1. Artificial insemination, livestock productivity and economic growth in Senegal François Joseph CABRAL Mamadou DIALLO

2. PLAN 1.Objective 2.Background 3.Méthodology 4.Simulation and résultats

3. Objective The aim of this research is to assess the effects of artificial insemination on livestock productivity, overall GDP growth and households well-being.

4. Background The potential to increase the productivity of livestock and livestock production is very large in sub-Saharan Africa. The production of meat per animal is two times less than the average obtained in developing countries and it is five times less than the average obtained in developed countries according to the species. The production of milk from local breeds is itself up to 10 times lower than that achieved by the European breeds (Boly and Leroy, 1999). Increasing productivity in the livestock sector must bring an answer to many challenges of market supply, food security and the fight against poverty, which requires borrowing techniques to improve weight and livestock productivity. Therefore, livestock sector plays a key role in achieving the Ecowap goals which is an average growth rate of 6% in agricultural sector so as to allow countries to in which this program is applied to halve poverty.

5. Background In Senegal, this sector has the greatest contribution to agricultural value added and incomes. Under Ecowap predictions, a growth of this sector sustained until 2015 will generate an additional flows of income of 32.2 millions of dollars in 2005. From bovine outputs, one can except milk (62% of milk production), leather, “livestock & hunting”. A program of Artificial insemination set by policymakers since 2008 has an objective to create by 2012, a population of 500 000 crossbred cows. It is expected from this artificial insemination program, a production of 400 million of liters of milk, 43,500 tons of meat and 120,000 pieces of leather. The cumulative insemination since 2008 to the end of 2012 totaled 107,000 cattle inseminated which is equal just to 1/5 of the original target of 500,000 cattle.

6. Background Attempts to endogeneously integrate innovation in economic analysis has been made through several approaches ​​. For Arrow (1962), knowledge on the TFP is the accidental product of experience in the production of new capital goods. He qualifies this phenomenon as a process of "learning by doing". For Frankel (1962), the accumulation of capital leads to an increase of knowledge. However, it’s really with Romer (1990) that we know that technical progress and innovation is at the heart of economic growth. The author assumes that technical progress comes from rationality of agents who meet the incentives issued by the market. The model therefore includes a rather endogenous technical progress.

7. Background Traditional farming is often characterized by the coexistence of two systems: - the transhumant system that is characterized by high mobility and a weak link with agriculture and - a sedentary system that can be mixed and combined with different food crops or annuity (Douhoux and Hounsou, 1993; Chentouf et al, 2004). The literature on the livestock activity remains divided on the impact of a number of variables on the productivity of animals. Among these variables, we find age at first calving and calving interval (Dehoux and Hounsou, 1993; Sow et al, 1988) and lactation (Dehoux and Hounsou, 1993), the rate of withdrawal (Dekhili and Dekhili 2003), he fertility rate (Senussi, 2004).

8. Background Traditionally, animal reproduction biotechnologies include four generations: an artificial insemination, the embryo transfer, in vitro fertilization and transgenesis (Thibier and Guerin, 1993). The AI ​​ is the biotechnology breeding most widely used worldwide and is one of the effective tools for disseminating genetic material (Lofti et al, 1996). In Senegal, only two genetic improvement techniques are used. It is artificial insemination (AI) and embryo transfer (Beye et al, 2013) but the one that policymakers use for national purpose is AI program.

9. Background Livestock sector and its related sectors (meat, milk and leather) account for about 4.7% of GDP

10. Background more wages from skilled labor and non skilled wages to urban households and capital. 80% is owned by cow capital by Senegal sylvo pastoral area. Basket consumption structure…

11. Méthodologie Based on Romer’s model, we try to endogenously introduce diffusion of innovation through artificial insemination in livestock sector technology. The artificial insemination, as it comes from government R&D efforts, can be supposed also a non rival good and is quite non exclusive. As the program of artificial insemination (AI) relies mainly on budgetary efforts, the rate of increase of insemination is supposed to be a function of expenditures devoted to R&D

12. Methodology CGE 2 types of labour –qualified labour 3 types of capital –private agricultural capital –private metis cow capital –private non metis cow capital –private non agricultural capital –public capital –Land 15 sectors

13. Simulation et résultats Ratio of RD/KD in cow metis sub-sector has been multiplied by 3.07 between 2009 and 2012. Simulation : teta_r increase by 3.07 for 4 periods.

14. Simulation et résultats

17. Conclusions et enseignements de politique Production of cow increase very significantly. It also induces an increase in its multiples products (meat, milk, leather). However, this increase seems to have a depressive effect on price as income for all households tends to decrease. It occurs also that, due to the weak size of this program, price effects seem to dominate income effects. Winners from this program are households from sylvo pastoral rural area, other cities and groundnut belt area. The aim of AI program was to cover not more than 15% of the total population of cows but only 3% of the cow population is effectively covered. Therefore, the challenge of this program is increase its size for wide effects in the sector, on GDP and well-being.

18. Merci!