Ministry of Agriculture and FisheriesNational Directorate for Livestock

Republic of Mozambique

Family Farming Livestock Rehabilitation Project

Cost Recovery & Privatisation of Veterinary Services

April 1999

austral consultorio e projectos ldaMaputo, Mozambique

Projecto de Reabilitação Pecuária, Ministerio da Agricultura /DINAP(Direcção Nacional de Pecuária), Caixa Postal 1406, Maputo, Moçambique. 00258-1-460080 /460050, fax 460479. Email: kenfe@dinap.uem.mz. Austral consultorio e projectos, Caixa Postal

1406, Maputo, Moçambique. 00258-1-430143 /430145 /422780, fax 307369. Email: Sociedade Austral: austral@austral.uem.mz

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TABLE OF CONTENTS

0 EXECUTIVE SUMMARY

1 INTRODUCTION

1.1 Background

1.2 Objectives

1.3 Activities

2 ACKNOWLEDGEMENTS

3 THE LIVESTOCK SITUATION

3.1 Livestock Population and Production Systems

3.2 Future Projections

3.3 Animal Health Situation

4 VETERINARY AND LIVESTOCK SERVICES

4.1 National Directorate of Livestock (DINAP)

4.2 Field Services

4.3 Other Livestock Related Institutions4.3.1 National Veterinary Research Institute (INIVE)4.3.2 Animal Production Institute (IPA)4.3.3 Extension Services (DNER)4.3.4 Training and Education

4.4 Extent of Veterinary Services to Farmers

4.5 Private Practice

4.6 CLW (Community Livestock Worker) Programmes

5 COST RECOVERY

5.1 Strength and Weakness of the Presently Functioning Veterinary Charging System /Arrangement

5.2 Understanding of the Field Staff of Cost Recovery

5.3 Appropriate Lessons for Future Approaches

6 DISTRIBUTION AND MARKET FOR VETERINARY PHARMACEUTICALS

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7 STRATEGY

7.1 Rationale

7.2 Overview

7.3 Future Cost Recovery7.3.1 Animal Health and Production Operations Suitable for Cost Recovery7.3.2 Mechanism for the Calculation of Cost Recovery for the Family Sector7.3.3 Payment Capability and Availability of Farmers7.3.4 System for the Establishment, Transfer and Utilisation of the Revenue Generated by Cost Recovery7.3.5 Livestock Development Fund

7.4 Private Practices

7.5 Community Livestock Workers (CLW)

7.6 Role of Farmers Associations (FA)

7.7 Distribution of Veterinary Pharmaceuticals

8 ROLE OF THE STATE AND THE PRIVATE SECTOR

9 VETERINARY LEGISLATION

9.1 Overview

9.2 Legislation Enabling and Supporting Private Veterinary Practice

10 RECOMMENDATIONS

11 REPORTS

List of Tables

Table 1: Distribution of Cattle and Goat Numbers over the Provinces, 1996.Table 2: Number of Dip Tanks and Cattle Crushes, 1996.Table 3: CLW Kit Provided by FOS Belgia (Tete province)Table 4: Cost of Cattle Dipping (in US$)Table 5: Present Fee Range in the 10 Provincial Veterinary ServicesTable 6: Extracts from the Fee List of the Veterinary Service of Gaza ProvinceTable 7: Fee Introduction in Percentage of Full Costs (for Drugs and Services) as Proposed

by the Provincial Veterinary ServicesTable 8: Proposed Fee Introduction in Percentage of Drug /Service Costs or in MtTable 9: Productivity, Costs and Returns of Cattle ProductionTable 10: Productivity, Costs and Returns of Goat, Sheep and Poultry ProductionTable 11: Veterinary Expenses per Area Unit for Particular RegionsTable 12: Financial Analysis of Private Veterinary Practices with Own Farming Activities

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LIST OF ANNEXES

Annex 1Data on the Veterinary Service and Livestock Numbers

Page 11. Vaccinations and treatments 19962. Technical personnel in the veterinary service3. Veterinary staff in the provinces compared to land area, number of rural households and

treatments & vaccinations

Page 24. Livestock numbers and density per area unit for particular regions (for cattle and small

ruminants, with official small ruminant number)

Page 35. Veterinary expenses per area unit for particular regions (for cattle and small ruminants,

with official small ruminant number)

Page 46. Livestock population and veterinary expenses on the farms (with estimated numbers for

small ruminants and birds which are above the numbers from DINAP)

Annex 2Results of the Interviews with Family Farmers

Page 11. Results of interviews with family farmers (cattle)

Page 22. Results of interviews with family farmers (goats, pigs)

Page 33. Results of interviews with family farmers (chicken, ducks)

Page 44. Results of interviews with family farmers (turkeys)

Annex 3Livestock Productivity and Economics, Costs of Veterinary Treatments

Page 11. Productivity and financial analysis of livestock production (cattle, goats, sheep, poultry)

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Page 22. Cost of different treatment schedules

Page 33. Prices of different acaricide applications

Page 4 +54. Livestock parameters according to different sources

Page 65. Commercial poultry production: layers and broilers. Production coefficients and returns

Page 76. Prices of veterinary treatments

Page 87. Prices of veterinary pharmaceuticals and equipment (1)

Page 98. Prices of veterinary pharmaceuticals and equipment (2)

Page 109. Prices of veterinary pharmaceuticals in some other countries

Annex 4Costs and Returns in the Provision of Private Animal Health Services

Page 11. Financial analysis of a farm animal practice with own farm (graduated veterinarian)

Page 22. Costs of mandatory vaccinations conducted by a private veterinary practice (graduated

veterinarian)3. Cost of training and first year follow-up of CLW (graduated veterinarian)

Page 34. Financial analysis of a farm animal practice of a middle level technician with own farm

Page 45. Costs of mandatory vaccinations conducted by a private veterinary practice of a middle

level technician6. Cost of training and first year follow-up of CLW by a middle level technician

Page 57. Financial analysis of a pet animal practice

Page 68. Transport cost per km

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Abbreviations and DefinitionsADB African Development BankAI Artificial inseminationASF African Swine Feveravg AverageBQ BlackquarterCLW Community Livestock Worker ('promotores')DINAP National Directorate of Livestock (Direcção Nacional de Pecuaria)DNER National Directorate of Rural Extensione.g. for exampleEU European UnionFA Farmers association, farmers groupFamily farmer SmallholderFFLRPFamily Farming Livestock Rehabilitation Project (ADB funded)FMD Foot and mouth diseasei.e. in other wordsIFAD International Fund for Agricultural DevelopmentINIVE National Veterinary Research Institute (Instituto Nacional de Investigacao

Veterinaria)IPA Institute of Animal Production (Instituto de Producao Animal)l.w. live weightMAP Ministry of Agriculture and Fisheriesmax Maximum valuemin Minimum valuen number of observationsND Newcastle diseasePARC Pan-African Rinderpest CampaignPrivate farmer Commercial farmerSPP Provincial veterinary servicesTBD Tick-borne diseases

Currency EquivalentsCurrency Unit = Metical /Meticais (Mt)

7/94 10/95 96 2/98US$ 1 = Mt 6800 10888 11500 11600Rand 1= Mt 2000 2400Zimbabwe Dollar 1 = 729

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0 Executive Summary

Objective of the consultancy

1. The report addresses the potential for possible future sustainable strategies aimed at improving the delivery of veterinary services including a method of cost recovery and assessing also the possibilities for private practices.

Present Situation

2. Mozambique has a large unused potential for livestock production; the grazing resources in many parts of the country are under-utilized. Livestock numbers and livestock density are very low which makes that the distance between farm and next veterinary point is high. An increase of the cattle population and/or a higher output can be achieved with higher survival rates and lower morbidity in cattle.

3. In many parts of the country, veterinary drugs are not easily available. There is an urgent need to establish a competitive private distribution system for veterinary drugs on province and sub-province level.

4. Farmers' knowledge on causes of diseases and treatment possibilities is insufficient. There is an urgent need to bring the knowledge about veterinary treatments to the farmers (extension, contact farmers, farmers' radio), and to establish a low cost service system near the farmers (CLW /'promotores').

5. DINAP's drug prices are only subsidized for acaricides and trypanocides. The price guideline for other drugs is at a level of a competitive retailer. However, some provinces gives drugs to smallholders without charging. A competitive private drug wholesaling system is not yet well established (but seems to develop with a new provider of generic drugs in Maputo).

6. Present veterinary expenses on smallholder farms are low, with 7100 Mt per cow with followers, 1000 Mt per she-goat and 160 Mt per hen. Commercial beef farms spend about 140,000 Mt per cow for animal health including acaricides, or 250,000 Mt per cow with three trypanocide treatments. With an annual net output per smallholder cow of 0.28 surplus

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animals x 2.2 mill. Mt average selling price, increased veterinary expenses of about 50,000 Mt per cow can be well covered increasing also the output by about 30 %.

7. Even with very high poultry mortality of 80% for chicks and 60% for adults a hen in the smallholder system produces 4.6 surplus poultry per year sold on average for 21,000 Mt per head. The net output of a smallholder hen covers well the real costs of ND vaccination. With ND vaccination the net output of this hen can be doubled (assuming also higher fed costs due to the greater poultry number). Smallholders are interested in ND vaccination and many farmers are ready to pay full vaccination costs.

Cost Recovery

8. To reduce unfair competition with the private sector and to enable the establishment of a private drug distribution system full cost recovery on veterinary drugs should be introduced immediately. The only exception will be acaricides used in public dip tanks and obligatory vaccines. In few time, DINAP should completely abandon the distribution of veterinary drugs for individual treatments and leave this activity to the private sector as the present state system depends heavily on irregularly available subsidies.

9. Cost recovery should be introduced together with an information campaign on the new orientations of the veterinary service (privatisation of parts of the service, improved extension with a 'promotores' programme). Cost recovery can only be introduced if farmers are convinced of the efficiency and reliability of the service. Accordingly, the introduction of cost recovery and the implementation of the new orientations of the veterinary service should go hand in hand.

10. Dipping costs may be paid per head of cattle or under another schedule. The following costs are recommended for dipping one cattle one time:

in Year 1, 100 Mt in Year 2, 200 Mt in Year 3, 400 Mt.

In Year 5, full acaricide costs should be charged and dip tanks handed over to a private operator or a farmers' group. However, farmers' groups are frequently unable to collect and administer the funds necessary to refill the dip. Accordingly, the development has to be closely monitored and other solutions have to be considered: (a) the state continues to manage the dip tank at full cost recovery, or (b) a private operator manages the dip tank (drug retailer, private veterinarian, private technician).

11. For compulsory vaccinations, the introduction of cost recovery will be slowly introduced. For Year 1, Year 2, and Year 3, fee levels of 0%, 5% and 10% of the vaccine costs are proposed for smallholders, and fee levels of 50%, 75% and 100% of the vaccine costs are proposed for commercial farms, respectively. For voluntary vaccinations, costs will be recovered as following. For Year 1, Year 2, and Year 3, fee levels of 10%, 15% and 20% of the vaccine costs are proposed for smallholders, respectively, while for commercial farms 100% are proposed from Year 1 on.

12. Other services which are also suitable for private operators should be charged at a hour rate of 65,000 Mt for a veterinarian, and 35,000 Mt for a middle level technician. This level is oriented at the minimum necessary for a private service. Transport charge should be 3000 Mt/km in the veterinary service's car.

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Private Services

13. In low potential zones not suitable for private practice or private veterinary pharmacies, the Government veterinary personnel should be allowed to buy and sell privately drugs.

This strategy is followed in different African countries like for example in Chad or in Kenya. In the latter country, the Veterinary Department issued a circular on February 6, 1993 to all district officers where the following instructions were given: (a) Veterinary officers, themselves or through the non-professional cadre (livestock officers, animal health assistant, junior animal health assistants), can buy and sell drugs in accordance with the Veterinary Surgeons Act. The money accruing from such sales belong to the purchaser. (b) Purchase of such drugs is governed by the Poison and Pharmacy Act. (c) This is done to prepare and encourage veterinarians to go into private practice.

14. A commission has to define these low potential zones where Government veterinary personnel should be allowed to buy and sell privately drugs. Members of this commission should be: (a) DINAP, (b) private drug distributors, (c) representatives of private veterinarians, (d) farmers' representatives.

15. Privatisation of acaricide application: Dipping with a generic acaricide costs only 325 Mt per head per dipping (only acaricide costs), or 1276 Mt (with dip tank, crush and dip tank personnel). As there are not enough dip tanks in the country and because the management of dip tank cannot easily be handed over to the farmers, alternatives to dipping should be developed, like

establishment of a farmers group which gets a subsidized sprayer and which selects a Community Livestock Worker out of its members who will be trained and gets a drug kit

mini hand sprayers (with gloves) for individual use to be sold by the veterinary service at a cheaper price as in Maputo's supermarkets (there 7 US$).

16. The potential for establishing private veterinary practices serving smallholders is very limited as shows the following calculation:

If a private veterinarian expects a profit of 500 US$ per months (=6000 US$/year), and with current veterinary expenses of family farms of 1 US$/year/cow with followers,and with estimated 1/4 of this 1 US$ available to remunerate the private veterinarian's work

(service fees and profit on drug sale,the private veterinarian would need 4 x 6000 cows x 3 heads per cow = 72,000 cattle.This calculation doesn't consider other livestock species and production systems. On the other

side, a veterinarian will not serve all the livestock in his area.

