Famine Early Warning Systems Network (FEWS NET)

Cross border livestock trade assessment along the Somalia-Ethiopia-Djibouti borderland

Presented at theFSNGW meetingNairobi, KenyaJuly 8, 2010

FEWS NET, East Africawww.fews.net

Pastoralism is central to the cultural life of the HOA people, and is the dominant livelihood for the majority of rural population

Presentation Outline

� Caveats/disclaimers

� The assessment area and livestock trade

� Objectives of the assessment� Objectives of the assessment

� Summary of a few key findings

� Concluding remarks

Disclaimers

� Inconclusive assessment—many parts of the Somali region and parts of Ethiopia not covered

� Not enough data

� Assessment conducted soon after the lifting of the import ban by the KSAban by the KSA

� Difficult to gather data on ‘illegal’ cross border trade, link between livestock export and food import, remittances, etc.

� Scale up from small areas of the region, set of activities and actors (traders and herders) to other parts of the HOA sub region

Somalia: Galkayo, Garowe, Laasanood,

Burao, Berbera, Hargiesa, Togwajale visited

Ethiopia:Werer, Gawane, Chifra, Ayssaita

The assessment area

Ethiopia:Werer, Gawane, Chifra, Ayssaitaand Elidahar of Afar Region; Diredawa and Aysha‘a, Babile and, Jigjiga visited.

Market information received through key informants:-Hartasheikh, Abokor, Gashamo, Galadi and Wardher

Djibouti: Djibouti port, Lawyado

The assessment was conducted between May 18-29 by the FEWS NET Somalia, Djibouti and Ethiopia team with support from FSNAU

Importance of the livestock trade

Livestock exports play a major role in:-

� Income generation and wealth creation

� Employment� Employment

� Foreign exchange earnings

� Revenue generation

� Food source

� Generates USD 150m to 200m/year

Importance of the livestock trade cont….

�In the HOA livestock are an important economic asset among pastoral and agro pastoral livelihood groups

�Livestock trade, marketing and its associated service sector, provide a wide range of employment and income-earning opportunities for herders, exporters, branders; small traders, brokers; sellers of fodder and water; veterinary professionals, money vendors, ports, custom officials, and local authorities that generate revenue through legal taxation

�Bosaso/Berbera ports-leading ports in the world for live animal export; 3m to 3.5m heads per year, targeting Gulf States during the Hajj and Ramadan festive seasons.

Objectives

� To better understand the dynamics of the cross-borderlivestock trade between Ethiopia, Djibouti and Somaliaespecially after the devastating effects of several years ofdrought and a decade-long livestock import ban by the KSA;

� Establish the trade/export volumes of livestock during and after the livestock import ban and shifts in cross border trade after the livestock import ban and shifts in cross border trade routes

� Understand the livestock export and local trading system among these three countries and the interaction of the various actors;

� Highlight the important livestock cross border monitoring indicators and propose ways in which they can be monitored for future information collection.

The import ban by the KSA

� In order to prevent the spread of RVF, the Saudi government imposed livestock import ban in 2000 and lifted it in November 2009 after nine years

� In 2001 the total livestock exports reduced to � In 2001 the total livestock exports reduced to 669,043 heads, which was the lowest level recorded during the post-war period

� Apart from the fear of RVR spread, the ban was also influenced by the stiff competition for the lucrative Saudi market

Export routes during and after the ban

Shifts between Djibouti and Somali ports

Shifts between Berbera and Bosasoports

Change of fortunes for the associated service sector

The import ban has resulted in:-

� Increased settlements

� Purchase on loan/waiting for a long period

� Proliferation of berkads

� Deforestation

Summary of key findings

� Extra animals left on the rangeland

� Huge disparity between farm gate and consumer prices (<USD 30 in local markets to >USD 100/goat in Saudi Arabia)

Trade volume of livestock from the Djibouti, Berbera and Bossaso ports during and after the livestock import ban

BERBERA Bosasso Total Djibouti

Summary of key findings cont…

20061,408,441 1,915,602 3,324,043 287,325

2007 1,452,442 1,639,625 3,092,067 1,678,169

2008 1,326,085 1,342,460 2,668,545 1,625,224

2009 491,602 1,242,170 1,733,772 1,236,109

2010 (May) 412,448 425,190 837,638 103,671

Summary of key findings cont…

Origin of livestock exported through Berbera and Bosaso ports in 2009

Source: FEWS NET team, Burao and Hargiesa Livestock Market Analysis, 2010.

in 2009

Northwest/Northeast 35-45%

Rest of Somalia 10-15%

Somali region of Ethiopia 45-50%

During the ban:-�Djibouti government with the help of a Saudi trader established livestock health certifications in late 2006

�In 2007 and 2008, over 90% of the livestock exported from Berbera and Bosaso transited through Djibouti and hence

Summary of key findings cont…

Berbera and Bosaso transited through Djibouti and hence increased the revenue base of the port

�Significant cross border livestock movement from Jijiga, Dire Dawa and Hargeisa markets to Djibouti city, thus providing increased employment opportunities to Djibouti population

�The link between livestock export and food import were seriously undermined by the Saudi trader’s monopolistic system

With the lifting of the ban:-�The demand for export and local quality animals has improved

�Pastoralists have tighter and strong links with transporters, and traders that allow them to obtain better prices for their livestock,have enough resources and coping options to respond to future

Summary of key findings cont…

have enough resources and coping options to respond to future shocks

�The volume of live livestock exports in 2009 was 9% higher than 2008 and was 4% higher than the 5-year average (2004 – 2008)

�Increase in farm gate prices in Jijiga(camel 600 Br in August to 800Br, in May 2010)

�A sustainable pastoral system has naturally been transhumance based on mobility, flexibility and reciprocal access to resources including market

�Conflict resolution mechanism is needed to mitigate the effect of drought

Conclusions

�Cross border and export trade remain the most profitable and sustainable forms of livestock trade in HOA.

�Improved livestock health certification and some kind of regulation is crucial to avoid frequent import bans by the Gulf States especially KSA which is the most important market

Summary of key findings cont…

A 70 day period between the end of Ramadan (Id al-Fitri) and the start

Peak export season in the sub region

A 70 day period between the end of Ramadan (Id al-Fitri) and the startof the Hajj(id al-Adha) is the annual peak of the livestock exports fromDjibouti, Berbera and Bosasso ports.

This constitutes an important seasonal calendar for the pastoralcommunities in this region. In 2009, Id al-Fitri fell on September and Id-al-Adha fell on November

Conclusions

�There is a need to recognize the importance of informal cross border trade for livestock off take and food import;

�Restrictions of the xborder trade often leads overgrazing, loss of income, destitution/movement of refugees across national borders like the case in Somali region of Ethiopia

�Some of the visited areas, the loss of livestock asset is more than 60 percent of the herd size.

�Drop out pastoralists and poor households are not benefiting from the improved livestock marketing and trade-asset constrains.

�Updated livelihood baselines, harmonized seasonal assessment and tools, regular data from port activities, TOT in key reference markets, monthly and seasonal trends are needed to improve xborder monitoring system

Thank youThank you