Improvement and diversification of Somali livestock trade and marketing
Permanent URI for this collectionhttps://hdl.handle.net/10568/16717
Browse
Recent Submissions
Item Enhancing the provision of livestock marketing information in Somaliland(Brief, 2015-03-15) Mugunieri, Lawrence Godiah; Baker, Derek; Elmi, I.I.; Costagli, Riccardo; Gulaid, Ibrahim; Wanyoike, Francis N.Item Enhancing the provision of livestock marketing information in Somaliland(Report, 2014-12-30) Mugunieri, Lawrence Godiah; Baker, Derek; Elmi, I.I.; Costagli, Riccardo; Gulaid, Ibrahim; Wanyoike, Francis N.The economy of Somaliland depends on livestock, which employs about 70% of the population and contributes approximately 60% of GDP and 85% of export earnings. The principal export markets are the Kingdom of Saudi Arabia, Yemen, Oman, Egypt and the United Arab Emirates. Exports to these markets have shown a steady growth in the last four years. Despite recent growth in export volumes, livestock trade takes place in an environment characterized by an underdeveloped legal framework, contract uncertainty and high information costs among other factors. Trade is guided by informal traditional institutions, customs and religious practices that serve as alternatives to formal contracting. The Livestock Marketing Information System (LMIS) was initiated in 2007 to address the constraint of high market information cost. The purpose of the LMIS is to provide timely current information to livestock producers, traders, government officials and other development partners. It collects and disseminates data from three livestock markets (Hargeisa, Burao and Tog Wajaale), the port of Berbera and crossborder market of Lowya Caddo. It is implemented by the Somaliland Chamber of Commerce, Industries and Agriculture, in collaboration with the Ministry of Livestock, Ministry of Commerce, Ministry of Finance, the municipalities of Hargeisa, Burao and Tog Wajaale, with the technical support of Terra Nuova and funding from Danish Government. Although several agricultural market information systems exist in developing countries, the validity, reliability and impact of information they generate vary and depend on a number of factors. Some of these include technology used, technical capability of personnel, protocol employed in data capturing, management and transmission among others. Despite the Somaliland LMIS being in operation for eight year, there has been no attempt to evaluate its validity and reliability. To redress this concern, this study provides an appraisal of the validity of the Somaliland LMIS as a decision making tool for stakeholders, identifies its strengths and weaknesses and offers recommendations for improvement. The validity of the system was assessed by focussing on three areas. First, by evaluating the proportion of total Somaliland livestock exports that are traded through the monitored markets. This enabled understand how the LMIS covers the target population. Second, by analysing the extent to which the trends in volumes of livestock traded in monitored markets is explained by shocks and opportunities in both local and international markets; and third by evaluating the type of trends that exist in livestock prices and the main drivers of these trends. Data used were obtained from the LMIS database, comprising weekly traded volumes, weekly price data for different grades of small ruminants, cattle and camels, and weekly export trader numbers for a period 2007–12. The study shows that the LMIS has provided valid data and information over time, noting that the data series exhibited direct and strong relations with shocks and opportunities that have occurred in local and international markets. The LMIS’s coverage has been high and consistent for small ruminants, although modest for cattle and camels. A vector autoregressive model applied to quantify the effects of seasonal and occasional factors on price revealed that whereas prices of small ruminants and camels have exhibited secular and upwards trends over time, those of cattle have remained the same. In addition, market structure, seasonal effects as well as shock events were found to only affect the prices of small ruminants. The report presents preliminary recommendations for public and private sectors, with some predicated on further study.Item The Somali chilled meat value chain: Structure, operation, profitability and opportunities to improve the competitiveness of Somalia’s chilled meat export trade(Report, 2012-11-14) Negassa, A.; Baker, Derek; Mugunieri, Lawrence Godiah; Costagli, Riccardo; Wanyoike, Francis N.; Abdulle, M.H.; Omore, Amos O.Export-oriented pastoral livestock production is an important source of livelihood of the Somali people. The country is largely food deficient, with imports forming a significant proportion of basic food requirements and which are largely financed through earnings from exports of live animals and meat. The export of meat products offers more avenues for increased earnings and tax revenue by exploiting the available opportunities for domestic value addition, than does live animal trade. This study characterizes the Somali chilled export meat value chain in terms of actors, institutions and practices, and provides an initial analysis of their profitability in handling four species of livestock. It also canvasses actors’ views on opportunities and constraints faced. Its main objective is to provide information that will enable development of strategies to improve the efficiency of the Somali chilled meat export value chain as a way of increasing incomes to market actors. Primary data used was obtained from a rapid appraisal of chilled meat export marketing value chains in Somalia and a formal survey of market actors (brokers, small-scale traders, agents of exporters, exporters and airfreight operators). Secondary data obtained from a review of relevant literature and interviews with expert informants was also generated. The study identified a widely-recognized and consistently-applied grading system for slaughter stock. Quality requirements in importing countries were revealed to be well known throughout the chain, in that actors’ rankings