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Elanco Animal Health Inc. (NYSE: ELAN) announced that its shared value East Africa Growth Accelerator (EAGA) initiative has delivered a Social Return on Investment (SROI) of almost 250% for dairy and poultry smallholder farmers, their families and other stakeholders in the region. For every US$1 invested by Elanco and its partners in the EAGA initiative during its initial phase from June 2017 to December 2018, $2.48 of socio-economic value has been created for society in East Africa.
According to the FAO’s 2018 Regional Overview of Food Security and Nutrition, 20% of the population in Africa is undernourished,1. In Eastern Africa, the prevalence is higher than the continental average at 31%, or more than 130 million undernourished people. Animal proteins like meat, milk, eggs and fish provide critical nutrients for physical and cognitive development, but 25% of protein2 from farm animals is lost due to animal illness in the East African region.
The EAGA initiative launched in 2017 with a $3.1 million grant from the Bill & Melinda Gates Foundation to provide sustainable development solutions to address potential food shortage in the region due to livestock disease and mortality. By providing farming families with access to high-quality, reliable veterinary medicines and knowledge to support healthier food animals, the EAGA initiative has made strides in addressing three of the United Nations’ Sustainable Development Goals – zero hunger, ending poverty and ensuring good health and well-being of people.
“We believe that healthier animals are the x-factor for solving some of society’s greatest problems,” said Maria Zampaglione, senior advisor, Corporate Social Responsibility at Elanco. “The impact and social return on investment we are seeing with the EAGA initiative so far reiterates that belief. Healthier animals are making a real difference for East African families and communities through the livelihoods and well-being they support.”
The initiative has enabled the registration, manufacturing and distribution of affordable, high-quality veterinary products to address, prevent and treat livestock disease, along with intensive training for dairy and poultry smallholder farmers and channel partners in Tanzania, Kenya and Uganda.
“I have reduced deaths of my chickens and can produce more eggs,” said one poultry smallholder farmer who has been involved in the initiative. “My income has increased.”
EAGA achievements3 for the period of June 2017 to December 2018 include:
– Overall, $8,184,000 socio-economic value was generated for the farmers in Tanzania, Kenya, Uganda.
– 3,753 dairy and poultry smallholder farmers were trained on animal diseases and the correct use of relevant animal health products so they could ensure the right care for their animals.
– It is estimated that 220,000 livestock farmers were trained on animal health via interactive radio, in a 13-week series aired in Northern Tanzania in partnership with the NGO Farm Radio International. The initiative used radio to reach a widespread, rural population which has little access to agricultural services.
– According to farmers surveyed, their income has increased by at least 20% after applying the knowledge gained and using animal health products related to this initiative. Farmers reported an increase in milk and egg sales from their products, which improves their income and well-being.
– Farmers learned how to effectively manage vectors for animal and human diseases like flies, ticks and rats, to keep their own families and their animals healthy.
By the end of 2020, Elanco’s EAGA aims to achieve the following targets:
– 12K dairy and poultry smallholder farmers trained on animal health
– 1.1M cows reached
– 16M chickens reached
– 240K dairy and poultry famers can access affordable small-sized veterinary products
Elanco commissioned the Center for Sustainability and Excellence (CSE) to use SROI guidelines and CSE’s methodology to understand the impact of EAGA, including the value created and how to best manage it.
”We are proud to have worked with Elanco to help quantify the social impact of the EAGA initiative, which aims at improving livestock production and farmer’s income in Africa,” said Nikos Avlonas, CSE President.
Methodology
The Center for Sustainability and Excellence (CSE) used the SROI guidelines to evaluate the EAGA initiative during its initial period (June 2017 – December 2018) based on stakeholder testimonies. As part of the evaluation, a questionnaire was created in order to capture stakeholders’ point of view in different areas of the project. The main stakeholders that participated are distributors of the Elanco products, wholesalers, dairy and poultry smallholder farmers, agrovet shop owners and one NGO that uses interactive radio to help African farming communities help themselves. The impact, the total value of each change by stakeholder category was calculated. For the EAGA, this means that for every $1 invested by Elanco and stakeholders in the initiative, a social value of $2.48 was created for local communities in East Africa.
1FAO and ECA. Regional Overview of Food Security and Nutrition. Addressing the threat from climate variability and extremes for food security and nutrition. Accra.116 pp. http://www.fao.org/3/CA2710EN/ca2710en.pdf. Accessed on 7 February 2020
2African Union Inter-African Bureau for Animal resources (AU-IBAR). Impact of livestock diseases in Africa. Published on 25 January 2013. Accessed on 1 June 2018 on http://www.au-ibar.org/vacnada-livestock-diseases?showall=1&limitstart=
3 Elanco Animal Health and Center for Sustainability and Excellence. 2019.An Overview of the Social Return on Investment (SROI). East Africa Growth Accelerator (EAGA Initiative).
About Elanco Animal Health
Elanco (NYSE: ELAN) is a global animal health company that develops products and knowledge services to prevent and treat disease in food animals and pets in more than 90 countries. With a 64-year heritage, we rigorously innovate to improve the health of animals and benefit our customers, while fostering an inclusive, cause-driven culture for more than 5,800 employees. At Elanco, we’re driven by our vision of food and companionship enriching life – all to advance the health of animals, people and the planet. Learn more at www.elanco.com.
About Center for Sustainabiliy and Excellence (CSE)
Center for Sustainability and Excellence is a leading boutique firm operating globally that specializes in maximizing your social, economic and environmental impact. For more than a decade, we have been helping professionals advance their careers through our certified on-site, online and group training services globally and supporting FORTUNE 500 companies and other organizations to grow and excel through our specialized consulting services. Learn more at https://cse-net.org/