17. Private veterinary services can only be viable if all available income sources are combined which are:

sale of veterinary drugs provision of veterinary services to commercial farmers establishment of a system of satellite 'promotores' (CLW) paid government contract for the establishment of this system of satellite

'promotores' own livestock and crop farm (which will provide up to 50% of the profit of the

combined practice - farm) Government contract for the provision of obligatory vaccinations

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a soft loan to establish the combined practice - farm possibly a cattle marketing activity.

Remoteness, inadequate roads and lack of reliable market information (in the context of price fluctuations) represent important constraints to cattle marketing.

18. Practices of middle level technicians should also be supported. This practices follow the same principle as described above.

19. The request for a soft loan for the provision of private practices has to be supported by a business plan showing the potential. Candidates of the Government veterinary service interested in the establishment of a practice - farm should get unpaid leave. Candidates should have practical experience in commercial farming and in private farm animal veterinary practice. A practical training programme should be foreseen for this (4 months in commercial farming and 4 months in private farm animal veterinary practice) to be executed in profitable and well established private farms and practices.

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1 Introduction

This is the report of the Veterinary Services Mission for DINAP and the ADB-funded Family Farming Livestock Rehabilitation Project in the Republic of Mozambique carried out by Dr. Thomas Armbruster, Livestock Economist with Austral Consultores e Proyectos, Maputo, Mozambique, in collaboration with Dr. Muhate Milagre and Dr. Ventura Makamo from DINAP. The 2½-months consultancy was carried out in Mozambique over the period 4/2/98 to 2/4/98 plus 1½ week for travel days and report edition at the consultant's home country.

The terms of reference for this consultancy are presented below.

1.1 Background

As part of the Agricultural Sector Investment Programme (PROAGRI), a range of responsibilities of livestock services to smallholders will be devolved to community organisations and the private sector. The development of sustainable veterinary services is a core objective which includes cost recovery by the public sector, and privatisation. Due to large distances in the country and to low livestock densities in many regions veterinary services are often not easily available.

The integration of the private sector in services so far solely executed by DINAP will be phased. This process will be preceded by the introduction of a cost recovery system where farmers have to pay for the technical services of the state veterinary network. Relevant legislation will be revised to create a favourable legal environment for the involvement of the private sector.

1.2 ObjectivesThe main function of the consultancy is to assess and select alternative approaches for the provision of animal health and production services including a method of cost recovery and possible transfer of animal health and production care responsibilities to the private sector.

1.3 Activities

Specific duties include:

1. Review the existing cost recovery mechanism as applied to the private /commercial sub-sector of the economy.

2. Assess the strength and weakness of the presently functioning veterinary charging system /arrangement so as to draw appropriate lessons for similar approaches to the family sector.

3. Identify the animal health and production operations where cost recovery could be

practical and realistic. e.g. clinical interventions, dipping, prophylactic vaccinations (voluntary and compulsory), diagnostic supports, cattle restocking programmes.

4. Draw strategies on the possible transfer of animal health and production care responsibilities to private veterinarians, middle level technicians, auxiliary staff and livestock farmers.

5. Design a system for the establishment, transfer and utilisation of the revenue generated by cost recovery to enhance further strengthening of the animal health and production activity.

6. Delineate the roles to be played by the Government and the private sector in animal health and production programmes so as to minimise any duplication of efforts and avoid unnecessary competition from the State that may frustrate private entrepreneurs.

7. Suggest ways and means to ensure that the cost recovery package shall address the necessary institutional adjustments to make it a feasible programme.

8. Assess the understanding of the field staff of the cost recovery concept and their capacity to implement it, and propose any training required to improve their knowledge and capacity to implement this concept.

9. Establish a mechanism to calculate the cost recovery specially from the family sector, and,

10. Submit a draft proposal of the study for consideration by the project management team.

2 Acknowledgements

The reporting officer gratefully acknowledges the assistance and co-operation of all staff of DINAP who readily provided information, advice and guidance. The important contributions of Dr Songane, Director of Veterinary Services, deserve particular mention. The team leader FFLRP, Dr Kenfe, freely provided valuable time. The staff of the Veterinary Faculty was most helpful and hospitable, especially Dr Lopez Pereira, as was staff from IPA and INIVE. These contributions as well as those of the Provincial Livestock Directors, of veterinary field staff of the visited provinces, numerous farmers and collaborators of development projects were valuable and appreciated.

3 The Livestock Situation

3.1 Livestock Population and Production Systems

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Mozambique possesses extensive range resources for cattle production and the production of smallstock is a ubiquitous element of smallholder farming systems. However , the country's large potential for ruminant livestock production is only to a small part used, due to more crop oriented production systems, due to the previous war and also caused by the presence of tsetse flies. The cattle population fell from 1.4 million in 1982 to 253,000 in 1992, and is now growing to 290,000 head (1995), and to 352,000 head in 1996. In 1995, cattle belonged to 28,535 owners of whom 85% had between 1 to 10 head.

Livestock numbers are increasing though numbers are still at much lower levels than in the 1970's and the 1980's. The 1994 data (Ministry of Planning and Finance) indicated that approximately 64 per cent of farmers had livestock in their farming system. This consisted of 52 per cent of households with poultry, 30 per cent with pigs and small ruminants, and 6 per cent with cattle. Cattle ownership is restricted due to the investment cost required and the limited number of areas that are suitable. The majority of herd is concentrated in four provinces, Tet, Gaza, Inhambane, and Manica (see next Table).

Four main livestock production systems can be distinguished (cattle, pigs, small ruminants, chicken) which can be further divided into commercial and family sectors for three of them (cattle, pigs, chicken).

The Family Sector is most active in cattle raising in the south of Mozambique, Tete and in some areas of Sofala and Manica. The interest is not due to the tradition of cattle raising but because cattle represents an economic security as a provider of milk, to increase agricultural production and principally as a provider of cash. Animal traction has a big impact on agricultural production, especially in the southern part of the country. While the cultivated area of a peasant family amount to only 1.5 ha with hand labour, the cultivated land can increase to 5 hectares per family with a pair of oxen.

The local cattle breed of the South is larger as the one in Tete: While a Landim cow weighs 330 kg the Angoni cow of Tete province weighs only 240 kg. As a result, selling prices vary with an average of 2.0 million per head in Tete (all classes confounded, average as stated by interviewed family farmers) and 2.7 million in Manika. Productivity parameters according different sources are presented in Annex 3, page 4-5.

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The Private Sector consists of two types. One kind is of a generally large dimension, originates from pre-independence times and specialises in agriculture and commerce and can be aptly termed Commercial Sector. The other kind is of a small to medium scale and was created more recently out of the privatised land and infrastructures of state owned farms or is managed by farmers of Portuguese origin.

Dairy cattle are found in peri-urban areas and number around 1,800 head compared with the 13,000 head back in 1974. The revival of the milk production in the larger urban centres is linked to the creation of favourable conditions for the commercialisation and industrialisation.

The large majority of small ruminants are goats (75-80%) from which the largest number is found in Tete province (about a quarter of the animals). Goats seem to have a low demand on veterinary needs and they have a quick rate of reproduction. Two breeds of native goats and one of sheep exist in the country designated as "Landim" (largely distributed) and "Parfuri" goats (in a small area Southwest near the border with Zimbabwe and the Republic of South Africa) and "Nguni" sheep (largely distributed). Sometimes, during the dry season, goat milk is an important source of nutrients to human population specially to the poorest peasants who cannot afford to rear cattle.

Goats are more resistant to Trypanosomosis and TBD than cattle. Principal health problems include heartwater, coccidiosis, pneumonia, contagious ecthyma, mange and foot-and-mouth diseases.

Small ruminants are officially estimated at 538,000 heads but the number seems to be underestimated due to poor statistical control. According to the Ministry of Planning and Finance (1994) 30 per cent of households have small ruminants. This means out of 2.5 million rural households, 750,000 keep goats and sheep which will result in a much higher population.1 There exists a strong tradition of goat (and some sheep) keeping throughout the country as the tsetse fly never was a limiting factor to this species. The family sector has about 95% of the numbers of small ruminants. Major provinces for goat production are Gaza, Inhambane, Sofala, Cabo Delgado and Niassa. Restocking programmes are carried out by NGOs through local re-distribution in the provinces of Tete, Sofala and Cabo Delgado.

The pig population amounts to 245,000. More than 75% of the pigs belong to the family sector and it is believed that the local pig breeds have a certain resistance to ASF. ASF has spread alarmingly in commercial farms and led to abandoning pig production. This trend can also be observed in family farms.

The majority of rural families have their flocks of chicken which supply them with eggs and meat and in the past not much attention was paid to their feeding and health requirements. In the past (1970), the chicken number in the family sector was estimated at over 13 million for a rural population of 6.8 millions which means two chicken per inhabitant (Wethlii, in "Livestock Production Seminar", 1985). Data from 1994 (Ministry of Planning and Finance) indicate that 52 per cent of farmers had poultry which means that 1.3 million rural households keep chicken.

Table 1: Distribution of Cattle and Goat Numbers over the Provinces, 1996.

1 Accordingly, in some calculations in the annex of this report, a goat and sheep population of over 1 million was considered.

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Cattle GoatsMaputo 30710 33871Gaza 97909 45978Inhamabane 43657 44080Sofala 11702 89509Manica 39397 20030Tete 93179 100437Zambézia 19000 4927Nampula 6796 49512Capo Delgado 5801 78907Niassa 4013 15408TOTAL 352164 482659

Source: Annual Report 1996. DINAP.

3.2 Future Projections

The cattle population in 1974 counted about 1.4 mill. head (50% of them being in the family sector). Until 1993, this number steadily declined to the level of 214,000, and since 1993 is regrowing. Future projections can be oriented at this previous population, however, the country's potential is far above this. PROAGRI foresees at the end of its 5-year implementation period a cattle number increase of about 44%, and for small ruminants a growth of 101%. For poultry a growth of 61% is expected in relation to an initial estimated number of 2.5 million.2

Imports of livestock products amounted in 1996 to 904 tons of beef, 32.5 tons of pork, 16 tons of mutton, 660.5 tons of poultry meat and 3210 tons of fish. With an annual offtake of 90 kg l.w. per cow (0.28 heads x 320 kg) in the family sector in case of zero herd growth (45 kg carcass weight) it would need an additional 20,000 cows (about 57,000 heads) to cover this importation. In addition, local consumption will increase with growing income, and the large range resources as well as the need for draught animals recommend a further increase in the livestock number.

Calculations of potential carrying capacities show that Maputo and Gaza Provinces could support 470,000 and 550,000 heads of cattle given good grazing distributions (Timberlake, in "Livestock Production Seminar", 1985) while the 1996 cattle population amounts to 30710 in Maputo and 97909 in Gaza. There are countrywide 36 million ha of arable land (only 4 to 5 million ha are being cultivated) and 12 million ha of natural pasture, which could support by grazing and by feeding its crop residues a huge ruminant livestock population.

2 In the present study, for some calculations presented in the annex, considerably higher poultry and goat numbers were considered, extrapolated from smaller surveys where livestock numbers in rural households were assessed.

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3.3 Animal Health Situation

Mozambique is favoured by the absence of severe epizootic diseases such as contagious bovine pleuropneumonia and ECF3 which affect livestock in many other Eastern African countries. The presence of the tsetse fly in roughly 500,000 km2 of the land area of the country, is a particular problem which has dictated and modelled the pattern of livestock distribution in Mozambique. The most pathogenic species of Trypanosome encountered is T. congolense and T. vivax in single or mixed infections in cattle and T. simiane in pigs. Prevalence of trypanosomosis in the southern part of the country is low but north of Save river, it varies from medium to high. T. simiane outbreaks occur only sporadically.

Tick-borne diseases (TBD) are of particular importance in exotic breeds and their crosses. The Nguni cattle is probably more resistant to TBD and it is believed that this resistance is reinforced by successive challenges in adult life, but cattle imported from disease free areas are as susceptible as exotic one. In Southern Mozambique, Amblyomma hebraeum is the most important tick in cattle, mainly because of the direct pathogenic effect at the site of attachment in addition to its role as vector of Cowdria ruminantium. In the areas where tick control is limited, a considerable percentage of calves die before 6 months of age due to insufficient milk provision as a result of damaged udder by ticks. In cattle production, veterinary interventions are constrained especially in the control of ticks and TBD due to malfunctioning of dip tanks.

Heartwater is the most important disease for recently imported cattle. It is endemic in the southern region, and about 60% of cattle and goats have antibodies against this agent. Babesia bovis transmitted by Boophilus decolorathus in the south and B. microplus in the centre and north is also a major disease of cattle.

The incidence of Dermatophilosis has increased in recent years in the central region of the country probably due to the less frequent and adequate tick control. The prevalence of Fasciolosis is high while gastro-enteric strongylosis infections are considered of low significance in cattle but existing data doesn't reflect the diversity of the country. Abattoir data indicate that Cysticercus bovis is widespread in Mozambique.

In 1996, two outbreaks of lumpy skin disease were reported in the provinces of Inhambane and Nampula. In 1996, outbreaks of dermatophilosis were only reported in Maputo province.

Since 1985, no outbreak of FMD has been reported in the country. However, in 1996 a serological sample undertaken in a private company in Quelimane showed some animals with antibodies but no clinical symptoms were observed. In order to prevent re-introduction of the disease, FMD vaccination is compulsory in five provinces (Maputo, Gaza, Sofala, Manica, Zambezia).

