Issuu on Google+

CASE 1: SIANA AND KILITOME MARKET ACCESS COMMITTEES KAJIADO COUNTY, KENYA Cover Photo


TABLE OF CONTENTS 1.0 Introduction ....................................................................................................................4 1.1Back ground- origin and history ...................................................................................................4 1.2 Context – Kajiado County ............................................................................................................5 Box 1: Maasai Livestock Population ...............................................................................................................6 Box 2: Map of Kenya showing Kajiado County ...........................................................................................7 1.3 Livestock market access routes ...................................................................................................8 Chart 1: Market routes .......................................................................................................................................8 ...........................................................................................................................................................8 1.3.2 Kilitome MAC Story line..........................................................................................................................9 1.3.3 Siana MAC Story line..............................................................................................................................10 Box 3: Life after Siana......................................................................................................................................11 Box 4: The Value Chain ..................................................................................................................................12 1.4Trading Records..........................................................................................................................12 Table 1: Trading Records January to September 2011................................................................................12


1.5 Partnership Arrangements ........................................................................................................13 1.5.1 Map of actors ..........................................................................................................................................13 1.6 Activities of MACs......................................................................................................................13

2.0 The Innovation ..............................................................................................................14 2.1 The MAC Innovation .................................................................................................................14 Chart 2: The innovation diagram....................................................................................................................14 Table 2: Reducing market barriers .................................................................................................................16 2.2 Learning points from the experience and innovation................................................................17 Box 5. What do we learn from this case?......................................................................................................17

3.0 Additional reading and references ................................................................................18


1.0 Introduction This case write up is about Case 1 in the “Learning Route: Innovative Livestock Marketing from Northern to Eastern Africa” and features the Siana and Kilitome Market Access Committees in Amboseli, Kajiado County, southern eastern Kenya.

1.1 Back ground- origin and history The Siana and Kilitome Market Access Committees (The MACs) are grass root Maasai organizations from Kimana and Imbirikani Maasai group ranches, bordering Amboseli National Park in (Kajiado County) in southern Kenya. The groups, formally registered as conservancy committees were started through an AWF led program to secure the range lands for wildlife conservation – through a long term lease program. In this lease program, the African Wildlife Foundation (AWF) partnered with local communities where- it pays landowners for land conserved under a special lease agreement. Nearly 8,000 acres of community lands have already been protected through AWF’s Leasing Land for Conservation program. AWF pays each Siana and Kilitome landowner- $6 for every acre set aside for conservation and safeguarded against poaching, subdivision, and other activities that degrade habitat. The Siana MAC had previously existed as a women group selling beads, artifacts and other wares to tourists in a cultural village in Imbirikani. Historically, pastoralists have operated a risk based livelihood livestock production system where wildlife often is perceived as competitor hence posing serious human wildlife conflicts to mitigate the risks arsing loss of cattle in the event of a prolonged drought, pastoralists have tended to overstock the range beyond its carrying capacity- ultimately causing land degradation. However, it is possible to develop ventures along sustainable livestock production and market chains that can advance local livelihoods and promote conservation of wildlife. In 2008, AWF conducted a landscape wide scoping study- to identify opportunities and constraints to developing viable conservation-friendly livestock ventures. The scoping results indicated that, pastoralists and other livestock producers in the Kilimanjaro heartland lack access to markets, technical expertise, commercial skills and entrepreneurial capacity to successfully commercialise their livestock resources. In mid 2009, continued partnership between AWF and the landowners bore the introduction of a livestock access initiative targeting those communities that were targeted by the lease program. This was the birth of the Siana and Kilitome MACS. The main objective of the livestock intervention was to facilitate transformation of the livestock market chain from a set of disconnected and uncoordinated steps into an efficient market chain that generates significant returns and value to livestock producers. In addition to promoting financial gains the enterprise will transfer awareness, knowledge and skills that empowers pastoralists and erases the disadvantages that have constrained sustained profitable returns from their livestock resources


The MACs undertake organized and fair livestock trading of both cattle and shoats. The MAC enables the group to obtain income from livestock and offers market access to the pastoralists in urban meat markets, hence more returns to producers who have been exploited in the current livestock marketing practice

