LIVESTOCK PRODUCTION SYSTEMS

1. LIVESTOCK PRODUCTION SYSTEMS Global Challenges: Urbanization, Livelihoods and Food Security The case of Botswana’s beef cattle production c. M. Tsopito, phd Department of Animal Science and Production

2. Presentation format • Background • Livelihoods of Batswana • Food security as it relates to Batswana • Urbanization • Livestock production systems of Botswana • Global issues • Conclusions

3. Background • Botswana is a livestock country and most Batswana are engaged in livestock farming. • Traditionally, rangelands bordering cropping fields and villages were designated grazing land and different wards were apportioned grazing rights in a large single large block by the Chief for which an overseer was appointed (Lawry, 1983). • Livestock production has been as source of livelihood for most Batswana since pre-colonial and pre-independence times. • Cattle were used as a good for production (draught power, transport and calves) and also as a consumption good in supplying milk, meat and hides, additionally, as a form of savings for future use.

4. The pre-colonial livestock rearing practices took place during the mid-to-late nineteenth century (Hitchcook, 1980) and then transitioned to private ownership during the colonial era. • The colonial period brought more water points by drilling boreholes, opened the grazing wealth of unexploited lands for perennial use, and veterinary medicine levelled out the fluctuations caused by diseases (Hubbard, 1986). • This resulted in increased cattle production, increased cattle population, increase in off-takes and increased number of water points and increase in the geographical spread of cattle across the country. • In the late 1950’s new cattle marketing opportunities were created in the UK markets due to increased beef prices in the US thus creating beef shortfalls there. • This led to New Zealand and Australia switching their beef supplies from the UK to the US, thus creating a gap in the British beef markets.

5. The gap created made it possible for the some Commonwealth beef suppliers to be given preferential consideration by being exempted from heavy tariff on imports of boneless and canned beef. • In 1947 Botswana with other colonies was allowed to export beef to the UK under the Colonial Development Corporation (CDC) initiative that financed and operated agricultural developments by the UK government. • A colonial development and welfare grant of 400,000 pounds was made available to the then Bechuanaland Protectorate explicitly to drill boreholes for the beef cattle. • The CDF/CD&W grants for borehole drilling totalling over 850,000 pounds between 1935-1965 proved to be a direct and essentially important subsidy to the livestock sector for the country. • However, by 1965 a transformation had occurred in livestock production since water development had expanded into the sand-veld and the Kgalagadi desert resulting in further increases in the cattle population and other livestock species. • Those who could not engage in livestock production went into crop production and labour migration (especially mine labour in South Africa).

6. Thus, prior to independence, the major livelihood earner for almost all Batswana was livestock production with a little bit of crop production and labour migration. • Teaching and being police personnel of lower rank were the only formal employment avenues known then.

7. Livelihoods of Batswana • Prior to independence, agriculture (particularly livestock production) was the mainstay of the livelihoods of most Batswana. • The majority of the rural people depend on both informal and formal agricultural economic activities to sustain themselves. • Besides providing the bedrock for rural livelihoods, the growth of the agriculture is also important for other sectors of the economy which depend on it for raw materials. • The traditional sector in the livestock industry dominates with 80 – 85% of the cattle population owned. • 74.8% cattle, 72.2% sheep and 67.5% goats owned by males. • The livestock farming community comprised mainly of the elderly: • 33% were in the 65 or more years old • 2.73% were in the 50 – 59 years age group • 17.1% in the 40 – 49 years group • The average age of a farmer is 59 years old (Annual Agric. Survey Report, 2011)

8. Beef cattle are the majority in the livestock sub-sector, followed by goats and sheep. • Livestock is owned mostly by the older generation with over: • 1.5 million out of 2.5 million cattle, • 1.1 million out of 1.7 million goats, and • 184,438 out of a total of 283,075 sheep. • The number of farm workers in the traditional sector remained the same for the period 2010-2011. • Average farm wages increased from P547 in 2010 to P663 in 2011, compared to the government approved minimum farm wage of P408 in 2010 to P445 in 2011. • 90% of farm workers in farm holdings were locals and 91.7% of them were employed on a permanent basis. • The traditional livestock sector supplies the bulk (80-85%) of the off-take to the Botswana Meat Commission (BMC) and the domestic market consisting of abattoirs, butcheries, supermarkets, processors, etc.