Anthrax and BQ have not been reported since some years ago but the threat is still present. In Zambezia province, vaccination against this disease is not practised as no report was received for a long time.

Several herds in the country are affected with brucellosis. The prevalence of the disease is still not well known due to the existence of antibodies from vaccination.

3 ECF exists to a limited extent in Northern border provinces (e.g. the Angonia plateau in Tete) and in Manica.

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The highly contagious nature of the ASF virus once installed in the domestic pig and the fundamental role of the interactions of pigs, warthogs and the argasid tick Ornithodoros porcinos porcinos is a continuing threat to the pig industry. Due to the current disease situation, the planned restocking project with pigs has been delayed.

Village poultry which is not vaccinated against ND are frequently wiped out, sometimes twice a year, by this disease. ND is endemic and occurs annually throughout the country. Fowl pox, Gumboro, Avian Leucosis and Avian Salmonellosis are other reported diseases of poultry.

Pasteurellosis is currently considered as a constraint to duck production.

Though measures against rabies are taken, the disease is still reported in urban as well as in rural areas. The Ministry of Health has reported 17 deaths in men (1996).

4 Veterinary and Livestock Services

4.1 National Directorate of Livestock (DINAP)

DINAP has the mandate for policy formulation, monitoring and formulation of livestock activities at national level, implementation of various programmes associated with disease control and eradication, and input supply (particularly medicines) at the provincial and district level. DINAP is composed of two technical departments: Animal health and animal production, and employs 20 veterinarians and 11 technicians.

In 1995, DINAP's budget was about US$ 77,000 of which 50% are for salaries. Obviously, this budget is by far insufficient to ensure the implementation of the mandate of this institution.

4.2 Field Services

At provincial level, the provincial livestock service (SPP) is integrated in the provincial directorate of agriculture and fisheries and is twice subordinated to the provincial director and to DINAP. The SPP have 2 sections: one for animal health and one for animal production. The SPP is responsible for the District Livestock Service (SDP). Extension services are provided at the dip tanks particularly to the family sector.

The animal health department field staff is responsible for planning and implementing prophylactic campaigns of DINAP, for administering and monitoring of Government regulations associated with livestock movements, marketing, abattoirs and quarantine, and the collection of statistical information. The provincial staff of the animal production department focus mainly on cattle production and restocking programmes.

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In 1996, the field staff comprised 28 veterinarians, 49 middle level technicians, 104 basic level technicians, 259 auxiliary technicians, and 60 dip tank attendants (see Annex 1, page 1). There are 435 functional dip tanks and cattle crushes (see next Table), which gives a ratio of 809 cattle per dip tank and crush.

Table 2: Number of Dip Tanks and Cattle Crushes, 1996.

Operational Not operational TOTALPublic dip 130 246 376State dip 64 109 173Private dip 68 86 154Cattle crush 173 86 259TOTAL 435 527 962

Source: Annual Report 1996, DINAP

Per basic and middle level technician, there are about 16,000 rural households and about 2978 TLU. These relations show the large number of households to be served, and the limited livestock number in the country. There are only about 0.5 TLU/km2.

The veterinary service suffers from low operational budget, lack of drugs and mobility and lack of diagnostic facilities at district level. Insufficient transport facilities interferes with the frequency of farm and village visits. Disease diagnosis and drug prescriptions are often made according to the farmers description of the disease and not according to a proper clinical examination of the animal.

4.3 Other Livestock Related Institutions

4.3.1 National Veterinary Research Institute (INIVE)

The National Veterinary Research Institute (INIVE) is responsible for the diagnosis of animal diseases, the production of vaccines and biological products, and for quality control of biological products and drugs. INIVE runs laboratories in all the provinces. The staff comprises 21 veterinarians, 19 technicians and 8 auxiliary technicians. INIVE's operating budget for 1995 was only US$ 11,600.

4.3.2 Animal Production Institute (IPA)

The Animal Production Institute (IPA) was created with the mandate to conduct livestock research which includes nutrition and forage production, reproduction, AI, breeding, selection and farming systems with priority focus on the family sector.

Research and genetic improvement takes place in three research stations: Chobela, Mazimechopes and Angonia. The staff comprises 34 technicians. IPA's operating budget for 1995 was only US$ 17,700.

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4.3.3 Extension Services (DNER)

Extension to the family sector is predominantly undertaken by DNER. While its primary focus is on crop production, DNER undertakes livestock extension in some districts, including the training of CLW (e.g. in Gaza province).

Livestock extension is also conducted by the Provincial Livestock Services (SPP) and a multitude of projects and programmes, supported by different donors and NGOs.

4.3.4 Training and Education

The Ministry of Education (MoE) through the Eduardo Mondlane University trains veterinarians in a 5-years study at The Veterinary Faculty with an annual output of 12-18 veterinarians. There are also two medium level agricultural institutes with an annual output of 35 technicians. Presently, the employment opportunities for graduates are limited.

Training in livestock production and health is provided at three levels: university, middle level technician and basic level. The university course in Mozambique is of 5 years duration and is a broad based course including both animal health and production although the former is given greater emphasis. The annual graduation from the university is about 15 to 17 students per year. There are two middle-level technicians colleges which provide animal production and health training. Both colleges have a broad-based 4-year course in agriculture with specialisation in crop production, livestock production, forestry or mechanization after 2 years. The total annual number of technicians expected to graduate from the colleges is about 40. There are also four agricultural training schools which offer courses in basic level/animal production or animal production /agronomy. These are generally 3-year courses. About 70 animal production and 150 joint animal production/agronomy basic level technicians are produced each year.

The Centre for Agricultural Training (CFA) offers short courses covering the entire agricultural sector to district and local level staff. The CFA provides also training in rural development skills such as training of trainers, rapid rural appraisal techniques, project planning and management, participatory processes, etc.

4.4 Extent of Veterinary Services to Farmers

Obligatory vaccinations are free of charge and comprise (in parenthesis planned, and after the slash/, number of accomplished vaccinations in 1996):1. Brucellosis, 38,681 / 7882.2. BQ, 103,349 / 92,878.3. Anthrax, 252,609 / 200,372.4. FMD, 135,685 / 51,851.5. Newcastle, 2,629,975 / 733,390.6. Rabies, 43,478 / 20,720.

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Non-obligatory vaccinations conducted are Lumpy skin disease (21,000 planned, 4876 conducted), Heartwater (819 "vaccinations"), Besnoitiose (290), and Gumboro (62,510 vaccinations).

Brucellosis control measures in cattle involve the vaccination with strain B19 of young females between 4 and 8 months of age.

There are 435 functional dip tanks and cattle crushes (see next Table), which gives a ratio of 809 cattle per dip tank and crush. Per year and as statistical average, 4.6 tick treatments were conducted per head of cattle (dippings, sprayings and pour-on; 1996), 3.9 if only the family sector is considered (see also Annex 1 page 1).

Prophylactic and curative trypanosomosis treatments amounted to 33,807 and 32,674, respectively, and dewormings to 5,357 animals.

Thermostable Newcastle disease vaccine have been tested in family farms, with encouraging results in rural areas where infrastructures for conservation of the vaccines in low temperature is not available or the correctness of its use is difficult to control. Regular and general use of ND vaccine throughout the country would have an immense positive effect on poultry production in the family sector.

The strategy used for the control of rabies is to vaccinate dogs annually free of charge on a campaign basis. However, lack of financial resources limit the extend of the operation.

While the impact of obligatory vaccinations is substantial, acaricide application is mostly restricted to locations with functional dip tanks. Other treatments are not sufficiently carried out due to lack of pharmaceuticals, due to lack of experience and knowledge of the farmers that there is an appropriate treatment, due to financial constraints of farmers where veterinary expenses compete with other urgent needs in the farm and in the family, and due to the fact that farmers don't see yet veterinary expenses as a short-term investment bringing multiple benefits. Family farmers' present veterinary expenses per cow, she-goat and hen amount to only about 1 US$, 0.1 US$, and 0.01 US$, respectively, including the cow's etc. followers (see results of farmers' interviews in Annex 2). However, a part of the family farmers seek for further treatments and assistance. It is not rare that farmers living near the Zimbabwean border buy drugs in Zimbabwe.

4.5 Private Practice

Existing full-time private practices work for pet animal owners and commercial poultry farms (including chick import from South Africa). Commercial cattle farmers receive veterinary advice from the Government veterinary service or from veterinarians which practice part-time privately having also another employment. There is one full-time pet animal practice in Maputo, and two practices combining pet animal practice with other activities. There is also a private practice in Beira. Two veterinarians from the veterinary faculty run a part-time practice for commercial farmers in agreement with the faculty.

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4.6 CLW (Community Livestock Worker) Programmes

Some NGOs and the extension department trained recently CLWs. The rural development institute INDER trained CLWs in the framework of its draught oxen programme with the French co-operation4.5 The World Relief Church in Kulima trained CLWs who charge presently 90% of drug costs. It is planned to increase this cost with a mark-up as incentive for the CLW.

FOS Belgia trained 10 CLWs in Tete. The 2-weeks training comprised disease identification and treatment, draught animal use (tools, training of animals, work with animals), and feeding (including production of salt blocks). One kit was given to two CLWs. The kit value is 1 mill. MT; they charged 200,000 MT to the CLWs. There is a monthly meeting with the CLWs, and two veterinarians visit together the 10 CLWs 3-monthly for two days.

Table 3: CLW Kit Provided by FOS Belgia (Tete province)

Kit items Drug price charged by CLW to farmerTetracycline l.a., 100ml 2000 MT/mlDoxymicin eye powder, 4 x 50gHoechst wound oil 500ml 1500 MT/treatmentCopper sulphate, 500gStreptomycine, 100mlSarnadip, 1 l 20ml/20 l, 3l/animal, 6000 MT/animalBayticol pour-on, 1l 9000 MT/animalWound aerosol 385 ml.3 needles for syringeSyringeLarge oral administration syringe

One of the CLWs was interviewed in his village during the visit tour of the consultant. He started his activity in 9/97 and treats about 10 animals per month. Two of his drugs, Bayticol and an antibiotique were finished during the consultants' visit. According to his information, Bayticol was just recently finished during the last days, and the antibiotique in the last week. He could not keep the income from using the drugs as somebody of his family was sick and he had to buy human medicine. He bought a goat with his partner (the other CLW with whom he shares the kit) and they will use the money from the selling of the goat's kids for restocking drugs and perhaps to buy a second kit. He has a cattle crush to treat the animals and according to his information, the farmers' availability to pay for treating their animals is good.

Restocking finished drugs is the critical point in the CLW programme. During the consultant's visit of CLWs in Western Province, Zambia, in 1994, also the drug stock of the CLWs was incomplete. The critical point is if there is just a delay between finishing a drug

4 Projet Pilot Traction Animale Chokwe5 There were 20 future CLWs at the beginning of the training, 11 have been certified from which 4 work for the animal traction programme in Chokwe while 7 work for the goat component of a Spanish NGO (CEAR - Programe de Formente Pecuario et Reforestamento).

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and restocking this drug or if the CLWs drug stock reduces over time to zero. According to FOS Belgia, the first CLWs have already restocked their drug kit.

VETAID organised the 13th of February a meeting in Xai-Xai where criteria for CLW programmes were discussed. It was stated that farmers to be selected for CLW training should have livestock knowledge and experience in livestock keeping, they should be literate and preferably have a better school level, they should be integrated in a farmers' group and be selected by the community, should be prominent, and should be female if they should serve women farmers. Writing ability is important to send a message to the veterinary service, to calculate dose rates, to register body temperature for diagnosis, and to read the drug information attached to the drug. The CLW training has to be made in coordination with the veterinary service and the training programme acknowledged by the local veterinarian. The CLW training is supported by the Ministry of Agriculture but presently there is no budget for the monitoring of this programme by the veterinary service. The follow-up of CLWs by the provincial /district veterinary service is budgeted in PROAGRI but this programme is not yet funded.

Future CLWs may also be trained from ND vaccinators which were e.g. employed by NGOs ("Fundaçao contra Famine" in Beira province, VETAID in Tete province). Dip tank attendants should be included in the programme.

5 Cost Recovery

Cost recovery is the concept of "user-paid" fees for specific services which are acquired from the public veterinary service. Purely public goods such as public health should be financed by the national treasury at a level agreed to by national consensus or in proportion to their contribution to national wealth. Where both public and an identifiable private owner benefit, the cost needs to be apportioned. This is the economic basis for cost recovery for such services as vaccination for notifiable diseases, meat inspection for interstate commerce and for herd disease status certification.

5.1 Strength and Weakness of the Presently Functioning Veterinary Charging System /Arrangement

In 1995, DINAP made a proposal to the Finance Ministry to introduce fees for dipping and pour-on application which should amount to 2000 Mt per head of cattle and per year for dipping and 3000 Mt/head/yr for pour-on application. The US$ exchange rate at this time was approximately 8,000 Mt/US$. However, the Finance Ministry refused this proposal stating that DINAP should submit a proposal for all services.

Already at the National Livestock Meeting in 1994, the Provincial Services were told that they should start some form of cost recovery for the dipping activities. This resulted in various ways of charging the farmers, some would charge an annual fee to be paid in the office; others would charge per animal dipped at the time of dipping.

