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294) Is the Ministry of Animal Resources in the hands of agri-business? Print E-mail

The latest decisions by the Ministry of Animal Resources prompt us to ask a few questions. The Ministry seems resolutely to head towards supporting the business end of agriculture. What then can the small livestock farmers hope to receive from the same Ministry, which should be there to protect them?

The report of the meeting in the Council of Ministers of July 9th this year reads:

“Ministry of Animal Resources

The Council studied and  adopted a report on the setting up of a joint stock company for the production of animal feed in Ouagadougou.

The establishment of  such an industry in Ouagadougou is the first step of a series of measures to improve feed security for the nation’s livestock.

Running at full capacity the industrial plant will produce 100 000 tonnes of animal feed a year from grain surplus.

The total cost is estimated at 1,053 billion (1 053 000 000 ) CFA francs.

The Council gave permission to the Economic and Social Development Fund of Burkina (FBDES – Fonds Burkinabè de développement économique et social) to buy 75% of the shares

It also called upon the Ministers concerned by the project to take the necessary action in order to facilitate the long term viability of the plant. (End of quote).

The  decision is most certainly one of the results of the visit that the Minister of Animal Resources, Mr Sékou Bâ, paid on January 14th this year to villages on the outskirts of Ouagadougou.  On that occasion the Minister was able to see first hand the serious threat that  livestock feeding is exposed to at that particular time of the year. 

In less than one year the price of vegetable oil cake has gone up from 40 000 CFA francs a tonne to 127 000 or even more. Therefore livestock keepers can no longer cope with the situation.

“In Koubri the Minister was able to visit modern farms owned by the nation’s political leaders. One farm belongs the President, another to Mr François Compaoré (his brother  ) and another to the Speaker of Parliament (Assemblée Nationale), Mr Roch Marc Christian Kaboré … Mr Bâ also visited the farm of Mr Joseph Kaboré, Member of Parliament and former minister of Infrastructures. The latter establishment provided shed some interesting light on the situation. Milk production has fallen from 100 litres a day to 20 litres, due to the shortage of animal fodder. Therefore its well known brand of milk, COPROLAIT, is at present just about surviving. (See article in the SIDWAYA daily of January 18th 2008, by Sophie Fatouma).

After Koubri the Minister went to see the farm of one of the traditional village chiefs, Larlé Naaba Tigré, who is also a member of the party which holds the majority in Parliament.

The Ministers said he had carefully noted the concerns expressed by those he had met. He assured them that an animal feed policy would be introduced, as part of the  investment plan for the livestock sector. A dialogue is to be immediately launched  with producers of by-products of the food industry to help livestock owners gain access to animal feed supplements. In order to put a brake on the soaring price of oil cake, the Government intends to buy up feed, which is then to be sold a at  regulated price. (See article quoted above). »

I am in no doubt that  Government leaders and  modern livestock owners have been able to buy animal feed at a special regulated rate. Even livestock farmers of the FEB (National Union of Livestock farmers) have had the benefit of a good price on 10 000 tonnes of animal feed. The Government is living up to its role, in attempting to improve feed security for the country’s livestock.

But the Minister of Animal Resources have different ambitions !

The minutes of the meeting of the Council of Ministers of July 23, this year, state:

“With regard to the Ministry of Animal Resources

The Council studied the report on the acquisition of shares in SOPROLAIT (Industrial  company for the production of milk and dairy products) by the Economic and Social Development Fund of Burkina Faso, (FBDES).

SOPROLAIT is a joint stock company, set up on January 22nd 2004, with an initial  capital stock  of 50 million CFA francs (50 000 000), subsequently increased to one hundred million (100 000 000) CFA francs on April 10th 2008, of which 51% is held by the fund, FBDES, and 49% by private shareholders.

The objectives of the company are:

-          improvement and reinforcement of the milk sector and reduction of imports

-          development of milk production in the area surrounding the capital

-          enhancement of the production in the 40 farms located around the dairy plant

Moreover, SOPROLAIT will put on  different types of milk, butter, meat and live animals for reproduction on the market.

The total cost of the project amounts to 6 415 000 000 CFA francs (six billion four hundred fifteen million).

At the conclusion of its debates the Council authorised FBDES to buy shares in the company and assist it in the search for additional funds.”

This is more worrying. The total financial input stands at over 6 billion CFA francs without any indication of how far the FBDES fund (that is, the Government) is prepared to go. Will it hold on to the 51%  limit - which would mean an investment of over 3 billion ?

Recalling that previous ventures in this direction all failed (dairy plants at Cissê and Fasso Kossam have gone bankrupt, the large dairy at Fada N’Gourma,  in which more than 800 million CFA francs were invested -  is far from making a profit) , one may feel a bit surprised!

And this is not all. To whom do the 40 dairy farms, referred to by the Council of Ministers,  in the vicinity of the capital Ouagadougou belong ? To the President, to his brother, Mr François Compaoré, the Speaker of the National Assembly, Mr Joseph Kaboré, MP and manager of SOPROLAIT, Mr Larlé Naaba, MP -  all the good and the great,  ruling the nation.

In the meantime the National Union of Livestock Farmers (FEB) still does not have a place for its office !

For those who are not familiar with this organisation, it is possible to have a look – as I did – at the web site of the National Federation of Farmers’ Associations, la Confédération Paysanne du Faso, CPF , to which the FEB is affiliated. There we learn that the FEB is a federation of stock keepers of all the various species of animals across Burkina. It was set up in 2001 on the initiative of the livestock farmers, and consists of various groups and associations from all over the country. The FEB is the umbrella organisation for all. It is represented in the 45 provinces. In September 2001 it had 1 783 affiliated groups, 1200 of which were run by men, 291 by women and 192 by mixed female/male members, representing a total of 56 671 cattle farmers. In 2005 there were more than 3 500 organisations and about one hundred unions.

One may have reason to find it odd that the 3 500 organisations making up the FEB have been unable to find the ways and means to set up an office. But one may also ask the additional question: How can the Government, after the repeated failures of SOPROFA at the dairy plants of Cissê, Fasso Kossam and Fada N’Gourma,  undertake an expense of this magnitude, whilst leaving the National Federation of Livestock Farmers without the funds to set up one office"?

 

Koudougou August 23, 2008

Maurice Oudet

Director, SEDELAN

 

 
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