Livestock contributes significantly to GDP in Eastern and Central African countries, ranging from 10-40% of GDP. A study identified milk as having the highest potential for growth and economic gains in the region. Investing in the livestock sub-sector could result in the second highest regional GDP gains after staples. However, production is not keeping up with demand growth due to population increase and diet changes. All ECA countries import milk and meat. Key opportunities exist to improve genetics, nutrition, veterinary services, and market access through standards harmonization and trade policy reforms to boost the livestock sector. Priority investments include research, production technologies, value addition infrastructure, market information systems, and an enabling policy environment.

1. 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

2. SITUATION ANALYSIS

3. 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.

4. 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

5. 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

6. 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

7. 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)

8. 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

9. 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)

10. 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

12. 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 imports
Source: FAOSTAT (2002)

13. Constraints and Opportunities for
the development of the livestock
industry in ECA

14. 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

15. Constraints to productivity- Ctd-
Poor veterinary services : inadequate
veterinary services delivery by the
public and private sectors
High 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

16. 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

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

18. 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.

19. 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.

20. 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).

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

22. 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.

23. 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.

24. 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).


25. 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 ...).

26. 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.

27. Thank you for
your audience