Towards a Competitive African Dairy Sector: The Continental Development Plan  

 15th  African  Dairy  Conference    

and  Exhibi6on    

Theme  ‘African  Dairy:  More  than  Just  Milk’              

• The  Con(nental  policy  framework  for  the  Dairy  Sector  • Ini(a(ves  to  develop  the  con(nental  framework  • Road  Map  to  a  con(nental  framework  

African  Union-­‐InterAfrican  Bureau  for  Animal  Resources  

•  An  Africa  in  which  animal  resources  contribute  significantly  to  integra(on,  prosperity  and  peace  Vision:    

•  to  provide  leadership  and  integrated  support  services  for  the  development  of  animal  resources  in  Africa  Mission:      

•  to  support  and  coordinate  the  sustainable  development  and  u(liza(on  of  animal  resources  to  enhance  nutri(on  and  food  security,  and  contribute  to  the  wellbeing  and  prosperity  of  the  people  of  African    

Mandate:    

•  Technical  leadership  in  development  of  Africa’s  animal  resources  •  Animal  health,  disease  preven(on  and  control  systems  •  Animal  resources  produc(on  systems  and  ecosystem  management  

•  Access  to  inputs,  services,  and  markets  for  animal  and  animal  products  

•  Convening  power  to  change  the  poli(cal,  policy,  legisla(ve,  regulatory,  strategy  and  prac(ce  landscape  for  animal  resources  development  

•  Pan-­‐African  coordina(on  •  Evidenced  based  advocacy  and  awareness  raising  •  Facilita(ng    resource  mobiliza(on  for  increased  investment  in  the  sector  

AU-­‐IB

AR  Strategic  Plan  2018  -­‐2

023   Strategic  Objec(ve  1:  Human  and  

Ins(tu(onal  Capacity  U(liza(on  and  Strengthening  

Strategic  Objec(ve  2:  Promo(ng  Policy  Development  and  Coherence  for  the  Development  of  Animal  

Resources  in  Africa  

Strategic  Objec(ve  3:  Coordina(on,  Par(cipa(on  and  the  African  Voice  

Strategic  Objec(ve  4:  Ac(ve  Private  Sector  Engagement  

Strategic  Objec(ve  5:  Knowledge  Management,  Informa(on,  

Communica(on  and  Advocacy  

Agenda  2063  2013  -­‐  2063  

LiDeSA  2015  -­‐  2035    

SDGs  2015-­‐  2030  

Malabo  Declara(on  2015-­‐2025  

Live2Africa  2017  -­‐2021  

The  Con(nental  Policy  Framework  for  the  Livestock  Sector      

     

•  Strategic  framework  for  socio-­‐economic  transforma(on  over  50  years  

•  Seeks  to  accelerate  implementa(on  of  con(nental  ini(a(ves  for  growth  and  sustainable  development   AU

 Agend

a  2063  

Effect  equitable  and  people-­‐centered  growth  

and  development  

Eradicate  poverty  

Develop  human  capital,  social  assets,  infrastructure  

and  public  goods  

Establish  enduring  peace  and  security  

Effec(ve  and  strong  developmental  states  

Promote  par(cipatory  and  accountable  ins(tu(ons  

Empower  women  and  youth  

African  Commodity  Strategy:  Value  Addi(on  for  Global  Compe((veness  

•  Reliant  on  commodity  produc(on    •  Reliant  on  export  therefore  

vulnerable  to  price  vola(lity  in  interna(onal  commodity  markets  

•  Minimal  value  addi(on  •  Not  harnessing  forward  and  

backward  linkages  to  other  sectors  •  4.6%  growth  rate  on  average  not  

transla(ng  into  commensurate  economic  diversifica(on  and  mee(ng  development  objec(ves  

•  Significant  human  and  natural  resources:    –  60%  of  global  arable  land  –  Fast  popula(on  growth  –  Untapped  youth  dividend/  youthful  

energy  –  High  urbaniza(on  

•  Commodity-­‐led  industrializa(on:  develop  commodi(es  as  drivers  for  structural,  social  and  economic  transforma(on  

