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A Path to Prosperity New Directions for African Livestock

GALVmed Impetus Strategy Paper

GALVmed Impetus Strategy Paper

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In terms of lives<strong>to</strong>ck trade, the review of Africa’s<br />

experiences and capacity <strong>to</strong> export lives<strong>to</strong>ck products<br />

beyond Africa <strong>to</strong> global markets concludes that the<br />

pressing priority at this time is <strong>to</strong> develop domestic<br />

and intra-regional lives<strong>to</strong>ck trade. Examples of<br />

export trade, regional trade harmonisation ef<strong>for</strong>ts<br />

and domestic trade are provided and the need <strong>to</strong><br />

support small and female farmers <strong>to</strong> access markets<br />

is stressed. The majority of lives<strong>to</strong>ck trading in SSA<br />

is still in<strong>for</strong>mal. Unlike in other developing regions,<br />

supermarkets have not yet captured significant<br />

market share, but their stake is increasing.<br />

The number of households in SSA with discretionary<br />

income is projected <strong>to</strong> rise by 50% over the next ten<br />

years, reaching 128 million. By 2030, it is<br />

estimated that the continent’s 18 largest cities could<br />

have a combined spending power of $1.3 trillion.<br />

This rapidly urbanising population is likely <strong>to</strong> demand<br />

high quality and safe lives<strong>to</strong>ck food that will require<br />

higher input costs per unit of product. This trend<br />

potentially works against small farmers in favour of<br />

larger producers. Contract farming appears <strong>to</strong> offer a<br />

way <strong>to</strong> support small farmers’ access <strong>to</strong> markets and<br />

the different <strong>for</strong>ms of contract farming are described.<br />

There is evidence that in the developing world<br />

contract farmers have, in most cases, higher profits<br />

per unit of output than independent farmers.<br />

Examples of contract farming enterprises that<br />

incorporate smallholders in high-value supply<br />

chains are provided, but there are very few examples<br />

in the lives<strong>to</strong>ck sec<strong>to</strong>r in SSA. GALVmed and its<br />

partners may have a role in working with the private<br />

sec<strong>to</strong>r and policy makers <strong>to</strong> scale up contract<br />

farming as markets become more sophisticated.<br />

Supporting others <strong>to</strong> organise value chain analysis<br />

or “talking shops,” might be one way of doing this.<br />

GALVmed should also consider how if might support<br />

the new <strong>African</strong> Agribusiness and Agro-Industries<br />

Development Initiative (3ADI) which has the potential<br />

<strong>to</strong> significantly influence <strong>African</strong> lives<strong>to</strong>ck production<br />

and health <strong>to</strong> the advantage of poor lives<strong>to</strong>ck<br />

keepers.<br />

This paper is intended as a key document <strong>to</strong> the<br />

convening of a “Lives<strong>to</strong>ck 2012: the turning point,”<br />

conference <strong>to</strong> which a wide range of lives<strong>to</strong>ck<br />

development stakeholders will be invited.<br />

The Impetus Strategy Paper I Page 7

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