9. Food security issues • Food security is a situation where “All people, at all times, have physical, social and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life”. • At macro level, Botswana does not fit the definition of a food insecure nation, because although the country produces on average only about 9% of the national cereal requirements, the country has the financial resources to import the rest. • However, at household level it depends on the ability of the household to produce its own food or buy the available food on the market or both. • Households living in absolute poverty are not likely to afford to buy the required food needs and will therefore be food insecure. • This group includes female-headed households, people living with HIV/AIDS and their family members, the disabled, the elderly, orphans, the rural and urban poor and the unemployed.

10. Ten years ago, female-headed households constituted 52% of Botswana’s households and as depicted in the livelihood slides above, men dominate the livestock sector significantly, leading to gender imbalances relative to: • Physical capital such as land • Financial resources for production or income generating activities • Additionally, the country’s climate does not favour crop production, thus making it difficult to venture alternative agricultural activities. • The disabled, elderly and orphans are usually too weak to grow their own food or to generate from anywhere to purchase food. • HIV/AIDS infected and affected households are food insecure largely because they are too sick to tend to their farms or jobs, or divert time from productive activities to caring for the sick. • The rural and urban poor and the unemployed lack resources for food production or for income generating activities, thus, food insecure.

11. Botswana’s agricultural policy has been to pursue food security instead of food self-sufficiency since 1991. • This policy relies on open markets and relatively unrestricted trade for main agricultural products. • South Africa provides almost all of the food imports into Botswana but this has its own disadvantage like when South Africa experienced maize shortages 5 years ago and as such did not allow for exports into neighbouring countries. • Botswana has four main food security objectives: • To ensure physical availability of adequate food supplies at national and household levels through a sustainable combination of domestic production, imports, reserves, and well-dispersed effective distribution and marketing networks. • To ensure economic access, at household level, to available supplies of food through a sustainable growth in incomes and employment; maintenance of a competitive price regime for basic food staples; and maintenance of targeted public assistance programmes for the needy and the vulnerable.

12. To provide, primarily through (i) and (ii) above, support for sustainable improvement in the nutrition status of the people. • Within the framework of the existing health legislation and controls, and through consumer education, to ensure food safety and quality. • To achieve these objectives, the government of Botswana came up with a strategy to operationalize their implementation called Botswana National Food Strategy (BNFS), assisted by the Food and Agricultural Organisation (FAO) in 2003. • The vision of the strategy was “The realization of a stable and sustainable physical and economic access for all Batswana to basic supplies of safe and nutritionally adequate food for an active life”. • Over the past few years, especially during the recession, observations are that government has delivered on its food security objectives since not a single Motswana was recorded to have succumbed to starvation due to numerous targeted interventions being implemented. • Notwithstanding teething problems with implementation of some of them, e.g. ISPAAD in which there has been high public expenditure in return for not spectacular or corresponding crop yields valued in monetary returns.

13. Urbanization • The ongoing expansion of major villages converting into towns and towns expanding into cities has encroached and reduced grazing land at the expense of VGAs and peri-urban small scale farmers. • This loss of grazing land has driven most of these farmers from livestock rearing, in particular extensive LPS while they cannot afford to change into intensive LPS as a result of its input requirements that are costly. • Other competing land requirements such as allocating communal land to individuals has deprived communal groups of grazing land rights at the expense of one individual. Industrialization of pieces of land formerly used for grazing negatively affected VGA and CPA adjacent to towns and villages. • This has led to conflicts between municipal authorities and VGA/CPA since some animals stray into municipal property vandalizing it and so forth.

