LiveStockEx lines up promising options to double Kenya’s livestock production by 2028

Livestock trading platform LiveStockEx is implementing various strategic plans that could see Kenya double its livestock production from the current 12% contribution to the national gross domestic product (GDP) as of 2023, to about 24% by 2028, with the platform’s builders confident that the target is “very achievable.”

Lew Schulman, the Chairman of LiveStockEx Kenya, an exchange platform for cattle trading, while speaking exclusively to Financial Fortune Media, confirmed that conversations between the company and entities like the European Union (EU) and suitable government agencies are indeed ongoing, in a move that promises Kenyan livestock farmers an easy access to the European markets as the demand for their products continue to rise, albeit limited by factors like underdeveloped infrastructure and insecure trade routes.

“We have enough capital raised for the next couple of years. We are also talking to the EU and the government about export licenses…we need to inform markets like the EU of what’s going on here,” said Schulman.

But technology will play a critical role in fixing the missing puzzle in the Kenya’s livestock value chain, which he reckons has been the missing link in improving the sub-sector.

“One of the very most important things about technology is the recording of the history of the animal, and that is what is missing to gain markets like the EU. So, it is important to start those conversations early so that they can see that the right protocols are being observed to ultimately have access to these markets.”

A lack of ‘easy-to-use’ technology, according to Lew, has largely contributed to a fractured value chain in the sector, something he believes has severely limited profitability and efficiency for millions of farmers, buyers, veterinary professionals, and transporters in the livestock business.

It is something LiveStockEx Kenya, operated by iBuild Global, will be seeking to address as the firm moves to complement the government’s efforts in meeting its own targets to double its livestock population and production within 9 to 25 years to meet rising demand for meat and milk, using strategies like enhanced breeding (sexed semen), improved disease control and vaccines, and better fodder management.

Typically, a livestock farmer accesses the EU market primarily through preferential trade agreements such as the Economic Partnership Agreements (EPAs) and Everything But Arms (EBA) scheme, which offer duty-free, quota–free access for many products. But it will require a farmer to meet very strict EU food safety, sanitary, and phytosanitary (SPS) standards, which are often demanded by EU -funded technical programs, capacity building, and compliance with rules of origin.

Lew says various checks and balances have been factored into their system with the involvement of relevant bodies, including veterinary professionals, in attaining the aforementioned values.

It is an initiative that focuses on commercializing the sector to boost farmer income and strengthen food security, according to Aggrey Wangwe, the platform’s operations manager.

The livestock sector is integral to Kenya’s food system and economy. In 2023, Kenya’s agriculture, forestry, and fishing sector contributed US$23.6 billion, or 21.8% of the country’s total GDP.

Livestock production accounts for about 40% of agricultural value added (US$9.4 billion), while employing nearly half of the agricultural labor force. In addition, the livestock sector contributes 22% to the food system GDP, according to available data by Kenya National Bureau of Statistics (KNBS).