Livestock as a vehicle for pro-poor growth in SSA: importance of marketing and trade issues Mohammad Jabbar Internat

2. The global economic and social dimension of livestock Contribution to world GDP ~ 1.5 %; AGDP ~ 40% growth ~ 2.5 % p.a. globally, ~ 5 % in developing countries 678 million poor representing 2/3 of total poor, keep livestock for multiple functions 23% of livestock keepers landless Not a panacea but an important opportunity for livelihood and growth

3. MDGs, PRSPs and livestock New emphasis on agriculture and rural development to achieve MDGs Poverty reduction Gender equality Better nutrition Better market access But role of agriculture, especially livestock, lacks appropriate emphasis in PRSPs

4. Per capita consumption of milk and meat by regionkg/person/year (Source: Delgado, 2003)

5. Meat consumption increase by regions 1960-70 1990-2002 Mil tons %global share Mil tons % global share Asia & pacific 15.4 20 80.3 40 Africa 4.3 6 10.3 5 South America 6.6 9 18.5 9 Europe 25.3 33 50.6 25 N& C America 23.0 30 40.8 20 Oceania 1.6 2 2.5 1 Source: FAO

6. Global Shares of Meat Consumption Compared to Population in 2004

7. Household income from livestock(Source: Delgado et al, 1999)

9. Dynamics of Poverty, Dietary Diversification and Growth Potential 1.3 billion people live <$1/day, ~ 281 mil (21%) in SSA 3 billion (~ 1/2 of the world�s population) live on < $2 per day. By $2 per day, most calorie needs are met Between $2 and $9 per day people eat more animal protein, fruits, vegetables & edible oils; dietary diversification drives growth of meat & milk. > $10 per day, people buy more processing, services, packaging, variety, and luxury forms, but not much more raw food commodities How many presently low income consumers are lifted out of poverty will be the most important determinant of the magnitude of changes in global meat and milk markets

10. Constraints for livestock contribution to growth Low asset base of producers Low productivity, low output of poor quality due to poor access to quality inputs and services Low marketed surplus, dispersed producers, so uneconomic for market participation Supply chain with poor infrastructure to link with better income consumers Export of animals important for some countries but SPS and quality major problems in international trade

11. Context for Livestock Markets Research -1 Domestic livestock product markets dominate Analysis predicts supply increases will occur in the same countries/regions as demand Globally only 10% of livestock commodities traded internationally compared to 40% for fish and 20% for wheat Institutions and infrastructure needed to link small producers with consumers, contract farming, vertical integration, cooperatives, other forms of organisation.

12. Context for Livestock Markets Research -2 Regional markets important opportunities in some countries/regions cross border trade in Horn of Africa- many losers, few gainers Trade barriers in trade in West Africa � informal taxes reduce farm gate prices by 4-6% Harmonization of policies and infrastructure to facilitate regional trade flows best for all parties

13. Context for Livestock Markets Research -3 Food safety, quality, SPS issues becoming increasingly important international trade Driven by international concerns about animal and zoonotic diseases, e.g AI, FMD, RVF Driven by local consumer demand for quality and safety higher up the supply chain Need health and certification infrastructure and organizational forms to meet quality and SPS requirements by small producers, e.g. contract farming, vertical integration, other forms of collective action .