THE STATUS OF THE SMALLHOLDER LIVESTOCK SECTOR IN ZAMBIA Submitted to the Parliamentary Committee on Agriculture by Mary Lubungu and Rhoda Mofya-Mukuka Technical Report 1 December 2012 1. IMPORTANCE OF LIVESTOCK 1.1 Livestock’s Contribution to National and Agricultural GDP The livestock sector contributes 3.2 % to the overall national GDP and 42% to the agricultural GDP (MAL et al., 2012).1 These figures exclude the contribution of animal draught power and manure. If all these are taken into account, the contribution to national GDP increases to 6.4%. However, official estimates by Central Statistical Office (CSO) of the livestock sector’s contribution to national and agricultural GDP are reported as 1.9% and 30% respectively. This is an indication that the value of livestock is officially underestimated. Despite the significant contribution to the national economy, the livestock is underfunded. Livestock budget allocation is only 17% of the total agriculture budget. The actual budget release is even much less. 1.2. Contribution to smallholder household livelihood At household level, livestock plays several socio economic roles. Livestock sales and consumption account for 6% of the smallholder incomes. However, depending on the dominant species, the contribution to household income can be as high as 45%. Livestock serves as an important wealth asset and accounts for 20% of the productive assets. In other provinces for example Eastern and Southern Province livestock assets as a share of productive assets is as high as 40% 1.3. Export Earnings Livestock exports of both carcasses and live animals go mainly to Angola and DRC. Currently Zambia cannot export to the EU market due to failure to meet the EU livestock standard requirements. As shown in Figure 1, most livestock exports from Zambia are cattle. Figure 1: Exports of Live Animals from Zambia 1 MAL – Ministry of Agriculture and Livestock, IAPRI- Indaba Agricultural Policy Research Institute, WORLD BANK, UNZA – University of Zambia and consultants from ALIVE and CIRAD (2012), “Livestock Sector in Zambia for Economic Growth and Poverty Reduction: An Analysis”. 1 Source: FAOstat 2. DATA SOURCES This paper is based on data from the Rural Agricultural Livelihood Survey (RALS) which was conducted by IAPRI in July and August 2012. RALS covered the 2010/11 agricultural year, and the 2011/12 crop marketing year. RALS data is nationally representative, and focused on small scale farmers in all 10 provinces of Zambia. A sampling weight from CSO is used to arrive at national figures. In addition to RALS, further information for this study was obtained from a report on Livestock Sector in Zambia, which was done by Ministry of Agriculture and Livestock (MAL) and other stakeholders including Indaba Agricultural Policy Research Institute (IAPRI.)2 The rest of the paper discusses livestock systems, production, marketing and challenges that the sector is facing. The paper then makes some policy recommendations. 3. LIVESTOCK SYSTEMS The livestock sector in Zambia is segmented into two distinct and poorly coordinated channels: the commercial livestock sector and the traditional or smallholder livestock sector. The smallholder sector accounts for 80% of the total livestock in the country and only 20% is under the Commercial sector. i. Commercial livestock sector The commercial livestock sector links medium to large-scale animal producers to an expanding network of supermarkets and other commercial retailers. This production and marketing system is characterized by: Robust disease control and bio-safety procedures at all stages of the value chain; Technically advanced animal husbandry practices, including confinement feeding, leading to low levels of animal mortality and high productivity; Integrated marketing systems linking producers to formal retail channels; and Organized groups representing the interests of large-scale firms in the determination of industry standards. ii. Traditional or Smallholder livestock sector In Zambia, 82.5% of the 1,417,992 smallholder farmers own at least one type of the livestock (cattle, goats, pigs, sheep, and donkey) or poultry (village chicken, guinea fowls, ducks/ geese and rabbits). 