Analysis of the Kenyan Livestock Market And Feasibility Study Of A Livestock Business

Abstract

The livestock sector is an important global player with significant and wide-ranging social, economic and environmental impacts. Worldwide, livestock production provides livelihoods for 1 billion of the world’s poor. However, the livestock sector is also a major driver of deforestation, land degradation, pollution, climate change and biodiversity loss.

Kenya is a clear illustration of livestock’s complex social, economic and environmental roles. In the Arid and Semi-Arid Lands (ASALs) of Kenya, the livestock sector provides livelihoods for 95% of families and employs 10 million people. However, pastoralism in ASALs faces many challenges. Population and livestock growth has led to overgrazing, creating a negative-feedback loop of environmental degradation, reduced livestock yields and greater poverty. In addition, pastoralists lack access to capital, markets and extension services, such as veterinary care.

This report conducted an analysis of the livestock market and feasibility study of a social business that trains pastoralists in better land management techniques called Holistic Management. The study interviewed 30 pastoralists, from the village of Olekimunke, examining the different challenges they face raising livestock and their interest in the business model. Based on the information provided in interviews, pastoralists in Olekimunke are experiencing negative environmental change due to land degradation and desertification. These negative processes are partially driven by climatic factors, such as more frequent and severe droughts, as well as increasing human settlement and changes in land rights and practices. In addition, the markets in which pastoralists depend on to meet their subsistence livelihoods, do not provide enough services.

The business model proposed in this document offers a potential solution to the environmental and market challenges faced by pastoralists in Olekimunke. The model provides pastoralists with the training and resources to implement Holistic Management and provides a vehicle through which the pastoralists can organize and successfully manage their land. Furthermore, the Company increases pastoralists access to capital, markets and other resources, such as training, which will further improve their livelihoods. As a result, pastoralists expressed a strong interest in the business model, which can potentially improve their livelihoods, thus demonstrating both its feasibility and viability.