2. REGIONAL TRADE IN MEAT AND LIVESTOCK NIGERIA’S EXPERIENCE IN ECOWAS A PRESENTATION BY THE NIGERIAN DELEGATION TO THE METHODOLOGICAL WORKSHOP ON PROMOTING REGIONAL TRADE IN MEAT AND LIVESTOCK-RELATED PRODUCTS IN ECOWAS FEBRUARY 12 – 14, 2014, ABIDJAN, COTE D’IVOIRE

3. INTRODUCTION Location – West Africa Shares border with Benin, Niger, Chad and Cameroon Human Population – 170mil Federal System – 3 tiers, Federal, States (36) + Federal Capital Territory & Local Government Areas (LGAs) 773 Livestock population :  19.2 million cattle;  69.3 million goats,  39.3 million sheep,  6.7 million pigs and  over166 million poultry  Livestock Agric GDP 24%

4. Analysis of the Trade in Livestock and Meat About 90% of the cattle population is in the hands of traditional pastoralists who raise their animals under extensive system The remaining 10% is under semi intensive and intensive systems. The Country’s borders are porous and not effectively manned so accurate tranboundary movement of trade animals is difficult to monitor. It is estimated that about 30% - 45% of the slaughter livestock in Nigeria are from trade livestock coming in from Niger, Chad, Burkina faso and Benin Republic.

5. FLOW CHART OF CATTLE MARKET Local Butcher City Butcher Livestock Pastoralist Local Collector Local Broker City Terminal Market The flow Chart to terminal market is schematically outlined in fig. x. Livestock moves through a number of marketers and incur a number of trading transactions as they move from the pastoralist through to the terminal markets

6. Analysis of the trade in Livestock and Meat Marketing of livestock is in the hands of private entrepreneurs Livestock markets are generally found in small villages in the northern and central states which are collection points for cattle purchased from individual producers. Trade in livestock with neighbouring countries is informal and there is no accurate statistics on the trade. There is no registration or licensing of agents/traders, or effective veterinary or animal welfare supervision. The quality of animals on offer is very variable and there is no organized receiving area for drafting up different classes of stock and the separation of diseased animals. All valuing is based on visual assessment which again causes difficulties in establishing prices and values

7. Analysis of the Trade in Livestock and Meat The meat trade in Nigeria is characterized by the retailing of meat from animals slaughtered that day, by the absence of a cold chain infrastructure, and by the decentralized nature of the industry with abattoirs, slaughterhouses and slaughterslabs serving individual communities in consumption areas rather than being located in livestock production areas. Slaughter of animals is usually done “on-the-floor ” in most abattoirs and slaughterhouses in Nigeria even in the more modern slaughter houses designed for rail operations. The rate of recovery of hides and skins is currently low and tanneries reported capacity utilization in 2012 have dipped to as low as 30%.

8. Analysis of trade in the Livestock and Meat Traditional open air meat stalls dominate the red meat retail sector. Most meat and meat products are sold under un- hygienic condition and of course not acceptable under the current transformation dispensation. The concept of sale of meat in large shopping malls and supermarkets is just evolving in Nigeria compared with some other countries where they are well established.

9. Traditional open Air Markets Traditional open air meat stalls dominate the red meat retail sector and sell all items including meat and all fifth quarter products. Operators of these stalls secure meat from the wholesale meat dealers at the abattoirs and slaughter-slabs, arrange transport to the stalls by whatever means, and retail the product to customers. Operators at major markets are often organised via a market association, and these associations can sometimes act to limit participation and development of this sector. Major markets are owned by municipal and state governments who have generally failed to invest in upgrading the facilities and as a result they suffer from congestion, lack of good handling and storage, and general unsanitary conditions.

10. Convenience Stores Convenience stores that service middle to high income consumers are increasingly installing frozen retail cabinets particularly to provide for the retail of poultry, fish and other further processed frozen goods. Operators of these stalls secure meat either from: Wholesale meat dealers at the abattoirs and slaughter-slabs and pack it themselves ready for retail or sale. Further processors that bone and pack the product into retail packs and sell direct to the Convenience stores. The wholesale red meat supply sector at this stage only exists in a very rudimentary form and red meat products supplied at convenience stores are in the large part in rudimentary packaging and have been handled through a refrigeration system that undermines the appearance of the product.

11. Agricultural Transformation Agenda (ATA) ATA has introduced some reforms in the sector which include : Concept of Value Chain in livestock Commodity Production, Private Sector participation in the distribution of agricultural inputs Operation ‘Know Your Farmers’ aimed at ensuring transparency in sector. The Ministry is currently working on six priority Livestock Commodity Value Chains of Beef, Dairy, Poultry, Small Ruminants, Leather and Pig. The aim is to fix the structural gaps and strengthen the key activities along the value chains. This includes marketing and trade. The reforms envisages greater private sector participation, especially in input sourcing, livestock breeding and animal health delivery systems.

12. Agricultural Transformation Agenda (ATA) ATA is also establishing staple crop agro-processing zones (SCPZ) where livestock will utilize the products and by- products of the crops produced in that zone. The Ministry is also implementing transformation of the entire meat industry in Nigeria through a structural shift that ensures that instead of moving live animals, hygienically processed meat is moved through a well developed cold chain with organized market outlets nationally and internationally. We commissioned a study to undertake an intensive and focused diagnostic assessment as well as prepare a strategic implementable plan to develop the meat industry.

13. Challenges of Livestock and Meat Trade Non-standardisation of the marketing system and trade Absence of a certification procedure for livestock and meat to meet the required international health standards prior to sale. Poor marketing infrastructure:- lack of holding pens, loading ramps, water supply, and drainage and quarantine facilities. Lack of effective market information services for information dissemination and data gathering. Non-qualification of Nigerian livestock products for entry into the international market. Low level of valorisation of livestock products. Lack of monitoring and non-compliance with prescribed standard for meat and other livestock and poultry products. The prevalence of cash transactions in livestock trade with its attendant risks. Absence or use of inappropriate packaging for livestock products in the marketing chain. Lack of cold storage facilities in abattoirs (wholesale and retail market)

14. Suggested Areas of Intervention Formation of competent authority to regulate : In country animal vaccination and disease control programs. Ante and post mortem inspection procedures Building and equipment standards Hygiene standards Product traceability requirements, and Animal welfare standards. Enforcement of food safety standard through the training of meat inspectors. Privatizing and Harmonizing Abattoir. Upgrading slaughter houses and retail. Set street safety and environmental legislative and enforce standards. Provision of credit facilities to all players under a unit digit interest rate.

15. CONCLUSION ATA is an innovative and integrated approach to fixing commodity value chains and it involves shifting agriculture from government control to private sector led through de- regulation, transforming livestock and meat trade as well as the agricultural financial landscape to protect entrepreneurs investments in infrastructure to unlock economies of scale for processing and value addition as well as strengthening policies and investment climate for private investment. The goal is to provide quality animal protein in the domestic markets, produce for export markets and create job opportunity to youths as well as wealth creation among the rural dwellers..

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