Livestock policy analysis

International Livestock Research Institute
Addis Ababa, Ethiopia
May 1995

Correct citation: ILRI (International Livestock Research Institute). 1995. Livestock Policy Analysis. ILRI Training Manual 2. ILRI, Nairobi, Kenya. pp. 264.

ISBN 92-9146-003-6

This electronic document has been scanned using optical character recognition (OCR) software and careful manual recorrection. Even if the quality of digitalisation is high, the FAO declines all responsibility for any discrepancies that may exist between the present document and its original printed version.

Foreword

About the manual

Module 1: Policy concepts

1.1 Performance objectives

1.2 The importance of policy issues

1.3 Definition of policy

1.4 Elements in policy

1.5 Policy processes

1.6 Policy and politics

1.7 Priorities in policy formulation

1.8 The role of the policy analyst

1.9 Feedback exercises

1.10 References

Module 2: Identification of policy issues

2.1 Performance objectives

2.2 Introduction

2.3 Functions of the livestock sector

2.3.1 Two ways to classify livestock sector functions
2.3.2 Relative importance of livestock sector functions in sub-Saharan Africa
2.3.3 Farmers' tendency to increase herd size: An important policy issue

2.4 National policy objectives

2.4.1 The broad groupings of government policy objectives
2.4.2 Ranking policy objectives

2.5 Current performance and problems

2.5.1 Qualitative monitoring
2.5.2 Quantitative monitoring

2.6 Policy instruments and options

2.7 Feedback exercises

2.8 References

Appendix: The Lorenz curve

Module 3: Production systems, supply and demand

3.1 Performance objectives

3.2 Introduction

3.3 Major livestock production systems in Africa

3.3.1 Production systems and market integration
3.3.2 Basic relationships within a farming system
3.3.3 Policy entry points at farm level

3.4 Describing production systems: input-output tables

3.4.1. Format of the table
3.4.2 Relevant exercises

3.5 Household income, subsistence consumption and expenditure

3.5.1 Computation equations for consumption, net income and cash income
3.5.2 Relevant exercises

3.6 Responses to policies and market signals

3.6.1 Production response
3.6.2 Relevant exercises
3.6.3 Consumption response and market demand
3.6.4 Relevant exercises
3.6.5 Supply response
3.6.6 Relevant exercises

3.7 Rough approaches to forecasting production and consumption

3.7.1 Analysis of past trends
3.7.2 Trend extrapolation
3.7.3 Relevant exercises

3.8 Feedback exercises

3.9 References

Module 4: Market, price and trade policies

4.1 Performance objectives

4.2 Introduction

4.3 What policy instruments are currently being used?

4.4 What effects do current policy instruments have?

4.4.1 Effects of border measures
4.4.2 Effects of domestic measures in an open economy
4.4.3 Effects of domestic measures in a closed economy
4.4.4 State agencies: inconsistent policies and informal markets
4.4.5 Relevant exercises

4.5 To what degree have current policy instruments been applied?

4.5.1 The basis for comparison
4.5.2 Estimating rates of protection
4.5.3 Official and shadow rates of exchange
4.5.4 Relevant exercises

4.6 What is the effect of current policies?

4.6.1 Estimating price elasticity
4.6.2 Effects on quantity
4.6.3 Effects on producer income and consumer surplus
4.6.4 Effects on budget and net welfare
4.6.5 Limitations of the analysis
4.6.6 Relevant exercises

4.7 How does interfering with price help to meet different government objectives?

4.7.1 Stability objective
4.7.2 Equity objective
4.7.3 Efficiency objective

4.8 Implementation problems associated with market, price and trade policies

4.8.1 Relevant exercises

4.9 Feedback exercises

4.10 References

Module 5: Marketing and distribution systems

5.1 Performance objectives

5.2 Marketing and its role in economic development

5.2.1 What is marketing?
5.2.2 Characteristics of agricultural and livestock marketing
5.2.3 The role of marketing and trade in development
5.2.4 Requirements for market development

