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Strategic Programme 3 : Access To Inputs, Services and Markets for Animal and Animal Products

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Objective

To facilitate increased access to inputs, services and markets for animals and animal products.

The context

Producers of animal resources in Africa face many challenges to accessing internal and external markets. Among the challenges are poor transport and market infrastructure, high transaction costs, weak value addition and high post-harvest losses especially in the dairy sector, weak capacity to comply with requirements of importing countries and international standards, poor storage facilities and landing infrastructure, insufficient market information, intra-regional trade barriers and trade-distorting subsidies and market protection by most developed countries.

Markets are increasingly becoming consumer-driven and influenced by sanitary and quality requirements. This places high demands on producers with little innovative capacity to access lucrative markets. Moreover, the business service sector in many developing countries does not facilitate access to lucrative markets by small-scale producers. The growing vertical integration of the animal resources value chains with the supermarkets has brought additional challenges and opportunities for African animal producers, though they may exclude the smaller producers. The disproportionately low share of livestock and fish in the overall agricultural development and investment budgets, and the relative lack of competitiveness of smallholder livestock producers and fisher-folk in domestic, regional and international markets are major constraints to the development of a thriving, market-oriented animal sector in Africa. Understanding value chains, building the capacities of the actors through specialization and linking them through communication tools to exchange information on potentialities for trade in animal and animal products are key elements in the development and promotion of intra-African trade in animal commodities.


Key Result Areas

1. Regional livestock and fisheries value chains analysed and developed

The majority of African animal resources value chains are poorly understood, and developed. Most value chains are traditional and fragmented. Once understood, through well-organised VCA, the animal resources industries need innovative solutions backed by a strong partnership and collaboration of the private and public sectors. An important element in value chain development is the optimal involvement of the stakeholders along the chains and sub-chains and perusal of practical and economically feasible linkages (vertical and horizontal) from production to consumption. This would facilitate access to inputs, services and markets for the value chain actors.

Under this result area, the strategy will focus on understanding and developing the value chains for the purpose of enhancing competitiveness, facilitating economic growth and improving the wellbeing of the producers.

This will be achieved through the following:

  • Analysing the existing value chains and identifying opportunities for their enhancement.
  • Providing support to MSs and RECs for the development of value chains.
  • Documenting the existing animal value chains on the continent.
  • Facilitating the development and dissemination of a harmonized value chain analysis framework.
  • Identifying and promoting the prioritization of value chains for which MSs and regions have comparative advantages.
  • Providing policy guidance for interventions to support national and regional value chains.
  • Providing direct institutional support to the regional and continental stakeholder organizations, in particular by strengthening their policy advocacy skills, and supporting their participation in policy dialogue mechanisms for supporting trade in animal commodities.
  • Compiling and sharing of good practices of improved access to services and market through stakeholder organizations and PPP.
  • Mobilizing resources for piloting models of successful PPP mechanisms, involving animal commodities stakeholder organizations, and facilitating access to markets and services.
  • Facilitating and supporting the development of financial products that are adapted to the production cycle of rural livestock enterprises, addressing appropriate repayment terms and collateral for loans, appropriate insurance products, and relevant banking services that use new ICT platforms that allow financial transactions via mobile telephones.
  • Promoting continental consultation and coordination of stakeholders and assisting animal commodity trade stakeholders to develop trade partnerships and synergies within Africa.
  • Facilitating consultations and linkages between stakeholders from African exporting countries and counterparts in key importing countries.
  • Improving availability and exchange of information on market opportunities and business environment.
  • Creating awareness on animal and animal products trade issues.

2. Trade and market information systems established/strengthened

Insufficient market information is a major constraint to competiveness of the animal resources sector in Africa. The current systems vary between countries and regions, in purpose, utility and effectiveness. Development of a continental animal commodity information system (CACIS) that links to the regional market information systems (RMIS) would play a key role in linking producers, marketers and other interested stakeholders in the different regions of Africa through a common market information exchange platform. This will entail close collaboration and institutional capacity building within the RECs in order to ensure the timely flow of information to stakeholders.

This will be achieved through:

  • The documentation and mapping of trade flows of animal and animal products across countries and regions to guide decision-making and strategy-formulation in the animal health and trade areas.
  • Compilation of an inventory of existing market information systems for livestock and fisheries commodities at the national and regional levels.
  • Linkages between existing MIS for possible synergies and complementary actions.
  • The development of MIS models and frameworks to support MSs and RECs in setting up cost effective MIS.
  • Consolidating market information at continental level and availing it to MSs, RECs and private sector actors, through the ARIS system.

3. Value addition along the commodity chains supported and post- harvest losses reduced

Value addition is necessary for market diversification, improved commodity shelf life and food safety, as well as for generating additional incomes and creation of jobs in the value chain. Poor availability and access to appropriate technologies and knowledge, as well as low investments in value addition and processing and marketing infrastructures, are the main challenges that could be addressed through the following activities:

  • Supporting and facilitating the development and adoption of technologies aimed at improving value addition and reducing post-harvest losses, by commissioning research on specific aspects or facilitating access to information and knowledge related to these technologies.
  • Improving capacities of stakeholders in value addition and reduction of post-harvest losses (e.g. training of trainers, production and dissemination of training materials).
  • Facilitating the formulation of policy frameworks and advocating for policy options that promote and encourage value addition and reduction of post-harvest losses.

Outcomes and Impacts

Programme 3 will achieve the following:

  • Established regional and continental platforms that provide information on the availability of and demand for animal commodities and support decisions and stimulate trade initiatives established.
  • Analysed, understood and developed value chains for the promotion of intra-African trade in animal commodities analysed and understood.
  • Post-harvest losses reduced, competitiveness improved and incomes of value chain actors increased.
  • Encouraged and facilitated private sector investment in animal resources.
  • Improved stakeholder's organizations and private sector involvement in service delivery improved.