Home
Where's the beef? Adding value to livestock farming PDF Print E-mail
Written by Ole Mepukori   
Wednesday, 08 August 2007

Kenya's livestock industry is dominated by primary production. It was hoped that the revitalization of the Kenya Meat Commission and its plant by the government two years ago would turn the tide to a more progressive value-addition regime.

Any such changes have however, not been felt on the ground as the current arrangement favors the commercial ranchers with high quality breeds while leaving the poor pastoralist with no choice but the traditional meat markets and abbatoirs.

At the moment, the marketing of cattle is conducted on a purely ad hoc basis with pastoralists, middlemen and butchers accounting for the largest part of the trade.  That this is unviable in the long term and detrimental to the economic benefits of the producers is clear, especially considering that the national increase in beef consumption is higher than the increase in production. Demand is expected to outstrip supply in the near future and the inefficiencies in the traditional system will have to be ironed out.

There is very little on-farm and off-farm processing of livestock products; which translates to low income for farmers and little in the way of job creation for Kenyans. The government should therefore as a matter of urgency give industry investors incentives such as tax relief, or subsidised land to invest in agro-processing of livestock more-so in Arid and Semi-Arid Lands.

The benefits of such moves would be legion, but paramount among them would be the following. Agro-processing at the farm-level improves rural incomes by adding value to products at source thereby saving on transport cost. It delivers high-value/low volume products and creates opportunities for the use of such by-products as inputs in other farm operations such as animal feeds, manure, and fuel.

It provides an opportunity for reducing farm waste through the conversion of perishable products into more durable products.  It will help create jobs in the rural areas thereby contributing to the reduction of both poverty and levels of rural-urban migration.
Processing and value addition of livestock products prolongs shelf life and enhances packaging with increased earnings. To increase the prospects of industries geared at value addition, the following measures will have to be taken:

  • Providing appropriate incentives for the establishment of agro-industries in the rural areas.

  • Focus research on value addition especially processing, storage and packaging of the livestock products.

  • Promoting partnerships between smallholder farmers and agri-businesses.


For those living in the arid regions of Kenya, this is a way in which their traditional way of life can segue into industrialised society, free from the injustices of the past and fully in charge of their destinies. Local employment is local empowerment.

The writer is a lead consultant at the Maa Community Foundation.

Ole Mepukori
About the author:




Digg!Del.icio.us!Google!Facebook!Technorati!StumbleUpon!Newsvine!Yahoo!Ma.gnolia!Free social bookmarking plugins and extensions for Joomla! websites!
Trackback(0)
Comments (5)add
0
...
written by joe , August 08, 2007
branding is key - i think kenyan beef should be branded as pastoral free range or something that distinguishes how they are raised - peopel pay a premium for argentine beef based on jhow its raised -an people pay a premium for neiman ranch beef.
report abuse
vote down
vote up
Votes: +0
0
True but why the govt?
written by pndiangui , August 09, 2007
First, Beef demand might not always go up. This is a dangerous statement. For the medium term (5-10 years), yes but beyond that, we really don’t know how social dynamics might start affecting the way we consume Beef. Beef consumption in the 'west', is soon going to peak. In fact the UK government has been dilly-dallying with a policy geared towards this.

On the other hand blaming the government on this doesn’t really help. From the ministry of trade and also agriculture I am told the tax incentives of starting up agro-processing facilities are there. I have seen the minister for co-ops Njeru Ndwiga and his counterpart in the livestock docket, Hon. Munyao try to secure markets in the Middle East and Far East, including Japan. I however think talent is the biggest problem, entrepreneurial and management talent. We have some almost 500 graduates every 3 months whose synergistic knowledge can be harnessed in various start-ups through the Youth development fund, but they first need to be aware about this potential. We can bring together degree or diploma graduates in mechanical engineering, food science, sociology and commerce , help them put a business plan together , while reconciling their mindsets and bang, several pilot animal products processing plants will become alive (from fish, beef, bee, pork etc).