1.2 Context – Kajiado County Kajiado County is in the former Rift Valley province. The neighbouring counties includeTaita Taveta County to the South-east, Machakos County to the East, County to the Northeast, Kiambu County to the North and Narok County to the west. Kajiado County also borders with Tanzania State to the South-west. The climate in Kajiado is of a semi-arid nature (rainfall ranges between500-1250mm) and a lot of wildlife thrives in that area. In recent years there has been a longer period of drought where there has been little or no rain. The main ethnic community of Kajiado County is the Maasai community who are renowned for their strong cultural heritage and exquisite jewellery. There is an increased influx of other people from various regions of the country who flock the area and boost the millions acquire from tourism sector of Kajiado. The Maasai people are pastoralists and therefore rear large herds of cattle that have contributed to the semi-arid nature of the land due to consumption of vegetation cover According to the 2005- 2010 Kajiado District Strategic Plan, the county has a population of 687,312, living in an area of 21,902 square kilometers. The people in the County are mainly Maasai. The Maasai people of East Africa live in southern Kenya and northern Tanzania along the Great Rift Valley on semi-arid and arid lands. The Maasai occupy a total land area of 160,000 square kilometres with a population of approximately one half million people. However, many Maasai see the national census as government meddling and often miscount their numbers to census takers. The Maasai society is comprised of sixteen sections (known in Maasai as Iloshon): Ildamat, Ilpurko, Ilkeekonyokie, Iloitai, Ilkaputiei, Ilkankere, Isiria, Ilmoitanik, Iloodokilani, Iloitokitoki, Ilarusa, Ilmatatapato, Ilwuasinkishu, Kore, Parakuyu, and Ilkisonko, also known as Isikirari (Tanzania's Maasai). There was also once Iltorobo section but was assimilated by other sections. A majority of the Maasai population lives in Kenya. Sections such as Isikirari, Parakuyu, Kore and Ilarusa lives in Tanzania The Maasai live in Kraals arranged in a circular fashion. The fence around the kraal is made of acacia thorns, which prevent lions from attacking the cattle. It is a man's responsibility to fence the kraal. Women construct the houses. Traditionally, kraals are shared by an extended family. However, due to the new land management system in the Maasai region, it is not uncommon to see a kraal occupied by a single family.


The Inkajijik (Maasai word for a house) are loaf-shaped and made of mud, sticks, grass, cow dung and cow's urine. Women are responsible for making the houses as well as supplying water, collecting firewood, milking cattle and cooking for the family. Warriors are in charge security while boys are responsible for herding livestock. During the drought season, both warriors and boys assume the responsibility for herding livestock. The elders are directors and advisors for day-to-day activities. Every morning before livestock leave to graze, an elder who is the head of the inkang sits on his chair and announces the schedule for everyone to follow.

Box

1: Maasai Livestock Population Cattle 453,973 Sheep 652,328 Goats 667,391 Pigs 7,172 Poultry 238,883 Donkeys 23,114 Camels 956 Dogs 23,191 Cats 7,384

Livestock such as cattle, goats and sheep are the primary source of income for the Maasai. Livestock serves as a social utility and plays an important role in the Maasai economy. Livestock are traded for other livestock, cash or livestock products such as milk and siege. Individual, families, and clans established close ties through giving or exchange of cattle."Meishoo iyiook enkai inkishu o-nkera"- so goes a Maasai prayer. The English translation of this praye is: "May Creator give us cattle and children. Cattle and children are the most important aspect of the Maasai people.

The Maasai are a semi-nomadic people who lived under a communal land management system. The movement of livestock is based on seasonal rotation. Contrary to many claims made by outsiders, particularly the Hardinian school of thought, this communal land management system allows us to utilize resources in a sustainable manner. Each section manages its own territory. Under normal conditions, reserve pastures are fallowed and guarded by the warriors. However, if the dry season becomes especially harsh, sections boundaries are ignored and people graze animals throughout the land until the rainy season arrives. According to Maasai traditional land agreement, no one should be denied access to natural resources such as water and land. The Maasai economy is increasingly dependent on the market economy. Livestock products are sold to other groups in Kenya for the purchase of beads, clothing and grains. Cows and goats are also sold for uniform and school fees for children. It is now common to see young Maasai men and women in major towns and cities of Kenya selling, not just goats and cows, but also beads, cell phones, charcoal, grain among other items. The entrepreneurial spirit is something new in our society. It was not until the early 1980s with the Group Ranch project that the Maasai became much more entrenched in a market economy and, hence, more impoverished generally speaking. Traditionally, the Maasai rely on meat, milk and blood from cattle for protein and caloric needs. People drink blood on special occasions. It is given to a circumcised person (o/esipolioi), a woman who has given birth (entomononi) and the sick (oltamueyiai). Also, on a regular basis drunken elders, ilamerak, use the blood to alleviate intoxication and hangovers. Blood is very rich in protein and is good for the immune system. However, its use in the traditional diet is waning due to the reduction of livestock numbers.


