Concept note on ‘scaling up the delivery of ITM in Tanzania through facilitation of ITM delivery value chain’ Lead agency: ILRI Partners: GALVmed; existing ITM distributors, DVS, other partners to be identified during proposal development Summary: East Coast Fever (ECF) is the most important infectious disease facing cattle keepers in Tanzania and the region. In order to address this challenge, Tanzanian authorities have since 2003 adopted the Infection and Treatment Method (ITM) vaccine against ECF. To date, an estimated 1 million heads of cattle have been vaccinated with the 2 recognized distributors delivering 150,000 doses per year. However, the total vaccinated cattle accounts for less than 5% of the total cattle population, leaving a huge gap that could be bridged by scaling up the delivery of ITM. This would reduce ECF-related losses by an estimated US$129.5 million, and benefit about 1.7 million cattle keepers. Expansion of ITM delivery has so far been restricted by limited capacity of existing distribution channels. Working with the Tanzanian government, GALVmed and the existing ITM distributors, this project aims at increasing the availability of ITM by identifying, training, certifying and equipping vaccinators and linking them to village level networks and organizations through appropriate business models. Besides facilitating the delivery of the vaccine and reaching 350,000 heads of cattle in 2 years, the project will also assess the relative effectiveness and efficiency of at least 2 envisaged delivery mechanisms. Rationale for upscaling ECF Vaccine East Coast Fever (ECF) is a tick-borne disease caused by a protozoan parasite Theileria parva that is transmitted by the tick Rhipicephalus appendiculatus. The disease presents critical constraints to cattle production in East, Central and Southern Africa (Dolan 1999). Overall, losses due to ECF are estimated at US$54.5 million, US$4.41 million and US$0.1 million in the smallholder dairy sectors in Kenya, Tanzania and Malawi, respectively. However, losses in the traditional cattle sector (pastoral systems & smallholders keeping local breeds), are more pronounced in Tanzania – estimated at US$129.5 million (Minjauw and McLeod 2003). This is in comparison to losses amounting to US$34.1 million and US$2.5 million in the traditional sector for Kenya and Malawi respectively. It is also estimated that ECF is responsible for: over 43% of annual cattle deaths reported in Tanzania (Kambarage, 1995; Mtei and Msami, 1995); economic losses amounting to over US$ 35 million in cattle mortality and; over US$ 6 million in lost milk production in (McLeod and Kristjanson, 1999). More recent surveys continue to rank ECF as the most important cattle disease (ILRI 2013). In pastoralist systems, ECF is believed to be the main cause of calf mortality rates of between 40-80% (Babo Martins et al., 2010). ECF is also a threat in more intensive mixed dairy systems with cross-bred cattle, where it is mainly managed through tick control measures. Animals are treated with acaricides in up to half-weekly intervals. However, whenever these control measures fail, prevalence rates of 45% and case fatality rates of 68% have been recorded (Kivaria and Noordhuizen, 2010). Besides these risks, an acaricide-based approach 1 to ECF control implies considerable costs and negative environmental effects, calling into question the efficacy of this approach (Kivaria, 2007). Due to the ECF risks and the associated cost of controlling the disease, many smallholders across East Africa are often reluctant to adopt improved breeds of cattle (Mukhebi and Perry, 1992). In an attempt to find a more cost effective control of ECF, an alternative approach, the infection and treatment method (ITM), was developed more than 30 years ago. Scientists from the East African Veterinary Research Organisation (now the Kenya Agricultural and Livestock Research Organisation), in collaboration with international partners first reported the immunisation potential of infecting and simultaneously treating cattle against ECF in the mid70s (Radley et al 1975)). However, due to characteristics of the approach (animals are infected with live parasites of varying genetic identities), distribution constraints (the vaccine requires liquid nitrogen storage), treatment costs (animals are treated with a long-acting dose of specific antibiotics contributing to total vaccination costs of USD 8-12) and post-vaccination reactions (depending on vaccine and treatment doses some vaccinated animals show severe ECF infection symptoms), the approach did not experience large-scale uptake during the first two decades. In 1997 and 2008, ILRI was mandated by the FAO and AU-IBAR respectively to produce commercial size batches of the vaccine stabilate through an improved methodology to enhance the safety and efficacy of the vaccine. Since then, adoption has improved considerably and the vaccine has been registered in Tanzania, Kenya and Malawi and is licensed for use by the Director of Veterinary Services in Uganda while awaiting registration. Delivery has been led by the private sector in Kenya, Tanzania and Malawi enabling over 1 million animals, mostly from pastoral communities in Tanzania to be vaccinated by 2014 (ILRI, 2014a). Contrary to initial focus on the improved breeds in the smallholder dairy systems when the technology was envisioned, it has since become apparent that the biggest actual losses to ECF in Tanzania occur in the traditional sector. This is exemplified by the rapid adoption of the ECF vaccine in the pastoralist areas. Indeed, more than 80% of the vaccination against ECF in Tanzania has been in the pastoral sector. However, although mortality is much lower in the smallholder dairy sector, farmers spend much more on acaricides and curative drugs, underscoring the importance of ECF even in the smallholder dairy sector. Moreover, since allyear zero-grazing systems are rare in