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PIC, ABS and Other Regulatory Issues in the context of Farm Animal Genetic Resources.

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Presentation on theme: "PIC, ABS and Other Regulatory Issues in the context of Farm Animal Genetic Resources."— Presentation transcript:

1 PIC, ABS and Other Regulatory Issues in the context of Farm Animal Genetic Resources

2 Economic Concepts



5 Animal Genetic Resource Issues

6 Background to AnGR Issues Livestock provide 30% of total human requirements for food and agriculture 70% of worlds poor depend on livestock 16% of breeds lost over last 100 years 32% of remainder at risk 70% of remainder located in developing countries where extinction risk is highest

7 Some differences between AnGR and PGR (I) More mobile Have a comparatively high cost per unit Fecundity is low the high impact of animal disease protocols on international transport and access, and Seed" needs to be deep frozen to survive (high ex-situ conservation costs) the few remaining wild relatives of domestic animal species

8 Some differences between AnGR and PGR (II) the relatively small total number of animal genetic resources and extremely small number of these which have been exposed to date to modern development technology the high impact of some biotechnologies on the dispersal ability of animal resources the low level of knowledge of animal biology compared with the wide range of environments over which sustainable production is being sought the low level of genebanking of animal resources at risk. No large ex-situ collections of Southern germplasm being accessed and patented by Northern companies Limited demand for adaptive traits in Northern livestock production systems

9 Issues to Consider (Maputo, 2003) What have been the international flows of livestock germplasm and what are such flows likely to be in the future? What have been the benefits and costs of such movement of germplasm and who stands to gain most from the future movement of germplasm? Who undertakes research on livestock germplasm and who stands to benefit from such research? What can be learnt from the PGR legal framework experience and do differences between the economics of AnGR and PGR conservation and sustainable use suggest different solutions? What other policy factors, in addition to access and benefit sharing, need to be considered in order to support the conservation and sustainable use of AnGR?

10 Question 1: What can we learn from the PGR experience?

11 Commentary 1 (Property Rights Assignment) Property right assignments that affects the relationship between livestock-keeper communities, livestock breeders and biotechnology R&D must be considered carefully (efficiency and equity implications)


13 Commentary 1 (Property Rights Assignment) Assignment at retail end of plant breeding industry resulted in: Increased number of research and development (R&D) programmes; Increased total number of plant breeders Increased aggregate amount of R&D expenditure Increased private R&D No increase in essential input activities for maintaining a flow of genetic resources into the future (e.g. habitat and biodiversity conservation).


15 Farmers Rights Recognition of the critical and innovative role that farmers and rural communities play in the conservation and further development of genetic resources and their right to benefit from it. rights to land and secure tenure, the farmer's fundamental right to save seed and exchange germplasm the right of farming communities to "say no" - to choose not to make their germplasm and knowledge available. Farmers' Rights is also an integral part of the wider issue of the "right to food".

16 Question 2 What have been the net flows of livestock germplasm so far and who has benefited?

17 Direction and Volume of flow North to North very large, rapid expansion of intensive systems North to South very large but sometimes (not always) detrimental South to South (very?) large South to North limited and benefits small? Global flows of livestock germplasm in past 150 years

18 Commentary 2 A detailed evaluation of the net costs and benefits of global flows of livestock germplasm, and prediction of potential future benefits would be a valuable input to international debates on how to address legal and regulatory issues

19 Question 3 Benefits – what are they and how can they be shared?

20 Commentary 3 Non-monetary (as well as monetary) –Information –Technology transfer, hardware, software and know-how –Training –Joint research and collaboration –Institutional capacity building –Local income generation and employment –Benefits in-kind

21 Commentary 3 Current AnGR research already involves considerable non-monetary benefit sharing Need to protect/enhance existing forms of benefit sharing Need improvement of public and community use of biodiversity, including existing benefit sharing at local level

22 Test used in global pig populations to remove undesirable mutation Total income to Innovations Foundation approx $5m Net profit after deducting research cost approx zero Global additional cost of research greater than $2 million There was no commercial interest Anyone for Loss Sharing? The PSS gene: The worlds most valuable livestock gene so far

23 Question/Commentry 4 (ITPGR Process) PGR from developing countries were (and are) being enhanced in developed countries and then sold back to the developing world at substantial profit. Contrast to AnGR case: With improving technologies, is this scenario likely to repeat itself for AnGR? Will the economics of AnGR always remain substantially different from that of PGR? Given the current geneflows (not well understood), what are the incentives for developing countries to involve themselves in the development of an international legal and regulatory framework? Will a different regulatory process promote greater net benefits than a free market in movement and exploitation of livestock germplasm? Are there also important national regulatory issues to be addressed as well?

