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Local beef demand to double

Monday January 14 2019
Brochette

Local consumption of beef is expected to increase as well as export demand. PHOTO | CYRIL NDEGEYA

By MOSES K. GAHIGI

While demand for local beef products is expected to increase in the coming months, many producers could struggle to meet this demand.

Rwanda Today has learnt that a stable meat supply value chain is yet to be developed to meet increasing demand, which is largely driven by conference tourism as well as new emerging markets like China.

Many citizens have eggs and fermented milk as their main protein source. But, local meat consumption is expected to increase due to rising disposable incomes and a growing middle class. However, the beef industry still lacks modern facilities to facilitate large-scale processing of meat products.

For instance, the country faces a shortage of modern slaughterhouses and limited access to meat processing equipment with only two semi-modern slaughterhouses in Gako and Kabuga.

The industry requires additional investments in quality meat processing equipment to enable farmers to sell in other markets in Africa and China.

Local beef producers also struggle to provide local five and four-star hotels with the required quantities, varieties and quality, even as the country continues to host large numbers of MICE visitors and tourists from around the world.

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Online marketplace

Demand for Rwandan beef is expected to double following a successful roll out of the electronic World Trade Platform (eWTP), a joint venture between Alibaba and the government.

The platform will enable companies to sell their produce on Alibaba’s Tmall international marketplace.

Other products like processed beef, crayfish, avocados, chilli pepper, among other fruits and vegetables will also be sold on the platform.

Industry stakeholders say under the current conditions it would be difficult to meet the required quantities since they are yet to satisfy markets like Congo Brazzaville.

“Beef farming is still small-scale, and a big chunk of the cattle reared in the country ends up being exported to neighbouring countries like DR Congo and Uganda,” said Francis Kimonyo, a beef exporter and owner of Rugano meat supply.

He said additional investments are needed to promote beef farming as it has the potential to employ many people and boost export trade.

The value of beef exports grew from $17 million between July 2015 and June 2016 (from selling over five million kgs of beef), to $22.9 million between July 2016 to June 2017 (from selling over six million kgs of beef).

Beef exporters recently explored market opportunities in the region and found ready markets in Congo Brazzaville, Libreville and DR Congo.

But, exporters lacked cold room facilities and the first batch of beef exports to Congo Brazzaville went bad.

However, through partnerships between the Ministry of Trade and Industry, the Private Sector Federation and other partners, exporters were able to set up cold room facilities in Congo Brazzaville.

Exporters still face market information challenges and language barriers, where some struggle to recover their money after supplying meat.

Shema Aimable, the livestock product development officer at the National Agricultural Export Development Board, said the beef industry is still largely run informally.

Breeds

He said that the lack of a deliberate and well facilitated beef farming agenda is affecting the industry, and unless it is put in place it will be difficult to meet demand.

“The industry still relies on Ankole cattle, which is not reared for beef. There is a need for other breeds of cattle. In terms of quality, we are able to meet the standards, the challenge is meeting the required volumes,” said Mr Aimable.

NAEB is trying to bring together meat and livestock exporters.

But, the Ministry of Agriculture, RAB, MINICOM, PSF need to work jointly to plug the existing gaps in the sector, if the country is to take advantage of the opportunities available in emerging beef markets.

“The beef industry needs a strong policy like the one implemented for Girinka.” said Mr Shema.

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