5.3 The theory of markets: six basic considerations

5.3.1 Perfect competition
5.3.2 Imperfect competition: monopolies and oligopolies
5.3.3 Horizontal and vertical integration
5.3.4 Separation of markets
5.3.5 Product differentiation
5.3.6 Price movement due to seasonal and cyclic variations

5.4 Marketing systems: Functions, agents, enterprises and channels

5.4.1 Marketing functions
5.4.2 Marketing agents
5.4.3 Marketing enterprises and channels

5.5 Structure and specifics of livestock trade and their implications

5.6 Marketing systems evaluation

5.6.1. Degree of market efficiency in terms of marketing margin
5.6.2 Price analysis
5.6.3 Services
5.6.4 Structure, conduct and performance analysis
5.6.5 Market information and intelligence

5.7 The role of government interventions in markets

5.7.1 Improve market infrastructure
5.7.2 Improve information
5.7.3 Improve institutional infrastructure

5.8 Marketing and national policy objectives

5.9 Feedback exercises

5.10 References

Module 6: Budget and manpower planning

6.1 Performance objectives

6.2 Introduction

6.3 Steps in budget and manpower planning

6.4 Some principles of budget and manpower planning for livestock development

6.4.1 Capital and recurrent costs
6.4.2 Staff and non-staff recurrent costs
6.4.3 Critical resources
6.4.4 Project modification
6.4.5 Relationships between inputs
6.4.6 Contingency allowance
6.4.7 Relevant exercises

6.5 Staff and non-staff costs: The crisis of animal health services

6.5.1 Decline in performance of animal health services
6.5.2 Budget trends
6.5.3. Manpower ratios

6.6 Approaches to improve the effectiveness of African animal health services

6.6.1 Cost recovery and the removal of subsidies
6.6.2 Privatisation
6.6.3 Organisational reform
6.6.4 Relevant exercises

6.7 Feedback exercises

6.8 References

Module 7: Land tenure policy for the livestock sector

7.1 Performance objectives

7.2 Introduction

7.3 Land tenure policy and African livestock development

7.3.1 Concept of tenure
7.3.2 Types of land tenure

7.4 Tenure as an issue in rangeland management

7.4.1 Resource conservation
7.4.2 Economic efficiency
7.4.3 Stability
7.4.4 Equity
7.4.5 Relevant exercises

7.5 Land tenure policy instruments: Government-led tenure reforms

7.6 Other policy instruments

7.6.1 Tax policy
7.6.2. Stock control
7.6.3 "Spontaneous" tenure changes
7.6.4 Relevant exercises

7.7 Tenure as a factor in mixed farming systems

7.7.1 Security of tenure
7.7.2 Rights to land transactions

7.8 Feedback exercises

7.9 References

Module 8: Policy analysis report writing and communication

8.1 Performance objectives

8.2 Introduction

8.3 The institutional structure for policy formulation

8.3.1 Some models for the policy formulation process
8.3.2 Relevant exercises

8.4 Communication

8.4.1 Preparing policy papers
8.4.2 Relevant exercises

8.5 Feedback exercises

Module 9: Livestock production and marketing in Alphabeta - A case study

9.1 Performance objectives

9.2 Introduction

9.3 The economic background

9.4 The agricultural background

9.4.1 Agriculture in the economy
9.4.2 Rainfall and agricultural regions
9.4.3 Land tenure
9.4.4 Major production systems
9.4.5 Government services to agriculture

9.5 The livestock sector

9.5.1. Distribution of livestock populations
9.5.2 Livestock output and marketing
9.5.3 Livestock production constraints

9.6 Major livestock production systems

9.6.1 The pastoral system
9.6.2 The agropastoral system
9.6.3. Smallholder production system in high potential regions: The case of the smallholder dairy producer
9.6.4 Large-scale livestock production system

9.7 The marketing of beef dairy products

9.7.1 Beef products
9.7.2 Dairy products

9.8 Feedback exercises