This is the same business case that Farmers Choice operates on ,and is the same case that the fallen government Parastatal Bacon Factory in Limuru used to operate on.

The other issue is creation of local market for value-added beef products. The driver on the seat is actually the Minister for Health rather than the livestock/agriculture or trade, though they need to work synergistically to execute on this. The Butcher needs an incentive to buy processed beef that has been certified by the public health institutions through-out the country. It is this certification that legitimizes the existence of KMC and with it comes the value-chain of beef processing even the one making its way into supermarkets as fresh but packaged beef. A transformation of the way these butchers do business is key in creating a 'value-added' beef market.

At the heart of it all , coops will play a significant role , and especially in creating economics of scale to guide a bigger international marketing budget for a branded Kenyan beef (As joe has put it above) , like the Australians, New Zealanders and British have successfully done. Such an institution modeled as a coop support board as well as an international marketing arm can create huge opportunities for farmers and processors. The international markets 'intelligence' or what the corporate speak might call 'market research’ through seminars and guided data collection with ethnographic studies can help in recognizing trends in beef consumption in the intended markets. For example organic beef farming adoption can be an important aspect along the value chain as is the sustainable ‘greening’ the production of the beef.

A leaf needs to be borrowed from the horticultural exporters and then applied in a way that suits the current set up with a vision to transform the industry through the achievement of some specific milestones.
report abuse
vote down
vote up
Votes: +0
0
nyama, nyama, nyama
written by Amir Ibrahim , August 09, 2007
I am learning a lot here. Value addition is one of those shibboleths of Third World development, a veritable sine qua non of progress from extractive industry.

Alexander has written a lot in his tea articles on possible methods of branding, it is a line we should try for. I agree with Ndiangui that Co_Ops may be the best way to go especially given the fact that many of these farmers are smallholders. What of county councils? Or CDF money? Why not press those immediately accountable to you, rather than looking to Nairobi to solve all our problems.
report abuse
vote down
vote up
Votes: +0
0
teacher, Kajiado district
written by simon Morinke , August 11, 2007
What my brother mepukori is putting across is exactly what every small scale farmer in kenya has at heart especially the pastoralist. i recently attented a maasai eklite caucus in the district whre the young Ole Mepukori was the guest speaker and i was moved at how this young people see the future.When i was growing up his thoughts would have been greatly appreciated and am sure if our country gets half the person this young man is we will achieve the vision sooner than 2030, but lots remain to be done. we need to support this noble ideas. KUDOS to OLe Mepukori HE HAS MADE US PROUD
report abuse
vote down
vote up
Votes: +0
0
Marketing!
written by Ugas , August 12, 2007
It is hard to revatilize an non existant industry. This industry was not and has not been a priority for the Agriculturist led coloniolist & the subsequent government that followed. The whole issue is funding & marketing by the government. The Kenya government,starting from the colonolist,put a lot of emphasis on Agriculture and neglected this industry all together. Money,Manpower & technology was absent from Agro-Pastrolism in Kenya. Institutional negligence from the relevant departments hampered the development of vital industry. One has to look at the economic disparity between the Pastrolists regions & the Agriculturist regions.

Now that we have saturated the rich soils for cultivation to sustain a hungrier,growing population,the market is ripe for commercial livestock farming. But,without crucial dollars,this wont take off.
report abuse
vote down
vote up
Votes: +0
Write comment

security image
Write the displayed characters


busy
Last Updated ( Wednesday, 08 August 2007 )
 
< Prev   Next >


Archives | About Us | KenyaImagine How To | Privacy Policy | ContactUs | Join KenyaImagine |  Advertise Here| Legal Disclaimer | Terms & Conditions | Directory
rss-2.png

 

Copyright 2009 KenyaImagine.com, the KenyaImagine logo and KenyaImagine.com are trademarks of  The Imagine Company