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The provincial veterinary service of Inhambane tried in 1995 to charge 100 Mt/head /dipping which led to a considerable decrease in the number of dippings and to clandestine nightly dipping without paying (which shows the farmers' interest in dipping).

Presently, dipping fees are only introduced in some provinces using different prices. The dip tank near Xai-Xai charged for example 100 Mt per head of cattle and per dipping which was now changed on request of the farmers to a yearly fee of 15,000 Mt per farm. This system obviously favors larger herd owners. There are 500 farmers in the dip tank group which would result in annually collected fees of 647 US$. The dip tank of 20,000 litres of capacity needs a six-monthly change of the solution. The water for the dip tank has to be transported by lorry needing 50 ltr of diesel per 6 months for water transport (50 x 5180 Mt/ltr = 22 US$). They need 50 litres of acaricide per year which costs for Ethion or Supona 862 US$ (price of DINAP's Pharmadrug store). Thus dipping remains subsidised but the farmers' contribution is substantial.

In the dip tank of Munene, Manica province, the annual dipping fee was last year 4000 Mt, and increased this year to 6000 Mt per cattle; cattle from the age of 4 months on are charged. Assuming an average herd size >2.5 heads, the fee of the tank of Munene is above the one in Xai-Xai.

The following table shows the full dipping costs for two acaricides, a cheap one of a producer of generics (Ectodip containing Diazinon which was previously also sold as Delnav) and an acaricide of a medium price level. The table shows that with the cheap acaricide dipping can be provided at a price of 325 Mt/head/dipping (price of the used acaricide only) which is near to a presently acceptable price for farmers. This acaricide can only be used where are no resistance against Diazinon.

Table 4: Cost of Cattle Dipping (in US$)

Acaricide Steladone Ectodip fortePrice /ltr 19 38.3Initial solution, ltr water /ltr dip

600 8000

Refilling, ltr water /ltr dip 333 4000Annual no. of dippings 11 11Acaricide cost /head/dipping 0.170 0.028Acaricide cost /head/year 1.87 0.30Total cost /head/dipping 0.26 0.11Total cost /head/year 2.82 1.25

Total costs include construction cost of tank (10,000 US$), annual maintenance of tank (3% of construction costs), and 50% of the salary of the dip tank attendant and his assistant. For the details and also other acaricide applications, see Annex 3, page 3.

Fees have been introduced on an experimental basis according to the provincial veterinary service's decision and are not uniform throughout the country (see next Table). Four provinces don't charge for most cases. Many provinces which charge fees levy the same amount from family farms and from private farms for most individual cases.

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Table 5: Present Fee Range in the 10 Provincial Veterinary Services

Family Farm Private farmNo. of

provinces without fees

Fee range in Mt of

provinces which charge

No. of provinces

without fees

Fee range in Mt of

provinces which charge

Normal consultation 5 5000-10000 3 10000-50000Transport /km in service car 4 2000-12000 4 2000-12000Intramuscular injection 4 1000-2500 4 1000-15000Burdizzo castration, yg.bulls & goats 4 15000-25000 4 15000-75000Coprological examination 5 3000-5000 6 3000-10000Tuberculinisation /head 8 10000 6 2000-15000Transit license /cattle for breeders 10000-25,000Transit license /cattle for traders 20000

Gaza province has established a detailed fee list from which extract are shown in the following Table.

The fees as proposed by Gaza province are already near to the one a low-cost private practice would have to charge. This fee list applies to both, commercial and smallholder farms. This list is considered as a realistic basis and should be an orientation for other provinces.

Fees and charges levied by the veterinary service accrue to the general account of the Ministry of Finance and are then transferred to the Agricultural Development Fund which will use them for development activities in all agricultural fields. Thus revenue collection by, and the allocation of funds to veterinary and livestock services are de-linked.

Table 6: Extracts from the Fee List of the Veterinary Service of Gaza Province

Mt MtTransit license per cattle for breeders 15000 Surgical castration of equines 15000Transit license per cattle for traders 25000 Blood examination 3500Transport charge in service car, per km 2000 Examination of feces 3000i.m. or s.c. injection 2000 Serological brucellosis test 5000Cesarean section, pet animals 150,000 Tuberculinisation 2000Euthanasia, pet animal 50000 Post mortem poultry 5000Burdizzo castration of yg. bulls and kids 10000 Post mortem small animals 10000Dehorning of calves 5000 Post mortem large animals 25000

Strengths of the presently functioning veterinary charging system are that it provides income for the Agricultural Development Fund, and that it prepares a system where services are in future charged at a commercial rate. Weaknesses are that the price lists are not officially approved by the Finance Ministry, and that there are considerable differences between provinces, especially in dipping fees. There is a need to harmonize the different fee lists and criteria. If some provinces don't charge for dipping cattle while others do cattle from neighbouring provinces may come in.

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5.2 Understanding of the Field Staff of Cost Recovery

From the past, the field staff is not used to the cost recovery concept but to free services. The field staff has no experience working in a commercial system while cost recovery bring commercial elements into the service. It is also more difficult to work with farmers if fees are charged. The farmer makes staff more responsible for unsuccessful treatments when he had to pay. With the exception of oxen rent, smallholder cattle don't provide regular income and farmers might at the beginning be reluctant to pay.

However, many veterinary staff members are in favour of cost recovery for drugs and also for the introduction of a service fee. The present insufficient availability of drugs induce an openness for a change as it is practically impossible to work as veterinarian without the right drug. Field staff recommends that charges should be fair and affordable which means in many cases below the level of full cost recovery.

Field staff training requirements for the implementation of the cost recovery concept comprise information on the principles and reasons for introducing cost recovery which should be presented and discussed on the regular meetings and through an information leaflet (see chapter "Rationale" below, and the chapter on cost recovery in the "Strategy" part below). Cost recovery would also need bookkeeping; keeping accounts will have to be explained. There is a general need on all levels to discuss the different components and benefits of cost recovery and privatization. This includes the need to explain the division of tasks between the state, the private and the associative sector and the importance of transparency.

In the PROAGRI document it is stated that the majority of personnel working in the countryside are requiring updating of their technical and professional skills and the programme foresees among others seminars and inter-provincial and regional visits, with priority to the neighbouring countries). In the context of cost recovery and privatisation the consultant recommends to visit neighbouring countries where this principles have been implemented and were achievements and also failures can be studied and discussed.6

5.3 Appropriate Lessons for Future Approaches

Presently, cost recovery is to a larger extent applied in commercial farms as in smallholder farms. Commercial and smallholder farms and how to deal with them is difficult to compare. A major issue in the context of introducing fees for smallholder farms would be to teach the farmer that veterinary expenses are a short-term investment and not a consumption of the overall income which is available for the family.

While many of the current fees as charged by the SPPs are reasonable (at least for the introductory phase of cost recovery), a transport fee of 12,000 Mt/km in the service's car as stated by some SPPs in the distributed questionnaire would restrict farm visits and exceeds real costs by far (see calculation in Annex 4, page 6).

6 An example would be the CLW programme in Malawi run by GTZ since 1994 (team leader Dr Klaus Leidl), or the same programme in Zambia's Western province which started in 1993 and was financed by the Dutch Co-operation.

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Presently, veterinary expenses in family farms are small. A survey in Manica district (MARRP, 1993) found, that the largest items for which farm households spend money are food and groceries not produced on farm and bought, agricultural inputs, clothes, contract labour, schooling and (public) transport with lesser amount being spent on cattle dipping, tax, and entertainment. An own survey found that per cow with followers yearly only 7000 Mt were spent (plus 6 of 26 interviewed farmers paid dipping fees in addition), 1000 Mt per adult female goat with followers, and 164 Mt per hen (see Annex 2).

The benefits of veterinary treatments have to be shown to the smallholders. Veterinary expenses will lead to a higher farm output which is especially obvious when mortality rates with and without ND vaccination are compared. Surveys showed the productivity gain due to veterinary treatments: This can also be seen when comparing calf mortality rates in smallholder farms (e.g. 24% in a study published 1991)7 with those in commercial ranches or research stations (8% up to 7 months in Chobela Research station). However, the individual success of veterinary treatments cannot be foreseen and the farmer has to gain confidence and to see the gain through the treatments and the reliability of the service to be open for paying. In this respect a smallholder will act as a commercial farmer. From the past, farmers are used to free services and in consequence oppose to fee introduction.

A part of the smallholders are willing to pay for veterinary services and went to the service when they had a disease problem but often the adequate drug was not available. During the field visits, farmers were asked about their willingness to pay for veterinary treatments. This question was asked when farmers reported about losses where the possible cause could be identified and a treatment with its costs could be proposed to the farmer.

One example is a farmer who lost in the last year three calves which had probably heartwater (nervous syndromes). He was not readily willing to pay a proposed fee of 40,000 Mt for treating one calf. Probably, he would have agreed on a lower fee, like for 10 ml Tetracycline for 7 US$/100 ml = 0.7 US$ + an injection fee of 2000 Mt. The crucial point are the transport fees: if the vet has to charge 10 km each one for 3000 Mt/km (full cost of a car), the total fee results in the 40,000 Mt. This makes clear that near-by technicians or CLWs are necessary using a bicycle or motor-bike (1500 Mt/km for one costing 3000 US$) or public transport if available.

Another interviewed farmer was willing to pay 100,000 Mt for a tetracycline l.a. injection (if it works) to save a cow which has a value of about 3.5 mill. Mt. A cow weighing 250 kg would need a forth of a Tetracycline bottle (7 US$ / 4 = 20,300 Mt).

Many farmers would be willing to pay for ND vaccination as many have lost all their poultry. With the present ND risk they are discouraged to keep poultry while on the other side poultry meat is a preferred meal. Some farmers were even willing to pay 5000 Mt per poultry vaccination.

7 A. Rocha et al. Cattle Production and Utilization in Smallholder Farming Systems in Southern Mozambique. Agr. Systems 37, 55-75

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The ND vaccine costs only 23 Mt (La Sota with a 3 months protection needing a cold chain bought from a private importer in a 1000 dose pack) or 502 Mt for the thermostable vaccine (protection up to 1 year). If a team of four vaccinators (monthly salary per vaccinator 50 US$, thus 2.5 US$/day or 29,000 Mt) can vaccinate 300 x 4 village chicken/day (1200 chicken), and there are 50 km of car transport per day (50 x 3000 Mt = 150,000 Mt), the work and transport per chicken vaccination costs (29,000 Mt/day x 4 vaccinators) + 150,000 Mt for transport = 266,000 Mt divided by 1200 chicken = 222 Mt/chicken. In addition there are costs for organisation (informing the farmers) and co-ordination of the operation, buying and transporting the vaccine from Maputo, and material (ice-box, ice, vaccination material, possibly kerosene refrigerator for 600 US$). VETAID Tete estimated the full costs of their ND La Sota vaccination at 0.11 US$ per vaccination (including cost for co-ordinator).

Different to commercial farmers many smallholders need much information about causes of diseases and treatment possibilities. While cost recovery is to some extent accepted, there is a need for training on causes of diseases and on proper use of drugs as wrong drug application by smallholders is frequent.

Different to commercial farmers which can provide transport to the veterinarian /technician in case of need and who are able to pay a fee at a commercial rate, farmers need a low-cost animal health system near to them which is able to treat the most frequent diseases and problems. It will not be possible that a technician travels 50 km to treat the wound of an ox or to deworm some kids while this task can be easily taken over by a CLW being responsible for one or some small villages. Smallholder farmers are interested to have somebody from their community trained in animal health treatments.

As transport facilities by vehicles of the veterinary service are not always available the Government veterinarian or technician using for a farm visit his own vehicle should be authorised to charge the full transport costs as calculated in the Annex and keep this recompensation in his own pocket.

6 Distribution and Market for Veterinary Pharmaceuticals

The national market for veterinary pharmaceuticals and acaricides is estimated at about 1 mill. US$ (see Annex 1, page 4) from which over 50% is provided through the Government (varying over the years). There are about 6 importers in Maputo (which are also wholesalers and retailers) and another 5-6 private retailers in the country. Retailers may provide veterinary drugs as one of many services and for some of them the veterinary drug business is insignificant in their overall activity which leads to the fact that they are not much interested in a quick restocking of sold drugs. There are also many cases where drugs are sold with a mark-up up of over 100%. While 100 ml Oxytetracycline l.a. (200mg) can be bought in Maputo for 6.4 US$ with a private veterinary drug importer, a private shop in Chimoio sells it for 33 US$. Sometimes, veterinary drugs can be found in the black market on the street.

Large commercial farms may import directly per DHL from South Africa or Kenya. Most frequently used drugs are acaricides, antibiotiques and trypanocides. The largest part of veterinary drugs sold by the private sector are retailed in Maputo as commercial farmers

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avoid transport cost (e.g. +30% for drugs sold in Nampula) and prefer to use personnel relations to buy the drug in Maputo and transport it in the countryside. They buy also in South Africa. Pet animal owners in Maputo frequently buy drugs in the supermarket in South Africa and purchase only pharmaceuticals with restricted distribution in Maputo.

The private drug distribution network is rudimentarily due to the limited livestock numbers and density, and due to competition with subsidized Government services. In developing countries with a strong demand for veterinary pharmaceuticals, private distribution channels have evolved without development aid. A strong demand is caused by intensive farming on limited land resources or by livestock dominated production systems (e.g. pastoralists in Somalia who are provided by cattle traders with veterinary drugs). The Mozambican situation is not characterized by these factors as the production system is more crop oriented and the intensification pressure is low (still abundant land resources). These factors lead to unreliability in the drug supply and sometimes very high margins of private retailers. On the other side, the distribution and selling of veterinary drugs is the first activity of the veterinary service ready for privatisation especially as the present state distribution system depends heavily on irregularly available funds.