Box 2: Map of Kenya showing Kajiado County

More recently, the Maasai have grown dependent on food produced in other areas such as maize meal (unga wa mahindi), rice, potatoes, cabbage (known to the Maasai as goat leaves), etc. The


Maasai who live near crop farmers have engaged in cultivation as their primary mode of subsistence. In these areas, plot sizes are generally not large enough to accommodate herds of animals; thus the Maasai are forced to farm. Our people traditionally frown upon this. Maasai believe that utilizing the land for crop farming is a crime against nature. Once you cultivate the land, it is no longer suitable for grazing. The concept of private ownership was, until recently, a foreign concept to the Maasai. However, in the 1960s and 1980s, a program of commercialising livestock and land was forced on us initially by the British and later by the government of Kenya. Since then, our land has been subdivided into group and individual ranches. In other parts of Maasailand people subdivided their individual ranches into small plots, which are sold to private developers. The new land management system of individual ranches has economically polarized our people; some Maasais, as well as outside wealthy individuals, have substantially increased their wealth at the expense of others. The largest loss of land, however, has been to national parks and reserves, in which the Maasai people are restricted from accessing critical water sources, pasture, and salt lick. Subdivision of Maasailand reduced land size for cattle herding, reduced the number of cows per household, and reduced food production. As a result, the Maasai society, which once was a proud and self-sufficient society, is now facing many social-economic and political challenges. The level of poverty among the Maasai people is beyond conceivable height. It is sad to see a society that had a long tradition of pride being a beggar for relief food because of imposed foreign concepts of development.

1.3 Livestock market access routes Chart 1: Market routes

Livestock – Stock routes and Markets


1.3.2 Kilitome MAC Story line Reason for formation

Lack of market opportunities for livestock

July 2009

Started and registered 74 members (18 women)

January 2012

Total membership of 92 members (22 women)

Initial stock in 2009

22 heads of cattle

Main commercial activity

Livestock trading

Partners

AWF, IFAD, Agritrade

Achievements

Profits from livestock trade, bought 2 acres of land, received capacity building through training and exchange visit to Laikipia, northern Kenya, better prices (40 % increase per cow),

Main turning point

Livestock marketing without using brokers

Innovations so far

Experience in market dynamics, livestock fattening and value addition, range rehabilitation and restoration, pasture growing and pasture management, tree planting

Main challenges

Drought, lack of capital, external interferences, and poor marketing

Tackling the challenges

value addition, fattening, avoided overstocking, organized off takes, improved breeds, planting grass, and improved breeds

Way Forward

Develop office on the 2 acre plot, implement 3 month cycle livestock fattening, implement simple irrigation


1.3.3 Siana MAC Story line Reason for formation

Lack of market opportunities for livestock

September 2009

Started and registered as Osiram with 32 members.

2010

Changed name to Siana because locally instigated politics from the GR leaders over trading revenues. The Imbirikani GR leaders wanted to take away the project from the women. Thus demanded fresh registration to become Siana

2010

Severe drought set in no trading took place- they embarked on restocking the range in 2010. The restocked stock was purchased from Tanzania, fattened and sold to urban markets of Kiserian etc

January 2012

Total membership of 64

Initial stock in 2009

22 heads of cattle

Main commercial activity

Livestock trading

Partners

AWF, IFAD, Agritrade

Achievements

Profits from livestock trade, bought 2 acres of land, received capacity building through training and exchange visit to Laikipia, northern Kenya, better prices (40 % increase per cow),

Main turning point

Livestock marketing without using brokers and acquiring Knowledge and capacity to venture successfully into a commercial domain dominated by men. Exchange visit to Laikipia