2 The report “Livestock Sector in Zambia for Economic Growth and Poverty Reduction an Analysis” was done by a technical team of experts from Ministry of Agriculture and Livestock (MAL), IAPRI, WORLD BANK, UNZA and consultants from ALIVE and CIRAD 2 Livestock contributes about 45% to the poorest smallholder household income (MAL et al.,2012). Yet, despite the importance of livestock rearing to smallholders’ livelihoods, the majority of smallholder production and marketing remains confined to the “traditional” sector. This sector is characterized by: Limited disease and bio-safety management at all stages of the value chain; Low input husbandry techniques, including limited adoption of animal confinement, leading to high levels of animal mortality and low productivity; Low capacity to comply with sanitary and phytosanitary regulations; Poorly coordinated marketing systems linking farmers to urban consumer markets; and In traditional systems animals often perform numerous functions beyond simply as an income source. These include: providing draught power for crop production; serving as a form of wealth to be liquidated in times of financial stress; use in cultural practices such as bride price payment (lobola) or slaughter for traditional ceremonies; and providing protein. The multiple economic and social functions performed by animals influence the ways in which they are produced and sold, which distinguishes the traditional from the commercial sector. 4. LIVESTOCK PRODUCTION 4.1 Production Trends The livestock population in the smallholder sector increased from 2001 to 2008 for cattle, goats, pigs and sheep. However, between 2008 and 2012 there was a decline in the livestock population as shown in Figure 2. population of livestock Figure 2: Smallholder Livestock Population by Year 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - cattle goats pigs sheep 2001 1,489,728 1,179,301 492,465 51,336 2004 2,392,893 1,740,329 615,514 111,156 2008 2,815,583 2,420,077 1,016,199 157,535 2012 2,162,357 2,073,493 942,349 49,063 Source: CSO/FSRP Supplemental Surveys (2001, 2004, 2008) and RALS (2012) 3 4.2 Livestock and Poultry Population by Province As of 2012, the smallholder livestock sector in Zambia consisted of approximately 2,162,357 cattle, 2,073,493 goats, 942,349 pigs, 49,063 sheep and 5,932 donkeys (Figure 1). The distribution of livestock across provinces is presented in Table 1. Table 1: Population and Distribution of Livestock among Smallholder Households by Province In 2012 Livestock Cattle Goats Pigs Sheep Donkeys Number of livestock (percentage of national total) Central Copperbelt Eastern Luapula Lusaka Muchinga Northern North Western Southern Western National 273,382 43,118 441,956 15,550 84,590 82,042 49,258 55,930 857,570 258,961 (12.6%) (2.0%) (20.4%) (0.7%) (3.9%) (3.8%) (2.3%) (2.6%) (39.7%) (12.0%) 2,162,357 (100%) 412,083 96,076 293,724 127,341 79,212 95,705 134,212 137,765 675,106 22,269 (19.9%) (4.6%) (14.%2) (6.1%) (3.8%) (4.6%) (6.5%) (6.6%) (32.6%) (1.1%) 52,919 46,249 511,919 26,294 18,417 31,168 38,025 25,368 166,051 25,939 (5.6%) (4.9%) (54.3%) (2.8%) (2.0%) (3.3%) (4.0%) (2.7%) (17.6%) (2.8%) 962 662 10,390 3,408 1,340 1,767 4,041 1,351 25,142 0 (2.0%) (1.3%) (21.2%) (6.9%) (2.7%) (3.6%) (8.2%) (2.8%) (51.2%) (0%) 2,073,493 (100%) 942,349 (100%) 49,063 (100%) 700 0 89 0 1,214 0 0 0 2,756 744 (12.7%) (0%) (1.6%) (0%) (22.1%) (0%) (0%) (0%) (50.1%) (13.5%) 5,503 (100%) Source: RALS (2012) Poultry totals among smallholder households were approximately 12,064,568 local chickens, 277,835 guinea fowls, 220,506 ducks/geese, and 53,173 rabbits. The distribution of poultry across province is presented in Table 2: Table 2. Population and distribution of poultry among smallholder households by province in 2012 Poultry Village chickens Guinea fowls Ducks & geese Rabbits Number of poultry (percentage distribution of national total) Central Copperbelt Eastern Luapula Lusaka Muchinga Northern NorthWestern Southern Western National 1,848,271 713,176 1,944,999 956,324 395,240 1,258,643 1,439,234 851,445 1,910,268 746,968 (15.3%) (5.9%) (16.1%) (7.9%) (3.3%) (10.4%) (11.9%) (7.1%) (15.8%) (6.2%) 35,879 5,484 30,508 10,332 2,807 10,360 2,592 9,539 167,801 2,532 (12.9%) (2.0%) (11.0%) (3.7%) (1.0%) (3.7%) (0.9%) (3.4%) (60.4%) (0.9%) 23,602 7,157 26,734 32,550 12,752 45,169 23,433 16,760 30,490 1,860 (10.7%) (3.2%) (12.1%) (14.8%) (5.8%) (20.5%) (10.6%) (7.6%) (13.8%) (0.8%) 3,446 41 6,188 169 1,144 7,125 29,532 0 5,527 0 (6.5%) (0.1%) (11.6%) (0.3%) (2.2%) (13.4%) (55.5%) (0%) (10.4%) (0%) 12,064,568 (100%) 277,835 (100%) 220,506 (100%) 53,173 (100%) Source: RALS (2012) 4 4.3 Ownership of Livestock and Poultry by Province According to RALS data, out of the 1,417,992 smallholder households in Zambia, 300,907 (21.2%) own cattle, 358,937 (25.3%) own goats, 208,517 (14.7%) own pigs, and 8,022 (0.6%) own sheep. As indicated in Figure 3, the ownership rates of livestock are higher in Eastern and Southern Province. Figure 3: Percentage of Smallholder Households Owning Livestock by Province Source: RALS (2012). Note: HH=household. For poultry, out of the 1,417,992 smallholder households, 1,085,124 (76%) own village chicken, 43,652 (3.1%) own guinea fowls, 33,699 (2.47%) own ducks/geese, and only 4,115 9 (0.3%) own rabbits. Sixty percent (60%) of the smallholder households keeping guinea fowls are in Southern province while 35% of the households keeping rabbits are in Northern Province. Table 3: Distribution of total smallholder households owning poultry across provinces Central Copperbelt Eastern Luapula Lusaka Muchinga Northern NorthWestern Southern Western TOTAL Village chickens 12.4% 4.7% 18.8% 9.7% 2.7% 8.7% 12.8% 6.4% 15.7% 8.0% 100% Guinea fowls 12.5% 1.4% 14.1% 2.6% 1.9% 4.2% 1.3% 1.7% 59.9% 0.3% 100% Ducks & geese 11.6% 3.1% 15.6% 16.0% 4.8% 14.5% 8.8% 8.0% 15.7% 1.9% 100% Rabbits 11.8% 1.6% 23.8% 0.8% 1.9% 14.2% 34.7% 5.8% 5.5% 0.0% 100% Source: RALS (2012). 5 On average, each smallholder households owns 1.5 cattle, 1.5 goats, 0.7 pigs and 0.1 sheep (Figure 4). However these figures are higher when we consider the distribution among livestock owners. national average of livestock owned Figure 4. National Average of Livestock Owned among Smallholder Households 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Cattle Goats Pigs Sheep Source: RALS (2012). Among cattle owners, the average number of cattle owned is seven while goat rearing households have six goats on average. The average number of pigs owned among those keeping pigs is five and those keeping sheep have on average six sheep. These are presented in Table 4. It is worth noting that a significant proportion of households own one to six cattle. Similarly, the majority of households own less than six goats, pigs, and sheep (Figure 5). Table 4: Average Number of Livestock/Poultry owned per Smallholder Household Keeping that type of Livestock/Poultry by Province Cattle Goats Pigs Sheep Donkeys Village chickens Guinea fowls Ducks & geese Rabbit s Central Copperbelt 7 8 7 6 6 7 2 7 2 . 14 14 7 9 6 7 7 1 Eastern 5 5 5 5 2 10 5 5 6 Luapula 10 4 3 5 . 9 9 6 5 Lusaka 16 9 6 13 4 13 3 8 15 Muchinga 6 5 3 8 . 13 6 9 12 Northern 5 4 2 5 . 10 5 8 21 NorthWestern 7 5 4 7 . 12 13 6 0 Southern 10 8 4 8 2 11 6 6 24 Western 7 4 6 . 3 9 17 3 . National 7 6 5 6 3 11 6 7 13 Source: RALS (2012). 6 Figure 5: Livestock Herd and Poultry Flock Size among Smallholder Households Raising that type of Livestock/Poultry. Source: RALS (2012) 7 4.4 Gender and Livestock Production When disaggregated by gender, livestock and poultry ownership is higher among male household members than among female household members for all types of livestock and poultry. This is contrary to the conventional wisdom that smaller animals are mostly owned by women. Table 5 shows the distribution of livestock and poultry according to the gender of the owner. Table 5. Smallholder Livestock and Poultry Ownership based on Gender Across Provinces Livestock population owned Male household members Female household member Male Female Ratio Cattle 1,845,558 316,800 6:1 Goats 1,472,599 600,894 2:1 Pigs 727,368 214,981 3:1 Sheep 37,707 11,356 3:1 6,235,995 5,828,573 1:1 Guinea fowls 217,614 60,221 4:1 Ducks & geese 152,565 67,941 2:1 Village Chicken Source: RALS (2012) 5. LIVESTOCK MARKETING AND MARKET CHANNELS 5.1 Livestock Sales The smallholder livestock sector accounts for about 80% of the total meat entering the value chain. This sector is mainly characterized by traders who purchase from smallholder livestock farmers, assemble, and then resell to municipal abattoirs, butcheries and private abattoirs. The butcheries and the abattoirs later sell to retailers for distribution to the consumers in both rural and urban areas. Of the 80%, direct sells to abattoirs accounts for only 5% while the remaining 75% is through the traders (Figure 6). The level of sale among smallholder producers is minimal. On average those who own cattle sell about 2 animals per year. For those owning goats or pigs, the number sold is slightly higher than for cattle. They sell about 3 goats and about 4 pigs per year while sheep owing households sell on average 4. As presented in Figure 7, most of the livestock is sold live for cash as opposed to slaughtered or battered out. However, because there are restrictions on livestock movements in Zambia from one district to another, the sales mostly take place within the communities to the traders. The off take rate for cattle is 5%. This is low compared to small livestock and poultry, which have off take rates of 20% for goats, 25% for pigs, 16% for sheep, and 26% for village chicken3. This may be attributed to other non-market functions that cattle play within the households. Figure 6: The Beef Value Chain 3 Off take rate relates to number of livestock sold over the total number owned 8 Source: (MAL et al., 2012). TEC=Ton Carcass Equivalent; B2LG, B1LG, B1MR and B2MR are grassland (LG) and mixed crop (MR) livestock production systems under the smallholder sector. B2MI, B1MI, B1OM and B2OM are production systems under the commercial sector. Figure 7: Most Prominent Transaction Type of Smallholder Livestock and Poultry 18% 9% 73% slaughtered for sale bartered out live sold live for cash Source: RALS 2012 5.2 Production and Sale of Livestock Products The total production of milk the smallholder sector is estimated to be 263 million liters per year. Of this production only about 33.5% (88 million liters) is sold. About 68 million liters of milk is sold fresh while the remaining 20 million liters is sold as sour milk. Milk sales are reported in all provinces except in Luapula province where production levels are very low. 9 The national smallholder average price of milk between May 2011 and April 2012 was ZMK 2,400 per liter. Lusaka records the highest price while Southern province, which produces the highest levels of milk in the country, recorded the lowest price (Figure 8). Figure 8: Average Price of Fresh Milk in a Smallholder Sector by Province Source: RALS 2012 Eggs produced by smallholder households are mainly consumed within the household. For those that sold, the average price was ZMK 591 per egg. As shown in Table 6, broilers are mostly produced for sale. Consumption of own produced broilers by the smallholder sector in 2011-2012 was only about 122,000, while sales were 214,197,377. Table 6: Production, Sale, Consumption and Price of Livestock Products and Poultry under the Smallholder Sector Total Average Price Milk produced 263,494,107 . Fresh milk sold/bartered 68,519,621 2400 Consumption of eggs from own production 20,933,062 Sales of eggs from own production 5,759,715 591 Slaughter and consumption by the hh of broilers from own production 122,053 . 214,197,377 27175 Sales of broilers from own production Source: RALS 2012 10 6. CONSTRAINTS TO LIVESTOCK PRODUCTION IN ZAMBIA The major challenge that the livestock sector faces in the country is low productivity characterized by slow growth rates of about 1.2% for cattle and 7.7% for goats (MAL et al., 2012). Other challenges include high calf mortality rates (13% cattle and 20% goats), livestock diseases, and poor accessibility to livestock services and credit. 