•  Policies  and  programs  to:      –  add  value:  beyond  milk;  milk  is  

transforma(on  versus  milk  is  perishable  

–   extract  higher  rents  from  commodi(es  

–  Promote  intra  and  inter  regional  trade  

–  integrate  into  global  value  chains  –  promote  ver(cal  and  horizontal  

diversifica(on  anchored  in  value  addi(on    

–   local  content  development  –  innova(on,  technology  adop(on  and  adapta(on  

Malabo  Declara6on  on  Accelerated  Agricultural  Growth  and  Transforma6on  for  Shared  Prosperity  and  Improved  Livelihoods  Commitments:    

• Adhere  to  the  Principles  and  values  of  the  CAADP  Process  • Enhancing  Investment  finance  in  agriculture  • Ending  hunger  in  Africa  by  2025  • Halving  Poverty  by  2025  through  Inclusive  Agricultural  Growth  and  Transforma(on  • Boos(ng  Intra-­‐African  Trade  in  Agricultural  Commodi(es  and  Services  • Enhancing  Resilience  of  livelihoods  and  produc(on  systems  to  climate    variability  and  other  related  risks  • Mutual  accountability  to  ac(ons    and  results  • Strengthening  the  AUC  to  support  delivery  of  these  commitments  

models  for  increased  and    innova(ve  investment    

 •  Assump(ons  that  set  the  boundaries  for  the  growth  of  the  sector:  tradi(on  (only  those  who  can  afford)  versus  func(onality  (all  need  protein  cf  to  Safaricom,  Coca  cola,  Total  assump(ons)  

•  Milk  collec(on  versus  high  input  high  output  farm  models  (Uganda  diversified  strategy  that  led  to  exponen(al  growth)  

•  Public-­‐Private-­‐Producer-­‐Partnerships:  Upstream  and  downstream  integrated  financing  models  to  distribute  risk  and  create  sustainable  partnerships  

Halve  poverty  by  2025  through  inclusive  agricultural  growth  and  transforma(on  

•  Sustained  annual  sector  growth  of  at  least  6%  •  Strengthen  inclusive  public  private  partnerships  for  at  least  5  priority  agricultural  commodity  value  chains  with  strong  linkage  to  smallholder  agriculture  •  Create  job  opportuni(es  in  agricultural  value  chains    for  at  least  30%  of  the  youth  •  Preferen(al  entry  and  par(cipa(on  of  women  and  youth  in  gainful  and  agrac(ve  agribusiness  

doubling  produc(vity  and  halving    post  harvest  losses  

•  Very  low  produc(on  not  marched  to  consump(on  needs  and  growing  demand  

•  Produc(on  increases  based  on  herd  growth  rather  than  produc(vity  improvement  

•  Low  produc(vity:    –  in  developed  countries  60%  grain  is  for  feed.  In  Africa  poor  development  of  feed  industry,  rangelands  and  alterna(ve  sources  such  as  residues  

–  Consequently  not  feeding  to  produc(on  targets  –  feed  what  is  available  

•  Improved  breed  acquisi(on  versus  breed  enhancement  of  adap(ve  breeds  and  harnessing  the  breadth  of  breed  poten(al  

•  High  post  harvest  losses:  assump(ons  –  milk  perishable  versus  milk  transformable  –  Individual  risk  versus  collec(ve  opportuni(es  –  Liquid  milk  versus  tradi(onal  products  and  developing  niche  products  

Tripling  Intra  and  Inter  African    Trade  by  2025  

•  Growth  in  Africa  forecasted  at  3.6%  for  2019  –  2020  with  the  world’s  fastest  growing  economies  on  the  con(nent  

•  Reliant  on  agricultural  exports  versus  import  of  food  products  •  Limited  industrializa(on  •  Low  intra/  inter  African  trade:  only  17%  of  total  African  trade  by  

volume  in  2017.    –  North  America  intercon(nental  trade  51%;  Asia  49%;  La(n  America  22%,  Western  Europe  69%  