this region, nearly all cattle are exposed to the risk of contracting ECF. Additionally, the seasonal distribution of infection risk is also closely related to vector dynamics that in turn are often determined by vegetation and rain-fall patterns (Gachohi et al., 2011; Lynen et al., 2006). In terms of milk consumption, Tanzania ranks lowest in East Africa with a capita consumption of 42 litres. However, with increasing incomes and changing dietary habits demand for milk is increasing. Thus, the dairy sector is growing and intensifying and with this comes the increasing attention on cattle health. A study on adult cross-bred dairy cattle in Tanzania has shown ITM to also be effective in this production system (Lynen et al., 2012). The results show that farmers quickly reduced the frequency of tick control activities (weekly dipping or spraying regimes are common) without detrimental animal health effects, which corresponds with recommendations from research findings (Kivaria et al., 2007). The resulting reduction in production costs proved to be the main direct benefit. 2 Maximizing returns to ECF vaccination therefore calls for a focus on both systems – deepening the progress so far achieved in the pastoralist systems while closing the wider vaccination gap that exists in the smallholder dairy sector. Current delivery approach and its challenges In Tanzania, the current distribution channel for the ECF vaccine is composed of 2 private distributors at the national level who import the vaccine from the manufacturer. Each distributor has a network of vaccinators some of whom act as agents for downstream distribution of the vaccine. The agent-vaccinators are either linked to some other trained vaccinators or they deal directly with cattle keepers. However, the current vaccine delivery system is fraught with many challenges that have stifled widespread uptake of the vaccine by cattle keepers. Among these challenges is the limited coverage of existing number of vaccinators. First, the current number of vaccinators are far too few for a vast country with the population of cattle the size of Tanzania. Moreover, some trained vaccinators do not have the necessary kits to transport vaccines to the field once they have sourced them from the agents. Neither do they have access to suitable financing schemes that can help them acquire the kits. As a result, there is plenty of unused capacity among the current crop of trained vaccinators. Consequently, even cattle keepers with a desire to adopt the technology may not be reached by the few trained vaccinators. Secondly, the cold chains for storage of the vaccine that are maintained and serviced by distributors and networks of their agents only go as far as major urban centers and their environs. This restricts cattle keepers in remote areas from accessing the ECF vaccine. Besides lack of necessary equipment, most vaccinators lack additional and supportive training on business practice. The current mode of training is restricted to technical aspects with limited or no focus on business skills. Yet there exists a large scope to inject business approaches into vaccination services that can substantially enhance the reach and uptake of the vaccine. Finally, the level of awareness about the ECF vaccine among both cattle keepers and some government technical personnel is also limited if not lacking. Due to either misinformation by competing products or misperception about the vaccine and its impact, some cattle keepers fear that they may lose their animals after vaccination. Besides, in large areas of the country especially in the agro-pastoral areas cattle keepers are unaware of the existence of an ECF vaccine. Considerable efforts should therefore target improving delivery in order to access more than just a fraction of the potential market. Availability of vaccine On request by regional authorities including AU-IBAR, ILRI produced slightly over 1million doses of the ECF stabilate in 2008. By the end of 2013 almost all the vaccine had been bought by distributors across the region but with the bulk going to Tanzania. Under a 3 commercialization process facilitated by GALVmed, ILRI transfered the vaccine production technology to the Centre for Ticks and Tick-borne Diseases (CTTBD), an AU-IBAR supported institution, for future vaccine production. With financial support from BMGF through GALVmed and technical support from ILRI, CTTBD embarked on production of a commercial batch of the vaccine stabilate. This batch, of at least 250,000 doses, is expected to be in the market by the end of 2014. It was also recently reported at a regional stakeholder workshop on ITM that plans are at an advanced stage to produce additional 1million doses of the stabilate by 2016. The current annual ECF vaccine usage in the region stands at about 150,000 doses but demand has been rising. Once the batch from CTTBD is available towards the end of the year plus any doses that distributors across the region might still have in stock, a doubling of demand in 2015 could be accommodated. However, going forward careful monitoring of progress on the production of the next batch of stabilate by CTTBD would be needed to ensure adequate supply in 2016 and beyond if the project succeeds in significantly increasing adoption. Commercialization plans – the business model In order to enhance uptake of ECF vaccine we propose expansion of distribution networks via linkages of various grass-root level institutions (e.g., a cooperative, qualified input dealer, etc.) to existing distributors’ networks. In order to ensure viable delivery of vaccine to end users, we propose equipping and increasing business orientation of vaccinators and bundling of services at the service provider and distributor-agent level. Expanding distribution networks In order to expand the distribution networks we will work with distributors to identify grassroot institutions to act as additional agents