Economic value of livestock in Karamoja, Uganda

In the report from the Karamoja Resilience Support Unit (KRSU, supported by USAID, UKaid and Irish Aid) entitled “The productivity and economic value of livestock in Karamoja Sub-region, Uganda” (2019, 73pp), RH Behnke and RL Arasio calculate the “direct use value” of the Karamoja livestock. This concept combines all the economic benefits derived from livestock, including products and physical and financial services. Non-marketed goods and services are assigned monetary values that reflect their potential commercial value. The data are based on a survey of 1237 livestock owners in five districts of Karamoja in March–June 2019, which covered the period March 2018–February 2019.

Livestock in Karamoja produce three main products – milk, live and dead animal offtake, and blood – and provide traction for ploughing arable land. In 2018–19, the total imputed monetary value of Karamoja livestock products and ploughing was 1,161,660 million Ugandan Shillings (USD 323 million). Karamoja livestock also directly benefit their owners by providing financially related livelihood services, including provision of credit, asset-based insurance, and pooling of risk through sharing of live animals, livestock products and services. Combining products with physical and financial services, Karamoja cattle, goats and sheep provided their owners with benefits valued at UGX 1,599,069 million (USD 444 million) in the 12-month period in 2018–19.

The study raises questions about the emphasis by policymakers and development programmes on markets and value chains in Karamoja. A development focus more in keeping with pastoral and agropastoral values and responding to the immediate needs of livestock owners might instead address high levels of livestock disease and mortality, which limit herd growth and prevent the systematic management of offtake for the market and home consumption.

Posted on 22 December 2019 in Pastoralism & Marketing, Pastoralist Livelihoods & Nutrition, Value of Pastoralism