Somaliland Livestock Export Trade Is The Key To Success.

[JSL3000]

Many decades ago an American executive said ” what is good for General Motors is good for America”, referring to the importance of the car maker to the American economy. At that time, GM was producing 2% of the countries GDP. Imagine an industry that is almost 40% of national gross domestic product (GDP). Well, that is the Somali livestock industry. export could be better than black gold, literally. During the Hajj, the average goat sells around $75 dollars. That is the price individual sellers get from the exporters. The traders sell to the gulf buyers to an average of $90 dollars per goat. One of my close friends who went to Hajj in October of this year, told me that they paid between $150-200, to get a sheep or a goat for the ritual slaughter of the Hajj .

In 2014, Somalia exported a record 5 million livestock to markets in the Gulf of Arabia. This is the highest number of live animals exported from Somalia in the last 20 years. The export data, collected by the FAO-managed Food Security and Nutrition Analysis Unit (FSNAU), indicates that Somalia exported 4.6 million goats and sheep, 340,000 cattle and 77,000 camels in 2014, worth an estimated $360 million. Among the major ports that exported these Livestock’s are Berber and Bosaaso. in the north west of the country, Berbera is the leading port of all animal exports with 3.4 million heads and almost 70% of all Somali exports, while Bosaaso in the north east was second with 1.6 million heads of livestock. While couple of hundred thousand animals were exported from Mogadishu in late 2014, the FAO report did not include those numbers. The 2015 numbers could hit a record high when the Mogadishu and Kismayo port exports are added. Livestock is the mainstay of the Somali economy, contributing 40 percent to the country’s Gross Domestic Product. According to FAO, the number of Somali livestock population is about 37 millions, which puts Somalia among the top ten producers of goat and camel.

According to financial times , ” There are few business areas in which a failed state might hope to challenge the developed world, but in recent years Somali livestock exports to the Middle East have overtaken those from Australia.” “Including goats, cattle and camels, total livestock exports from the civil war afflicted territories rose to 4.8m in what is the world’s largest on-the-hoof movement in the live animal trade”. “There’s no single time that they ever exported such large numbers before,” says Ernest Njoroge, livestock expert at the EU’s Somalia Unit. “If the ports in Berbera, Bosaso and Mogadishu become very, very efficient , then that will even increase”. Matter of taste: Somali goat is said to be sweeter and less fatty .

That is huge earning for a country recovering from a civil war, yet most of the profits end up in the pockets of the exporters and gulf buyers, and it doesn’t improve the lives of Somali nomads and farmers who raise these livestock’s. There are no structural selling mechanism, or auction houses that guarantees basic value of the product for the small Somali sellers.

Strong growth in livestock exports must create benefits for others, such as rural communities, and rural service providers. There are also significant indirect effects on the broader economy through additional spending and upward pressure on the exchange rate. If the country is earning hundred millions of dollars for it’s exports , that will increase the exchanges of the Somali shilling against foreign currencies. All that benefits must be felt among the pastorals, villagers and towns that are connected to this trade.

While most of you are aware of the export value of the Somali livestock to the national economy, In this peace, I want specifically to concentrate on how all this millions of dollars do not affect indirectly on the lives of Somali pastorals and farmers who raise the animals. There are couple of fundamental reasons which kept the Somali pastorals poor and backward. One is cultural, the other is systematic , which could only be improved by government intervention and the introduction of modern technics.

1- Introducing modern trade system that protects the Somali Livestock Exporters.

I had some personal experience in dealing with livestock both here in the diaspora and back home, where my own family was involved in the trade of goats and sheep to major markets. It is a long story, but I would try to make it short. One of my uncles was a trader who exported oxen from Djibouti to Yemen. Small time merchants and individual pastorals used to pool their livestock to gather and walk them from Awdal and hawd to all the way to Djibouti. Usually , while the wholesale buyer ships the animals to Yemen, these small traders must wait weeks and months to be paid for their animals. By the time they got paid, they already spend half of their earning for the expenses they accrued during their stay.

Some of you might have seen few months ago in the news about some merchants from Hawd complaining in Burco for lack of payment for their livestock ( waxay dhaheen waa nala dhacay), that story is familiar every where, whether it’s in Bosaso, Djibouti, Hargeisa or KIsmaayo. In one of his largest exports, my uncle pooled and collected 2000 caws from more than thirty small traders and individual pastorals . The value of the livestock was more than $850,000 dollars in early 1984. The Yemeni trader took all the livestock and exported to Aden after paying less than 10% deposit. His agent in Djibouti disappeared and my uncle spend two years in Yemen chasing after them in their courts and in Djibouti embassy with no result. While he was fighting to get his money back in Yemen , the traders were borrowing money from his shops and businesses . Within a year he lost every thing including shops, houses and other businesses, while the poorer traders became destitute. To my surprise, when I went to Djibouti in 2011, he was still chasing the Yemeni thieves. It could be happening in Somalia as we speak. Today in Berbera or Bosaso, individual Saudi and other Gulf importers insist on having a monopoly to all imported livestock’s. Mr. Aljabir in Berbera, would not allow anyone else to import and compete, In some cases, their governments could refuse the livestock at their ports without valid reasons and return the malnourished goats and sheep’s to their original ports. When that happens everyone loses.

