According to FAO, livestock related food items account for about 30% of agriculture related GDP in Africa. This is with the exclusion of other contributions such as manure, draught power and transportation. When we consider that 75% of sub-Saharan Africa (SSA) human population is involved either directly or indirectly in farming activities (FAO 2013;2014), it becomes apparent that livestock farming is an important aspect of human development in the region. Livestock diseases however pose a significant barrier to growth with losses thought to be much higher in SSA than the global average of 20% (AU-IBAR). It also limits access to foreign markets through the export of live animals and livestock products.
Pharmaceutical companies generally focus their resources in the developed markets where they derive most of their revenues. For instance, the US commands 43% of the market (ResearchAndMarkets.com). This has led to gaps on the availability of animal health products in SSA that meet farmer needs as well as supply challenges to last mile level. GALVmed aims to evidence that commercial benefit could be realised by operating in this space with the aim of attracting industry players. To this end, technology is emerging as a key enabler which could transform the animal health industry in Africa.
Technology can be used to build infrastructure and tools linking players in the industry. As an example, GALVmed has partnered with cloud-based, animal health product distribution company Cowtribe, to supply rural agrovet retail shops in Ghana which have historically been underserved, with quality animal health inputs competitively. A business to business (B2B) e-commerce platform called Zhulia has been developed allowing agrovets to order animal health inputs with just a tap of a button. Through this platform, orders can be aggregated immediately leading to quantity related discounts translating to lower cost of goods. This also allows for developing of route plans for delivery of the ordered products as agrovets will be mapped in real time. Agrovets can now better manage their inventory, manage sales, enjoy competitive pricing and other related benefits as this has created an ecosystem of actors in the industry.
Data analytics can also unlock tremendous value for animal health industry players. A combination of online behaviour, media reports, GIS and internal data could be used to predict which products will be needed when, where and by who. It could also predict disease outbreaks which could be useful in informing proactive interventions. Signals from internet searches and media could also serve as early indicators of safety of certain products.
As digital health technologies continue to become an integral part of the solution, those working in the livestock sector need to adapt, as such technologies have the potential to greatly increase access, control quality, safety and cost-effectiveness of animal health inputs.
Written by Tom Osebe, Senior Manager, Commercial Development in Africa