Livestock Program of the Bill & Melinda Gates Foundation

Animal Health Investment Asia

Nick Juleff

© Bill & Melinda Gates Foundation | 2

OUR HISTORY

2006Warren Buffett pledges Berkshire Hathaway stock to foundation valued at $31 billion.

2008Bill joins Melindafull-time at thefoundation.

1997Bill and Melinda read an article about rotavirus and are inspired to act.

2000The Bill & Melinda Gates Foundation is created, with a focus on health, education, and libraries.

1994Bill Gates Sr. starts a small philanthropic foundation at his son’s request.

2011The foundation moves to its new permanent home in Seattle.

© Bill & Melinda Gates Foundation | 3

GLOBAL REACH AND PRESENCE

1900+2014 active grantees

1,3692014 employees worldwide

$36.7BThrough Q4 2015Ethiopia

Europe and Middle East Office

ChinaWashington, D.C.

India

Nigeria

South Africa

Seattle

What we focus on What affects the most people with the most urgent needs.

Where can we make the greatest impact.

How we focus Form critical partnerships - Collaboration

Find scalable, sustainable solutions - Results

Leverage science and technology - Innovation

Make big bets – taking Risks

FOUNDATION STRUCTURE

Global Development, Global Health, United States Program, Global Policy & Advocacy

Belief All lives have equal value.

© Bill & Melinda Gates Foundation | 5

AGRICULTURAL DEVELOPMENT

Enable development and adoption of improved crop and livestock products

Foster breakthrough discoveries in scientific researchand technology

Provide better data, analytics and evidence

Strengthen global and national agriculture policies and systems

By advancing agricultural transformation, we are improving rural economies and reducing poverty

Our partners make crops and livestock more productive, improve nutrition, and help empower women farmers

Boost the productivity of crops and livestock

Vision Challenges Objectives OutcomesApproaches

Agricultural transformation led by countries to support smallholder farmers

Farmers are empowered with the knowledge, tools and technologies to improve their livelihoods and liftthemselves and their families out of poverty

Low yields and productivity

A changing climate

Systems and policies that fail to meet the needs of farmers and ensure nutritious food for the world’s poor.

Lack of opportunity and resources for women

Increase safe and affordable access to nutrient-rich foods

Empower women farmers

WHY IS LIVESTOCK IMPORTANT?► There are nearly 1 billion livestock keepers.

Number of livestock owners in sub-Saharan Africa and South Asia who earn less than $2 a day:

How do they benefit?

Who benefits?

• Income: an average 30% – 45% of annual income comes from livestock, with a maximum of 70% from dairy farmers

• Nutrition: livestock products provide micronutrients not found in other crops (e.g., zinc) that have been proven to improve school performance

• Capital accumulation: given high contribution of livestock as an asset, it helps develop financial security

• The poor: with nearly 60% of population living with <$2 / day own livestock

• Smallholders: the majority of livestock production comes from smallholders in both SSA and SA

• Women: there are numerous livestock interventions and opportunities that benefit women specifically (e.g., evening milk)

• Through livestock, we have a significant opportunity to address its target populations in both SSA and SA

• Livestock also has the potential to go beyond simply increasing income in helping smallholder farmers develop both financial security and food security

1

2

LIVESTOCK CAN BE A SUSTAINABLE SOLUTION TO THE FINANCIAL AND FOOD NEEDS OF THE POOR IN SSA AND SA

“Smallholder”, in the context of livestock, can be denoted by space or by number of animals:• Dairy farmer <=6 milking animals and / or

less than three hectares of land• Pastoralist with less than 10 mature cattle• Farmer keeping less than 30 small

ruminants• Farmer keeping less than 200 birds

East Africa India Bangladesh

Percent of production by smallholdersMajorityHigh majority1

Chicken (meat)

Eggs

Dairy

Beef

Sm Rum

All data above was collected from a number of case studies (published between 1997 and 2007); for this study, West

