Famine Early Warning Systems Network(FEWS NET)

Transcription

1 Famine Early Warning Systems Network(FEWS NET) Cross border livestock trade assessment along the Somalia-Ethiopia-Djibouti borderland Presented at the FSNGW meeting Nairobi, Kenya July 8, 2010 FEWS NET, East Africa

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

3 Presentation Outline Caveats/disclaimers The assessment area and livestock trade Objectives of the assessment Summary of a few key findings Concluding remarks

4 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 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

5 The assessment area Somalia: Galkayo, Garowe, Laasanood, Burao, Berbera, Hargiesa, Togwajale visited Ethiopia:Werer, Gawane, Chifra, Ayssaita and 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 by the FEWS NET Somalia, Djibouti and Ethiopia team with support from FSNAU

6 Importance of the livestock trade Livestock exports play a major role in:- Income generation and wealth creation Employment Foreign exchange earnings Revenue generation Food source Generates USD 150m to 200m/year

7 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.

8 Objectives To better understand the dynamics of the cross-border livestock trade between Ethiopia, Djibouti and Somalia especially after the devastating effects of several years of drought 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 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.

9 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 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

10 Export routes during and after the ban Shifts between Djibouti and Somali ports Shifts between Berbera and Bosaso ports Change of fortunes for the associated service sector

11 Summary of key findings The import ban has resulted in:- Increased settlements Purchase on loan/waiting for a long period Proliferation of berkads Deforestation 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)

12 Summary of key findings cont Trade volume of livestock from the Djibouti, Berbera and Bossaso ports during and after the livestock import ban BERBERA Bosasso Total Djibouti ,408,441 1,915,602 3,324, , ,452,442 1,639,625 3,092,067 1,678, ,326,085 1,342,460 2,668,545 1,625, ,602 1,242,170 1,733,772 1,236, (May) 412, , , ,671

13 Summary of key findings cont Origin of livestock exported through Berbera and Bosaso ports in 2009 Northwest/Northeast 35-45% Rest of Somalia 10-15% Somali region of Ethiopia 45-50% Source: FEWS NET team, Burao and Hargiesa Livestock Market Analysis, 2010.

14 Summary of key findings cont 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 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

15 Summary of key findings cont 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 shocks The volume of live livestock exports in 2009 was 9% higher than 2008 and was 4% higher than the 5-year average ( ) Increase in farm gate prices in Jijiga(camel 600 Br in August to 800Br, in May 2010)

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18 Conclusions 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 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

19 Summary of key findings cont Peak export season in the sub region A 70 day period between the end of Ramadan (Id al-fitri) and the start of the Hajj(id al-adha) is the annual peak of the livestock exports from Djibouti, Berbera and Bosasso ports. This constitutes an important seasonal calendar for the pastoral communities in this region. In 2009, Id al-fitri fell on September and Idal-Adha fell on November

20 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

21 Thank you