Livestock and Economic Well-being in Africa

Forum for Agricultural Research in Africa

Livestock-based options for economic wellbeing in Africa ILRI@40 Side event at the All Africa Conference on Animal Agriculture

Nairobi, Kenya, 28 October 2014

Livestock and Economic Well-being in Africa

Dr. Yemi AkinbamijoExecutive Director, FARA

Forum for Agricultural Research in Africa 2

Outline1. Introduction

2. Why Livestock Matters

3. Mega trends and their implication on the impact of livestock economic well-being of Africans

4. How should the livestock sub-sector contribute to attainment of the future agric (incl. livestock) that Africa wants

5. About FARA

6. Concluding remarks

25 years ago …


25 years ago …


25 years ago …


25 years ago …


Well-being (OECD, 2011)

Material Living Conditions

Quality of Life

Sustainability of well being over timePreserving the different types of capital

• Health• Education• Governance • Env. quality• Security• etc

• Income• Jobs• Shelter• etc

CAADP Results FrameworkWealth creation; Economic Opportunities & Prosperity—Jobs + poverty reduction; Improved Food and Nutrition

Security; Resilience; Environmental sustainability

Agricultural Transformation and Sustained inclusive agriculture growth

1 Increased agriculture production

and productivity

2 Better functioning

national agric. and food markets & increased intra/ inter–regional

trade ,

3 Expanded local agro-industry

and value addition

4 Improved management

and governance of natural resources for

sustainable agricultural production

Livestock

• Hoofed• Poultry• Micro-livestock


• ¾ of Africa’s rural households possess livestock

• Employs about 50% of agricultural labour force

• Accounts for about 1/3 of agricultural GDP (contributes about 10% of GDP)

• Fastest growing agriculture subsector

Livestock: Why it Matters ? 1/2


Livestock: Why it Matters ? 2/2

o Food

o Employment and income

o Soil fertility improvement

o Traction (ploughing & transport)

o Capital accumulation to cope with food crises and major life events

o Socio-cultural status

Animals are a major source of livelihood contributing to:


• It does not get the attention it merits

• As a result its potential to contribute to economic well-being is under-exploited

Livestock matters, but …


Meat and Milk production in Africa (1,000 mt)

World Africa % of World

Bovine meat 66,359 5,797 8.7%

Poultry meat 102,456 4,853 4.7%

Milk 739,111 44,237 6.0%

• Remains a small player by world standards

• Continent has 15% of world population but accounts for about 6% of meat and milk production respectively

The Livestock sub sector in Africa

• Meat & milk production are growing at 2.8% and 2.2% pa. This is not enough

1. Population growth, Youth & urbanisation

2. Growing affluence

Changing dietary patterns: – demand for animal

protein, – more attention on food

safety, quality & nutrition

Mega trends with a bearing on the livestock sector in Africa …1/3


3. Globalised markets & increasing agribusiness– Regional integration

4. Climate change and variability



5. Rising energy and agricultural input prices


6. ICT proliferation

7. Pressure on genetic resources and biodiversity

Devel-oped

countries

Africa Near East Latin America

South Asia East Southeast

Asia

-

50

100

150

200

250

300

350

273

32 24

62

108

46

320

83

49

101

261

88

Estimated Milk consumption pa 2005-07 and 2050(Million MT)

2005-07 2050

Devel-oped

countries

Africa Near East Latin America

South Asia East Southeast

Asia

-

20

40

60

80

100

120

140

160

180

108

11 7

34

7

87

132

35

20

61

40

160

Estimated Meat consumption pa 2005-07 and 2050 (Million MT)

2005-07 2050

Mega trends of:• Population growth• Urbanisation• Income growth

are drivers of growth in consumption of livestock products

How will Africa meet the growth in demand?

