Poor quality and safety standards among challenges ailing meat industry

Business
By Patrick Vidija | Oct 24, 2024

When former President Uhuru Kenyatta toured the Kenya Meat Commission slaughterhouse. [File, Standard]

Inadequate capacity to meet quality and safety standards remains among the myriad of challenges facing Kenya's meat industry, stakeholders have been told.

Livestock Principal Secretary Jonathan Mueke on Thursday said despite a great potential in the sector, high post-harvest losses, low-value addition, poor processing skills, and inadequate capacity to meet quality and safety standards are among factors that continue to cripple gains made.

Mueke spoke during the official opening of the African Pastoral Markets Development workshop in Naivasha where he said these challenges have led to sub-optimal performance of the livestock sector, particularly in export markets.

According to Mueke, livestock accounts for over 70 per cent of the country's meat production, with most animals grazing on natural pasture, leading to organically produced meat.

"Livestock is an important sector for the Kenyan economy with significant potential to increase competitiveness and benefit millions of people," said Mueke.

He further noted that domestic demand for meat has been growing steadily, driven by factors such as urbanisation, a rising middle class and expanding export markets.

He, however, noted that one of the most pressing challenges facing pastoralists in Kenya and across Africa is the inconsistency in the supply of quality and quantity of slaughter stock.

"This inconsistency, often exacerbated by frequent droughts and market-sensitive diseases, hinders pastoralists from securing lucrative market contracts," he said.

Mr Mueke said the result is that many pastoralists remain stuck in subsistence-level production, unable to tap into the more profitable, high-value meat markets.

The former Nairobi Deputy Governor acknowledged these challenges, stating that livestock marketing in Kenya is predominantly carried out by individual traders, formal marketing companies, and brokers, many of whom operate in isolation.

As a result, small-scale livestock exporters often struggle to negotiate favourable prices or secure reliable payment systems, leaving them vulnerable to fraud and exploitation.

To address these issues, Mueke called for the formation of strong export cooperatives and companies that can pool resources and leverage economies of scale.

Such cooperatives would enable small-scale exporters to negotiate better deals, arrange for cargo freight, and avoid delays that can lead to spoilage and financial losses.

At the policy level, Kenya has identified the meat value chain as a key driver of its export strategy.

The Integrated National Export and Promotion Strategy aims to reduce the trade deficit from Sh1.5 trillion in 2022 to a surplus of Sh0.2 trillion by 2027, assuming an annual growth rate of 5 per cent.

Mueke said the international, regional, and bilateral trade agreements present a significant opportunity for Kenya to expand its livestock exports.

One such agreement is the African Continental Free Trade Area (AfCFTA), which came into effect on January 1, 2021.

The AfCFTA has created a market of 1.2 billion people, making it the eighth and largest economic bloc in the world.

Mueke described AfCFTA as a 'huge opportunity' for Kenya and other African countries to catalyze growth in the livestock sector and contribute to the continent's economic development.

However, to fully exploit these opportunities, Mueke stressed the need for stronger livestock industry associations that can advocate for better policies, provide market data, and offer public support to private sector players.

He urged stakeholders to work together to remove trade barriers, streamline supply chain logistics, and enhance market access for African livestock products.

He noted that the success of the APMD platform will depend heavily on its ability to create inclusive and sustainable market systems.

One of the key focuses of the APMD initiative is its focus on financial inclusivity, which has been a major component of the World Bank's De-risking, Inclusion, and Value Enhancement of Pastoral Economies (DRIVE) project.

DRIVE, which was implemented in Kenya and neighbouring countries like Ethiopia, Djibouti, and Somalia, provided index-based livestock insurance to pastoralists, ensuring asset protection during droughts.

This innovative approach not only safeguarded livestock but also encouraged greater private-sector participation in the livestock insurance market.

Mueke underscored the importance of linking APMD's market development goals with financial inclusivity initiatives like DRIVE.

By empowering pastoralists with access to financial services, digital platforms, and insurance products, he said the APMD platform can foster a more resilient and prosperous livestock sector across Africa.

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