•  Some  RECs  achieved  improved  integra(on  but  African  market  fragmented  –  Africa  beger  integrated  with  the  world  than  with  itself    

•  Misaligned/  non-­‐harmonized  ambi(ons  between  high  producing  and  impor(ng  countries  

Africa  Con6nental  Free  Trade  Area  agreement  ra6fied:  How  can  the  Dairy  sector  harness  the  opportuni6es?  What  level  of  sector  engagement  in  the  nego6a6ons  eg  infrastructure  development?  

enhancing  resilience  of  produc(on  systems  and  livelihoods  

•  A  sector  highly  prone  to  clima(c  variability  and  related  threats  including  disease  

•  What  structures  for  reducing  vulnerability,  adapta(on;  and  mi(ga(on  of  greenhouse  gases?    

•  Dichotomies/diversity:  formal  versus  informal;  livelihoods  versus  commercial;  farm  versus  pastoral  

•  Resource  sustainability  

low  visibility  –  incommensurate    public  sector  investment  

•  Low  genera(on  of  reliable  data  and  limited  analysis  and  dissemina(on  for  decision  making  and  policy  

•  Low  advocacy  to  increase  consump(on  levels  –  impacts  on  health,  child  development  and  wellbeing  

•  Low  advocacy  on  the  mul(plier  effect  and  spillovers  directly  linked  to  development  objec(ves:  –  Employment  in  both  the  urban/peri-­‐urban  areas  and  in  rural  areas  

–  Incremental  effect  of  every  addi(onal  $1  spent:  $2.9  generated  in  primary  livestock  produc(on  and  $5.9  in  processing  

–  Strong  s(mulus  for  growth  in  manufacturing  and  service  sectors  

–  Equitable  distribu(on  of  benefits    –  Impact  on  crop  produc(on  and  resource  sustainability  

Review  of  the  1st  decade  of  implementa(on  of  the  CAADP  highlighted:    •  the  under  valuing  and  u(liza(on  of  the  livestock  sector’s  poten(al  

•  the  strategic  importance  of  the  sector  in  delivering  both  the  desired  agricultural  led  growth  and  socio-­‐economic  transforma(on  

 The  24th  Ordinary  Session  of  the  Execu(ve  Council  mandated  the  development  of  a  20  year  Livestock  Development  Strategy  for  Africa  (LiDeSA)  in  line  with  the  Malabo  Declara(on    

Live2Africa:  Sustainable  Development  of  Livestock  for  Livelihoods  in  Africa  • AU-­‐IBAR  con6nental  ini6a6ve  to  contribute  to  the  implementa6on  of  LiDeSA  • A  five  year  Project  from  2017  to  2021  

   

       

Live2Africa  • Objec6ve:  To  support  transforma6on  of  the  African  livestock  sector  for  enhanced  contribu6on  to  environmentally  sustainable,  climate  resilient,  socio-­‐economic  development  and  equitable  growth  • Funded  by  a  contribu6on  agreement  partnership  by  European  Union  and  AUC  

 

Result  1:  In

vestmen

t  in  

livestock  value

 cha

ins  increased

 

Result  2:  Animal  health

 delivery  

services  im

proved

 

Result  3:  Animal  produ

c6on

,  prod

uc6v

ity  and

 ecosystem

 man

agem

ent  e

nhan

ced  

Result  4:  Resilien

ce  of  livestock  

prod

uc6o

n  system

s  strengthen

ed  

Result  5:  Techn

ology  ad

op6o

n  in    livestock  value

 cha

ins  

increased  

Result  6:  Access  to  inpu

ts,  

services,  m

arkets  and

 value

 ad

di6o

n  increased  

Result  7:  AU-­‐IB

AR  con

6nen

tal  

capa

ci6e

s  stren

gthe

ned  

Live2Africa  Results  

CONVINCING PHOTOS

Build Systemic Capacity

Live2Africa Approach

Regional Livestock Value Chain

Approach: economic and structural transformation

Catalytic actions and interventions that stimulate momentum, greater functionality and upscale