That is systemic trade problem which only a government can resolve by introducing export development banks and insurance mechanism that could protect the traders and exporters. Imagine the potential for the government to earn taxes from an export industry worth $700 million dollars a year within few years. Rather than beg few millions from the donor countries, the Somali livestock could generate ten times more . Almost every major nation whose economy is dependent on export has to encourage and safeguard the exporters. Here in Canada , the government created a single desk or a wheat pool to sell wheat and barley produced in the western provinces. In this vast land of Canada, it was difficult for individual farmers to transport the wheat from prairie land to the ports in the Pacific or Atlantic oceans. The Canadian Wheat Board collects all the products and sells the to the international market with guaranteed price for the farmers.

The CWB’s mandate was to pay farmers a base price for their grain, identify markets, negotiate the best price, deliver the goods, issue advance cheques and make final payment after the crop was sold. If the wheat market went up, farmers pocketed the profits. If the market went down, the government absorbed the loss. Nothing was subtracted from the farmer’s share except the cost of marketing and delivery. In this case Somali traders could pool their livestock together and the government could guarantee the sale from a foreign government. The government will do all the necessary leg work, like marketing and transporting. Since open grazing of goats and sheep in valleys, mountains and other open grazing lands may cause huge environment foot print , new technics of cutting and collecting hey and grass during rainy seasons and restoring them for animal feed during winter and dry seasons should be introduced. New Zealand, a small nation in the Indian Ocean, exports $10 billion worth of dairy products throughout the world.

2- Overcoming the culture of being poor and not having the benefit of your wealth.

Now , let us tackle the cultural dilemma of poor Somali pastorals holding valuable commodity in their back yard. We are all familiar with camel herder guarding 50 camels and not even having shoes to walk to the burning soil. He is watching $50,000 worth of products, yet he thinks he is a poor man compared to the town folks who may not even have fifty dollars in their pocket. I do not know exactly how many goats, sheep or camel the average Somali pastoral family has, but we can assume that in Somali standards, someone that is grazing 20 goat is considered a poor family. If each one of these goats is worth eighty dollars, these family is worth $1600 with no liabilities, rents or other major monthly bills. They could sell one each month and maintain basic living stander. If they got few camels, and a dozen caws that is automatically makes them well off family since a camel is worth $1000 dollars. The main issue is educating and convincing them the value of their product, while building auctions and regulated market halls where the nomads could not be cheated by the town and city brokers who are well known to be cut throat crooks . A desperate nomad who wants to buy a kilo of sugar and 5 pound of rice for his family, can not negotiate or deal with the typical Somali ” Dilaal”. In some cases, they may get less than 50% of the value after paying the brokers and waiting to paid for few days. Just like exchange rates, the market prices could be broadcasted by local radio and other media. It is unacceptable for the Somali farmers and pastoral nomads who represent 40% the GDP, to remain poor while holding the most valuable commodity in the country. Every village and town should create auction houses and market halls which records every transaction in order for the local government to collect it’s share of taxes. This industry could employ tens of thousands of people throughout the country.

While energy prices are volatile– from a hundred dollar a barrel to $40 dollars within a year— the price of stable foods are growing around the world. The price of beef, flower, rice and goat meet have doubled for the last two decades. They may fluctuate here and there, but they remain steady. If you are importer of these commodities, like Somaliland region, were inflation is out of control, people are suffering a lot, because the prices they are paying is similar to those first world countries are paying. Food and animal products are not going down , never. By being a Somali nomad , I was mobile in so many ways, which means you try different things and if you fail you move on. As one of my nomadic adventures, I did open a Somali restaurant ( which is one of the worst jobs in the world working seven days a week) few years ago in Alberta. Almost all the goat meat that we sold came from Australia and New Zealand, and it was all frozen. In fact the goats were slaughtered one or two years before we received them. If the price of the meat goes down in the market, they freeze and restore until the market stabilizes. When we travel to the Canadian country side to buy fresh goat meat, usually you deal with small farmers with a dozen or so goats in a small enclosed area. if he sells 10 goats a year with his other dairy products and other farm stables , he should be in a very comfortable lifestyle. He can only farm seven months a year because of the harsh winter, and all his animals are confined indoors half of the year. Meat is a valuable commodity to be wasted or left to rot like a fruit. Most Somali towns and villages get their meat directly from the slaughter house to their stories and open market stalls. After two days, all that meat must be sold, given away or cooked by the family themselves. It simple. It must be sold within 48 hours or thrown out. It could be a long term process but, electrifying the country side and introducing refrigeration in small town and villages should be the next step. After the meat is consumed the reaming body parts, like bones and skin should be used for other industrial purposes. I read that some people in Somalia have already making soaps and other products from these bones.

In conclusion, in-depth research is needed for the livestock industry to became the biggest foreign currency earner for Somalia second only to the diaspora remittance. I believe practical issues could easily produce good results. I would hire few dairy farmers from Turkey, New Zealand and Canada and instruct them to teach our people their modern techniques. We do not need NGO and others who spend useless researches who only produce paper trails.