14. The emergence of supermarkets and chain stores in developing countries has come with a structural change in the way that livestock products (meat, milk, eggs) are collected, processed, inspected, packaged and supplied to consumers. • This change has a deep impact on livestock producers determining who can and who cannot participate in the mainstream supply chain. • Market segmentation is now observed, between rapidly growing formal and stagnating or declining informal supply chains, and between the wet markets for fresh meat and the supermarkets for processed, frozen, packaged and branded livestock products such as meat. • The relative significance of each market segment is tied to the level of economic development. • It is closely linked to the purchasing power of households and individuals, their demand for preferences relative to the form and texture of meat upon purchase, and the relative value they give to notions of food safety and food quality.

15. Large retailers compete in delivering consistent product quality that is demanded by their market and reliable supply, consistent volumes, etc. • Quality varies with the suppliers strategies and cultural influences on the other hand. It includes food safety, nutrition, and attributes related to commercial differentiation of products. • Vertical coordination therefore presents the opportunity to keep control of operating and transaction costs while also meeting high standards of food safety. • It demands organisational and institutional changes in relationships between the primary producer, agri-food processor or supermarket giving rise to vertically coordinated transactions or to fully integrated systems • Large retailers in developing countries like Botswana, are adopting vertical coordination. • Vertically coordinated chains may interact with informal markets (traditional sector) that supply inputs of live animals (such as VGA and CPA) or produce. • Small scale farmers can stay in business by providing their labour input to their own farms at below market price. • This works well where there are limited employment opportunities in other sectors.

16. Livestock Production Systems of Botswana • Generally, livestock production systems (LPS) have been determined by the prevailing ecological and socio-cultural environments within various countries. • Additionally, the purposes and intensities of production contribute to the livestock production system adopted. • internally (within countries), LPS have been largely sustainable and in equilibrium with such environments. • In semi-arid Botswana, pastoral systems utilizing natural rangelands have been in stable balance with human-animal-vegetative biomass for many years. • Livestock production systems have also been categorized on the basis of agro-ecological opportunities and demand for livestock products generated. • Many of these systems are now under pressure to adjust to rapidly changing socio-economic conditions, and large intensive productions operations.

17. Botswana has annual rainfall that varies as follows: • 700 mm in the north around the Okavango Delta (wet swampy region) • 400 mm in the East (hardveld region) • 200 mm in the South-west, Kgalagadi region (sandveld – desert) • Botswana had a rangeland of about 450,000 km2 (FAO, 1978) that has significantly decreased post-independence • Botswana’s rangelands currently support close to 2.5 million cattle, 1.8 million goats and 0.3 million sheep (Annual Agricultural Survey Report, 2011). • Botswana has exported beef to the European Union (EU) since pre-independence times to date.

18. LPSs have been classified into a limited number of distinct categories based on the following criteria: • Integration with crops • Relation to land • Agro-ecological zones • Intensity of production • Type of product • However, Sere and Steinfeld (1996) proposed a classification that only uses the first three of the above categories that now resulted into eleven (11) LPS categories. • This classification considered LPS as a subset of farming systems and as such, two main groups of LPS are distinguished:

19. Those solely based on animal production • Systems in which more than 90% of dry matter fed to animals comes from rangelands, pastures, annual forages and purchased feeds • And less than 10% of the total value of production comes from non-livestock farming activities. • Crop-livestock based LPS • Are systems in which more than 10% of the total value of production comes from non-livestock farming activities. • Then there are landless LPS which are a subset of the pure livestock systems in which less than 10% of the dry matter fed to animals is farm produced and in which annual average stocking rates are above 10 LSU (livestock units) per hectare of agricultural land.

20. Grasslands such as in Botswana are those in which 10% of the dry matter fed to animals is farm produced and in which annual average stocking rates are less than 10 LSU per hectare of agricultural land. • A distinction is made between: • Arid/semi-arid tropics and sub-tropics • Temperate zones and tropical highlands • Humid/sub-humid tropics and sub-tropics. • Rain-fed mixed farming LPS are those in which more than 90% of the value of non-livestock farm production comes from rain-fed land use. • These LPS can be divided into the same agro-ecological sub-classes as above.

