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Valuation of genetic resources

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The challenge of understanding and optimizing the use of the various components of agrobiodiversity has been an implicit concern for SGRP from the outset. The very fact that the CGIAR works not only on crop plant diversity but also on fish, livestock and forest genetic resources has provided the CGIAR Centres with an awareness of, on the one hand, the complex interactions between different sectors and, on the other, common themes and patterns that facilitate cross-fertilization of ideas and learning across components.

The body of work on valuation that is being developed under the aegis of SGRP builds on a long-term interest of the Programme to integrate these different components of agrobiodiversity. It responds positively to calls from the Conference of the Parties to the Convention on Biological Diversity to develop mechanisms to give communities incentives to prioritize the conservation of diversity, and to remove or mitigate perverse incentives that work against conservation objectives and thereby threaten the long-term well-being of communities.

Understanding values

The ‘International Workshop on Managing Agricultural Biodiversity for Sustainable Development’ organized by SGRP and Bioversity International (formerly IPGRI) in 2003 requested SGRP to address the valuation of agricultural biodiversity as a pivotal factor affecting sustainable conservation and use. By understanding the values that farmers assign to biodiversity, we can gain a greater appreciation of the incentives favouring the maintenance of that biodiversity, and thereby seek to create an environment favourable to conservation and sustainable use.

The request to SGRP identified three particular initiatives needing support: (i) the preparation of a status report reviewing valuation methodologies, (ii) the preparation of a bibliography on crop and livestock valuation, and (iii) the organization of an expert workshop on valuation tools. All three initiatives have been taken forward, building on work by the International Food Policy Research Institute (IFPRI) and the International Livestock Research Institute (ILRI).

A holistic approach

The status report was published in 2005 as ‘Valuation and sustainable management of crop and livestock biodiversity – a review of applied economics literature’, edited by Adam D. Drucker, Melinda Smale and Patricia Zambrano. Accompanying the report is an annotated bibliography on CD-ROM ‘ECOGENLIT – Economics Literature on Crop and Livestock Genetic Resources’. The status report examines the hypothesis that research on agricultural biodiversity would be advanced by taking a holistic approach to valuing its components. To access the paper or to access ECOGENLIT click here.

In support of a holistic approach is the reality that many small-scale farmers, especially in subsistence agriculture, integrate their management of crops and livestock. These represent interdependent livelihood assets that are used for production on the same lands and that provide mutual inputs, such as livestock feeding on crops and crops benefiting from animal manure. The same policies and development interventions impact on crops and livestock, and are often implemented by the same agents, especially at the local level. In addition, the forces such as mechanization and intensification that drive change are the same for both crop and livestock components.

More data needed

The review of methodologies found that, while there is scope for progress in evolving research approaches adapted to the agricultural biodiversity context, especially in the area of institutional analysis, in general, data constraints are more critical. Thus, studies are needed to generate data to value crop and livestock together, rather than treating one or the other as external factors, to quantify benefits as well as costs of conservation, and to identify optimal conservation strategies and conducive policies.

The review uncovered some important findings in the crops arena:

  • Because many of the plant genetic resources are not traded on markets, their importance to those who depend on them for their livelihoods is often underestimated by a commercial valuation alone.

  • While the marginal commercial value of an individual plant genetic resource may not be enough to fund its conservation, the marginal value of its exploitation in commercial agriculture does justify its conservation.

  • A number of key factors determine the level of biodiversity on farms including location, cultural cohesion, environmental heterogeneity, and isolation from market infrastructure.

  • Programmes to support the maintenance of diversity can benefit the economically marginalized, and development will not necessarily detract from the continued maintenance of diversity.

  • Results are often extremely location specific, with obvious implications for research costs and care in interpretation in scale-up.

  • An overwhelming conclusion is that we are not yet in a position to assess interactions between crop and other biodiversity components, or to place a value on crop biodiversity’s contribution to ecosystem services.

In the case of livestock biodiversity, the review concluded that:

  • Conventional evaluation criteria are not well-tuned to the subsistence livestock context where non-income functions are important, and the benefits of cross-breeding and breed substitution tend to be overestimated.

  • Despite the apparent benefits of conservation and the relatively low cost of in situ breed conservation when compared with subsidies in the commercial livestock sector, few conservation initiatives exist. Yet, incentives for conservation of indigenous breeds should not be particularly costly.

  • Ex situ conservation through cryopreservation is relatively underexplored for livestock, but experiences with crops would suggest scope for beneficial application of this approach on economic grounds.

  • Relatively little is known about the impact of policy factors and the policies that would promote cost-efficient conservation strategies. 

Expert workshop

To take up the third follow-up action identified by the 2003 agrobiodiversity workshop IFPRI, on behalf of SGRP, organized an expert workshop, ‘Valuing Crop, Tree, Livestock and Aquatic Genetic Resources’ in October 2005. The participants, drawn from the economics world and different biodiversity sectors, were set the task of designing a project to test the hypothesis that advances in research and policy would benefit from an integrated approach. Using the valuation study and literature review as inputs to their thinking, the participants identified the key research questions that would assist a better understanding of how to value agricultural biodiversity. Accordingly, priority was assigned to developing methods and research tools to:

  • Prioritize taxa for conservation at pilot sites

  • Assess optimal combinations of genetic resource management approaches

  • Evaluate the contribution of genetic resources to ecosystem services

  • Estimate the public goods value of diversity and design mechanisms that will enable farmers to appropriate those values, thereby creating incentives for conservation

  • Develop action plans for sustainable management of diversity at the pilot sites.

Resonance with CBD developments

Following the expert workshop, SGRP supported the organization of a event on valuation of agricultural biodiversity at the eleventh meeting of the Convention on Biological Diversity’s Subsidiary Body on Scientific, Technological and Technical Advice (SBSTTA) in 2005. This was attended by representatives from the International Center for Agricultural Research in the Dry Areas (ICARDA), the International Food Policy Research Institute (IFPRI), the International Livestock Research Institute (ILRI) and Bioversity International.

Following the recommendations of SBSTTA, the meeting of the Conference of the Parties to the Convention in early 2006 (COP8) called for action on valuation of agricultural biodiversity including through conducting pilot studies to inform public and private decision-making.

Thus, the direction of the SGRP-led initiative is very much in line with thinking at the highest levels in the biodiversity conservation community, and will find a ready audience and scope for application in the development of incentive measures.

Next steps

To take this work forward, SGRP is supporting the development of a project that places farmers at the centre of the process, as they alone can explain and quantify the values they assign to diversity. Moreover, the conclusions to be drawn by the project will need to be meaningful in the context of those farmers’ lives if the sought-after incentive mechanisms are to help promote the conservation of diversity.

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