7 Strategy

The strategy adopted by the Government in its recently formulated National Policy and Strategy for the Development of the Livestock Sub-sector (1996-2001) includes the gradual transfer of Government provision of services to private technicians and agents, except for certain essential activities which will remain under the control of the state. The introduction of cost recovery sensitizes the farmers to the need to pay for some goods and services thus paving the way for acceptance of full commercialisation. Cost recovery will also supplement inadequate personnel and operational budgets.

7.1 Rationale

Livestock and veterinary services have historically been the domain of the public sector in African countries. This is partly the result of their original establishment to control the major epidemic diseases (which has strong public goods character), and to assume a national regulatory and disease surveillance function. It was reinforced by the public sector orientation in past decades, which viewed governments as the main spur of development.

Fiscal constraints and deficient management of resources reduce the operational efficiency of public sector services. Staff numbers do not correspond to the means (vehicles and fuel, pharmaceuticals, etc.) to support them. Consequently, it is necessary to strengthen and develop systems which do not depend heavily on the government budget and which are sustainable. New and innovative approaches need to be developed to overcome the budgetary and organizational shortcomings of the public sector and to reduce government services to their core functions. These approaches include cost recovery, privatisation and village based animal health services (CLW).

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Insufficient animal health services cause decreased farmer motivation. The profile of the livestock farmer is changing, as traditional livestock farming is shifting towards more commercialized operations. This development is slow on the majority of farms, but fast in emerging farms. Accordingly, clinical treatments, the supply with pharmaceuticals, voluntary vaccinations and vector control are becoming more important, domains which are suited for the private sector.

The government should only be responsible and authorized for tasks which cannot be performed by the private sector while all activities with an important commercial character are better performed by the private sector. Proper government functions are regulation and supervision of goods and diseases important for the public. Governmental authorities must be involved in diseases of high infectivity and in diseases which are hazardous for human health. Government functions may include food hygiene and inspection, livestock extension (especially through the mass media), and research.

The activities of both sectors are frequently interrelated. Public veterinary services have a supervising function with regard to privately operating veterinary surgeons, specially in the field of notifiable and zoonotic diseases. The same applies for the carrying out of services where private veterinary practitioners may act on behalf of public services, such as meat inspection, control of epizootics, issuing of health certificates to (travelling) animals and the like.

These interactions are commonly called "sanitary mandate". According to international terminology, the sanitary mandate can be defined as follows: Government veterinary services authorise officially registered and licensed private veterinarians to carry out mandatory (compulsory) mass prophylaxis, veterinary public health, or any other veterinary activity normally carried out by the government. A sanitary mandate can be given for a certain demarcated area and for a limited period with the possibility for renewal.

On the other hand, private veterinarians who are supposed to keep records on treatments, vaccinations, certificates issued and meat inspection can become a reliable source of information for supervising governmental services. In case of outbreak of a notifiable animal disease, the state veterinary services must be informed immediately by the veterinary surgeon in attendance.

Proper control of animal diseases is an important element to sustain adequate levels of animal productivity, to supply the human population with high quality food and to prevent domestic animals and people from zoonoses. In all industrialized countries, the individual animal health care has always been in the hands of private veterinary practitioners. Most of the rules and regulations for the establishment of a private veterinary practice are enforced by the professional association or syndicate. Government is supervising, among other things, all veterinary public health measures and the control of notifiable diseases. Government frequently delegates some of its responsibilities to private veterinary surgeons in form of a sanitary mandate. Countries which had a strong public sector orientation, have thus to redefine the respective roles of the private and public institutions.

The OAU-institution PARC (co-financed by EU) has undertaken a successful dialogue with some 25 member states (ACP members) in view of restructuring and revitalising Animal Health Services. At present, 12 countries (including Mali, Chad, Ghana, Senegal, Tanzania, Ethiopia, Benin and Burkina Faso) are in the process of organizing veterinary privatisation schemes.

PARC issued the following recommendations in view of reorienting veterinary services:

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1. Countries that have not yet done so, draft laws and decrees favourable to the installation of private veterinarians, drug importation and delivery and prepare the corresponding regulations for their implementation, specifying the division of tasks between government services and private veterinarians.

2. Those countries that have not yet done so, prepare texts for the issuing of sanitary mandates that contain all necessary elements such as definition, allocation specifying period and area for which it is valid, as well as control of execution. The delegated functions should be clearly stipulated with a mandatory reporting system to the Director of Veterinary Services according to existing laws and specify eventual penalties. Activities which will remain domain of the government shall be specified.

3. In order to favour the installation of private veterinarians in marginal or low production areas, special conditions for loans should be granted, and even grants in kind or subsidies be considered. Nevertheless, an initial private input is necessary to guarantee entrepreneurial engagement.

4. Full cost recovery for all veterinary activities be reached by the end of PARC phase II in order to assure sustainability.

5. Governments are urged to take appropriate steps to curb importation, production and distribution of counterfeit drugs that may endanger the national herd, as well as jeopardise the success of the installation of private veterinarians. Training of livestock owners should be arranged to recognise these drugs.'

7.2 Overview

In most parts of the country, the Government Veterinary Service will continue to carry out subsidised prophylactic vaccination against diseases of national importance and those others that resources allow. All other activities are then carried out at full cost recovery. For dipping, cost recovery will be introduced gradually.

In remote areas without potential for private drug distributors, Governmental staff would be authorised to deal in veterinary inputs as for large parts of the country, it is not possible to build up two separate networks, a governmental veterinary service and a private veterinary and drug distribution system. The geographical delimitation of these remote zones will be defined and demarcated by a commission which includes also the private sector.

The professional body and Government veterinarians appointed as inspectors will be responsible for the veterinary ethical behaviour of all private actors in the veterinary field. Ethical standards have to be in line with international norms and be subjected to authorities with disciplinary powers.

In zones with a high livestock density and more commercial farms, the development of private practice will be encouraged by contracting out some governmental tasks as compulsory vaccinations establishing a CLW network.

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Due to the low livestock density, the potential for private practices is limited and these practices will be only viable if they include own farming activities. Practice holder will benefit from the restocking programme and from land attribution.

In most cases, veterinary services to smallholders can only be conducted in connection with a CLW network. Dip tank attendants should be part of this network. Consequently, private practices will have satellite CLWs around them. To train these CLWs and to provide initial income for new practices the Government will contract the establishment of the CLW network to the private practices.

The private veterinarians and technicians will provide clinical services and animal health inputs in collaboration with the CLW. CLWs, as community appointed persons, would derive income from services rendered. They would be also livestock farmers. The contracting veterinarian would provide training (assisted by the Government Veterinary service and NGOs), technical back-up and input re-supply.

The strategy's aim is to involve the private sector, to get the field veterinary network closer to the farmer, and to assure input supply. Donor assistance is more likely to be considered for privatised activities.

To implement the approach the legislation, the respective decrees, the Government /Ministry decisions and regulations have to be adapted and supplemented. This includes the definition of CLW tasks, of sanitary mandates, and easing the process to get a license to trade with drugs.

The combined veterinary - farm activity needs persons with respective experience which can e.g. by acquired by sending candidates for two months on a well established farm animal practice in a neighbouring country and for another two months on a well established commercial farm in a neighbouring country. This training programme should be included in the privatisation support component of the future EU project.

To avoid unfair competition between Governmental and private veterinary services, the introduction of full cost recovery for most Governmental veterinary services is necessary.

7.3 Future Cost Recovery

Reasons for introducing cost recovery are:

1. For veterinary services where both public and an identifiable private owner benefit, the private owner has to contribute to the costs.

2. It reduces the level of subsidy for services where the farmers are not yet ready to pay for.

3. It sensitizes the farmers to the need to pay for some goods and services thus preparing privatisation of parts of the service.

4. Private services cannot develop if a subsidised Government network provides the same service cheaper (unfair competition).

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5. Within government services, cost recovery can also be a pragmatic, but hopefully temporary, way to supplement inadequate personnel and operational budgets.

7.3.1 Animal Health and Production Operations Suitable for Cost Recovery

The package of free or subsidised services will be in future reduced to compulsory vaccinations, monitoring and control, and dipping.

The SPPs have been asked about how they propose the introduction of cost recovery (see next Table).

Table 7: Fee Introduction in Percentage of Full Costs (for Drugs and Services) as Proposed by the Provincial Veterinary Services

Family farms Private farmsYear 1 Year 2 Year 3 Year 1 Year 2 Year 3

Dipping 25-50% 50-75% 75-100% 50-100% 75-100% 100%Voluntary vaccination 10-50% 15-75% 20-100% 15-100% 20-100% 25-100%Compulsory vaccination 0-25% 0-50% 0-100% 0-100% 0-100% 0-100%Laboratory diagnostic 25-100% 50-100% 75-100% 50-100% 75-100% 100%Individual cases 25-100% 50-100% 100% 50-100% 75-100% 100%Cattle restocking 15-30% 30-50% 30-75% 30-50% 30-75% 50-100%Transport in service car 30-100% 70-100% 100% 50-100% 75-100% 100%Remark: The fee range describes the lowest and the highest proposed percentage as suggested by the SPPs.

There are large differences between the proposals of the different provinces. The difference between family and private farms is marked: most provinces propose for most services full cost recovery for commercial farms.

Due to the fact that family farms are not used to pay for services and the knowledge on livestock diseases and treatment possibilities is not yet sufficiently implemented with family farmers a fee introduction oriented at the lower level of the SPPs' proposals is recommended by the consultant (see next Table). However, for individual cases full cost recovery of the drug price is recommended. This is made to support the development of a sustainable private drug distribution network in the country.

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Table 8: Proposed Fee Introduction in Percentage of Drug /Service Costs or in Mt

Fee for ser- Smallholders Fee for ser- Commercial farmsvice (S) or drug (D)*

Yr 1 Yr 2 Yr 3 vice (S) or drug (D)

Yr 1 Yr 2 Yr 3

Dipping D 100Mt 200Mt 400Mt D 100% 100% 100%Voluntary vaccination

D 10% 15% 20% D 100% 100% 100%

Compulsory vaccination

D 0% 5% 10% D 50% 75% 100%

Laboratory diagnostic**

D+S 25% 50% 75% D+S 100% 100% 100%

Individual cases D 100% 100% 100% D+S 100% 100% 100%Individual cases S 33% 66% 100%Transport in service car

Vehicle +time

100% 100% 100% Vehicle +time 100% 100% 100%

* Where no indication for the service is given, the service will be provided without charge.** Each province should have a budget for annually 2000 laboratory examinations to verify the disease situation on smallholder farms.

Drug prices should be those of a competitive retailer: about +50% on cif Maputo price, if possible prices of producers of generics which are imported in medium to large quantity. The last DINAP tenders give information about these prices. Veterina, a private importer and retailer in Maputo, has similar prices (like cif price from tender +50%). In Annex3, page 8 & 9, drug prices are presented for different retailers; those on the lower price side give an indication of the level of a competitive retailer.

For dipping, until Year 5, full recovery of the acaricide costs should be achieved. If the fees are paid per dipping or in another way (e.g. annually) should be subject of discussion between the veterinary service and the farmers. The fees level should be the same in the whole country as otherwise problems at the border between two fee zones occur. Politicians in a province with higher fees would also get under pressure to explain this fact.

For ND, full vaccination costs will be charged. Due to the high poultry number, subsidised vaccinations will not be possible.

For other treatments and interventions, the service charge should be oriented at a hour rate of 65,000 Mt for veterinarians and 35,000 for technicians.

7.3.2 Mechanism for the Calculation of Cost Recovery for the Family Sector

Subsidized veterinary services can only be provided if the State's financial situation allows the provision of subsidies. The incomplete drug stock in the provincial and especially the district veterinary services shows that adequate funding for all necessary interventions cannot be provided. The same is valid for transport facilities.

Except for dipping and vaccinations, it is proposed to charge costs which would be necessary for a private veterinarian for farm animals, as presented in Annex 4, page 1 & 3. Costs of the state veterinary service not apt for cost recovery are due to tasks of common nature or common goods like protection of society against zoonoses, food quality control, border control, etc. and have to be covered by the Finance Ministry.

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The costs for individual cases should cover the full value of the operation which consists of the work, the equipment and the infrastructure. It corresponds to the costs a simply equipped private clinic has to charge. The service charge should be oriented at a hour rate of 65,000 Mt for veterinarians and 35,000 for technicians. The calculation is based on a monthly salary of 500 US$ for a veterinarian in private practice and 270 US$ for a middle level technician in private practice, with 160 working hours per month, and a cost structure of 56% for the salary and 44% for the equipment and infrastructure and its operating, or in other words, to have a profit of 10 US$, additional 8 US$ have to be charged (so 18 US$) to cover the costs of the practice. The calculation is as following:

500 US$ divided by 160 working hours per month = 3.125 US$ per working hour /56 x 100 = 5.58 US$ x 11,600 Mt/US$ = 65,000 Mt

The cost structure of 56% as opposed to 44% is derived from the calculation of a private practice in Annex 4, page 1 & 3. Transport (3000 Mt/km in the service's car) and drugs are charged separately, so all costs not directly connected with the veterinary service itself has to be omitted. From the remaining costs, also only about 60% can be considered as the practice infrastructure serves also the veterinary pharmacy and to a lesser extent also the private veterinarian's farm (see chapter below on private veterinary services). The value of 35,000 Mt/hour is only possible for a simpler practice as the one presented in the Annex (private practice of a middle level technician), however, as long as the state's field veterinary network is not upgraded, the value of 35,000 Mt is considered as adequate.

