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World Bank urges Zambia to improve livestock industry

World Bank urges Zambia to improve livestock industry
By Fridah Zinyama
Tue 25 May 2010, 04:01 CAT

Increasing cattle production is good at reducing poverty in rural areas
ZAMBIA will be able to raise about US $1.5 billion per annum if it matches Kenya cattle production, a World Bank consultant Sunil Sinha has said.

Countries like South Africa, Bostwana and Kenya have taken advantage of their livestock industry and are earning large amounts of money from both beef and milk exports.

In a presentation during a symposium organised by the Economics Association of Zambia (EAZ) and the World Bank last week titled ‘What would it take for Zambia’s cattle industry to achieve its potential’, Sinha said Zambia’s cattle industry had a lot of potential which was still underutilised.

“Zambia has four times more grazing than arable land, three agricultural zones which are suited to livestock and the country if it matched Kenya’s cattle population would have about US $4.5 billion additional value in assets,” he said.

“Furthermore, the cattle industry would increase its GDP contribution to the national treasury to 10 per cent instead of the current one per cent.”

Sinha said once Zambia improved its cattle production, which would lead to the production of more beef and milk, it could export its products to neighbouring countries like the Democratic Republic of Congo (DRC) which is a huge market.

“Zambia could emulate countries like Namibia and Bostwana which supply beef to South Africa and export to Europe,” he said. “Apart from Congo, Angola is also a good market for beef products.”

Sinha observed that the local market was currently very small as Zambians consume very little beef and diary products.

“Apart from the regional markets, Zambia could take advantage of the international markets which are huge and very competitive,” he said.

“At the moment world beef and dairy trade is worth about US $50 billion and above, a share which Zambia could be a part of if it got its act together.”

Sinha said apart from the financial benefits, increasing cattle production was good at reducing poverty in rural areas.

“At the moment for rural households, cattle are the largest asset which they own,” he said. “There is need to help the traditional cattle farmers to improve on their farming techniques so that they can take advantage of their assets cattle.”

Sinha added that if the cattle industry was to grow in Zambia, there was need to reduce the cost of production as it undermined competitiveness.

“At the moment, the cost of feed, drugs and medicines costs higher in Zambia than in South Africa,” he said. “Other factors like access to veterinary services are also affecting the increase in cattle population in Zambia.”

Sinha said high fuel costs and constant power outages contributed to the high cost of doing business in Zambia.

“Lack of infrastructure like rail-lines and the use of road transport made Zambia to be three times more expensive than countries like South Africa,” he said. “And financial inaccessibility also made it difficult for farmers to access the much needed finances to grow their businesses.”

Sinha said despite the challenges which have to be overcome for the livestock industry to grow in Zambia, the sector was growing and attracting more investment.

He added that the environment was currently not very enabling as there was poor policy and lack of institutional framework.

“Government also has to ensure that disease outbreaks are controlled and other infrastructures like dipping tanks are availed to ensure total disease eradication in the country,” he said. “Breeding services should be improved and government should invest more into research.”

Sinha said both the beef and the diary sectors could be improved if bottlenecks which farmers faced were dealt with.

And a Zambeef agronomist Felix Lupindula said there was need for the government to improve the land tenure system for farmers which would allow them to invest in their land.

“At the moment it is very difficult for farmers to invest in dip tanks and wire fencing as they do not own their land,’ he said. “Owning land will help farmers to practice better land management such as crop rotation which will ensure that the land is not over grazed.”

Lupindula said traditional cattle farmers should be compelled to dip their animals at a particular time every year, so that animal diseases are reduced.

And Hiefer Zambia executive director James Kasongo said the government should put in place a strategy to curb animal diseases in the country instead of always fire fighting.

“Government should also come up with a livestock development policy which will help to chart the future of the industry,” Kasongo said.

Currently, Zambia’s low level of competitiveness has been constraining its growth, diversification and prosperity.

According to the World Economic Forum’s Global Competitiveness Index, Zambia is not a competitive place in which to do business as it ranks 112th out of the 133 countries included in the 2009 index.

Few Zambian industries are internationally competitive, only 10 per cent of the labour force is employed in the formal sector and rural poverty is increasing.
There is urgent need, heightened by the global financial crisis, to reduce obstacles to business formation, growth and employment.

Labels: CATTLE, EAZ, World Bank

posted by MrK @ 3:37 PM