Industry cooperation and Private Public Partnerships

Hernán Rojas Director CERES-BCA

Livestock disease policies: Building bridges between animal science and economics".

Paris 3-4 June 2013.

OECD- OIE

Contents

• The challenges.

• Relation private and public.

• Experiences in private and public partnership.

• Conclusions.

• Recommendations.

Complex livestock food chain. Small

farmers.

Risk for exotic diseases and still

endemic diseases. Free market

environment.

Animal health management

Livestock development

Livestock challenges

New public health and environment

standard.

Chile

NCD Eradication

FMD Eradication

PPC Eradication PRRS Eradication

HPAI control

1975 1981 1998 2007

2002

FTA

Livestock export

Livestock import

Supermarket

2000

EEB insignificant risk

2007

ISA virus epidemic

20072010

•Export and import country (FTA) •Small quantity of animals (4 millions cows) •High proportion of small farmers (90%). • Only 17 millions people.

Exportacion Importación

192.137283.015

1.240.819 1.250.214

Comercio Exterior Productos Pecuarios 2000-2011 (MS$)

2000 2011

Production

Suppliers

Animal

health

suppliers

Production Transformation

Suppliers

Trasnformation Commerce

Genetics Terrestrial

species

Materials. Plant cicle 1 National

traders

and sellers

Feed Diagnostic

laboratories

Aquatic

species

Diagnostic

laboratories

Zootecnist Medicines-

Vaccines

Sanitary

products

Plant cicle 2 Internation

al traders

and sellers

Logistic Private Vet Private Vet Plant cicle 3

Sanitary

services

Sanitary

services

Private sector

PP relationship

Beef Dairy Sheep Poultry Pork Horses Bee Salmon

Integration of the chain. X X x XXXX XXXX X X XXX

Activities X XX X XXX XXX X X XX

Union XX XXX X XXX XXXX X X XX

Representatively X XXX X XXX XXXX X X XXX

Funds X XXX X XXX XXX X X XXX

Pro-activity. X X X XXXX XXXX X X XX

Formality in relation. X X X XXX XXX X X XX

Production Animal health

Externalities

Local veterinary service

Veterinary service

Sanitary service

Ministry of agriculture

Ministry of public

health

Ministry of trade

Ministry of

environment

Ministry of economic

development

Public sector

1 2 None

Animal health strategy. Poultry Pork

Milk, cattle, bee. Bee, horses, sheep

Programme design. Poultry Pork

Milk, cattle, bee. Bee, horses, sheep

Programme operation. Poultry Pork

Milk, cattle. Bee, horses, sheep

Programme financing. Poultry Pork

Milk Bee, horses, sheep

Direct incentives. Milk

Bee, horses, sheep

Private Public Partnerships

Integrated chain Few members Trade oriented Funds mechanism Technical teams

PRRS Eradication (2001-2007)

2.000 replacement saws and U$100 per animal and 22 boar for infected farms.

Private Public

•First epidemiological study •Regulation and enforcement •Co-financing by special fund •Free declaration. •Official diagnostics.

•Program management. •International expert. •Training and technical mission. •Bio-security protocols. •Diagnostic improvement. •Cleaning of infected farms.

Strategic coordination Technical coordination

Sanitary open market

Private Public

•Prepare and present documents •Make presentations. • Conduct and do negotiations (documents-trips, auditings)

•Strategic and technical opinions •Study of disease free declaration of PPC. •Make documents. •Prepare audit. •Training.

Formal coordination

Private estimates U$ 3 million in open US market.

HPAI H7 N3 control

Private Public

•Regulation •Enforcement •Laboratory •Market defence •Others

• International technical experts. • National technical support. • Cost sampling • Cost market recovery. • Cost stamping out.

Sanitary Coordination committee Market recovery committee

One company pay the price of 500.000 breed hen and turkey as compensation.

Exotic surveillance, contingency plan and compartmentalisation

Private Public

•Sampling small farmers. •Co-financing by special fund •Laboratory confirmation. •Regulation for compartment.

•Strategic and technical opinions •Sampling commercial farms. •Laboratory diagnostics. •Revise and adjust contingency plan (6 diseases). •Implement compartment.

Formal coordination

BB and TBC control programe

Private Public

•Epidemiological study •Regulation •Enforcement •Cost confirmatory testing •Traceability •Special program for small farmers. •BB-TB free premise certification. • Testing neighbours.

•Strategic and technical opinions •Pay ear-tag •Pay testing •Pay animal elimination (No compensation)

Informal coordination General formal coordination

10% of milk price is due a bonus per TB and BB free.

•Pay testing auction market (surveillance).

•Pay ring test (surveillance) •Promote and supervise the control programme. •Compartmentalisation.

American Foulbrood emergency

Private Public

Regulation Enforcement Laboratory improvement Special fund for compensation - Directed affected - Indirect affected.

-Strategic and technical opinions. - Burning infected hives.

Informal coordination

At the beginning private bee keepers replace hives.

ISA epidemic control

Private Public

•Regulation •Enforcement •Confirmation test •Co-finance private bio-security programme. •Co-finance applied research.

•Strategic and technical support. •Share some expert. •Bio-security programe. •Research programe.

Informal coordination General formal coordination

Most of the direct cost was absorbed by the industry

Conclusions

• Private sector organisation is diverse.

• PPP occurred in most dynamic and trade oriented sectors.

• VS has not lost autonomy.

• Pro-action of private and public sector has created incentives to animal health management.

• PPP have contribute to livestock development and trade.

• PPP has created public goods.

Recommendations

• Explore and highlight good experiences in PPP. • Promote formal (legal) mechanism for PP dialogue. • Generate specialised capacity building in PPP and

social capital. • Develop and implement mechanism to assess PPP.

Incorporate in Agri OECD country assessment. • Promote and adjust OIE recommendation of PPP in

PVS (Good practices). • Develop PP programs cost and management shared. • Promote compartmentalisation as a PPP. • Incorporate good diseases management practices in

small farmers production programmes.

Muchas gracias