Innovations so far

Experience in market dynamics, livestock fattening and value addition, range rehabilitation and restoration, pasture growing and pasture management, tree planting, hay storage,

Main challenges

Drought, death of livestock, lots of movement looking for water and pasture, middlemen, interference from men

Tackling the challenges

Value addition, fattening, avoided overstocking, organized off takes, improved breeds, planting grass, and improved breeds

Way Forward

Harvest grass and sell, increase membership, implement 3 month cycle livestock fattening, implement simple irrigation, enhance capacity, be independent, autonomous and self reliant


The box below demonstrates how lives have changed for the group after Siana was founded

Box 3: Life after Siana Before Siana After Siana - Work was just household chores- taking care of - Now allowed to go somewhere on her husband, children and small shoats own- freedom of movement to attend to group meetings - Nomadic movement of livestock, this made it - No longer hundred percent dependent their work to make houses more prevalent on the husband - Did not know one another Have known how to do farming and - After stock leave home for grazing they would other occupations go under the tree and make ornaments for - Now own commercial cultural bomas decorative purposes and are selling artefacts and other stuff - No knowledge of markets for selling beads and - Known how to do menial activities other ornament like cattle spraying, dipping, etc - During the rainy season, to wipe out the dirt for the cattle to rest for the night - Not much to outside the boma, after giving birth for like 1 year (idle) - Could not own land What are they doing now that they are a group? - Local knowledge and skills has been enhanced. - Payment of school fees for children - Have purchased land plots in urban centres - Can now own land take custody of title (AWF lease program enabled them to deal directly about land ownership) - Making ornaments and selling commercially to tourists - Trading in cows in the markets in Kimana, Emali buyers at home -


Box 4: The Value Chain

$ Meat Sellers

SLAUGHTERHOUSES

Traders

Pastoralists Cattle

Sell

Maasai

Large Scale Consumers Urban Consumer Institutions Processors

Livestock Market Access Company

1.4Trading Records So far the trading numbers for the first 9 months of 2011 for both MACs are as per the table below;

Table 1: Trading Records January to September 2011

Number purchased January

31

Amount of purchases in kshs 522,635

February

26

422,720

March

41

742,625

April

38

687,985

May

18

206,540

June

66

1,485,000

July

47

968,000

August

58

1,322,400

September

42

928,200

367

7,286,105


1.5 Partnership Arrangements The partners that have worked with the MACs include: a) African Wildlife Foundation- capacity building and partnership development b) Ministry of Livestock Development- extension services c) IFAD- capacity building, livestock marketing services, natural resource management and livestock production d) Agritrade Livestock Company- private sector trading partner Kiserian slaughterhouses – livestock and meat retail outlets 1.5.1 Map of actors The following are the actors: a) NGOs (AWF) and CBO (Siana MAC) b) Traditional authorities (local chiefs) and group ranch leadership c) Private sector- Agritrade Livestock Company Ltd 1.6 Activities of MACs The following are the core activities performed by the MACS: a) Value chain analysis b) Price surveys c) Collective bargaining d) Livestock production e) Restocking f) Range rehabilitation g) Value addition h) Handling transactions i) Hay development j) General animal husbandry


2.0 The Innovation The innovation in the model is provision of market access, information and services to local communities who have in the past been mistreated by unscrupulous middlemen- who sometimes gang up to dictate the prices downwards- hence pastoralists getting less value for their stock and stocking large herds as a mitigation measure. These large herds degrade the range and make the pastoralists even more vulnerable in the event of a prolonged drought. The market access component is managed by Agritrade Livestock Company and is fueled by a soft loan financing mechanism from AWF, with favorable repayment mechanisms.

2.1 The MAC Innovation The MACs are interventions to increase the performance of the livestock market chain. The MAC establishes as private sector business by interest group or actors with interest in the livestock marketing. The core business of the MAC leads to increased market access for pastoralist’s livestock produced landing a specific region. The MAC operates within existing livestock market chain as indicated in chart below. Chart 2: The innovation diagram

$ Meat Sellers

Pastoralists Cattle Maasai

Sell

SLAUGHTERHOUSES

Traders

Large Scale Consumers Urban Consumer Institutions Processors

Livestock Market Access Company

The commercial opportunity for a livestock MAC is i) the lack of reliable and time-sensitive market intelligence between the pastoralists and the meat chain and ii) the large insecurities that persist in the transactions between pastoralists, buyers and the meat chain. The MACs use their network of contacts and information to broker transaction security among all actors. These actors (buyers and sellers) pay commission to the MAC to achieve this win-win for all.