All this necessary steps could be implemented by the national government. Somali regional governments can not negotiate with Saudis , gulf countries and the world to expand these livestock economic benefits. That is why we need a stable national government for the benefit of all Somalis.

Finally, if there are some errors in this article please feel free to correct. This is some thought of mine with some google feeds.

Thanks.
http://www.somaliaonline.com/community/ ... lack-gold/

picture of livestock export trade statistics.
http://cdn.mg.co.za/crop/content/images ... pg/600x900

[JSL3000]

Somaliland exported 3.4 million while zoomalia only exported 1.6 million when combine both nations livestock export trade are 5 million for 2014 totaling 360 million in revenue that year.

after doing the math i figured one million sales of live stock is worth 72 mil

that means zoomalia revenue from livestock in 2014 is 115,200,000 mil

while somaliland revenue from livestock in 2014 is 244,800,000 mil thats more than double.

[JSL3000]

Somaliland we have so much meat we can supply armies.

[JSL3000]

this picture which inclues statitics of live stock trade compare to other trades in somaliland and zoomalia combined shows that 40 percent is gdp is from live stock trade while agriculture coming in second at 20 percent; therefore the live stock trade is where the real money at.
http://cdn.mg.co.za/crop/content/images ... pg/600x900

[JSL3000]

puntland makes lion share from live stock export trade while xamar port is pushing measly couple thousands of animals a year its better for them to just stick to bananas.

[JSL3000]

there is alot key factors why puntland hasnt benefit as much from livestock trade like somaliland one is that the port bosaso is almost 10 times way smaller than berbera port so it has capacity to handle larger quanities of animals also in berbera there are many livestock treatment centers and plenty of water to maintain livestock longer periods of time basically better facilities another is bosaso to compete with berbera port has to buy livestock at cheaper prices, so it has to deal with larger overhead prices and possibly corruption. livestock for bosaso majority coming from central states in zoomalia and ethiopia while berbera connecting to hawd via burco to ethiopia more livestock flows through here beacuse it is more acessible one straight shot.

The livestock sector is central to the economic and cultural life of the Somali
people. The sector provides food and income to over 60 percent of the
country’s population. Burao and Galkayo are the largest livestock markets in
the Horn of Africa especially for export sheep and goats from the Somali
region of Ethiopia and parts of southern Somalia. The majority of the livestock
exported through Berbera and Bosasso seaports transit or pass through these
markets. Burao and Galkayo are two important reference markets for key
pastoral livelihood zones of Hawd, Sool Plateau, Nugaal valley, and the Adun
in the northeast and central regions.

[JSL3000]

[Siciid85]

Wonderful information. But Somalia waxba haka sheegin. It will ruin this thread potentially. Let's instead take this information for just what it is

[JSL3000]

^good advice I got carried away.

[DR-YALAXOOW]

this picture which inclues statitics of live stock trade compare to other trades in somaliland and zoomalia combined shows that 40 percent is gdp is from live stock trade while agriculture coming in second at 20 percent; therefore the live stock trade is where the real money at.
http://cdn.mg.co.za/crop/content/images ... pg/600x900

'

your links gives you away.. i only see a nation called SOOMAAAALIYA. i dont see a fake unrecogniced part of Somalia ee isku magacaawda Soomali+(english word)(land).. I dont see the name of that non existance fake country you claime to exist..

[JSL3000]

this picture which inclues statitics of live stock trade compare to other trades in somaliland and zoomalia combined shows that 40 percent is gdp is from live stock trade while agriculture coming in second at 20 percent; therefore the live stock trade is where the real money at.
http://cdn.mg.co.za/crop/content/images ... pg/600x900

'

your links gives you away.. i only see a nation called SOOMAAAALIYA. i dont see a fake unrecogniced part of Somalia ee isku magacaawda Soomali+(english word)(land).. I dont see the name of that non existance fake country you claime to exist..

we take bread basket while your dameer people waiting for handouts.

Get lost troll don't derail the topic because somaliland make more money off livestock trade than zoomalia stick to bananas daanyeer boy.

[DR-YALAXOOW]

the only reason in berbera north Somalia is exporting the livescok mainly to arab countries are thanks to our central federal goverment dadaal weeyn ay u gashay in la qaado xayiraadii xoolaha saartaa. sidoo kale safaaradaha Soomaalida ee wadamada carabta ay ku dadaaleen sidii wadamada imaaraadka. saudi arabia. masar ay u qaadan lahaayeen xoolaha Somalia..

waa inaad dawlada federalka Somalia u mahad celisaa qaldaana fooqul qaldaan..

[Siciid85]

Yalaxow,

I just talked to my cousin that he Should keep this thread clean, so you need to pipe it down over there.

[Rambie]

Very impressive findings sxb. So Berbera is handling more livestock than Bosasso, Xamar and Kismayo combined.
And Burco's livestock market is the largest in the horn.

[Siciid85]

Very impressive findings sxb. So Berbera is handling more livestock than Bosasso, Xamar and Kismayo combined.
And Burco's livestock market is the largest in the horn.