African Pastoral Markets Development (APMD) advances market coodination and investment matchmaking in Kenya’s livestock sector
Through a demonstrated market coordination and investment matchmaking forum, the African Pastoral Markets Development (APMD) Platform continues to play a critical role in strengthening coordination, investment and private sector integration across Africa’s livestock value chains. Representing the AU-IBAR Director, Mr. John Oppong, the Economics, Markets and Trade Coordinator, emphasized the essence of creating a more connected, transparent and market-oriented livestock economy that links production with processing, finance with opportunity and policy with enterprise.
The 2-day roundtable, therefore, brought together key stakeholders in Kenya’s meat industry, feedlot operators, meat processors, financial institutions, and policymakers, to explore practical solutions for improving coordination, investment and value chain efficiency. While contributing approximately 12% of Kenya’s GDP and nearly 40%to agricultural GDP, the sector largely remains informal, with over 80% of beef produced by pastoral communities being channeled through unstructured markets and low processing value systems.
The Naivasha forum underscored the urgent need for structured linkages between feedlot operators and meat processors. Feedlotters highlighted several issues affecting their operations, including high feed costs, limited access to affordable financing and logistical bottlenecks that translate to an increased production cost. Predominantly, the feedlot operators called for the introduction of quality-based pricing mechanisms by processors to reward producers for higher-grade cattle and improved feeding practices. Additionally, the stakeholders emphasized the need for timely payments from processors, as the delays in settling supplier accounts strain cash flow and the ultimate investment in the intensive livestock production system.
Feed costs emerged as a particularly significant constraint, with calls for targeted subsidies on livestock feed and inputs to stabilize production costs and enhance profitability. ” Without support to manage the cost of feed, the entire feedlot system struggles to compete.” noted Abdulrahim, reflecting a widely shared sentiment among stakeholders.
In the bid for financial inclusion, the financial service providers (FSPs) presented emerging solutions to expand access to capital and insurance for pastoral value chain actors. Equity Bank, in its presentation on Livestock Ecosystems, showcased innovative approaches including asset-based lending, digital financial services and bankassurance insurance models. These instruments, the bank explained, can help de-risk investment in the livestock sector, particularly for the pastoral producers who often lack formal collateral but hold valuable livestock assets.
On examination, Kenya’s meat export grew by 39% in 2023, reaching a value of KES 19 billion (US$ 146 million), with major markets in the Gulf region including the United Arab Emirates, Saudi Arabia, Bahrain and Qatar. However, achieving sustained growth requires addressing systemic challenges such as poor infrastructure, fragmented coordination, limited cold-chain capacity and weak compliance with international quality and safety standards.
By convening this forum, APMD reaffirmed its leadership in facilitating investment dialogue and partnership between public and private actors, while promoting evidence-based policymaking to drive sustainable pastoral market transformation. The expected outcome of the Naivasha engagement includes new business linkages between feedlot operators and processors, policy recommendations for improving coordination and a forthcoming market insight report that will inform investment and policy decisions within Kenya’s livestock sector.
Distributed by APO Group on behalf of The African Union – Interafrican Bureau for Animal Resources (AU-IBAR).
