2. PRESENTATION OUTLINE
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Livestock Marketing and Export in Somalia by Mohamed
SaidAbdulle2
Introduction andThe Background Information
Objectives
LivestockTrade in Somalia
Challenges facing Somali livestock trade
Conclusion and Recommendations
3. INTRODUCTION
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Somalia Livestock : main source of livelihood and
Economy
Accounts about 60% GDP and 85% of export
earnings( FAO,2012)
Population of livestock : Estimated around 40
million (FAOSTAT,2015)
Around half of the total livestock population is
found in Northern parts of the country (FSNAU,
2014)
The main production system : Nomadic
pastoralism
4. INTRODUCTION CONT..
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The production system challenged by :
limited feed availabilities
Disasters: droughts ,cyclones , massive
deforestation of rangelands, poor veterinary
services.
Traditionally oriented towards trade and
export
Millions exported toArabian peninsula each year
5. OBJECTIVES:
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The paper aims to make review on livestock
trade and export in Somalia. Focusing on
Export trends
Characteristics of livestock trade
Value chain analysis
Certification and standardization
Challenges Facing the livestock trade
6. Livestock Export Trend
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1n 1950s there was a lucrative and growing
livestock market in Saudi Arabia
Somali merchants emerge and dominate the trade
in 1950s, 90 percent of exports went to Saudi
Arabia.
Since than , the export volumes grow
In 1970s the export went to its peak
8. Livestock Export Trend cont…
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Prior to civil war: livestock exported through
major three ports; Berbera ,Mogadishu and
Kismanyo
After civil war : most of livestock handled in
Northern port of Bossaso and Berbera.
Average 3-3.5 million heads exported per year(
FEWSNET,2010).
Shoats : two thirds of total export
Camel export increase since 2010
9. Fig 1: Trends of livestock export in Bossaso port (FSNAU,
2016)
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Livestock Marketing and Export in Somalia by Mohamed
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Livestock ban
Source: FSNAU,2016
10. Fig 2: Trends of livestock export in
Berbera port
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Livestock Marketing and Export in Somalia by Mohamed
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Livestock ban
Lift of the livestock ban
Source: FSNAU,2016
11. Livestock Export Trend cont…
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The exports from Berbera and Bossaso have
increased relatively for the livestock six years.
In 2014, both of the ports handle 5 million animals ,
which worth 360 million USD( FAO,2014)
Several improvements:
Animal health interventions , vaccination programs
tackling PPR ,CCP ( in 2014, 12 million animals
vaccinated)
Prophylactic treatment campaigns
12. Origins of livestock exports
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Three corridors and
transportation routes
Berbera corridor
Bossaso corridor
Garisa corridor.
13. Somali livestock export markets
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Livestock Marketing and Export in Somalia by Mohamed
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Entire Gulf countries,Yemen and Egypt
Priority end markets : Saudi Arabia and the rest of Gulf.
Source: FAO,2015
14. Characteristics of Livestock trade
Livestock Markets
• places for transaction
of livestock for urban
consumer and export
• Terminal markets
mainly located far
from production areas
• Galkacyo, Burao
and Afmadaw
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15. Marketing system Before export
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Livestock Marketing and Export in Somalia by Mohamed
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Traditional Marketing System :
used local markets , locally known as Seylad
System
Characterized by complex networks of
intermediate brokers and multiple formal and
informal transactions
Sold by pastorolists Collected in Smaller
markets larger markets shipped for
export
16. Marketing system Before export cont.
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Commercial Marketing System :
Dominated by large exporters driven by profit
margins
Company agents purchase livestock directly from
pastorolists in both Somalia and Ethiopia
Sometimes form of barter trade happens , where
producers are given to Rice, Sugar andWheat
17. Livestock trade Value chains
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Important value chain actors :
Producers
(mainly pastorolists)
Prices dictated by
market forces of
demand and
Supply
prices for Export
quality animals
varies:
Cattle : $200-360
Shoats : $32-75
Camel: 350-900
Small scale(petty)traders
Brokers
(intermediate brokers)
Agents of Exporters
Exporters (link to Import
countries )
19. Seasonal variation of livestock exports in 2010 (Source: Majid, 2010)
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• Saudi Arabia is the main livestock market (70%)
• Consumer preferences in Somali livestock
• Black headed Somali Sheep have historical relationship with pilgrimage.
• 50% of livestock exported during Hajj season
Seasonality of livestock exports
20. CROSS BORDER LIVEESTOCK TRADE
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Support about seventeen million people in the
Horn ofAfrica
Mainly , informal ,unofficial and unrecorded
Characterized by clan bases and kinships
in 2011 ( FSNAU) reported 355,151 Shoats were
traded between Ethiopian –Somali border
Mainly the cross-border trade is two routes :
Between Somalia-Ethiopian border
Between Somalia- Kenyan border
21. Indigenous Grading system
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No formal standardization system in livestock
markets
Traditional livestock grading system existed in
the market
Undocumented
Developed by merchants and traders
Subject to different explanations at different
markets
22. Schematic diagram of Somali traditional livestock
grading system
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23. Livestock certification and Inspection
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private quarantine facilities at Berbera and Bossaso.
Holding capacity of 2 million animals
Facilities : sheds, water and feed sources ,laboratories
24. Certification process:
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Screened for zoonotic and economic diseases which
include FMD, RVF, PPR CCPP, CBPP, sheep pox, and
Brucella.
Different requirements by different importing
countries
Free diseased animals area vaccinated
Diseased animals are rejected (average number of
rejected animals ,2% )
Port veterinary office certifies the health animals
Endorsed by chamber of commerce
25. Challenges for Livestock trade and Export
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Supply constrains :
Recurrent droughts
Unofficial border trade: restrictions for livestock
trekking
Limited veterinary drug availabilities in the remote
areas and limited extension services
Institutional constrains :
Animal health certification (SPS regulations)
Export bans
Informal grading system
Underdeveloped financial sectors
Poor market information flow
27. Conclusion and Recommendations
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Livestock remain the mainstay of Somalia and accounts more
than 40% of national GDP.
Remain longstanding exporter despite many challenges
Generally export volume has been increasing despite
intermittent bans
There is seasonal variation of livestock export ,hajj is the
peak export season
In 2014,5million livestock are exported(worth 360M USD)
,highest for 20 years
The trade is challenged by multiple challenges : supply
,institutional and infrastructure constrains
28. Recommendations
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Formalization of traditional grades and standards
Improvements on livestock market information flow (LMIS)
Investment opportunities like feedlot finishing and fattening
farms as well as fodder production
Efforts is needed to conserve and protect the natural range
lands
Improved livestock health certification
Veterinary and market infrastructure should be improved