For dipping, it is proposed to charge until Year 5 the full acaricide costs. For obligatory vaccinations, the proposed fee introduction is presented in Table 8 above. These fees are not derived from a calculation but are defined by proportioning costs of services with a strong public goods character between the public and the private sector, and according to the payment availability of farmers.

7.3.3 Payment Capability and Availability of Farmers

On small subsistence farms without off-farm income, the resources to pay for additional inputs are scarce. Expenditures for many basic human needs compete with payments for veterinary treatments and drugs. On the other side, veterinary treatments are an income generating short term investment which increases the productivity.

The following Table shows costs and returns in cattle production. The present situation in smallholder farms has been supplemented by a hypothetical future situation with improved veterinary input.

Table 9: Productivity, Costs and Returns of Cattle Production

Production system Smallholder C o m m e r c i a lcurrent improved Beef Beef Dairy

Calving rate 55% 56% 62% like the beef 70%Calf losses 25% 19% 8% production 13%Adult losses 4.5% 4% 3% system left 4%

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Steady state offtake/cow 30% 36% 50% but with try- 51%Gross return (Mt) 719,187 880,900 2,134,504 panocide use 6,693,250Total costs /cow (Mt) 226,992 266,930 403,280 510,081 2,762,247Veterinary treatments (Mt) 6,886 23,859 95,227 202,028 277,476Dipping /spraying (Mt) 235 23,200 46,400 46,400 139,200Net return/cow (Mt) 492,195 613,970 1,731,225 1,624,424 3,931,003Vet. costs as part of gross return 1.0% 5% 7% 12% 6%Return /yr on invested capital 8% 9% 14% 13% 29%For the details, see Annex 3, page 1.

The veterinary costs in the improved smallholder and the commercial system include three vaccinations (vaccine costs for BQ, anthrax and brucellosis), tuberculinisation in commercial herds, one time per year deworming of youngstock for smallholders and beef production and two times for dairy production, one time per year deworming of adults in dairy production, trypanocides for beef production (see special column above; see also Annex 3, page 2).

Drugs like antibiotiques for individual cases amount to 0.77 US$, 3.85 US$ and 11.54 US$, for improved smallholder, commercial beef and commercial dairy production, respectively. Service and transport charges for the veterinarian's visit were estimated at additional 20%, 25%, and 33% of the total costs of the described items for improved smallholder, commercial beef and commercial dairy production, respectively (see also page 2 in Annex 3). Dipping /spraying costs are presented separately (see Table above; see also Annex 3, page 3).

The following Table shows costs and returns in smallstock. The present situation in smallholder farms has been supplemented by a hypothetical future situation with improved veterinary input.

Table 10: Productivity, Costs and Returns of Goat, Sheep and Poultry Production

Production system Smallholder Goats Commercial Smallholder Poultrycurrent improved Goat Sheep current improved

Litter (clutch) size 1.58 1.6 1.6 1.36 12 12Births (clutches) /yr 1.3 1.35 1.37 1.25 2.5 2.5Livebirths (chicks hatched)/yr 2.05 2.16 2.19 1.7 27 27Youngstock losses 0.45 0.3 0.28 0.26 0.8 0.5Adult losses 20% 16% 15% 14% 70% 40%Steady state offtake/dam 91% 134% 141% 110% 462% 1306%Gross return (Mt) 141,399 218,044 242,183 198,649 96,452 272,430Total costs /dam (Mt) 42,119 51,930 99,683 99,683 20199 116032Veterinary treatments (Mt) 962 4973 10958 10,958 164 35892Dipping /spraying (Mt) 0 5,800 5,800 5,800Net return/dam (Mt) 99,280 166,114 142,500 98,965 76,253 156,398Vet. costs as part of gross return 0.7% 5% 7% 8% 0.2% 13%Return /yr on invested capital 25% 36% 29% 19% 105% 130%Remark: Improvement measure in smallholder poultry is ND vaccination. For the details, see Annex 3, page 1.

The veterinary costs in the improved smallholder system include two kid dewormings per year,. Drugs like antibiotiques for individual cases amount to 0.15 US$. Service and transport charges for the veterinarian's visit were estimated at additional 20% of the total costs of the described

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items (see also page 2 in Annex 3). Dipping /spraying costs are presented separately (see Table above). The veterinary costs in the commercial system include three kid dewormings and two adult dewormings per year. Drugs like antibiotiques for individual cases amount to 0.31 US$. Service and transport charges for the veterinarian's visit were estimated at additional 25% of the total costs of the described items

While the veterinary costs as presented above are economically justified and realistic (from the point of view what can be achieved for a significant part of smallholdings in foreseeable time), it needs extension effort and time to put this in practice.

A part of the farmers look for professional solutions and assistance if their livestock is sick, and they are also prepared to pay something for this assistance (see also chapter 5.3). Many farmers use traditional medicines showing their interest to cure the animals. Many farmers are prepared to pay for ND vaccination as many lost all their poultry. Poultry meat is a preferred meal. Willingness to pay is proportional to the strengths of the perceived disease threat, and to owners' confidence in the efficacy of the vaccine applied.

Of particular interest for farmers are draught oxen. It is more likely that farmers spend money for them. Oxen have often wounds from the yoke which should be treated.

The investment in a pair of oxen (600 US$) and a plough (600,000 Mt from the private factory Kanes in Maputo, 160,000 Mt second hand) can be compared with the maize yield having the same value. A 1993 survey in Manica district (MARRP) estimated the maize yield at 1.34 t/ha. Accordingly, the production of 1.9 ha of maize (1.9 x 1340 kg/ha x 3000 Mt/kg) corresponds to the value of a pair of oxen and a plough. A pair of oxen need 4 days to plough 1 hectare.

This calculation shows the interest in oxen keeping, however, the real situation is more complex through renting of oxen for ploughing and transport, and use of oxen for transport on the own farm. Transport work involves costs for a second hand trailer of 2.7 mill. Mt, and yearly tyre replacement costs of 160,000 Mt (second hand tyres). Also farms without oxen use draught power by renting animals. Draught oxen rent is remunerated at 50,000 MT per half day of per 3/4 day of work. In a survey conducted near Maputo it was also found that 13.5% of draught animals were cows.

7.3.4 System for the Establishment, Transfer and Utilisation of the Revenue Generated by Cost Recovery

The present Agricultural Development Fund (ADF) receives its Funds from the Provincial Finance Services where among other the veterinary service transfers its revenues. The Provincial Finance Services inform the Agricultural Development Fund by a "titulo" about the funds to receive to shorten the slow transfer over the Central Finance Ministry. This means, the Agricultural Development Fund can use the money immediately claiming the sum from the Finance Ministry.

The ADF will less support individual projects as proposals of associations. In the second April week a priority programme will be discussed. The estimated annual budget may amount to 2 million US$. The previous Agricultural and Rural Development Fund supported also

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social infrastructure projects like schools, hospitals, water, as the international donors partly financing this fund requested these activities.

The ADF board (conseilo de administraçao) has four administrators with the following division of tasks between the four: Economics of administration, agricultural and livestock development, forestry and wildlife development, financial questions in enterprise development. The ADF can also become shareholder in private processing enterprises of the sector.

Projects have to pay back the fund received at an interest rate somewhat below the present market rate. The present market rate is 19-30% (inflation rate 4-6%).

As the ADF has not yet started its work its performance cannot be evaluated and it would be too early to propose improvement possibilities.

7.3.5 Livestock Development Fund

Under the current system all recovered funds are credited to the general account of the Ministry of Finance and then the ADF. Thus there is no direct relationship between the revenue raised through the efforts of veterinary field services and the funds allocated for animal health and production services. This lack of linkage between effort and resources will become more important if and when public services increase charges with the eventual aim of full cost recovery.

It frequently is desirable to place the revenues from user fees into revolving funds to assure that sufficient funds will be available for the services to be provided. Revolving funds should be managed by the immediate users (public, private or both). This provides incentive and motivation to both providers and payers of services. However, many revolving funds, even when locally managed, had a poor history of sustainability. Transparency and control by different groups is necessary to provide sufficient verifications.

Revolving funds should not reduce the state's responsibility to pay for services which are of a public good nature. It is possible and sometimes desirable that revolving funds should be placed outside the public sector, where they will be free from treasury restrictions. Such funds then can be a prelude to privatisation, particularly when they are managed by end-users at the local level.

To specifically promote livestock development the establishment of a fund was proposed which existed already in the past. Presently, the income of the veterinary service is transferred to the Finance Ministry which transfers it to the Agricultural Development Fund. This fund was recently reorganised and is in the process of starting its activities. An immediate further reorganisation is not likely what would take place if a livestock development fund splits from the agricultural development fund. Accordingly, credit lines specifically devoted to support livestock related investments will transitionally function within the Agricultural Development Fund, with new statutes, more adjusted to the actual phase of agricultural development.

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7.4 Private Practices

The European Union prepares a project "Assistance to the Livestock Restocking Programme" which among others aims to set up in practice 10 private veterinarians with a view to providing animal health care to the private sector farmer who has benefited under the livestock restocking programme. Activities of this project output are (according to the draft report):

1. Identify areas with good income earning potential from livestock services to mainly private sector farmers.

2. In close liaison with DINAP, the Mozambican Veterinary Association and the Veterinary Faculty, establish objective criteria for the selection by tender of veterinarians and elaborate contract.

3. Provide a short training course to selected candidates in business management and an upgrading course in AI and ASF control through 3 national consultants and an international consultant.

4. Through the Mozambican Veterinary Association and in liaison with the Commonwealth Veterinary Association, plan and organize 1 month study tours for each of the selected veterinarians through placement with the most appropriate private practitioners in to be determined countries.

5. Under a selected support agreement to selected veterinarians, issue basic clinic furniture, a veterinary kit, AI kit, veterinary medicines and vaccines as a one-time start-up assistance; assist selected veterinarians in obtaining a car lease, if they would not possess one already, by guaranteeing their credit worthiness with the car leasing company.

6. Assist private veterinarians in establishing contacts with suppliers of medicine and vaccine in order to enable them to replenish their stocks.

7. Facilitate the elaboration of a contract between pig breeders and private veterinarians (if located in their neighbourhood) to guarantee the application of special sanitary regulations.

8. Facilitate the start-up of more candidates using funds from the revolving fund.

Under project risks, the EU draft report notes:

"Success of veterinary privatization will depend on review of legislation under a 2 year IFAD consultancy, scheduled as an IFAD FSLDP project's output completed by end 1998. There is a risk that the new privatization law does not get past legislative hurdle or is slow in being approved by Government, delaying this restocking programme's output of veterinary privatization. However, private vets are already operating in the country but the present law restricts certain actions. Because the Government's current drive towards privatization and market economy, this risk is considered low. The risk that private vets will make an insufficient income to warrant their stay in rural areas or to extend their assistance to the family sector farmers, is considered low as they will go to selected areas and because of the support received".

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The Project's restocking component plans to distribute (according to its draft report)1. 5500 imported cattle and 500 re-distributed cattle from within Mozambique to a total of 140

small to medium scale private sector farmers (43 cattle per farm on average).2. 6000 goats distributed to 700 farmers (mostly smallholders; 8.6 goats /farm).3. Up to 900 pigs imported and distributed to 27 commercial farmers (33 per farmer).4. 400 dairy buffaloes imported from which 100 cows are distributed to 5 farmers.

In terms of veterinary expenses, the distributed animals would represent:1. 8,2 US$ per cow for veterinary drugs and services (without trypanocides), and in addition 4

US$ for dipping or spraying which makes 12.2 US$ x 6000 cows = 73,200 US$ additional market for veterinarians.

2. 6000 goats x 0.9 US$ veterinary expenses for improved smallholder system = 5400 US$ additional market for veterinarians.

3. 900 sows would represent pigs annually including piglets and fattening operation 900 x 26 US$/sow/yr = 23,400 US$ additional market for veterinarians.

4. 100 buffalo cows x 36 US$ = 3600 US$ additional market for veterinarians.

The additional veterinary expenses as calculated under point 1 to 4 results in a total of 105,600 US$ which is a significant market for additional private veterinarians if the distributed animals are not too much dispersed over the provinces and if the existing state and private veterinary network will not already take care of these additional animals.

Factors constraining the establishment of private practices are the low livestock density, the few veterinary expenses in smallholder farms and the already existing veterinary network for commercial farms which are mostly served by the state network. The following Table shows the veterinary expenses per area unit for the provinces with more livestock. This calculation considers only cattle and small ruminants, and for small ruminants the official numbers were considered.

The area units considered represent the possible action radius of a private practice. The calculation shows that even with a radius of 50 km a turn-over of 10,000 US$ is hardly possible as the veterinarian will not get 100% of the market and because in many provinces the livestock density to achieve this turn-over is not available. On the other side, there are inside provinces centres and pockets with more livestock. But if we consider that a private veterinarian would expect an annual "salary" of 6000 US$ (500 US$ per month) and if as a rough estimation four times this sum is necessary as turn-over to achieve a profit of 6000 US$ an annual turnover of 24,000 US$ would be necessary to maintain a private veterinary practice.

