenge of implementing a viable LMIS

are considerable and include the following:– Institutional– Technical– Policy Issues

Challenges – Institutional Issues• Weak linkages and poor working relationship

among Stakeholders.

• Lack of effective collaboration and coordination among various organizations and institutions involved in LMIS.

• Problems associated with overlaps between ministries in responsibilities and execution of LMIS.

Challenges – Technical Issues

• Creation of infrastructure for increased ground data collection.

• Need for human capacity building to ensure adequate provision of technical inputs and knowledge.

• The need to reduce the amount of field and desk work required to produce livestock market information (through automation of data collection, processing and dissemination using a software/hardware architecture that makes use of the state-of-the-art telecommunication technologies).

Challenges – Policy Issues• Lack of a strategic direction and clear policy guidelines for the

implementation of a coherent LMIS.

• Mainstreaming LMIS- program is currently funded almost entirely by donors. There is a need for it to be weaned from the external funding and covered from local funding and incorporated into the local and national budgetary allocations to create a sustainable system.

Lessons Learned• Keep things simple and flexible

• Operate in partnership and build trust

• Commitment of policy makers at the federal, regional and district levels is key. Case of East Hararegh

• Training should be at all levels (producers, traders, extension workers, policy makers) to demonstrate how information can be used for risk management decisions

Lessons Learned

• Weak Institutional linkages and poor working relationships among stakeholders is a potential impediments to successful implementation

• Strengthening traders, marketing cooperatives and civil societies can bring about positive development in implementation of LMIS

Achievements• Speedy server deployed at Ministry’s headquarter & ILRI

• LMIS web portal/gateway for Ethiopia is currently hosted by MOA

• A steady flow of timely, regular and reliable livestock market information

• Ministry personnel are successfully processing price and sales volume data from the database and disseminating market information

• LMIS used as benchmark to begin AMIS for crops in the country

• Academic, private traders and government using the data

• Quality data available for research and policy analysis

Thank You