21. Due to Botswana’s erratic rainfall occurrence and distribution, we simply have used the old systems classification of: • Extensive LPS • Intensive LPS • Semi-intensive LPS • This classification for Botswana is based on land use and land tenure systems divided into: • Communal land (tribal land) • Freehold (private land) • State land (government owned) • Game reserves and National parks (17% of total land area)

22. Communal LPS:- graze their livestock on open pastures that are communally owned and managed. These are divided into cattle-post areas (CPA) farmers who operate unfenced areas with one or more boreholes, away from villages or towns, and village grazing areas (VGA) or peri-urban farmers who graze from the village or surrounding area (FAO, 2010) • It is estimated that there were 2,100 medium-to-large CPA farmers with a holding of 150 or more cattle, many operating similar to commercially managed farms but without fencing. • Additional 14,000 -15,000 small scale CPA farmers with herds less than 150. • CPAs farmers manage around 60% of Botswana’s cattle in 2007. • There were an estimated 60,000 VGA farmers in 2002 with their numbers declining as their land was increasingly lost to fenced farms, and urbanization. These were mainly subsistence or hobby farmers relying on additional incomes from alternative sources. They do not purchase any inputs. • They manage up to 30% of Botswana’s cattle with an average of 14 cattle per person • The VGA practices can potentially lead to overgrazing, land degradation and bush encroachment..

23. Commercial LPS: are usually large commercially operated on fenced on freehold or leased land with exclusive rights to grazing resources. They have fallen from owning about 30% of the national herd in 1980 to 12% in 2012 primarily due to reduced profits and converting into game farms and ranches. • Some have moved into weaner production, often with their own feedlots. They practice superior breeding and off-take performance accompanied by higher costs. • Feedlots and weaner production (intensive production system): the BMC and government have shifted to intensive feedlot production whereby weaners are put into a feedlot and fed concentrates to finish them in a shorter time but also adding value to the meat quality. Super markets and chain stores are also into this LPS since they are assured of sustainable supply of higher quality meat and sustainable supply.

24. Factors determining which LPS to use in Botswana • Land use: • Communal versus freehold (fenced) • In communal LPS every member of the community or tribe has land rights allowing him/her to graze any number of livestock on the land available without discrimination or otherwise. This has made impossible to carry out any meaningful management practices or adopt any new land use practise without disadvantages small-scale farmers. • Contrastingly, under commercial set ups, individuals have sole rights to the land and practice appropriate land use management techniques dependent on carrying capacities of the land at their disposal. Thus their stocking rates are determined by the carrying capacity of the land. • Large parts of the country are suitable for extensive livestock production, however, sustainable land management mechanisms are needed to ensure that overgrazing (common in communal land) does not occur. Farmers on communal land only enjoy user rights and can only sell improvements not land. • Technologies used: • Traditional versus modern technologies • Old traditional methods are still used as new ones are very expensive to acquire for small-scale farmers who rear livestock for various reasons (milk, meat, draught power, security, income, wealth, cultural issues). • A cost benefit analysis does not favour these group of farmers, and they are found mainly peri-urban and peri villages.

25. Those who can afford to purchase modern technologies are the more progressive and economically empowered. • They are driven by their desires to make profits. • They are influenced by global issues such as free markets and world trade issues • They are able to calculate the benefits of adopting modern ways of rearing livestock and where there is potential make profits, they will invest into the new modern technologies on offer. • Livelihoods: • Subsistence versus commercialisation • Subsistence production is where people produce livestock products for consumptive purposes and may sell any surplus that may be generated or store the surplus for later use. • Commercial production is geared to generating income by selling livestock products realised for profit. • Prevailing livestock diseases: • Foot and Mouth Disease (FMD) and Contagious Bovine Pleuro-Pnuemonia (CBPP) • Slaughter policy has been used when outbreaks of these two diseases have occurred and compensation paid to farmers

26. Farmer Categories in Botswana’s LPS • Subsistence farmers: those with 1 – 40 herd of cattle, resource-poor individuals/households, without a watering point of their own and are found peri-urban and peri-village utilizing urban/village water points. • They occupy between 25 – 35% of total livestock farmers. • Emerging/progressive farmers: own from 41 – 250 herd of cattle, economically empowered, occupy communal land away from urban and village areas, operating cattle-posts in a syndicated group around a borehole. Boreholes are separated by a distance of 6 km radius minimum distance by law. • Their objectives are to achieve commercial status to make profit from their livestock investments. • Commercial farmers: own from 251 cattle or more. They are found in both fenced farms/ranches and in communal land. • Those in communal land have sole watering rights for their individually owned boreholes and as such have the 6 km radius dispensation to themselves only but cannot fence the land if it is not designated as freehold, leased or tribal grazing land purposes only.