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Table 11: Veterinary Expenses per Area Unit for Particular Regions

(in US$)Province Production Vet. expenses in a radius with

system km 30 40 50Maputo Smallholder 943 1676 2618

Commercial 7803 13873 21676Gaza Smallholder 1246 2216 3462

Commercial 2252 4003 6255Inhambane Smallholder 689 1226 1915

Commercial 548 974 1522Sofala Smallholder 217 386 604

Commercial 1954 3474 5428Manica Smallholder 580 1032 1612

Commercial 1539 2735 4274Tete Smallholder 1024 1820 2843

Commercial 187 332 518AVERAGE both systems 2435 4329 6764

For details, see page 2-4 in Annex 1. The average refers to the 6 provinces.

This calculation shows that additional private farm animal practices can only be viable with a combination of all available income sources which are:

sale of veterinary drugs provision of veterinary services to commercial farmers establishment of a system of satellite 'promotores' paid government contract for the establishment of this system of satellite

'promotores' own livestock and crop farm (which will provide more than 50% of the profit of

the combined practice - farm) Government contract for the provision of obligatory vaccinations a soft loan to establish the combined practice - farm possibly a cattle marketing activity.

Remoteness, inadequate roads and lack of reliable market information (in the context of price fluctuations) represent important constraints to cattle marketing. By his working contacts, the veterinarian will have access to many farmers which would facilitate this activity. However, an analysis of present marketing practices has to show the feasibility of this trade.

The following Table resumes the detailed calculations of two practices which combine the above described activities. The details are presented in the Annex 4.

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Table 12: Financial Analysis of Private Veterinary Practices with Own Farming Activities

(in US$)Practice of graduated veterinarian Practice of middle level

technicianAnnual turnover:Private vet. practice 11784 9302Mandatory vaccinations 1621 1204Beef herd of 30 or 15 cows 5520 2760Flock of 25 she-goats +25 ewes

950 950

Other smallstock, crops, cattle trade

1500 1500

Variable costs, vet. practice 6528 5952Fixed costs, vet. practice 1) 2438 2422Variable costs, farm 1878 1287Investment 2) 13052 9590Avg. profit/month 3) 704 3971) In the detailed Tables in Annex 4 (page 1 & 3), the fixed costs include a calculatory salary of the veterinarian which is here not included. 2) The investment includes only 15% of the cattle value (restocking programme). 3) In the detailed Annex 4 Tables, this value is splitted in a monthly calculatory salary plus an average monthly surplus calculated over the 8-years cash flow.

The presented practices are sustainable, however, they need considerable support during the first years. The support is necessary because a practice will not start from the first year to a 100% activity level, and because the beef herd included in the farming operation starts to produce late (9 months gestation period, 19 months calving interval, first female calf to be repaid for the restocking programme). Beef cattle provide a slow return on invested capital and from this point of view dairy cattle or poultry would be more advisable. Beef cattle has the advantage that it can be produced far from the market, and the target of the programme is to bring private veterinarians also in remoter parts of the country.

Comparing the necessary practice turnover of about 10,000 US$ with the estimated veterinary expenses in a 50 km radius circle, shows how well the practice locations have to be chosen: in places with higher livestock density and not too much competition from other providers of veterinary services. If private veterinary practice and the new EU restocking programme should be combined it is also recommended to concentrate the distributed cattle so that more livestock is accessible for the private practice. If the livestock is too dispersed it would be difficult to visit the herds.

The practices have difficulties to make sufficiently profit in the first years when the cattle herd does not yet produce. To overcome this problem generous loan conditions are necessary: 2 years grace period without paying interest, and an additional year of non-repayment when the vehicle has to be repaid. In the veterinarian's practice only a two-wheel drive second hand pick-up car has been considered to keep initial investment costs low. The car will be replaced after 30,000 km. A two-wheel drive car has been chosen to keep costs lower, and because the veterinary practice has a large part of its turnover from drug sale and is less seen as a classical farm animal

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practice who drives around to treat individual animals of farmers. Transport costs are too high compared to the fees to do this although this type of activity is possible for commercial farms.

During the year where the vehicle has to be replaced the cash flow is negative and the veterinarian may be obliged to sell some cattle. Due to the cattle breeding activity the farm accumulates over the years a considerable wealth which is however not available as cash money during the first years. It is supposed that the combined practice - farm receives from the restocking programme 15 or 30 heifers. These heifers build up a herd with calves, young bulls, new heifers and possibly also draught animals, so the animal number will increase about 3 times while only few animals can be sold during the first four years.

The veterinary practices have around them about 10 "satellite" CLWs who they trained and for whom they provide the follow-up. The training and the follow-up is in the first year is made under a paid State contract. This activity is necessary to overcome the liquidity problem in the first year and to establish a network which can serve the farmers. In many cases, the private veterinarian will be too expensive to treat smallholders animals. But in combination with the CLW an activity towards smallholders can be started.

Also necessary is a Government contract for the provision of obligatory vaccinations, if not the turnover would be too small.

The detailed Annex 4 Tables (page 1 & 3) shows also the Net Present Value (NPV) of the operation which is relatively low compared to the investment. The NPV is the present worth of the incremental net benefit or incremental cash flow. It is calculated with an estimated market rate for capital interest.

In Annex 4 (page 5), a pet animal practice is also analysed with good income prospects for cities with enough dogs of wealthier citizens. Pet animal practices exist already and presently there may be few room for additional practices in Maputo and Beira.

Requirements for an effective privatization policy include the willingness of the government to interact with private associations and organizations, e.g. the Veterinary Association, the Chamber of Commerce or equivalent, and other interest groups. The government recognizes the legally established associations and organizations of professionals, producers, intermediaries, etc. and decides together with them in committee, commissions, boards, etc..

Attractive policies to promote self-employment are also necessary. The transition from a public to a private post will be facilitated by soft loans and the introduction of test periods as leave without pay.

To facilitate the establishment of private practices, some contract work, e.g. vaccinations and testing of cattle etc. should be given by the government veterinary services to private veterinarians. Private veterinary practitioners can be engaged to implement government financed disease control programmes and get paid for this by the government. This is applied in many countries, and contributes to the income for private veterinary practice especially while they are becoming established.

Regarding the supply with veterinary pharmaceuticals, private practices will act as district /province retailers and provide drugs to the CLW in their zone. They should be supported by a Government contract to establish a CLW network in their zone (satellite "promotores").

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Veterinarians who apply for a practice establishment loan must present an approved business plan.

The prospective private practitioner needs to be exposed, under guidance, to commercial practice (apprenticeship).

7.5 Community Livestock Workers (CLW)

The low livestock density and the traditional character of most farms impedes the establishment of profitable private veterinary surgeon or middle level technician practices in many regions. On the other side, the Government veterinary service cannot cover all villages and visit farmers for treating an individual animal. Under these conditions, private basic animal health care systems must be based on village based livestock workers which are supervised by the Government veterinary network. CLW training can be provided in cooperation with drug suppliers who may finance a large part of the production of adapted training materials.

The CLW system is more likely to function if integrated into a farmers group. It must be provided with a reliable supply system for drugs and equipment. CLW must retain income for future replacement of used drugs.

Successful CLWs could get a loan for a Burdizzo (62 US$ in Maputo) if farmers are interested in castrating males. The CLW programme has to be evaluated (number and break-down of cases, drug use) and the CLW's quality be controlled (proper diagnosis of main diseases, calculation of correct dosage).

At least in the beginning, the CLW will need regular follow-up visits and meetings. This follow can be conducted by the private veterinarian under a Government contract.

The CLW have a certain responsibility towards the community and they should be made aware of this. CLW should be selected in such a way that a sustainable efficiency of them is ensured. Farmers association members should select them under the criteria that they are accessible and share their knowledge with the others. CLW projects in many countries have found that the best way to select them is by the community itself (although the veterinarian or projects may propose criteria or make up conditions).

CLW will be trained in the recognition of the most important diseases. Most of the common problems on the farm are simple: ectoparasites, wounds, helminths, some infectious diseases. Many diseases are easy to recognize and easy to treat. The target is to make basic animal health services available to farmers and livestock owners at a price they can afford. To bring the drug supply nearer to the farmers, CLW should have a drug stock. A pictorial guide on animal diseases should be (re)-produced. The veterinary department and the veterinary college should screen the available material and synthesize an appropriate guide.

CLW are farmers which are trained to recognize and treat the simple common diseases and provide advice to their neighbours. The CLW should be prominent, accessible, good in animal keeping and elected by the group. CLW are trained for a period of 2 weeks in primary animal health care. An upgrading training will be necessary with the time. The expected role of the CLW is to:

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- provide first aid services to animals such as treatment of minor wounds, recording the body temperature of animals, performing castration with the Burdizzo emasculator, branding of cattle, etc.

- drench livestock and poultry, help in vaccination campaigns- perform follow-up treatment as directed by a veterinarian/ technician- assist farmers in hygienic aspects of livestock management- provide a link between farmers and veterinarians/ technicians- report important diseases to the veterinarian/ technician- inform the farmer about livestock prices in the cities.

Sustainability is to achieve by good selection of CLW candidates, appropriate training, a reliable drug supply, follow-up training, meetings and supervision. To be successful in the long term, the scheme must be well-integrated within the existing government and private systems.

The selection criteria for future CLW must include the occupation as a livestock farmer. Active farmers and not young jobless school leavers will be trained. He/she should be literate, prominent in society, people should believe him/her, and he/she should be selected by the farmers group or community. CLW must be answerable to their communities. Mature, responsible people who are respected within their communities and who husband their own animals well are likely to make reliable CLW.

Suitable incentives to decrease the dropout rates of CLW are: - regular refresher training- regular supervision of their work (veterinarian, technician, extensionist)- reliable drug supply- their attachment to a farmer group.

Incentives for the CLW to keep on working are the income that results from selling drugs and services at a small profit coupled with a slight increase in status, and his new professional capabilities which will increase the output from his own livestock activities.

CLW should be visited in their village 2-monthly by a veterinarian or technician who can advice him in particular questions concerning diseases and treatments. The district government veterinary service or a private veterinarian is responsible for their closer supervision and support. These persons are the resource persons for the CLW. They are the persons to whom complicated cases can be referred. Twice a month, there should also be a question afternoon for the CLW at the veterinary office. A bicycle will be provided for some active CLW (soft loan). The CLW levies transport fees from the farmers for replacement, repair and maintenance of the bicycle.

Without a reliable supply of remedies, CLW may be hardly active. A small initial grant in form of drugs will be given to the CLW.

The activities of private sector and NGOs as an effective and cost-efficient means of delivering essential services for productive livestock development will be considered. CLW supervision and drug provision can also be provided by a suitable local NGO and/or a private vet.

The CLW approach will facilitate more care for goats. Compared to cattle they respond better to improved disease control and reproduce faster. Goats provide a faster return on invested capital, a ratio which is not very favourable in beef cattle. Important in the CLW work are also wound treatment, for wounded cattle which were hurt by people because they were in maize fields (due to bad herding practices), and of draught oxen caused by the yoke.

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7.6 Role of Farmers Associations (FA)

Farmers associations (FA) should be created to facilitate spraying or dipping and as a group where the CLW is integrated in. A farmers association may be registered as formed after a crushpen has been constructed and an executive and chairman elected. The role of the association is to organise veterinary treatments and act as centres where extension messages could be passed to the farmers. Vaccinations, castrations, deworming and treatments are conducted at the crushpens, including spraying (where is no dip) and association meetings. Where is no dip tank the FA could get a subsidised sprayer. FA are an extension tool to demonstrate animal health measures.

Factors against accepting the improved technology (spraying) are the crop orientation in many regions and the fact that the necessity to intensify livestock production is not so high as in numerous other countries (abundant grazing in most parts of the country). On the other hand, the introduction of animal draught power favors the use of veterinary knowledge. Draught animals are an important investment for the farmer which must be preserved.

Spraying must not necessarily be conducted as a group activity but those who are willing to buy acaricides will organise spraying for them. Spraying overcomes the constraint which easily occurs if a FA manages a dip tank: that funds have to be retained to fill the dip, or, if no funds were retained, that all farmers who profit from the dip have to contribute to buy the necessary quantity of acaricide. The FA is also a smallfarmer representation (institution which represents livestock producers).

7.7 Distribution of Veterinary Pharmaceuticals

The recommended strategy is based on the following: To facilitate the private sector to establish a private drug distribution network, the

Government goes successively out of the drug distribution and sells the present drug stock at a commercial price.

In remote regions where no private distribution network can be established Government veterinary staff is authorised to buy and sell drugs on a private basis.

Due to the low livestock density, in many parts of the country two separate veterinary networks, a Governmental and a private, cannot be established. The market for private retailing is too small. An alternative would be that veterinary drugs are provided by shops which mostly sell other items; but in this case, the shopkeeper cannot give a as good advice as the veterinarian or technician could give. It is preferred that the advice about the correct drug use and the sale of the drugs remain in one hand. If possible, not only the drug should be sold but also the competent advice and necessary service be provided. The Governmental veterinarians and technicians are in close contact with the client and they have the professional knowledge.

