At Kenya Markets Trust, we believe that sustainable development in the sectors we work in is best driven by the Sector Stakeholders. For this reason, we facilitated the coming together of private and public sector players in the Livestock Sector to discuss the constraints and find solutions for the sector.
Guests registering at the Livesstock Stakeholders Roundtable
70% of Kenya’s land mass is Arid and Semi Arid Lands (ASALS) which constitutes 80% of Kenya’s Livestock, supporting 10 million pastoralists.
The country brags of its net surplus in production of Sheep and Goats ranging over 40% of its local consumption numbers. According to 2014 estimates, the country had over 29 million goats and 27 million sheep against the local off-take of 22 million annually.
Kenya has a net deficit of 18% beef production to meet its total national demand of beef, thus rendering it least advantaged to export beef due to production inefficiencies. Kenya’s beef is 10% more expensive relative to the regional beef produced.
According to a survey done by Export Council of Kenya, the total meat exports to Middle East countries was estimated to be about USD 5.1 billion estimated as 6.5% of total world demand of meat at USD 84.4 billion.
Kenya’s export has never exceeded 7500 heads of cattle compared to our neighbors Ethiopia and Somalia. In 2014, Somalia exported 4.5m heads of cattle, Kenya 200,000 and Ethiopia 1.9m. On meat, Ethiopia led with 83,000 metric tonnes, Somalia 16,500 and Kenya only 37,500 metric tonnes.
Despite the evident potential, Livestock sector remains highly fragmented, dysfunctional and disjointed. Stakeholders in the sector do not communicate with one voice, leading to negative competition.
The latter, coupled with negligible trade facilitation by the relevant authorities, has led to unreliable supply of quantity and quality of livestock that would support a feasible livestock export.
The stakeholder roundtable discussion we helped convene brought together players in the private (processors, ranchers, exporters, financial institutions, slaughterhouses) and public sector (Ministry of Agriculture, Ministry of Industry, investment and Trade) to find solutions for the challenges facing the sector. The two-day roundtable session was officiated by Hon. Adan Mohammed, the Cabinet Secretary for Industry, Investment and Trade.
Stakeholders at the Livestock Sector Roundtable
Out of the roundtable, stakeholders have started talking to each other, with working committees formed to champion unlocking specific challenges in the sector including: by-products value capture, External Trade facilitation, Regulation of meat Industry, Quality, Fattening and finishing, Consistent supply, Financial services and Industry voice.
Nominated Senator Naisula Lesuda at the Stakeholders Roundtable
The CS spoke to the media about some of the key issues discussed in the roundtable, with Daily Nation publishing this article on a major cry by private sector players present at the roundtable.