Africa was not included as a region of research

TARGETING LIVESTOCK REACHES SMALLHOLDERS, WHO ACCOUNT FOR THE MAJORITY OF PROTEIN PRODUCTION

1 High majority denotes >75% productionSource: ILRI (2008) based on Peeler and Omore(1997), India National Sample Survey Organization (2007) and Bangladesh Bureau of Statistics (1999)

DONOR FUNDING FALLS FAR SHORT OF THE OPPORTUNITY FOR LIVESTOCK

Official Development Assistance to Africa for Agricultural DevelopmentAmount disbursed 2003-2007 (US$ Million)

Livestock has been a small and reducing share of agricultural aid funding

2003 2004 2005 2006 20070

200

400

600

800

1000

1200

Other AG

Livestock

Livestock % of total:

3.6% 3.3% 2.7% 2.9% 2.5%

560 582660

854

1,112

Sources: OECD Statistics, ILRI 2008 report, World Bank Project Database. Reported data from 23 members of the OECD’s Development Assistance Committee (DAC), international organizations, and countries that are not part of the DAC. Covers aid from government aid agencies as well as international organizations such as UN, EU, IMF, World Bank and regional development banks, and multilateral and international organizations

Total Project Approved Lending 2003-2007

4367

892

723

637

232206162 38597

In one donor example, crops receive over 20 times more direct funding than livestock

General Education

Crops

General Agriculture

Extension & ResearchIrrigation & DrainageCentral Govt Admin.

LivestockOther

Agricultural Project Funding by Sector ImpactedUS$ Millions

Total = $7,854

Other Social Services

Priority Functions

LivestockHealth

Livestock Genetics and Reproduction

Production and

Markets

Priority Geographies

Burkina FasoEthiopiaGhanaMaliNigeriaTanzaniaUganda

BangladeshIndia (Bihar, Odisha, Uttar Pradesh)1

Priority Species

Cattle1 Small Ruminants

(Goats & Sheep)

Poultry

1 For South Asia, we are also exploring water buffalo.

OVERVIEW OF GATES FOUNDATION LIVESTOCK STRATEGY

Potential productivity Lack of improved breed adoption

Morbidity and mortality due to disease

Poor nutrition Losses due to poor husbandry

Realized productivity0

1000

2000

3000

4000

5000

6000

Prod

uctiv

ity p

oten

tial

%

ILLUSTRATIVE

GOAL: reduce hunger and poverty through sustainable livestock production

12

Research and Development

Inputs and Farmer Services

Post-Harvest Handling andAccess to Markets

Policies and Data

Discovery/ basic research

Genetics and repro-duction

Vaccine/ drugs/diagnostics

Animal health systems

Animal genetics systems

Other input systems

Livestock production mgmt.

Knowledge exchange

Aggregation, quality and storage

Processing Infra-structure, trade

Value-chain specific regulations

Multi-value chain national policies

Data systems

ADDRESSING KEY BARRIERS TO INCREASING PRODUCTIVITY: VALUE CHAIN APPROACH

Health and genetics deliveryVaccines, drugs and genetics

Reproductive technology

Diagnostics

Global health partnerships(innovation)

Reg. Harmonization

Manufacturing

Aggregation and processing

Community animal health workers

Productivity data systems

Livestock Master Plan

Veterinary services

Sustained demand

Demonstrating Impact

Product Goals Sustainability Goals

System Goals

ANIMAL HEALTH: PATHWAY TO IMPACT

• LMP• Disease impact assessments• Country teams• Veterinary services• Regulation• Policy and advocacy

Productivity• ↓mortality • ↑milk productivity • ↑egg production

Potential productivity• Proof of concepts• X products developed• Y products registered

Market Assessment

Monitoring and Evaluation

Private Sector(Global Animal

Health)

Private Sector (National Animal Health)

Private Sector(Regional

Animal Health)

Government

SustainableProduct/Service Development and

Delivery

Viral• FMDV• LSD• ND• PPR• RVF• SGP

Parasitic• AAT• ECF• Endo/Ectoparasites

Transformational platforms and technologies

Bacterial• Bovine TB• Brucellosis• CBPP• CCPP

ILLUSTRATIVE

• Transformational platforms and technologies

• Priority diseases• Animal Health product portfolio

© Bill & Melinda Gates Foundation | 14

Completed

On-Going

Discontinued

Completed Prior to BMGF InputO

Animal Health R&D• The opportunity to access

new technology through Global Health is unique, we will expand our portfolio of collaborative projects to accelerate product development

PRODUCTS DISEASESDisc. PoC Dev. Reg. Com.