This strategy is followed in different African countries like for example in Chad or in Kenya. In the latter country, the Veterinary Department issued a circular on February 6, 1993 to all district

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officers where the following instructions were given: (a) Veterinary officers, themselves or through the non-professional cadre (livestock officers, animal health assistant, junior animal health assistants), can buy and sell drugs in accordance with the Veterinary Surgeons Act. The money accruing from such sales belong to the purchaser. (b) Purchase of such drugs is governed by the Poison and Pharmacy Act. (c) This is done to prepare and encourage veterinarians to go into private practice.

Under the Zambian Agricultural Sector Investment Programme (ASIP), the private sector will be responsible for drug retail, with Government veterinary service staff authorized to trade a private entrepreneurs (Clinch, 1996).

Mark-ups on drugs have to cover administration and transport costs of drugs and have to take account for breakage and expired lots.

More sale's points for veterinary pharmaceuticals are especially asked for by emergent farmers. Commercial farmers have the capacity to reach reliable wholesalers in larger towns and to keep own stocks, but emergent farmer have no car and resources to do this.

The geographical delimitation where private drug trade of Governmental staff is allowed has to be established by a commission. This commission should include the respective private sector. The zoning has to be periodically revised.

Pharmaceuticals packed in smaller unit sizes should be favored for regions with mostly traditional farms.

In the extension work on the farm level, more attention towards women groups will increase the sale of smallstock drugs. To increase the density of the supply network, CLW are included in the distribution chain. Farmers have to be trained on proper drug use and the importance of the expiry date on the drug package.

8 Role of the State and the Private Sector

Public-sector activities will focus on the prevention and control of animal diseases, the protection of society from zoonotic diseases, and the safeguarding of the quality and safety of food of animal origin. Private-sector involvement, on the other hand, will concentrate on the provision of prophylactic, therapeutic, and curative measures including the necessary drugs. At the same time, the private sector assists the government with its responsibilities by performing some of its preventive tasks. Due to the low prospects of private practices in most parts of the country, the Governmental veterinary service will continue to provide prophylactic, therapeutic, and curative measures but with charging costs for treating individual animals. Cost recovery for individual treatments will be at a level of a simple private practice to not provide unfair competition to private practitioners.

The National Livestock Directorate (DINAP) is the body at the level of the Ministry charged with formulation of policy and strategy for the development of the sub-sector formulation and proposal of legislation which enhances the production, industrialization

and commercialization of livestock

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formulation and proposal for implementation of eradication and control programmes of diseases including public health

proposing standards for hygiene and quality of industrial products upstream and downstream in the animal production line

enforcing the application of existing legislation and reglementation creating the legal framework for private veterinary practice and ensuring the control and

penalty procedures if necessary. supervising and coordinating projects linked to the livestock sub-sector and control

programmes of diseases including public health proposing standards for hygiene and quality of industrial products upstream and

downstream in the animal production line supervising and coordinating projects linked to the livestock sub-sector.

The veterinary service has to represent the nation on every international forum where veterinary aspects are treated, as there are FAO, WHO, OIE, etc. Members of the staff will participate in international meetings, congresses, negotiations, seminars, training courses, etc.

9 Veterinary Legislation

9.1 Overview

In general, the veterinary legislation can be summarised as following:a) Law on Animal Health: Registration of farms, animal identification, notification of

diseases, animal movements, livestock markets, disease control, A.I., rendering plants.b) Law on Border Inspection and Control: Border post, quarantine, transit, export,

procedures.c) Law on Veterinary Sanitary Control: Slaughterhouses, meat products, poultry plants, milk

& dairies, egg products, fish, hormones, residues.d) Law on Animal Welfare: Slaughter, transport, rearing, battery hens, experiments.e) In addition there are laws and rules for private veterinary practitioners, f) and laws on the control of veterinary drugs.

Updating of the veterinary law and regulations may include: the duties and responsibilities of veterinary surgeons and para-veterinarian personnel, the organisation and function of the veterinary services, sanctions to be applied in cases of violations ensuring control of use of hormonal and other detrimental substances and verifications of

the absence of their residues in animals and their products , and the obligations of owners of animals and those who process , store , transport or sell

products of animal origin , adaptation of Mozambican law to that of neighbouring countries.

There is a need for the public veterinary service to exercise its responsibility for quality certification of inputs, for restricting use of dangerous remedies and chemicals to qualified providers, and for pharmaco-surveillance of the efficacy of remedies and vaccines. Regulations on residues are important as it limits the use of pharmaceuticals on animals whose flesh or products are intended for human consumption.

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9.2 Legislation Enabling and Supporting Private Veterinary Practice

Legislation establishing regulatory or licensing boards and allowing the existence of private veterinary practices are central to rational delivery of veterinary services. National legislation should not only allow a private sector but should include ancillary commercial and civil laws actually enhancing its establishment. Veterinary remedies trade must be free but at the same time, laws need to protect the consumer from fraud and abuse.

The establishment of a Collegium, as an independent professional body in charge with the management of the profession, i.e. the appointment of the vets, the registration of the practitioners, the discipline etc., is important.

Enabling national legislation needs to legally define veterinary and other animal health care practices; to state academic and other qualifications required before registration; and to define the powers of the statutory body. The following functions need to be assigned to some combination of legally sanctioned bodies:1. certification of new veterinary graduates, immigrant veterinarians and other new entrants

to ensure compliance with statutory acts2. registration of veterinarians3. protection of consumers from unlawful acts by registered animal health care providers4. generally policing the activities of registered veterinarians and other health care providers

to ensure that they act in accordance with laws relating to the practice of veterinary medicine

5. prosecuting non-registered persons who allegedly break the statutes.

The Veterinary Law gives a framework for veterinary activity. More detailed questions have to be ordered by regulations, to put the law further into practice.

Important is that the working field of private veterinarians is clearly defined, that mandatory work is contracted out correctly, that there is competition between different private providers and that subsidised Government services do not compete with private services.

Due to the low number of veterinary surgeons and the nature of the economic environment, legislative provisions must be established /updated for technicians and CLW. The crucial division of responsibilities between the different actors in animal health services has to be defined.

Past legislation in the developing countries had tended to copy the very restrictive European regulations, which reserved the right to administer most veterinary drugs to professional veterinarians. However, such restricted policies, if not accompanied by an efficient and comprehensive distribution network, lead to a much more dangerous situation of clandestine and improper use, which poses a greater threat of inducing drug resistance and endangering public health than the distribution and administration of veterinary pharmaceuticals by trained non-professionals.

However, some pharmaceuticals like sophisticated antibiotics, anesthetics and hormones must be reserved to the veterinarian. It would be very unfortunate if the farmer or para-veterinarian should use any antibiotic which is on the market so that no product is reserved for a well

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targeted treatment of a specialist. Some restrictions on the quantities of antibiotics which can be bought by non-veterinarians have to be imposed.

The current legislation on dipping is outdated and needs revision in order to be in line with new trends and ideas in the field of tick control. It is for instance stated in the Regulations for Animal Health that dipping is free for the family sector.

An intricate pattern of livestock marketing has developed which is however hampered by a licensing system that may have outlived itself.

10 Recommendations

In addition to the recommendations included in the executive summary, the following recommendations are proposed:

CLW and Smallholders

1. Restocking finished drugs is the critical point in the CLW programme. It is recommended to monitor this issue closely and to discuss with the CLWs ways to have money available for buying new drugs.

2. Different to commercial farmers many smallholders need much information about causes of diseases and treatment possibilities. While cost recovery is to some extent accepted, there is a need for training on causes of diseases and on proper use of drugs as wrong drug application by smallholders is frequent.

3. The CLW programme has to be evaluated (number and break-down of cases, drug use) and the CLW's quality be controlled (proper diagnosis of main diseases, calculation of correct dosage).

4. A pictorial guide on animal diseases should be (re)-produced for CLWs. The veterinary department and the veterinary college should screen the available material and synthesize an appropriate guide.

5. The selection criteria for future CLW must include the occupation as a livestock farmer. Active farmers and not young jobless school leavers should be trained.

6. Twice a month, there should also be a question afternoon for the CLW at the veterinary office. A bicycle should be provided for some active CLW (soft loan).

7. Community Livestock Worker programmes running since many years should be visited in neighbouring countries, e.g. the programme in Western province, Zambia (started 1992), the programme in Malawi (started 4 years ago)8, and /or in Zimbabwe.

Privatisation

8 Financed by GTZ, team leader is Dr Klaus Leidl.

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1. New private veterinary practices are sustainable if different income sources are combined, including livestock farming. However, these practices need considerable support during the first years (generous loan conditions, mandatory work for the government).

2. Legal texts for the issuing of sanitary mandates should be prepared that contain all necessary elements such as definition, allocation specifying period and area for which it is valid, as well as control of execution. The delegated functions should be clearly stipulated with a mandatory reporting system to the Director of Veterinary Services according to existing laws and specify eventual penalties.

3. The process to get a license to trade with drugs should be eased. It is important that bureaucratic procedures are simplified.

4. The private practice locations have to be chosen: in places with higher livestock density including commercial farms and where not too much competition from other providers of veterinary services exists.

5. If possible the cattle distributed under the new EU project should not be too much dispersed to allow new private veterinary practices to take care of these additional animals.

6. The combined veterinary - farm activity needs persons with respective experience which can e.g. by acquired by sending candidates for two months on a well established farm animal practice in a neighbouring country and for another two months on a well established commercial farm in a neighbouring country. This training programme should be included in the privatisation support component of the future EU project.

7. Attractive policies to promote self-employment are also necessary. The transition from a public to a private post will be facilitated by soft loans and the introduction of test periods as leave without pay.

8. Veterinarians who apply for a practice establishment loan must present an approved business plan.

Other Subjects

9. Documentation should be improved. Reports of all livestock projects and of livestock components in integrated projects should be systematically collected.

10. Sample surveys should be carried out to establish relevant parameters in family farms. While it is important that the sample represents the average farms, more effort should be laid on the accuracy in survey execution as in including a too large number of farms (>100) where precision of survey work is difficult to supervise.

11. A manpower needs study should be conducted to determine the future number of professionals.

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11 Reports

ADB. Appraisal Report. Family Farming Livestock Rehabilitation Project. MOZ/PAAL/90/01. 1655C, NCPR.2, NARD.11. 1990.

Clinch, N.J.L (ed.), Jan.1996.The Privatisation of Veterinary Service - The experience of Western Province (Zambia). Occasional paper 96/1, Livestock Development Project, Western Province..

DINAP. Relatório Anual 1996. Maputo, Outubro 1997.

A. van Engelen, E. Vasco, H. Tsombe. 1996. Informal Goat Marketing in Maputo. RDP Livestock Services.

European Union. Draft Project Document. Assistance to the Livestock Restocking Programme of Mozambique. January 1997.

Family Farming Livestock Rehabilitation Project. Feb. 1996. Dipping in Mozambique. A Comparative Study of Some Methods for Tick Control and Their Respective Costs. Anton van Engelen (RDP Livestock Services).

Flanagan, F.O., Vet advisor, June 1997. Some options for the privatisation of Animal health Services in Western Provinces (Zambia). Working paper 97/2 by Tech. advisory group

IFAD, 1996. Agricultural Sector Investment Programme. Family Sector Livestock Development Programme. Appraisal Report. Republique of Mozambique.

International Workshop on Research and Development in Small Ruminants of Southern Africa. REAPER (GTZ), 1993.

Livestock Masterplan Component. DINAP, Dec. 1997.

Livestock Production Seminar, Maputo, 2-7 Dec. 1985. Selected Papers. MoA /FAO.

Lopes Pereira, Carlos, Jan. 1997. Formulation Report on Livestock Restocking. Assessment of Animal Health Risks and Quarantine Requirements for the Importation of Livestock into Mozambique. European Union

MARRP, Mozambique Agricultural Rural Reconstruction Programme. Baseline Survey of Representative Households in the MARRP Pilot Area Manica District. By J. H. Bannerman. Chimoio, Feb. 1993.

Mozambique National Livestock Development Strategy. 1997.

Mulumba, M. 1993. Reproductive Performance in the Lutale Herds (Zambia). MSc Thesis, Vet. Epidemiology and Economics Research Unit. Dep. of Agriculture, University Reading.

C. Mwafulirwa, H. Moll, M. Mumbuna. Cattle Marketing in Western Province. Analytical Summary compiled by H. Sikwibele, Feb. 1994. Livest. Dev. Proj. W. Prov. /Dep. Agr. /

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DVTCS / RDP Livest. Services

Perry, B. et al. 1983. A Study of Health and Productivity of Traditional Managed Cattle in Zambia. Preventive Veterinary Medicine (Elsevier) 2, 633-653

PROAGRI, Financial and Economic Analysis. Working Paper, Aug. 1997.

Ant. Rocha et al. 1991. Cattle Production and Utilization in Smallholder Farming Systems in Southern Mozambique. Agr. Systems 37, 55-75

SADC Mozambique Country Report. 2nd meeting of the subcommittee for animal production and marketing. 26 Oct.-1 Nov. 97, Mozambique.

Benedito Tinga et al. Dec. 1996. Improvement of market oriented Small Ruminant Production systems and Sustainable Land Use in Arid and Semi-Arid Regions in Southern Africa. European Union project. Contract no. TS3*CT94-01312

Dr Pedro Tomo; Dr Camilo Duque. 1990. A pecuária na regiao agrária de Umbelúzi com destaque para bovinicultura do sector familiar. Veterinary Faculty and DINAP.

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