Better Livestock Markets Could Improve the Livelihoods of Pastoralists and Reduce Poverty
blurb:isstoday:06112008pastoral
6 November 2008: Better Livestock Markets Could Improve the Livelihoods of Pastoralists and Reduce Poverty
In spite of numerous challenges facing the industry, the livestock sector in East Africa constitutes up to 12% of the GDP of the economy of the countries in the region. The sector provides for domestic consumption while earning substantial foreign exchange for the countries through export. It also provides employment to the rural population.
Unfortunately, despite the enormity of this sector, authorities in the region are yet to improve productivity through appropriate marketing policy formulation and through designing interventions that could offset difficulties encountered by pastoralists. In the absence of marketing policies, pastoralists are continually being exploited by different agents in the marketing chain.
Approximately 60% of all livestock is found in the hinterland of arid and semi-arid lands where pastoralism is actively practiced. Like any other production systems, pastoralists need better livestock markets to sell their surplus and cater for their financial needs such as purchase of grains, clothing, housing, paying school fees or even leisure. This could only be possible if they have adequate markets with substantive yields.
There is a popular belief that the governments’ slow pace in establishing sustainable national and regional markets is linked to the fact that pastoralists tend to keep large herds of cattle and have little incentive to participate in livestock markets, even in times of anticipated drought. While this view is certainly skewed and highly debatable, it appears that the lack of good markets does greatly contribute to the fact that pastoralists tend to take the risk of retaining stock - with the hope that the situation will gradually improve. However, several steps could be followed to improve the current situation to the benefit of pastoralists and the region in general.
First, at the local level, the situation is aggravated by the lack of a formal rural livestock market. The few existing informal selling points are disorganized, with ineffective operational capacity, lack of quality standards and trade malpractices. The informal markets are situated in towns far from the source of the livestock where the pastoralists have to trek long distances in several days. As a result, livestock often loses weight or face the danger of being devoured by wildlife. Worse still, the livestock could be stolen, leaving the owners desolate and hopeless. This situation could be improved by creating formal markets closer to the local communities.
Secondly, poor road networks in the pastoralist zones as well as those leading to major urban centers are perennial obstacles that affect livestock trade. The livestock are normally trucked onto trailers and ferried to the cities for better markets. Traders often get stranded while on the way, due to the poor state of the road network particularly during rainy seasons that worsens wear and tear. Consequently, transportation cost is blatantly transferred on to the poor pastoralists, who are offered discounted prices in lieu of the anticipated expenses. Hence, improving infrastructure leading to pastoralist zones and subsidising transportation costs could go a long way in boosting livestock trade to the benefit of pastoralists and towards poverty reduction.
Thirdly, a lack of symmetrical information flow between the traders and pastoralists has continued to lock the herders into a situation of exploitation. Consequently, exploitation has been a boon for thriving middlemen and brokerage businesses. As it is the case in most pastoralist areas, livestock prices are determined by nefarious middlemen who maximize the information gap. Development of reliable and timely livestock market information is necessary to help pastoralists and traders make informed marketing decisions. This could be made possible by making use of improved telecommunication systems and modern technology.
Fourthly, livestock trade has an intricate market web with middlemen, brokers and other agents involved in cartels. They act as an interface between the pastoralists, traders and even abattoirs purportedly providing ready markets but at inconsiderable low prices. They speculate on prices and create artificial demand for livestock. The more they are involved in the market chain, the more pastoralists will be subjected to poverty due to low prices. Further, end users will also have to pay higher prices of all daily products and the yields will benefit few at the expense of pastoralist. It is possible to reduce and curb such market inefficiencies and improve returns on the livestock. The formation of co-operatives and associations that sell livestock on behalf of the members will address the problem of middlemen and secure proceeds to the benefit of pastoralists.
Fifthly, common incidences of livestock diseases in the rural areas have hampered access to lucrative regional and international markets. Due to the vastness of the rangeland and difficult terrain, disease surveillance and control among the pastoralist is a constraint that needs to be addressed through the provision of efficient disease control mechanisms and the provision of appropriate timely health services.
Goodwill of the government is much needed in the pastoralist production system. Indeed, deliberate and preferential consideration should be accorded to the livestock sector. Further, there is an urgent need to institute a Livestock Marketing Authority at the national and regional levels. Such institutions will advance the interest of indispensable pastoralists and improve their living standards.
Even though unsystematic coordination of livestock marketing exists, there are good prospects for livestock products as a result of an increasing world population, regional economic integration and urbanization which will boost demand for livestock products. With better marketing, these prospective opportunities could be seized to improve the livelihood and reduce spiral poverty amongst the pastoralists.
Finally, provision of ready markets with minimal transaction cost will give pastoralist incentives to practice good livestock husbandry and participate in the regional and global markets. It will also motivate them to associate with policies and protocols that will enhance regional pastoralist security and livestock marketing.
Tari Doti, Intern – Mifugo Project, ISS Nairobi Office
