Tuesday, January 10, 2012

UNDERSTANDING MARKET DEMANDS FOR ANIMAL AND ANIMAL PRODUCTS

Every market dictates terms be it a commodity or a service market. Producers and
suppliers of animals and animal products are not exempt from ʻdancing to the tunesʼ
dictated either by the controllers (regulators) of the market or the consumers(buyers). It is imperative therefore that the players in the market understand the rules of the game and also adhere to some basic requirements in order to remain relevant in the competitive market.

Commercial animal farmers ought therefore to embrace and put into practice some of the following principles irrespective of the species of animals or type of animal products they trade in whether locally or in foreign markets: maintaining a reliable and timely supply; providing safe and high quality products that meet market needs and regulatory standards; and appropriately pricing their supplies, among others.

As a first year student in the Makerere University Veterinary School in the early 90s, one of my Professors, in his attempt to illustrate the size of the international market (foreign exchange potential) for our animals and animal products and the urgency for the players in the animal sector to enhance production of animals and animals products, narrated to us one of his experiences as a then highly placed government official in the Ministry of Animal Industry, Game and Fisheries (how we wish it be re-instated) in the 1970s. While on one of his visits to the Middle East, he negotiated a ʻjuicyʼ deal that would make our goat and sheep farmers smile all the way to the bank. When the first order came, we (Uganda) supplied. The clients were happy and a few weeks later placed an order for a regular supply. The Professor was humbled when it dawned on him that if we supplied as per the order, the goat and sheep stock in the country would be depleted in less than 6 months! Would anybody sign that contract?

While we probably cannot meet that demand yet, we are told a country in the horn of
Africa supplies the Middle East with goats and sheep and they attempt to do it timely and in accordance with demand waves in that region. Could they have mastered the principle of reliable and timely supply? Any lessons for Uganda (farmers, government, animal health and production professionals)?

Reliability and timely supply will only work if one supplies what the market accepts. It is sad to say that most of our animals and animal products cannot access certain markets due to non-tariff barriers (NTBs), the majority of them being failure to meet safety standards prescribed by regulators. We therefore have to demolish these barriers so as to access the lucrative foreign markets and boost foreign currency inflows.

Recognising the significant role and necessity of the veterinary profession in
contributing to the improved production of ʻcleanʼ animals and animals products for the global market, and thereby overcoming the NTBs and establishing fair play, the UN World Organisation for Animal Health declared veterinary services a ʻpublic goodʼ. Unfortunately, in Uganda, some districts boast of having one or even no veterinary professional (Public Service) and yet hope to be significant players in this highly competitive market laden with barriers. Government should revisit its agricultural priorities especially the amount of resources (human, funding, equipment) accorded to the animal sector as it harnesses the collective efforts of all stakeholders towards the common mission of increasing animal protein, meeting local food security demands and foreign income earnings from animals and animal products. Sow the right seeds in right amounts on the right ground and your harvest will be big.