Intervention Summary DFID/Bill and Melinda Gates Foundation Strategic Collaboration Portfolio for Sustainable Intensification of Agriculture What support will the UK provide? The UK will provide £30m funding to the Bill and Melinda Gates Foundation (BMGF) Global Development Programme over the period 2010-2015. This will enable the joint funding of a portfolio of research projects covering: i. near market R&D which aims to get the benefits and outputs of research into widespread use to improve nutrition, food security and incomes quickly. ii. translation of known science into technological solutions for use by applied researchers, crop breeders development programmes and farmers in developing countries. iii. high pay-off, higher risk, high impact research on global scientific priorities such as fundamentally re-engineering the way that rice uses sunlight. Through working together, DFID will benefit from BMGF’s high quality technical expertise and reduce administration costs through the research projects being managed by them. Why is UK support required? What need are we trying to address? Agricultural growth is known to reduce poverty, increase household welfare and generate surplus through market-oriented agricultural systems1 more effectively than growth in other sectors of the economy. However, smallholder farmers in SSA and SA could realize much more of their agricultural potential by overcoming the causes of persistently low farm productivity. Significant barriers to increased productivity are the limited availability of improved technologies and husbandry practices appropriate for smallholder conditions and farmers’ access to them, both of which are needed for sustainable intensification 2 of smallholder agriculture3. This project will harness the potential of research to create sciencebased innovations and get them into use for the benefit of the poor. 1 World development report 2008. http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTWDRS/EXTWDR200 8/0,,contentMDK:21410054~menuPK:3149676~pagePK:64167689~piPK:64167673~theSitePK:2795 143,00.html 2 Sustainable agricultural intensification is defined as producing more output from the same area of land while reducing the negative environmental impacts and at the same time increasing contributions to natural capital and the flow of environmental services (Royal Society, 2009; Godfray et al., 2010). 3 UNCTAD 2010 Technology and innovation report 2010. http://www.unctad.org/Templates/WebFlyer.asp?intItemID=5446&lang=1 What will we do to tackle this problem? This intervention will allow DFID to co-invest intellectually and financially with BMGF’s Global Development Programme in a mixed portfolio of research ranging from potentially high pay-off cutting edge projects through to enabling and out-scaling near-market technology solutions with immediate impact on developmental outcomes for the poor. BMGF has an outstanding track record in identifying significant research opportunities, prospecting high quality research proposals from leading researchers and consortia, and translating research into useable outputs. This is well documented in their Strategy and Approach4 (2010). We will work with BMGF to identify the best opportunities where DFID funds can add greatest value to a balanced portfolio. This will include selected investments in projects that are currently ongoing, in pilot phase, in preparation and preliminary ideas. This collaboration contributes to the achievement on MDG1 in Africa and South Asia where sustainable intensification, based on technical innovation by small-holder farmers is a viable poverty exit pathway. Who will be implementing the support we provide? This project builds on our existing successful collaborations with BMGF, through AATF, the CGIAR and GALVmed, to forge a new strategic collaborative research partnership. Jointly with BMGF, we have determined a list of high impact activities where our funding can add value to the research. For example, through filling critical funding gaps, pursuing research lines not originally envisaged, strengthening links with other research and uptake initiatives, and assuring greater policy relevance. Our support will add flexibility to BMGF pre-determined funding by enabling the research to move faster where appropriate, with more upscaling of research and technology into use. We will agree annual allocations with BMGF in response to requests and proposals from grantees and BMGF technical project officers and research managers. By jointly assessing the portfolio annually we will determine the most efficient allocation of DFID funds to projects across the portfolio to match resource needs with funding availability. This approach will ensure timely funding decisions in response to often unpredictable research progress and opportunities which is difficult to achieve for BMGF acting alone. DFID’s transactions costs will be minimal as we will be using BMGF administrative and technical capacities. BMGF grant making process requires the use of expert independent peer review of all allocations over $500,000. Value for money is ensured through open competitive tendering and invited tender rules and protocols. Strict rules on grantee costs are also followed which set out what may be charged and reasonable levels, e.g. staff costs based on academic salary scales, economy class airfares, overhead cap, and a benchmarking tool that allows cost comparisons across grants. The annual review/budget discussions will allocate DFID support to those parts of the portfolio where flexible and/or external funding will be most effective in balancing funding needs with resource supply. 4 http://www.gatesfoundation.org/agriculturaldevelopment/Pages/default.aspx What are the expected results? The outcome of this partnership is to generate, develop applications and promote new technologies for use by smallholder farmers that will accelerate sustainable intensification through increased agricultural productivity. This will improve rural livelihoods, farm incomes and help to increase food security by greater access to affordable food by rural and urban people. Specific outputs of the project will derive from a set of research projects making up an agreed portfolio of initiatives comprising different types of approach,: i. near market R&D which aims to get the benefits and outputs of research into widespread use to improve nutrition, food security and incomes quickly. Business incubator and venture capital approaches are examples of how research can help to stimulate the private sector to invest in profitable, sustainable businesses that will benefit the poor along the market chain. Release of new crop varieties for use by farmers e.g. maize specially adapted to the depleted soils of Africa and wheat strains resistant to rust diseases also fall into this category of research (see table 1 A-type deliverables). About 40% of the budget will be deployed in this area. ii. translation of known science into technological solutions for use by applied researchers, crop breeders, development programmes and farmers in developing countries; for example improved nutritional qualities of major staple crops through biofortification, better use of legumes to improve soil quality and atmospheric nitrogen fixation, locating and mobilizing new genes for; re-establishing durable resistance to wheat rusts that threaten world food security (see table 1 B-type deliverables). Around 40% of the budget will be used for this type of activity, and iii. high pay-off, higher risk, high impact research on global priorities such as fundamentally re-engineering the way that rice uses sunlight to increase yield by 50% and double its water and fertilizer use efficiency, support of the BMGF Global Grand Challenges programme is also relevant (see table 1 C-type deliverables). This area will receive approximately 20% of the overall programme budget. Table1. Agreed portfolio of projects for joint funding by DFID and BMGF Project title (research type)5 Meridian market chain business incubators (A) Diagnostics for all (A) Aflatoxin control (A and B) Durable rust resistance in wheat (DRRW) (A and B)) Improved maize for african soils (IMAS) (A and B) Cassava biofortification Phase II (A and B) N2Africa (B) Cassava genomics and pathogen diagnostics (B and C) C4 rice – phase I (C) Grand challenge explorations (C) 5 Expected outputs Small and medium business incubator approach for commercialisation of agricultural and postharvest innovations and venture capital leverage Cheap, effective, simple, paper-based immunoassay test kits for use in the field. These can be developed for a wide range of diagnostic tests including bovine pregnancy tests, aflatoxin levels, and bacteria in milk. Strategies for research, development and commercialization of promising technology interventions to measure, control and reduce aflatoxin and its impacts. Protection for 90% of wheat grown globally from new types of virulent stem rust disease (Ug99 and derivatives) spreading globally. This will be done by resistance gene discovery and distribution to breeders. New varieties of maize that are better adapted to Africa’s nutrient-deficient soils. Cassava varieties with higher levels of betacarotene, iron and protein developed and bio regulation dossier prepared Faster genetic gains for improved yield and stress tolerance of important tropical legume crops i.e. groundnut, cowpea, common bean, and chickpea. Improvement of cassava breeding material for biotic and abiotic stress, and development diagnostic assay techniques for major diseases and pathogens Increased rice yields by 50% and water use efficiency by 100% by transforming rice from a C3 to a C4 photosynthetic pathway. Support for speculative high pay-off research ideas Some projects will deliver impacts on more than one research type