6.1. High Prevalence of Animal Diseases Between May 2011 and April 2012, over 60% of the cattle and chicken owning smallholder households had their livestock affected by diseases. The lowest rate of disease infection was for goats where 31% of the smallholder households had their goats affected (Figure 9). Important livestock diseases in Zambia are Contagious Bovine Pleural Pneumonia (CBPP), Foot and Mouth Disease (FMD), Africa swine fever, East Coast Fever (ECF), and Newcastle disease. Other diseases include tick-borne diseases such as Trypanosomiasis and Anthrax, which result in low animal productivity and high mortality rates. Figure 9: Percent of Livestock-owning Smallholder Households with Diseased animals households reporting diseased animals 70.0% 62.7% 61.5% 60.0% 50.0% 39.5% 40.0% 42.2% 31.3% 30.0% 20.0% 10.0% .0% Cattle Goats Pigs Sheep Village chickens Source: RALS 2012 6.2. High Livestock Mortality Rates due to Disease The overall disease death rate per 1000 animals among smallholder households is estimated at 127 for cattle, 100 for goats and 259 for pigs. As shown in Table 7, Eastern, Muchinga and Western Provinces have more pigs dying due to diseases than in any other provinces. The goat death rate is highest in Western Province followed by Southern, Northern and Central Provinces in that order. The cattle death rate is highest in Central and Western Provinces. Table 7: Livestock Death Rates among Smallholder Livestock Sector 11 Disease Death Rates per 1,000 Animals Cattle Goats Pigs 279 111 78 80 98 74 83 48 390 15 83 24 148 59 29 88 99 338 57 123 198 38 74 111 93 126 52 174 166 266 127 100 259 Central Copperbelt Eastern Luapula Lusaka Muchinga Northern NorthWestern Southern Western Overall Source: RALS 2012 6.3. How are the diseases controlled? Disease control is a major challenge to livestock production. Compared to other livestock types, diseases among cattle are most likely to be prevented with vaccines or treated. Over 80% of the cattle owning smallholder households use veterinary drugs to control disease outbreaks. There is also significant use of traditional methods especially for local chickens. Figure 10 illustrates the different treatment methods per livestock type. percent of Households Figure 10: How Smallholder Farmers Treat Diseased Livestock 100 90 80 70 60 50 40 30 20 10 0 cattle goats veterinary drugs/vaccines pigs not treated sheep local chicken Traditional medicine Source: RALS 2012 6.4 Major Sources of Drugs 12 For those farmers who treat their livestock and poultry, the major sources of drugs are the Agro dealers and the government veterinary department. Sourcing from other farmers is also common especially for Sheep treatment (Figure 11). Figure 11: Sources of Livestock Drugs 100% smallholder farmers 80% 60% 40% 20% 0% Cattle Trader Paravets Goats Pigs other sources Agro-dealer / private retail firm Sheep Village chickens Fellow farmer Veterinary department Source: RALS 2012 6.5 Tick Control Ticks and fleas are the main vectors for most livestock diseases. Thus control of ticks is cardinal to curb tick borne diseases. Among cattle owing smallholder households, the main tick control method is spraying while for the other livestock types, the majority of farmers do not control for ticks. Table 8: Method of tick control practiced by smallholder farmers What main method of tick/flea control does the household practice? Dipping Spraying Pour-on Hand Injectable None dressing Percent of households Cattle 18.2 44.4 0.3 2.2 4.7 30.1 Goats 2.7 21.2 0.3 0.9 1.5 73.5 Pigs 1.4 14.3 0.3 1.2 1.5 81.4 Sheep 15.1 14.9 1.9 0.0 0.4 67.8 Source: RALS 2012 6.6. Limited Access to livestock services/facilities 13 Improving accessibility of livestock services such as livestock dipping and other veterinary services is necessary to raise livestock productivity among smallholder farmers. However, farmers are constrained by the distances they have to travel to access livestock services. For example, a farmer on average has to travel 30 kilometers to access the services provided by agro dealers, para-vets and livestock service centers. Dip tanks are also located more than 20 kms away, on average, making most farmers resort to spraying methods of tick control. This method is however not as effective as dipping the animals. Even more, on average farmers travel about 20 kms to the nearest agricultural camp for extension services. This