Before the innovation, no entity was competing or giving service to the producers.. There is a danger that some actors may perceive the MAC to be a direct competitor. But this can be taken care of by pointing out how the MAC can help actors to achieve win-win situations – except of course for actors who are out to cheat their trading partners. The risks of the business are the long time it takes to achieve the required trust relationships, and the challenge of dealing with breach of trust in a swift and effective way. These risks are taken care of by insisting on price transparency right from the beginning by everybody dealing with the MAC and strictly rejecting the withholding of price information by anybody engaged with the MAC. The mission of the MACs is to achieve full price discovery by all actors from pastoralists right through to retail butchers in the main population centres. Pastoralists are in a position to decide for them that they are getting a fair deal because they know who is providing what added value along the whole chain, and therefore making how much money along the chain, and they can agree with that. The unique selling point of the MAC is transaction security for all deals along the chain: -

Amount and quality of produce (animals, hay, carcasses, meat, etc) Transacted at a predetermined date Transacted at the agreed price, and paid for under agreed terms Traceability in case something goes wrong and this can be traced and corrected without quarrels Traceability of products back to the pastoralists. The actors along the chain will all be willing to pay a commission for being sure about their transactions.

As services, the MACs provide a market intelligence platform that is accessible through internet and SMS. This allows all actors to see what the prices are, and post offers for buying or selling produce. The MACs are furthermore sources of produce for large buyers through their network of information. The MACs also provides quality control mechanisms in line with the demands of the market. In addition, the MACs also provide transport services at cost to the pastoralists. The MAC concept reduces market barriers as per the table below:


Table 2: Reducing market barriers Activities

Outputs

Expected Outcomes

1. Market Barrier Analysis: Facilitate analysis by pastoralists, transporters and traders of market barriers and associated transaction costs for the two main regional livestock terminal markets (Nairobi and Arusha).

1. Awareness by livestock market players (particularly producers and end buyers) of market barriers. Participatory benefit-cost analysis of sustainable intervention options and strategies, that builds incentives for improvement.

A. Decreased transaction costs results in significant income generation for target pastoralist families in the heartland regions.

2. Price discovery enhancement: Seek modality for collection and broadcast of prices to remote producer regions from Nairobi and Arusha terminal livestock market prices using information boards, mobile phones etc.

2. Price discovery that allows producers to realize better sale prices producers better sale prices. In addition, price discovery gives producers incentive to produce for market.

B. Decreased product prices for urban consumers hence create extra consumption market the necessary market to absorb increased volumes of pastoralist supply.

3. Producer Marketing Models: Identify mechanism to establish and Strengthen the Livestock producer groups

3. MAC act as an efficient producer – based negotiating and clearing model. Demonstrating improved sale prices through collective bargaining modelling of Fair Contracts (price-informed and secure transactions); deposit facilities for monetary proceeds at point-of-sale; negotiation of marketing credit facilities.

C.

These additional incomes provide the necessary income to improve basic needs (access water, housing, education and health services) and eradicate food shortages and the need for food aid reliance (measured by decrease in household food shortage frequency).improved lively hood contribute to better coexistence with wildlife.


2.2 Learning points from the experience and innovation Box 5. What do we learn from this case? 1) Innovative ways of drought preparedness 2) The innovation the MAC as a viable tool for breaking market barriers 3) Techniques techniques required to undertake optimum stocking 4) Brainstorm strategies on hay storage and commercialisation 5) Importance of group formation and creation of avenues for collective bargaining 6) Innovations around restocking, value addition and organized trading cycles 7) Ways of increasing retuns from livestock resources including eliminating the middleman 8) Linkages between wildlife conservation, agro-forestry, and livestock


3.0 Additional reading and references http://www.maasai-association.org/maasai.html

http://www.awf.org/content/headline/detail/4204


Case 1 Siana and Kilitome Market Access Commitees