27. Commercial vs Traditional Farms • Distinction is made between commercial and traditional holdings here for the purposes of statistical and agricultural surveys solely on the basis of type of land ownership. • Commercial farmers are those who operate on freehold, leasehold or Tribal Grazing Land Policy (TGLP) farms or ranches. • These operations are used solely for producing for meat markets (domestic and exports). Table 1: Commercial herds as a percentage of total national herd Source: Statistics Botswana, Agricultural Surveys, various years

28. Mixed farming systems are used both in the traditional and commercial sectors. • Holders engage simultaneously in crop farming (maize and sorghum) and livestock (cattle and goats) • The traditional sector is by far the most important LPS. • It currently holds >80% of all species of livestock. • This is shown in the above Table 1. • Commercial holdings own about 12 – 15% of total number of cattle in Botswana. • LPS have slowly evolved from transhumance to a sedentary, largely absentee-owner, cattle-post system concentrated around boreholes with exclusive or shared syndicated water rights. • The day-to-day management has fallen to herd men with little knowledge and limited resources to manage the animals beyond providing them with water. • Absentee owners visit their cattle-posts or farms a few times in a year to take stock of their livestock and to give instruction to the herd men (Anton van Engelen et al., (2013) and Botswana Agricultural Value Chain Project – Beef Value Chain Study(FAO and Min of Agriculture, Botswana).

29. All LPS are dominated by men, however, female owners or holders account for 30% of cattle producers. • The rural population engaged in livestock production is relatively old. • At least 60% of holders are aged 50 years and above. • This age structure has consequences for the dynamics of the livestock sector since labour is scarce. It is difficult to find someone for the very hard work and business is usually less dynamic, technologies less innovative because of old age. • Wages in the traditional operations are lower than in the commercial ones. • Livestock production labour wages amount to about 25% of the monthly average earnings of most other sectors (Labour Force Survey, 2008). • Productivity: • Livestock productivity in Botswana is low by international and regional standards. • It is consistently lower in traditional operations than in commercial holdings. • Production is also volatile as related to drought cycles and outbreaks of livestock diseases such as FMD.

30. The Ministry of Agriculture has divided the whole country into disease control zones through cordon fences in order to prevent the spread of FMD, even from neighbouring countries such as Zimbabwe. • FMD is generally prevalent in areas where buffaloes can easily mix with cattle but it can also affect goats and other cloven-hoofed animals. • Beef from cattle in areas with high potential for FMD like those in the North and Okavango-Ngamiland regions is not eligible for the European Union (EU) market, the country’s largest export market. • Government has a policy practice on FMD outbreaks whereby they slaughter all cattle from the affected areas and compensate farmers for their destroyed animals

31. The Botswana Meat Commission (BMC) is responsible for the purchase, slaughter, sale, marketing and export of livestock and livestock products. • It sells to both domestic and external markets such as EU, Norway and South Africa. • The BMC enjoys a monopoly on the export of beef and it has three slaughter abattoirs in the country. • The Lobatse and Francistown plants are accredited to export to the EU. The Maun plant is in an FMD endemic zone and can only market locally. • The BMC buys and sells livestock products based on the export parity prices. • The BMC is loss-making and needs regular subsidies and payments for re-capitalisation in times when exports of beef are suspended due to disease outbreaks. • The Botswana Vaccine Institute (BVI) manufacturers, sells and exports several livestock vaccines both domestically and internationally (globally). Vaccines produced are for FMD, Anthrax, CBPP, Black-quarter and others. • Exports of vaccines now count for a major foreign exchange earner for the country.