Towards a Competitive African Dairy Sector: The Continental Development Plan  

• Consensus  on  which  regional  livestock  value  chains  • Stocktaking  Exercise  to  define  areas  for  cataly(c  ac(on  to  build  momentum  for  development  of  the  selected  RLVC  • Development  of  con(nental  and  regional  dairy  policy  framework  and  Strategic  Plans  

    Region   Listed  LVCs   Selected  LVCs   Domain/Scenario   Priori6zed  VC  1   Northern  Africa   Animal  Species  

Products  Milk,    Red  meat  Eggs  

Transforma6on   Dairy  

2   Western  Africa   10  commodi(es  listed  

Cagle  Meat  Cagle  Milk  Poultry  

Transforma6on   Poultry  

3   Eastern  Africa   List  of  7  Commodi(es  and  live  animals  

Dairy,    Meat  (and  Live  animals),    Poultry  

Performance   Dairy  

4   Central  Africa   Poultry  layers,  Eggs,  Beef,  SR  Meat  

Poultry  eggs,  Poultry  layers,  Eggs,  Beef  

Transforma6on   Poultry  Eggs  

5   Southern  Africa   Poultry,  dairy,  Beef,  SR,  Leather  

Poultry,  Dairy,  Meat  (Beef  and  SR)  

Transforma6on   Meat  (Beef  and  SR)  

•  Consensus  built  on  priority  regional  value  chains  where  Live2Africa  interven(on  would  add  best  value    

Con(nental  

A  Con(nental  Roadmap  for  a  transformed,  compe((ve  

and  sustainable  dairy  industry  

A  Biennial    African  Dairy  Industry  

Outlook  Status  Report  

Roadmap  for  the  forma(on  of  an  Apex  African  Dairy  

Body  

Regional    -­‐  Public  Sector  Led/Mul(-­‐Stakeholder  

Development  of  the  Eastern  

Africa  Regional  Dairy  Sector  Strategic  Plan  

Development  of  the  Northern  Africa  Regional  Dairy  Sector  Strategic    Plan  

Regional    -­‐  Private  Sector  Led  

Consolida(on  of  the  Eastern  and  Southern  Africa  Dairy  Associa(on  Strategic  Plan  2019  -­‐  2022  

what  cons(tutes  a  regional    dairy  value  chain?  

•  Defini(on  of  a  regional  dairy  value  chain:  the  outlook  is  s(ll  either  na(onal  or  default  regional,  with  huge  scope  for  intra  and  inter  regional  integra(on  

•  What  cons(tutes  development  of  a  RDVC?  •  Very  limited  con(nental  outlook  •  Strong  regional  varia(ons  which  will  define  the  scope:  species,  models  

   

Eastern  Africa  Regional  Dairy  Value  Chain  

Value  Added  SWOT  •  Tap  into  the  regional  market  •  Enhance  research  capacity  •  Enhance  quality  assurance  •  Strength  processing  capacity  •  Support  the  informal  sector  •  Regula(on  and  control  of  

imports  •  Enhance  climate  smart  

produc(on  •  Promote  domes(c  input  

produc(on  •  Promote  and  incubate  start  

ups  

REC  Consulta6on  •  Regional  ini(a(ves  (ESADA)/  

transboundary  movement  of  inputs,  livestock  and  products  

•  Regional  livestock  policy  but  no  regional  dairy  strategy  

•  Effort  to  harmonize  standards  •  Huge  scope  for  intra  and  inter  

African  trade  •  Focus:  Capacity  building,  

strategic  partnerships  and  market  access  

Strategy  1:  Strengthen  the  capacity  of  producers,  producer  organiza(ons  and  other  value  chain  actors  to  access  input  and  

output  markets  

1.1  Capacity  building    of  producer  groups(Social  

enterprise,  leadership,  governance,  organiza(on  

development,  resource  mobiliza(on..etc)  

1.2Promote  uptake  of  socially  inclusive(youth  

and  women),  environmentally  

friendly/climate  smart  dairy  technologies,  innova(ons  and  

prac(ces.  