24 Question 5 What type of policy factors should be considered?

25 Commentary 5 Many policy-induced distortions –Macroeconomic (e.g. exchange and interest rates) –Regulatory and pricing (e.g. taxation, price controls, market and trade regulations) –Investment policy (e.g. infrastructure development) –Institutional policy (e.g. property rights) Need for improved national regulatory understanding

26 Food for Thought Licensing Know-how?`Know-how' license negotiated as a measure to prevent a private company from gaining rights over resources and/or knowledge which would infringe upon own collective property rights. `Know-how' license tied the rights to use the plants to the need for a license to use the knowledge provided by the Aguaruna peoples. Annual collection fee split into two agreements - a minimum of $10,000 a year for four years as collection fees, and $20,000 a year for a know-how license to be paid throughout the R&D phase (10-15 years). In this way,element of control maintained over the product. If agreement terminated at any point, rights to use the plant or any derivatives goes with it. Source: Bell, J. Biopiracys latest disguises. Seedling, June 1997. GRAIN

27 PIC Experiences

28 Project Context Title: Improving the Livelihoods of Poor Livestock-keepers in Africa through Community- based Management of Indigenous Farm Animal Genetic Resources Funded by BMZ, Germany 3 year project (began 09/04) covering Ethiopia, Benin and Kenya

29 Expected Outputs i) A framework for community-based management (CBM) of AnGR developed and at least one program established and functional in each project country; ii) Market opportunities for indigenous livestock quantified and institutional constraints to commercialisation and marketing identified; iii) Producer and consumer preferences for alternative livestock genotypes (and associated products) quantified, and cost-benefit analysis of alternatives conducted; iv) Policy constraints to conservation and sustainable use of indigenous livestock identified and policy- makers sensitised to community needs; vi) National capacities for conservation and sustainable use of indigenous AnGR strengthened.

30 Partners National Agricultural Research Systems (NARS) in Benin, Ethiopia and Kenya Georg-August University, Goettingen Hohenheim University GTZ (HQ and Country Offices) ILRI Staff across a number of Themes

31 New/required research process: ensure link between research solution and outcome (e.g poverty reduction, conservation, policy adoption, etc.) BasicStrategicAdaptive Outcome Research solution Dissemination

32 PIC Designated National Authorities Ethiopia - Environmental Protection Authority (EPA) and Institute of Biodiversity Conservation (IBC) involved in PIC/ABS work with PGR but not AnGR. Pleased to see the interest of the project and notes the need for linking with other appropriate stakeholders and undertaking wider consultations. Kenya - Not clear which is the competent National Authority. The National Environment Authority assesses only environmental impacts, and genetic resource issues have not yet been incorporated into its mandate. Benin - Ministry of Environment is the focal point for CBD issues and has developed a policy and action plan on biodiversity conservation. But the policy development for AnGR is still in process. The policy will cover three components, including: – the marketing of animals and semen –rules governing the movement of livestock, and –breeding strategies and programmes

33 Obtaining PIC at the community level (Experiences) Participatory processes employed to fully inform the communities about the purpose of the project Respective roles of the project and of the livestock keepers were discussed. The kinds of interventions that would be undertaken (characterization, monitoring of health interventions) were clearly elaborated. Emphasis was on building confidence within the community and on achieving an (oral) agreement on working with each other. PIC issues in the narrow sense of the term (relating to ABS) were not discussed because: –Felt that this was premature. –No rules for PIC have been established. –Livestock keepers have different priorities.

34 Obtaining PIC at the community level (Challenges) Livestock keepers have different priorities. They are poor and more interested in direct benefits, rather than in fairly abstract concepts. Therefore they are not really interested in the issue or fail to fathom the implications. Considerable capacity-building and training is necessary before livestock keepers are mature enough to grant qualified PIC. Obtaining PIC for AnGR is a new approach, so there are no existing experiences which could be consulted. (Therefore it is extremely important that our experiences are documented.) PIC can only be implemented as a process that evolves gradually, also depending on the points raised by the communities. We need to keep up the dialogue and try to educate the communities – maybe this will changes their perceptions about their rights.

35 Some PGR ABS experiences in Ethiopia Ethiopia has negotiated two ABS agreements –gluten-free Teff strains with a Dutch company –Oil plant with a British company Contracts: –cover a period of ten years –represent exclusive marketing agreements between the government and the companies Question as to the link with communities (how do the communities benefit?), not least as it is not clear as to who the communities are.

36 PIC Project Findings to Date (I) Countries have not yet developed the institutional frameworks that would be necessary for implementing PIC. Even the competent national authority has not really been selected. Obtaining PIC at the community-level is an on-going evolving process, rather than a one-time event resulting in a signed contract. At the community level, obtaining PIC is, in the case of this project, not that different from undertaking a participatory project approach. In all three countries, the communities have been fully informed about the intention of the project to increase economic returns from livestock keeping. However, the situation would change substantially, if the project came to collect blood samples. In this event, it would be very problematic to explain the eventual repercussions or consequences. In effect, in the event of blood sampling, consent would neither be prior nor fully informed.

37 PIC Project Findings to Date (II) Obtaining meaningful PIC therefore requires considerable capacity-building of the community so that it can even fully grasp all implications. In the case of benefits materializing, livestock keepers would need to be organized into strong associations, in order to take advantage of these. As the Ethiopian experience with plant genetic resource benefit-sharing shows, these agreements have resulted in financial benefits accruing with the government, but there are very limited mechanisms for passing these on to communities.

38 Contact Details & More Information Adam G. Drucker, ILRI-Ethiopia (Follow links: Research/Biotechnology/Economics of AnGR Publications)

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