32. Table 2: Botswana’s Beef Exports

33. The global beef market and Botswana’s position • In 2013, the global beef exports market was estimated at US$42.4 billion. The market was divided equally between exports of fresh or chilled, and frozen beef. • The market is dominated by top 10 producers (countries) that account for over 80% of exports. • Botswana is a relatively small player in global beef context with only US$117 million, representing only 0.3% market share and was ranked 22nd and 28th in the world in the export of frozen and chilled beef, respectively. • Botswana’s beef exports are estimated to account for 1.5% of its mechandize exports. • Nevertheless, it is considered to be a strategically important sector with the country’s pastures providing it with a natural advantage in producing high quality grass-fed beef free from feed additives and hormones. • The sector’s performance affects the livelihoods of a large number of livestock farmers. • As mentioned above, our beef exports are concentrated in RSA, UK, Norway, Netherlands and a few African and Middle-east countries.

34. Table 3: Top 10 global fresh, chilled and frozen beef exporters

35. Competitive constraints and bottlenecks • Supply-side issues: • Capacity development • The beef sector is dominated by small, potentially uneconomic holdings • Weather fluctuations, droughts and shortage of underground water hamper the sector’s performance • Seasonality of supplies to slaughtering facilities reduces supply chain efficiency • Persistent FMD in red zones reduces volumes and prices achievable for exports • High overhead costs at BMC imposes a cost to the entire sector. • Capacity diversification • Need to invest in technology, R&D and production capacity to produce different cuts, packaging, etc. for export • The range of secondary processed beef available is very limited • Development of skills and entrepreneurship • Traditional pastoral methods often hamper introduction of modern husbandry techniques • Most communal farmers and some commercial farmers do not commercially approach livestock production

36. Quality of the business environment: • Infrastructure and regulatory issues • Underdeveloped transport and communication infrastructureincreases costs and disrupts access to supplies and markets • The BMC lacks modern, flexible packaging facilities for exports • The BMC monopoly on exports disrupts the beef value chain • Lack of competition limits innovation and export growth • Lack of technology at BMC to promote commodity-based trading (CBT) in FMD affected zones • Politicization of sector prevents strict enforcement of some regulations • Import restrictions distort the market and reduces scope for exporting high value, high quality beef. • Trade facilitation • Limited technical and economic information available to sector participants • Lack of access to meaningful independent export market intelligence • Limited research into sector’s economics, diseases, etc.

37. Quality of institutional support • Limitations in capacity of the Competent Authority (Department of Veterinary Services-DVS) has led to lack of flexibility, low commercial orientation and inconsistent official controls and enforcement. • Dispersal of export responsibilities among MoA departments and Ministry of Trade and Industry (MTI) requires consolidation and increased involvement in trade negotiations affecting the sector. • Beef producers associations are underdeveloped and need capacitation • Cost of doing business • High reliance on expensive imported inputs including feeds, energy, etc • Inefficiencies in the sector’s support framework increases costs and risks for participants. • Need to comply with a wide range of certification requirements • Limitation in local testing facilities causes delays and increases costs of production

38. Market entry: • Market access and policy reform • Shortage of people, knowledge, expertise and focus on trade among policy makers • Limited trade coordination at SADC level and possible misalignment of priorities for Southern Africa that weakens export negotiations. • Reliance on exporting through South Africa poses risks of disruption • Trade services support • Reliance on one outsourced export agent presents a range of risks • National promotion and branding • Lack of national and product level branding • Botswana’s beef has limited product differentiation and targeting • There is heavy concentration on exports to South Africa and EU, especially the UK.

39. Development: • Poverty alleviation and employment generation • Traditional communal practices limit income potential • Lack of commercialization limits capacity to generate employment • Environmental sustainability and climate change • Overgrazing near villages and boreholes contributes to environmental degradation coupled with disease outbreaks • Poor hygiene practices contaminate grazing areas • Livestock and wildlife co-management including fencing creates problems. • Regional development and integration • There is a need for increased effectiveness in regional cooperation in areas such as trade negotiations, research and disease control.

