STATUS AND OPPORTUNITIES IN THE ANIMAL INDUSTRIES IN EASTERN AND CENTRAL AFRICA (ECA).

Key Note Paper Presented for the ALICE 2014 Conference, Munyonyo, Kampala, UGANDA, June 18-20, 2014

by Dr. Jean Ndikumana ASARECA Livestock & Fisheries Program Manager

SITUATION ANALYSIS

IMPORTANCE OF LIVESTOCK IN ECA

Contribute 10 – 40 % Of GDP

Worth 34.5% of the regional AgGDP

Practiced on more than 60% of ECA total landmass.

A study conducted by IFPRI and ASARECA to identify strategic priorities for ASARECA concluded that:

When ECA is viewed as a region, milk emerged the most important commodity for growth-inducing investment in research and development. Milk was followed by Cassava, maize and bananas.

POTENTIAL CONTRIBUTION OF LIVESTOCK TO ECONOMIC GROWTH OF ECA

Regional AgGDP Gains to 2015 from Growth in Selected Commodity Sub-Sectors (US$ million)

0 50 100 150 200 250 300 350 400 450

Sugar

Poultry

Beans_Peas

Wheat_Barley

Rice

Potatoes_Sweetpotatoes

Sorghum_Millet

Coffee_Tea

Beef

Oilseeds

Vegetable_Fruits

Bananas

Maize

Cassava

Milk

Looking at commodity groups, growth of the livestock commodities would result into the highest regional AgGDP gains to 2015, followed respectively by cereals, roots and tubers, fruits and vegetables and oil seeds.

POTENTIAL CONTRIBUTION OF LIVESTOCK TO ECONOMIC GROWTH OF ECA

0 200 400 600 800 1000 1200

Pulses

Hot Bevs

Oilseeds

Fruits & Veg

Roots & Tubers

Cereals

Livestock

Regional GDP Gains to 2015 from Growth in Selected Commodity Groups (US$

million)

Looking at sub-sectors, the study shows that investing in the livestock sub-sector would result into the second highest impact on the AgGDP just after staple crops.

POTENTIAL CONTRIBUTION OF LIVESTOCK TO ECONOMIC GROWTH OF ECA COUNTRIES

0 500 1000 1500 2000

Pulses

Hot Bevs

Oilseeds

Fruits & Veg

Livestock

Staples

Regional GDP Gains to 2015 from Growth in Selected Commodity Groups (US$ million)

Growth of demand for livestock products is higher than production growth due to

population growth and income, urbanisation and change in nutrition habits.

All ECA member countries are net importers of milk and most of them are net importers of meat. The situation is expected to worsen if countries continue business as usual.

PRODUCTION AND CONSUMPTION TRENDS

Net trade in livestock products in Africa (’000 tonnes)

Product 1970 1980 1990 2000 2015 2030

Beef 119 63 –32 52 –5 –109

Eggs 0 –3 –5 –17 –9 –22

Milk –913 –2,496 –1,785 –1,971 –3,605 –5,226

Mutton/goat

29 40 29 59 73 80

Pork –4 –9 –21 –42 –71 –108

Poultry –2 –43 –86 –149 –280 –606

Note: Negative figures imply importsSource: FAOSTAT (2002)

Constraints and Opportunities for the

development of the livestock industry in ECA

Major constraints to increased livestock productivity

Low genetic potential : more than 90% of ECA livestock population are indig. breeds with low productivity but excellent adaptive traits. Inadequate nutrition: availability of feed resources in quantity and quality is the single most important constraint to livestock production across countries and production systems

Constraints to productivity- Ctd-

Poor veterinary services : inadequate veterinary services delivery by the public and private sectorsHigh Cost of inputs: feeds, AI services, improved breeds or vet drugs. Poor organisation of farmers resulting in high production cost at farm level. Poor utilization of innovations

Major constraints to value addition and market access for

Liv. & Liv. products Unidentified niche markets Inappropriate standards and sanitary regulations Inappropriate tax incentives Poor infrastructures and services Poor access to market information Poor value addition in input output market chains Trade barriers and effects of globalisation Poor utilization of innovations

Major Opportunities for investment to enhance Livestock production, market opportunities and trade in ECA

Opportunities to enhance productivity

High potential to improve productivity through investments in research to enhance generation and adoption of appropriate technologies including biotec. Existing of on shelf technologies.Investment in input production and supply, empowering actors and appropriate policies can make the difference.

Opportunities to enhance trade

Growth in demand for livestock and livestock products is higher than the growth in production at national or regional levels

(ECA). Most countries in ECA are net importers of milk, meat and other livestock products. Ready market in ECA, middle east and other regions of SSA.

Opportunities to enhance trade – ctd-

Harmonisation of quality, safety and standards at regional level

Investment in value addition to increase shelf life and respond to the consumers demand in

terms of quality and safety(processing).

Strategic Investment priorities for the transformation of the livestock sector in ECA

Investment in strong research programmes

Investment in research to ensure that the sector development is

supported by science based information to be generated, packaged and disseminated along the value chain (production, value addition, marketing; policy etc.) to enhance utilisation of innovations.

Increasing Livestock production

Facilitate private sector investment in breed improvement, feed production and utilization, delivery of veterinary and other productivity enhancing services through public private partnership.

Enhancing Value Addition Promote appropriate policies for private sector investment in post harvest handling facilities (holding grounds, abattoirs, milk collection centres; appropriate containers etc.) to minimize post harvest losses in the livestock sector

Facilitate private sector investment into processing facilities (meat and milk processing plants to enhance VA).

Increasing Market Access

Promote enabling policy environment to enhance trade in livestock and livestock products by:

Establish and harmonise standards and safety regulations at regional level. Review trade policies at regional level

to enhance trade of livestock and livestock products. (trade barriers; taxation ; incentives ...).

Increasing Market Access - ctd-

Build the capacity of actors along the livestock value chains to comply with the established quality and safety standards at national, regional and international levels.

Invest in developing a strong market information network using modern communication technologies.

Thank you for

your audience