1.3  Support  countries  to  do  a  self  PVS  and  request  for  OIE  PVS    

Strategy  2:    Enhance  value  addi(on  and  market  access  for  milk  and  dairy  products  in  the  

region  

2.1Promote  local  consump(on  of  

quality  milk  and  milk  products  within  the  

region  

2.2  Support  investment  in  market  research  ,product  development  and  diversifica(on  

2.3  Support  and  strengthen  processors  and  related  industry/trade  organiza(ons  to  become  compe((ve  

in  the  market.  

Strategy    3:Establish  an  enabling  environment  for  a  compe((ve  dairy  value  chain  in  the  region  

3.1  Support  the  development  and  

opera(onaliza(on  of  the  dairy  management  Informa(on  system  

3.2  Support  and    strengthen  regional  dairy  associa(ons  and  na(onal  

dairy  regulatory  agencies.  

3.Develop/strengthen  and  harmonize    policies,  

legal  ,regulatory  frameworks  and  dairy  quality  standards  across  

the  region  

Northern  Africa  Dairy  Value  Chain  

Value  Added  SWOT  •  Develop  animal  gene(c  

resources  •  Establish  regional  markets  •  Lobby  for  expanded  public  

investment  •  Training  at  na(onal  level  

REC  Consulta6on  •  Na(onal  dairy  strategies  but  

not  at  the  regional  level:  low  intra-­‐regional  linkages  

•  Need  complementary  transboundary  ac(on/  harmonisa(on  

•  Need  to  develop  regional  markets  

•  Reduce  waste/  post-­‐harvest  losses  

•  Improve  quan(ty  and  quality  

North  Africa  Region  Strategic  Ac6on  1:    Harnessing  the  Full  Poten6al  of  the  Region’s  Dairy  Animal  Resources  

1.1  Harnessing  the  value    of  the  region's  exis(ng  Animal  

Resources  (Cagle,  buffaloes,  Sheep,  goats  and  Camelids)  to  produce  good  quality  breeding  stocks  and  reduce  the  region’s  animal  

and  semen  imports  

1.2  Crea(ng  and  strengthening  professional  organisa(ons  by  involving  young  people  and  rural  

women  

1.3  Senng  up  a  smart  herd  and  flock  management  system  (data  recording,  management,  feeding,  product  quality)  while  

strengthening  exis(ng  AI  centres  in  the  region  

North  Africa  Strategic  Ac6on  2:    Harnessing    Natural  Resources  

Sustainably    

2.1  Sustainable  management  and  

op(miza(on  of  Water  resources  

2.2  Management  and  op(miza(on  of  forage  

resources  

2.3  Valua(on  of  Agricultural  by-­‐

products  

North  Africa  Strategic  Ac6on  3:  Capacity  Building  

3.1  Farmers  organiza(ons  with  a  focus  on  small  to  medium  farms  

3.2  Training  and  supervising  to  

increase  performances  of  

milk  value  chains  in  milk  and  

ttransformed  milk  

3.3Harmoniza(on  of  milk  standards  

Cross-­‐Cubng  Ac6ons  •  Establishment    of  a  coordina(on  and  monitoring  commigee  •  Training  and  extension  (Milk  value  chains  focusing  on  milk  

and  milk  deriva(ves  quality)  •  Strengthening  of  Professional  structures  •  Promo(on  of    trade  among  countries  of  the  region  •  Harmoniza(on  of    legisla(on  and  regula(ons  

Dracs  and  Consultant  TORS  for:    • The  Con(nental  Dairy  Industry  Road  Map  • The  Con(nental  Dairy  Industry  Outlook/  Biennial  Status  Report  • Crea(on  of  a  Con(nental  Apex  Dairy  Body  • Finaliza(on  of  the  ESADA  Strategic  Plan    Consulta(ve  Workshop  tomorrow  in  the  Taifa  Hall  from  9  am          

THANK  YOU  FOR  YOUR  KIND  ATTENTION