of attributes were consistent within and between actor stages. Conversely, knowledge of health and safety requirements in the importing countries was known only to exporters. Other inconsistencies throughout the chain included the nature and strength of trading relationships: long-lived at exporter and agent level but short term and cash-based at producer level. Although exporters made payments mostly on the basis of carcass weight, agents of exporters paid based on per head of live animals. There is evidence of economies of scale, and of financial advantage in species specialization (specifically, goats) by traders. Most actors’ aspirations feature expansion, but they report investment funding as their main constraint. The report presents preliminary recommendations for public and private sectors, many predicated on further study. These focus on value addition and information sharing on what constitutes value, building of product identity and legally protecting its unique status, and coordination to address costs.Item Improvement and diversification of Somali livestock trade and marketing: Towards a formalized grading system for export quality livestock in Somalia(Working Paper, 2012-11-14) Mugunieri, Lawrence Godiah; Costagli, Riccardo; Abdulle, M.H.; Osman, I.O.; Omore, Amos O.Item Traders’ assessment of live animal quality attributes for export market in Somalia: implications for improving the coordination of live animals export value chain(Conference Paper, 2009-10-21) Negassa, A.; Costagli, Riccardo; Matete, G.; Jabbar, M.A.; Okuthe, S.O.; Abdulle, M.H.; Omore, Amos O.Item Towards improving livestock export marketing support services in the Somali context: Survey findings and implications(Working Paper, 2008) Negassa, A.; Costagli, Riccardo; Matete, G.; Jabbar, M.A.; Oyieke, S.O.; Abdulle, M.H.; Omore, Amos O.This publication presents study carried out to provide empirical information that informs the debate and decision making process towards improving livestock trade and marketing in Somalia by enabling the development of effective and efficient marketing support services and accountable and competent rural institutions. The study focuses mainly on objectives which are to generate information that could be used to improve livestock export marketing institutions and support services. The study was conducted to: standardize quality and the criteria used for grading livestock for export; identify hazard analysis critical control points (HACCPs) along marketing chains; develop and formalize quality control systems; link primary, district & regional markets more effectively; reduce transactions costs for traders; increase competitiveness for producers; strengthen the regulatory role of local administrators; and to develop and disseminate relevant market information to stakeholders.Item A rapid appraisal of institutions supporting Somali livestock export(Working Paper, 2008-04-15) Mugunieri, Lawrence Godiah; Costagli, Riccardo; Osman, I.O.; Oyieke, S.O.; Jabbar, M.A.; Negassa, A.; Omore, Amos O.This publication presents finding of a rapid appraisal of institutions supporting livestock trade and marketing in Somalia. The study was carried to: identify institutions supporting livestock trade and marketing in the country; evaluate the roles played by these institutions in facilitating livestock trade and marketing information flow; application of grades and standards in livestock trade, and livestock export marketing promotional activities; assess the level of networking among these institutions while facilitating livestock export trade and marketing; analyze constraints faced by these institutions in executing their activities. It was anticipated that this will be useful in designing supportive infrastructure to enable them play an effective role in improving livestock trade and marketing through enhanced accountability and competence. Emphasis was put on organizations involved in livestock marketing information flow, application of grades and standards in livestock products, and, livestock export promotion. This study identifi ed some forms of organizations supporting livestock export trade in Somalia, viz. brokers, veterinary services delivery systems, port authorities, livestock shipping firms, money transfer services, local government and regional administrations that were in-charge of livestock markets, central government, and a variety of private traders associations. These organisations supported the principal market participants: the small-scale traders, agents of exporters, and exporters in their trial to make effective livestock export trade. The organizations operated under a set of rules and procedures that influenced their activities in facilitating livestock. However, it was noted that there was limited capacity to enforce adherence to some of the rules and regulations by these organizations. This appraisal recognized that although there exist informal grading system based on a number of attributes (age of animal, sex of animal, nutritional status, weight and size, breed and health status), none of the identified institutions was engaged in overt activities to develop further and publicize application of these grades in livestock trade. This was noted to persist despite the general knowledge that suitable grading would significantly promote trade. This appraisal established that currently, the main centre of attention of the public sector is at the ports of exit. In these ports, the government implements a rudimentary animal health certifi cation system, based on clinical inspection of animals prior to loading. There are also some instances of monitoring in some of the secondary markets. Implementation of an effective health and certification system is constrained by limited capacity, both human and physical within the respective institutions and by the absence of a central veterinary administration that is recognized internationally. These constraints need urgent redress to guarantee participation in livestock export trade by Somali traders. It is important to note that a certification system put in place should also be cost effective and easy to apply in order to be sustainable.