The document discusses the fluctuating prices of food and livestock products in the Eastern and Southern African (ESA) region, illustrating how food price increases have negatively impacted poor livestock keepers who are net buyers of food. Although some livestock prices increased, many farmers faced challenges such as drought, reduced purchasing power, and inadequate resources to capitalize on higher prices. Recommendations include enhancing access to affordable inputs, credit, and infrastructure to improve livestock productivity and alleviate negative effects from high food prices.

1. HIGH FOOD PRICES: BOON OR BANE FOR LIVESTOCK KEEPERS?
INTRODUCTION Fig 1: Food Price Index (Jan 2007 =100)
• The international prices of most food commodities increased between
January, 2007 and May,2008. During this time, the FAO global food price
index rose to unprecedented levels. It then declined and stabilized briefly
but has been on an upward trend in the last quarter of 2009 (Fig 1) .
• In early 2008 food prices in most countries in the Eastern and Southern
African region (ESA) increased too, but at lower rates. They started
increasing at a faster rate by mid 2008.
• Over the second half of 2009, food prices stabilized in most ESA countries
and declined in Ethiopia, Kenya and Seychelles. However, food prices
stagnated in Djibouti, Madagascar, Malawi, Rwanda, Tanzania and
Zambia. In contrast, food prices rose in Uganda and Egypt.
HOW ARE THE TRENDS FOR
LIVESTOCK PRODUCTS IN ESA? Data Source: FAO, 2008; Country Statistical offices
•We refer to selected countries in the region where trend data is
available.
Table 1: Recent Trends in the Prices of Livestock products
•Beef prices have been rising since the second half of year 2007.
By January 2008 increase in beef prices in Zambia, Uganda, Malawi % change in prices
and Ethiopia were in the range of 11% to 22% compared to the commodity country unit jan07_Jan08 jan08_Jan09 jan09_dec09*
same time in year 2007 (Table 1). Global beef prices increased by Ethiopia Kg 21.08 32.43 6.07
11% over the same period. In the period between January 2008 to Malawi Kg 20.88 40.46 7.96
January 2009 global beef prices declined but for countries in the Beef Uganda Kg 18.54 33.81 1.38
region the prices continued rising. Zambia 1 Kg 10.69 6.93 13.31
FAO Global Ton 11.05 ‐6.69 10.27
•Prices of pork and goat meat have continuously increased in Ethiopia Dozen 23.60 41.04 ‐0.87
Malawi since January 2007. In Uganda, pork, goat and chicken Eggs Kenya Tray 20.82 17.79 5.26
prices increased by more than 30% in Jan 2009 compared to Uganda 2 Eggs 26.65 28.57 ‐3.23
January 2008 and have had some slight reduction in year 2009. Malawi Kg 17.54 38.72 8.82
Pork
Uganda Kg 28.32 38.35 ‐1.71
Malawi Kg 18.04 42.50 7.38
•Global prices for powdered milk increased by 54% between Jan Goat
Uganda Kg 17.92 36.62 1.49
2007 and Jan 2008, it decreased in the next year (Jan2008-
Chicken Uganda Kg 18.18 34.96 ‐0.73
Jan2009), but in year 2009 the prices increased rapidly. Ethiopia Ethiopia Ltr 14.57 43.13 9.75
has been experiencing increase in prices of fresh milk since 2007.
p g p Uganda Ltr 85.46
85 46 ‐3 57
3.57 14.52
14 52
Milk
Fresh milk prices in Uganda have been erratic as from January
2008 to December 2009 (see Table 1) FAO Global Ton 54.39 ‐56.82 86.84
* In Ethiopia change is done for Jul09 instead of dec09
•Egg prices also increased substantially between Jan 2007 and
Jan2009, they have since stabilized
DID POOR LIVESTOCK PRODUCERS BENEFIT FROM HIGH FOOD PRICES?
•Although in some cases, poor farmers may be able to benefit from increased prices, this has not been the case in the ESA region because most of the farmers are net
buyers of food Studies have confirmed that households that are net food buyers were hit hardest by the crisis This reduced their purchasing power and ability to buy
food. crisis.
food and negatively affected their nutritional status.
•The poor livestock keepers, especially the pastoralists in the ESA region are the net buyers of cereals (e.g. maize, millet and sorghum). High cereal prices had negative
impacts to them because they had to exchange more livestock to get grains. Poor livestock keepers’ opportunity to benefit from high livestock prices associated with high
food crisis was also limited by drought that was experienced in various pastoral settings in 2007-2009. Poor access to pasture and water affected livestock body
condition and livestock productivity.
•Furthermore, the majority of the poor livestock keepers in ESA lack necessary resources to induce their timely supply response to fetch good prices. These farmers do
not have adequate incentives and facilities to invest to increase livestock productivity and production.
• High food prices was more of a bane to the poor livestock keepers because they are net buyers of food and they face several supply constraints
RECOMMENDATIONS
There is a need for putting in place incentives to for increased livestock productivity such as enhancing access to; affordable inputs (e.g. improved breeds, livestock
feeds, acaricides), credit and livestock health among others. Productivity increase in livestock production will also require significant and sustained investment in public
goods such as: livestock research, livestock extension, production and marketing infrastructures, conducive policies as well as risk management instruments, all of which
will complement increased price incentives.
The good news is …
d And the not so good news is …
April 2010
Information on the trends of prices of food products (including livestock's) is useful to This work indicates that poor livestock producers in ESA are unlikely to benefit from
support decision making by various actors. increased prices due to various constraints, this can be mitigated by advocating for
interventions to address the constraints.
This work is In collaboration
based on food and with
prices monitoring financial support
work by from