40. Gender and youth inclusiveness • There is low involvement of women and youth in the sector. • LPS growth rates: • Significant changes in resource endowment can bring about changes in the nature and extent of certain production systems. Some major increases have been observed in tropical highland grazing systems. • No such increases have been observed in Botswana even after increasing the levels of inputs such as supplementing grazing, or feeding concentrates to intensively produced cattle since there has never been any corresponding price increases at the slaughter markets for the past 5 – 10 years.

41. Global implications for food safety • Livestock products have continued to provide calories and protein in both developed and developing countries. • The livestock industry therefore has great global economic and nutritional significance. However, while the global importance of livestock products increases, the related changes in the livestock sector affects the security of the food provided in various ways. • Given the direct links between feed safety and the safety of foods of livestock origin, it is essential that feed production and manufacture be considered as an integral part of the food production chain. • Feed products must be subject to quality assurance, including food safety systems based on hazard analysis and critical control points (HACCP). • The Codex Alimentarius Commission has a Code of Conduct on Safe Animal Feeding (2004) that can used. • LPS in many developing countries (e.g. Botswana) are subject to strong external forces and are in the process of rapid adjustments. • These adjustments are driving out small scale farmers since they are costly and immediate.

42. Where traditional and modern forms of livestock production co-exist, with parallel market channels and outlets, uniform standards are difficult to enforce because of: • equity concerns • disease concerns • certification problems • and other issues • This poses a formidable challenge in regulating and upgrading food safety since the two segments interact. • Standards and regulations for animal health, food safety and food quality affect and are affected by the structure of livestock food chains. • These standards are increasing in stringency, complexity and cost implications. • They are variable in nature and are driven by multiple forces, such as: • International agreements, international bodies, national policies and laws, requirements of large-scale retailers, etc.

43. Consumers in affluent countries have a major impact on standards setting, yet the results of such standards may affect: • Poor and marginal producers, processors and consumers who do not directly trade in the global market and have very little voice in the standards setting process. • The private sector has an increasing influence while the impact of the public sector is limited and policies do not always reflect the needs of the various stakeholders in the livestock food chains. • Food safety requirements are a major determinant shaping the structure (e.g. vertical integration) of the livestock sector and associated food chains. • The emergence of multinational food chains and a dramatic rise in the market share of supermarkets and the modern retail sector in many countries have created a number of effects that may compromise food safety through: • A shift toward cross border systems of procuring goods in their different countries of production/operation • A shift toward preferred-supplier systems by selecting producers who meet specific quality and safety standards and lower transaction costs • Consolidation of production and processing which may have unexpected impacts on safety • A shift toward safety and quality standards driven by the private sector.

44. Farmers Associations • Farmers have formed commodity associations to represent their interests. • The associations have members throughout the country. • They work closely with district extension staff to provide input into the design, monitoring, and review of programme and trade matters concerning their commodity. • They advocate for their rights and privileges with the Ministry of Agriculture through various departments within the ministry. • Farmers Associations are weak since they are still at formative stages and as such need to be strengthened and capacitated in terms of management both in terms of day-to-day running, accountability, advocacy, transparency, professionalism and commodity knowledge

45. Conclusion • When LPS are only influenced by internal forces (local or domestic issues) they tend to reach an equilibrium state and may depend solely on agro-ecological resources. However, this tendency is evolving rapidly due to external forces that are in demand of livestock products. • Urbanization, improved incomes, changes diets and eating habits, improved diet quality and food safety, and emergence of multinational supermarkets and retailers, convenience and leisure oriented-consumers, have led to this rapid change in LPS. • LPS have become dynamic in order to meet the demands of the now sophisticated consumer through intensification of technological advances and greater use of inputs from crop production rather than depend on agro-ecological resources which finite but by a variety of interacting factors. • vertical integration provides economies of scope, ensures reliability of supply, facilitates quality management and homogeneity of products. • It is also mitigates threats to food safety and food quality. • It also increases the scale of production and the growth of some LPS.

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