or provide infrastructure for storage of the vaccine. This will enhance access to vaccine for existing but idle vaccinators in remote locations, while also opening doors for more vaccinators to be trained and recruited into the network, where they do not exist currently. The expansion approach can take various institutional forms. - Cooperatives, producer organizations (POs), dairy marketing hubs or other collective action institutions. Some cooperatives and POs have refrigeration facilities that can provide the basis for establishing vaccine storage - making them potential agents for distribution of the vaccine. While the existing chilling facility will cater for refrigeration of the vaccine diluent, the PO’s will need to acquire a liquid nitrogen tank for storage of the vaccine itself. In some cases, the PO may be willing and able to purchase equipment. Where possible this option will be explored. Otherwise, established POs deficient of funds for such an investment will be linked to financing scheme to facilitate acquisition of the cold chain. We will work with the distributors to identify such institutions and support them accordingly. In some cases, the PO and the distributor can be co-funded to jointly establish the cold chain infrastructure with the distributor acting as a guarantor. If this approach is taken, the trained vaccinator(s) will be the custodian of the vaccine stored at the chilling plant. 4 - Alternatively, input dealerships run by qualified animal health personnel will be identified and supported through appropriate financing to acquire the cold chain infrastructure. Such dealership would then be recruited into the distributor networks. Train, equip and link vaccinators to groups of farmers Additional to existing vaccinators, we will work with the distributors and relevant government departments to train more vaccinators who will then be equipped with the necessary kits and linked to cattle keepers through appropriate institutional arrangements. - First, a standardized course on safe and efficient delivery of ITM vaccine that is recognized and certified by DVS will be established. Currently in Tanzania, the course is organized by the distributors, which means that the trained vaccinators are ‘tied’ to a particular distributor. Harmonizing the training will standardize ECF vaccination practice and forestall some unethical behaviors that expose the vaccine to unnecessary disrepute, which impacts negatively on uptake. The course will be developed in collaboration with the distributors and all stakeholders in the livestock health sectors and suitable institutions will then be identified to offer this training. - Second, suitable candidates with animal health qualification will be identified, trained and certified as vaccinators. Priority will be given to animal health practitioners in the field to take advantage of the networks that have been developed through these service providers. Besides technical training, we will work with the distributors to develop appropriate business training for all vaccinators that are part of their distribution networks to enhance the business orientation of respective vaccinators. We expect to achieve substantial buy in from distributors since it is in their business interest that their vaccinators deliver the vaccine to more end users. Where necessary, trained vaccinators will be linked to suitable financing for the sake of acquiring equipment and start up supplies. To ensure sustainability of the approach, the project will not contribute financially to the purchase of the equipment. Instead, financing will be provided by an external agency and channeled through the vaccine distributors. Loans provided to vaccinators will then be recovered every time vaccinators make purchases of vaccines from distributors. One distributor (Ronheam International) has successfully implemented a vaccinator equipping program based on a credit scheme. Working with our business development partners, we will then facilitate the emergence of contractual agreement between trained vaccinators and the PO and/or hubs, both in the Southern highlands, Tanga and Morogoro regions where ILRI and its partners are working to transform the dairy value chain and increase household income through the hub approach. The hub approach allows for economies of scale not only in milk but also for inputs and services. The approach ensures a sufficiently large market for the trained vaccinators (in comparison with them working with scattered households) and decrease the cost of delivering the vaccine, both by decreasing costs of storage as well as making it easier to get the required number of animals to be vaccinated. - - Bundling of services In order to spread the overhead costs and thus make the vaccine delivery more affordable to end users, we will explore possibilities of using AI delivery infrastructure in order to take advantage of existing cold chain infrastructure. Similarly, we will work with existing distribution agencies and explore possibilities of integrating AI delivery into their business portfolios. In particular: 5 - All grass-root institutions that are recruited into the distribution networks to act as agents (cooperatives, hubs, agro-vets etc.) will be encouraged to bundle vaccine and semen storage, as a way of spreading the overhead costs. Where infrastructure for delivery of AI already exists in some set-ups (cooperatives etc.), such facilities will be considered for recruitment as grass-root institutions to be upgraded for delivery of ECF vaccine. - Additionally, given the relatively low demand for the vaccine in some production systems, trained vaccinators will be encouraged to bundle services as a way of expanding their businesses and making the vaccination service more viable. In this regard and where necessary, the vaccinators will additionally be trained on provision of AI services to help expand their business portfolios so as