Kenya produces 600,000 metric tonnes of red meat in a year. It sounds sounds a lot, because Uganda only produces a paltry 150,000 metric tonnes annually. Somehow, Kenya produce quite little for its local market and also for export because we have a deficit of 300,000 metric tonnes!
If you are in the meat business or if you are looking to venture in the industry, there are several untapped business opportunities that you might want to consider, research by the Kenya Markets Trust shows.Deficit in the red meat market itself is an untapped business opportunity but there lies interesting opportunities that businessmen have paid little attention to.
Fifth Quarter Value:
(innards in poultry, head, tail, hide, horns, hoofs, fat, tallow, tongue, heart, and liver in cattle, goats and sheep) is the first underexploited market.
According to KMT, the Fifth quarter, in all the market segments (low income earners, middle income earners and high income earners) is mainly consumed as a delicacy, to meet nutritional needs and in low income segment, as a substitute for meat due to relatively lower prices compared to meat.
While the fifth quarter trade is not new in Kenya, KMT’s research observes that investors stand to gain by making quality and hygienically prepared products accessible to the high income segment at premium prices.
“Traders interviewed through key informant interviews indicated that while the entire stomach plus intestines of goat is sold at Ksh400-500, there are some buyers from neighbouring countries who buy the same at Ksh1,500,” reads the study.
There is also a growing perception among consumers that unlike red meat, these products (fifth quarter) do not contribute to lifestyle diseases.
Utilisation of cold chain along the supply chain:
KMT’s research shows that proper use of cold chain (distribution of meat while chilled) will enhance quality by reducing bacterial loads on meat and reversing the increase in autoimmune diseases, which are caused by increased consumption of hot chain meat (storing meat in normal temperatures).
This increases consumer confidence in red meat and ultimately promotes consumption of the same.
Processed and value-added products in the formal and informal channels:
Meat consumption can be increased by making available the value added products that are mainly sold in the informal markets to the formal outlets especially the samosas and African sausage.
“This will involve supporting entrepreneurs to come up with such unique products that address the concerns of the middle and high income segments,” reads the study. “Similarly more processors can come up with meat products that are appropriately packaged for low income segments,” it adds.
The study shows that there is a proportion of people who do not prefer going out to eat meat. This segment can be easily reached with well packaged red meat products that are home delivered through a model similar to the chicken delivery by fast food chains.
The growing nyama choma culture:
According to the study, majority of people above 19 years of age have a preference for nyama choma.
More value can be extracted from nyama choma outlets through creation of new value added products, development of products for home delivery services and also using the joints for dissemination of messages related to safe handling of meat.