Imports vs increase in domestic production

Consumption of Livestock products

Data derived from WB, FAO, AU-IBAR, ILRI report, 2013

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Trends in dairy products (Milk equivalent) trade in Africa 1990 - 2010 (1,000 MT)

Imports Exports

Net imports

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Trends in Meat & Meat products trade in Africa 1990-2010 (1,000 MT)

Imports ExportsNet imports

Year

Trade in livestock products (Africa)

• Exports have stagnated or declined

• Growth in consumption is met by imports

• Net imports of dairy products about USD 2.2B & deficit is increasing

• Not sustainable !Prepared from FAOSTAT data

• Enhances safety and trade (domestic, regional and international markets)

• Increases the value added of the livestock subsector

• Creates jobs

• Lowers prices (most of the time) for consumers

Value addition of African livestock products


• Tillage, transportation Processing (milling & threshing), water lifting

• It is time to phase out the hand hoe

• “He who has no donkey is a donkey” (Ethiopian proverb)

• Animal traction often by-passed in favour of tractor mechanization

Animal traction


• Soil fertility is a major constraint; inorganic inputs out of reach for poor farmers

Livestock as source of input for soil fertility management

• Livestock manure: an important source of nutrients + soil quality enhancement

• Strong push for organic agriculture

• Foot and Mouth Disease cause losses of approximately USD 25 billion per year (J. Rushton, 2012).

• Ticks and tick-borne diseases cost approximately USD 17 billion per year (De Castro, 1997).

• A severe avian influenza pandemic could cause the death of 70 million people and decrease global GDP by 4.8% OECD report (2011)

• Economic cost of CBPP in 12 African countries estimated at 44.8 million Euros (Tambi et al. 2006)

• Economic surplus from rinderpest surveillance in Ethiopia estimated at 2.8 million Euros (Tambi et al. 2005)

Infectious animal diseases and emerging zoonotic risks erode economic well-being


Climate change increases vulnerability of livestock systems

• Increased spread of diseases and emergence of new ones

• Reduced carrying capacity of rangelands

• Water scarcity

• Heat-related mortality

Livestock and climate change …1/2

Livestock supply chains are estimated to generate 14.5% of all human-induced emissions (FAO, 2013)


• Pastoralists in the Serengeti-Mara ecosystem have progressively less livestock per head over the past 30 years

Livestock and climate change …2/2

• A result of climate change plus population growth and other land uses


Realising the potential of livestock to enhancing economic well being

• Ensure livestock gets due attention at the policy level– In policy frameworks e.g. CAADP, National Agric. and Food Security

Investment Plans etc, Implementation plan for the Science Agenda for Agriculture in Africa

– Evidence to support policy on livestock—so much information available but it is not sufficiently used in policy formulation

– Investment in services for animal health, processing and marketing to increase self-sufficiency in livestock products

• Livestock as an integral part of agriculture and food systems (integration of crop-livestock-aquatic & forestry resources)

The Agriculture future Africa wants

TARGETS: What is the contribution of the Livestock subsector?

1. Double agricultural total factor productivity by 2025 (by taking maximum advantage of science and knowledge---the Science Agenda)

2. Increase the share of intra-African trade to at least 50% of the continent's total agrifood trade by 2025

3. End hunger and ensure food and nutrition security for all Africa's citizens on a self-reliance basis by 2025.

4. Climate change adaptation strongly integrated in agric. investment plans & strengthened by resilience mechanisms


• Forum for Agricultural Research in Africa

• Technical arm of the African Union Commission on agricultural research and development

Core function:Facilitating collective actions for the promotion of Science, Technology and Innovation (STI) to enhance broad-based productivity, competitiveness and markets in Africa

About FARA

How FARA contributes to CAADP results

2.1 Increased

agricultural production and

productivity

2.2 Better functioning national & regional

agriculture markets & trade

2.3 Expanded local agro-

industry and value addition

2.4 Improved management

and governance of natural resources for

sustainable agricultural production

The Science Agenda forAgriculture in Africa (S3A)

The Science, Technology and Innovation Strategy

for Africa (STISA)

FARA’s Strategic Priorities

(2014-2018)


• Vision for accelerated economic and social transformation of Africa will not be realised without transformation in all agriculture subsectors incl. livestock

• Essential to map out how each agric. sub-sector incl. livestock will effectively contribute to realisation of the future Africa wants

• FARA to support efforts aimed at assuring that livestock gets the policy attention it deserves

• ILRI and other CGIAR Centers/CRPs to align livestock programmes to CAADP framework

• Enough blah blah; let us concetrate on the do do

Concluding Remarks


Please join us in

Celebrating FARA 26-28 November 2014

Johannesburg, South Africa

…Innovating for Africa’s well being


Thank youwww.fara-africa.org

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