challenge is exacerbated especially now that extension service delivery is demand driven. Farmers now request for services that they consider necessary from agricultural extension workers/veterinary assistant. Table 9: Average distance to livestock services Average distance to nearest… (kilometers) Point where can sell livestock/livestock Livestock products to private service buyers center Para-vet 31.3 34.6 29.4 14.8 24.4 24.4 Agrodealer 32.4 20.8 Agricultural camp / block office 25.6 20.0 Seller of veterinary products 32.6 25.6 Dip tank 23.1 21.6 Eastern 23.7 12.9 22.2 25.7 Luapula 33.1 17.1 24.3 44.6 17.0 24.7 16.6 43.8 40.0 25.0 Lusaka 22.3 19.9 23.0 26.7 19.2 21.2 9.3 Muchinga 45.4 20.1 35.0 42.8 43.5 48.5 55.6 Northern 48.3 22.6 33.6 46.6 53.0 51.9 51.1 NorthWestern 40.5 34.8 34.6 41.9 41.6 41.7 39.0 Southern 36.4 14.3 38.9 34.6 22.5 34.0 7.5 Western 29.9 21.5 30.8 32.8 31.4 32.4 23.7 National 32.6 Source: RALS 2012 19.6 29.3 34.7 29.8 34.2 23.9 Central Copperbelt 6.7 Limited Access to Credit Limited access to credit remains a major challenge for smallholder farmers. During the agricultural season 2010-2011 only about 13% of the smallholder farmers in Zambia obtained credit for agricultural purposes. The majority of those who obtained credit were from the Eastern province (Figures 12 and 13). Currently the government-run Farmer Input Support Program (FISP) does not include a package for livestock production. The farmers therefore have to purchase all their veterinary requirements at unsubsidized prices and without credit. 14 Figure 12: Smallholder Farmers Access to Credit. Source: RALS 2012 Figure 13: Accessed to Credit by Province Source: RALS 2012 6.7.1 Sources of Credit The majority of the credit was obtained through out grower schemes, e.g., with Dunavant, in the form of cotton inputs. It is important to note that credit from commercial banks is very minimal among small15 scale. One of the reasons for this is that most farmers are unable to offer collateral required by the banks. Figure 14 shows the different sources of credit and the farmers’ access to the credit. Figure 14: Sources of Credit Among all Smallholder Farmers 2010-2011 Source: RALS 2012; Note HH=household 16 7. CONCLUSION AND POLICY RECOMMENDATIONS Livestock plays a significant role in the economy as a whole as well as in the livelihoods of smallholder farmers. However, smallholder livestock producers, which account for approximately 80% of the total livestock production in the country, face many challenges. High disease prevalence and mortality rates reduce productivity. Only when productivity is improved can the country realize the full benefits of the livestock sector. Based on this analysis we have the following policy recommendations targeted at improving livestock productivity and addressing other challenges affecting the sector in Zambia: Effective breeding programs through setting up of breeding centres and promoting cross breeding to enhance the fertility rates and improve productivity Training famers in pasture management Restocking programs in livestock producing areas. This could be done through the pass on gift arrangement Encourage farmers to use veterinary drugs and vaccines through livestock vaccination campaign, stocking up para-vet kits thus improving the availability of vaccines Strengthen the vet. extension service delivery by training more veterinary assistants and para-vet Consider inclusion of livestock vaccines in the FISP e-voucher Construction of new and rehabilitation of existing community dip tanks in order to effectively control ticks borne diseases Encourage private participation by promoting agro dealer development and investment in livestock services. There is need to promote business development strategies that include veterinary extension service delivery Ultimately, effective implementation of the suggested policy options will require Sustained funding from both public and private sector Realignment of public spending priorities Increasing the budget allocation to livestock sector Infrastructure development-roads and other social amenities 17
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