Vaccines AAT Vaccines AATBen-1 CBPP oCBPP T1/44 oCCPP Live Vaccine CCPP o oTSOL18 o oTSOL18 (Delayed Release)ECF-ITM o o oECF Sub-UnitTick Vaccines Ecto, Endoparasites oVaccine Seed for East AfricamRNA VaccinesLSD Live Vaccine o oLSD Inactivated Vaccines oND I-2 oND I-2 oND Lasota ND Pelleted Vaccine oCombined ND-Fowlpox ND/FowlpoxPPR Liquid Formulation PPR o oCombined PPR-SGP PPR/SGPRVF Clone 13 RVF o oCombined RVF-LSD RVF/LSD o o

Drugs Therapeutic Therapeutic (back-up)ProphylacticCBPP Antimicrobial CBPP oOxfendazole Cysticercosis o oLong-acting Ivermectin Ecto, Endoparasites

Diagnostics AAT Penside AATBovine Estrus N/ABovine Estrus N/A o oBovine Pregnancy N/ARVF Penside RVF o

ND

AAT

STAGES OF PRODUCT DEVELOPMENT

CBPP

Cysticercosis

ECF

FMDV

LSD

• China brings relevance to ag development in Africa having recently experienced rapid development; strong South-South collaboration

• Major investment: China-Africa Development Fund and private investments

• Strong relationships – Chinese foreign policy focus; high level visits

• Wealth of people and knowledge exchange

0.0

1.0

2.0

3.0

4.0

$5.0B

China

Non

-tro

pic

alTr

opic

al

5.0

US

4.2

Brazil

2.5

India

1.8

Public spend on R&D for Domestic

Ag Development ($B, 2009 )

CHINA IS A KEY PARTNER

© 2012 Bill & Melinda Gates Foundation | 10

Leading Investor in agriculture

Key Innovations for smallholder farmers

Significant Influence in Africa

ROUGH ESTIMATES

Note: % of tropical agriculture spent calculated based on % of tropical and subtropical land in country based on Koppen Classification systemSource: SAGI—Secretariat of Evaluation and Information Management; US Census Bureau; IFPRI; ASTI; Team analysis; Census of India; Brazilian Ministry of Social Development (MDS); secondary research; Chinese Embassy.

• Strong extension systems/digital technologies for information and commerce across value chains

• Large scale adoption of technologies for SHF

• China lifted unprecedented # of people out of poverty; b/w 1981-2008, proportion of the population <$1.25/day fell from 85% to 13.1% (~600 million ppl). Rural & agricultural development played large part, providing recent, relevant and valuable experience for Africa

• Driven by ag technology improvements and policy, from 1978-1997, Chinese grain productivity increased by 2.6%/yr; farmer per capita net income increased 15x; ag industry employed 130M surplus laborers

© Bill & Melinda Gates Foundation | 16

FUNDING MECHANISMS

Push Mechanisms

• Programmatic grants• Grants to companies• Centers/organizations

GALVmed• Product development

partnership• $100m

CTLGH• Roslin, SRUC, ILRI

Pull Mechanisms

• Prizes• Milestone-driven

research

AgResults• Brucellosis vaccine

pilot• $30m

RFP

• Foster innovation• High-risk, high-reward

Grand Challenges• More than 1900

Awards in 87 Countries

• Over 60,000 Applications Reviewed

• Over US $1B Invested

LVIF• Global Affairs Canada/

IDRC• CA$57m

Program Related Investments

• Catalyze “for-profit”

PRI• Equity• Loans below market

rate• De-risk investment