to cover for any business shortfall that may arise from limited vaccine business. Sensitization and awareness creation To address lack of awareness among cattle keepers, we will work with GALVmed to organize various field exhibitions and farmer to farmer sensitization approaches. We will also mount several media campaigns through newspaper, magazines, radio and television. Taking cognizance of the role of government in enhancing adoption of technologies, we will also organize technical trainings and awareness forum for the relevant government officials. During these forums the relevant government officials will be sensitized on their regulatory and oversight role in enhancing the uptake of the ECF vaccine. Through the suggested upscaling initiatives we hope to vaccinate 230,000 cattle in the first year and another 120,000 in the second year. These projections are, however, contingent upon projected availability of the next batch of vaccine – 250,000 dosses to be released for the entire region by November this year and approximately 1 million dosses by 2016. Institutional collaboration and partnership The proposed project is in line with the on-going collaborative work by GALVmed, ILRI and other partners aimed at establishing a sustainable commercial basis for supply and distribution of ECF-ITM in East, Central and Southern Africa. This collaborative initiative will see the sale of 2.5 million dosses to livestock keepers by June 2017. Besides enhancing technical capacity within CTTBD for vaccine production, the on-going work also aims at developing businesses around vaccine delivery and embedding of marketing skills at various levels of the vaccine supply chain. The proposed work in Tanzania will therefore provide an excellent opportunity to focus on specific elements of the vaccine supply chain and develop practices and processes that facilitate increased adoption of ITM-ECF elsewhere in the region. These lessons would particularly be useful even as GALVmed together with other national and regional partners plan to intensify the ECF-ITM activities in Uganda and Kenya. In collaboration with GALVmed and other regulatory authorities and manufacturer, we will also explore possibilities of expanding into new territories through the establishment of additional distributors. GALVmed have previously facilitated the registration of the vaccine and undertaken sensitization campaigns to increase awareness of the vaccine. Furthermore, we will also work with current distributors to expand their networks of vaccinators and to train and equip trained vaccinators – borrowing a lot from experiences of existing distributors. 6 At country level, the proposed approach takes cognizance of existing plans and approaches by various partners in the livestock sector and seeks to work with them to expand or adapt the current approaches, whichever is appropriate. First, our proposed scaling up is in line with the plans of the Ministry of livestock development that focusses on improving animal healthcare. We also adapt the hub innovation approach that is currently being piloted by ILRI in collaboration with our partners - Heifer Project Tanzania (HPT) and Faida Mali. At the heart of the hub approach is an interlinked product and input and/or service market, where cattle keepers can access inputs and services on the account of products they deliver to buyers. Under this tri-partite agreement, the buyer checks off the cost of services and/or inputs received by the cattle keeper (from input/service providers) from the proceeds of the milk delivered to a buyer. The system is sustained by equipping service providers with business skills to do business with cattle keepers/groups of cattle keepers. Finally, linking to our existing platforms, at national level through the Dairy Development Forum (see http://livestockfish.cgiar.org/2013/08/09/ddf2/ ) and at local level through innovations platforms promoted by ILRI and partners in Tanga and Morogoro among others, we propose to upscale the ECF vaccine in Tanga and Morogoro – up North and in Southern Highlands These areas have both smallholder dairy and pastoralist production systems and provide platforms for comparing different vaccine delivery approaches. Research design Vaccinated herds will be monitored closely to assess the impact of vaccination on calf mortality, morbidity and productivity. Diseases incidence, cause-specific mortality, growth rates and other productive parameters will be measured in immunized and non-immunized herds. This work is important as most studies assessing the impact of ECF have considered the reduction in mortality only. Of particular interest will be to compare the impact of vaccination in indigenous breeds with crossbred breeds to provide evidence to farmers whether ECF vaccination can indeed protect their valued investment against death and lead to increased productivity in their herds. The results could be used in sensitization campaigns to provide a powerful incentive for livestock owners to adopt the vaccine. Additionally, we will evaluate the various ‘last mile’ delivery mechanisms, by comparing the effectiveness and efficiency of delivering ITM through 1. Trained vaccinators operating on their own 2. Trained vaccinators attached to a PO or a hub (either directly employed by the PO or linked through contractual arrangement whereby the vaccinator is paid by the PO that collect milk from the cattle keepers) 3. Any other delivery mechanism that may arise. Indicators to be collected include: average number of vaccinations done per month; turnover per year; profits per year; etc. For the project as a whole, a Returns on Investment analysis will be conducted, with returns including those at household level (decrease in mortality and morbidity; decrease in tick 7 control costs; possibly increase in uptake of cross bred cattle); as well as at other points along the value chain (trained vaccinators and distributors). 8