Food Security Update in Somalia

November 9, 2001

Livestock Embargo: An Update

The 13-month campaign to show that Somali livestock is free of Rift Valley Fever (RVF) has met with
significant success, but the failure of the biggest livestock importers, including Saudi Arabia, to lift their
ban continues to pose considerable hardships for people whose livelihoods depend on the livestock sector.
Fears of RVF prompted the Gulf countries to ban the import of Somali livestock in mid-September 2000.
Many NGOs and UN agencies responded by recruiting well-known investigators to look into the presence
of this disease in Somalia. After tests on thousands of animals were analyzed by the best laboratories, the
investigation showed persuasively that Somali livestock was free of life-threatening diseases, including
RVF.
On the basis of these findings, some agencies actively sought to have the ban lifted. UNDP and FAO set
up a team to coordinate activities related to livestock production, health, and marketing in Somalia. They
organized workshops in Nairobi in which human and livestock diseases specialists participated.
Government officials and livestock traders from livestock-importing countries toured and inspected
livestock conditions in Somalia. Finally, the team also participated in other livestock health workshops
held in Egypt and Italy.
To date, the campaign spearheaded by UNDP and FAO has achieved the following significant results:

Lifting the import ban imposed by the United Arab Emirates (UAE) on chilled meat and live
animals from Somalia. Following the UNDP/FAO-organized tour for the UAE health experts in
Somalia, several UAE municipalities decided to lift the ban by first allowing the import of chilled
meat and then live animals. Although welc ome, these developments in the UAE livestock market
are too small to make a noticeable difference in Somalia.

Understanding better the health and economic implications of the livestock vaccination against
the RVF, if livestock importing countries request it. Vaccination requires selection of appropriate
vaccines and huge human and financial resources. However, vaccinating all Somali livestock
nearly 45 million head seems impossible, as Yemen has decided concerning its own national
herd.

Raising awareness of the magnitude of the problem and its implication on the Somali
environment in the long-term, as well as economic and social aspects in the short-term.
Alternative markets, in case Somalia loses its traditional markets, have also been considered.

During their visit to Somalia, UAE health experts inspected three abattoirs: Mogadishu (in southern
Somalia); Galkaio (in the central rangelands); and Burao (in the Northwest). The health experts decided

to buy their chilled meat from

Mogadishu and Galkaio. The
export of chilled meat began
in April 2001 and is still
ongoing. As seen in Figure 1,
nearly 8,000 young goats
(about 60,000 MT of meat)
were slaughtered in
Mogadishu during April.
Thanks in part to increased
demand from the UAE, the
number of goats slaughtered
in Mogadishu increased more
than 60 percent by September.
Figure 1 shows that the
increase in the number of
goats slaughtered in
Mogadishu and sent to UAE
is occurring every other
month.

Figure 1. Goats Slaughtered in Mogadishu Abattoirs, 2001

15,000

12,000

9,000

6,000

3,000
Apr

May

Jun

Jul

Aug

Sep

FEWS NET/Somalia
Source: UNDP/FAO

A total of 123 MT of meat from 1,331 cattle and 87 MT of meat from 807 camels were also exported to
UAE and to Saudi Arabia, respectively, from April to September 2001. Unconfirmed reports from the
field indicate that Galkaio and Mogadishu are exporting similar amounts of chilled meat every month. .
Although the ban is still in place, the export of live animals to the Gulf countries resumed as early as
February this year from Bosasso (Figure 2). Well-connected livestock traders from Bosasso sent about
1,100 animals to the Gulf in February, and another 13,400 in May. The number of livestock exported
from Bosasso increased sharply during July and August, reaching about the same levels as 1997 (the last
full year without a livestock import ban) and 2000 (a year with the livestock ban). In September, sheep
and goat exports from Bosasso to UAE reached the historic level of 94,000 heads for the month.

Thousands Exported

Figure 2. Comparison of Sheep/Goats Exports from

Bosasso: 1997, 2000 and 2001
200
180
160
140
120
100
80
60
40
20
0

1997
2000
2001

Jan Feb Mar Apr May Jun

Jul Aug Sep Oct Nov Dec

FEWS NET Somalia

Source: UNCTAD

The unusually high

concentration of livestock
in the small markets of the
UAE greatly depressed
prices. Goats normally
sold at 120 Dirhams (about
US$30-35) were sold at
throwaway prices of 50
Dirhams (US$13-15)
during June and July.
Figure 3 shows that
Berbera exported much
fewer livestock this year
than Bosasso, even though
Berbera is usually the
more important of the two
ports when the Saudi
market is open. Indeed,

Figure 3. Comparison of Sheep/Goats Exports from Berbera:

1997, 2000 and 2001
600
Thousands Exported

Berbera exported only

10,600 heads between
January and July,
compared with nearly 1.4
million during the same
period last year.
However, FSAU field
reports indicate that
Somaliland is now
exporting unusually high
numbers of camels to
Egypt. As a result, prices
of camels are said to be
increasing, although
camel exports are far less
significant in numbers
than sheep and goat
exports.

1997
2000
2001

500
400
300
200
100
0
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug Sep

Oct

Nov Dec

FEWS NET Somalia

Source: UNCTAD

In fact, Egypt may emerge as an alternative market for Somalilands livestock exports. Last month,
(September) traders from Egypt and Somaliland authorities agreed to expand bilateral trade. Demand
from Egyptian markets is very high and has increased camel prices in Somaliland. FSAU field monitors
in Burao and Hargeisa report an increase in camel market prices due to the resumption of livestock
exports, especially camels, from nearby Berbera to Egypt.

Market Prices and Trade

As the seasonal rough seas off the coast of Somalia subsided, enhancing trade opportunities by allowing
bigger ships to dock, the Somali Shilling depreciated steadily in virtually all markets due to the high
demand for foreign currency by importers. The value of the Somali Shilling in Bakaara market in
Mogadishu depreciated against the dollar by 11 percent between September and October, from Ssh
21,225 to Ssh 23,500. Similar declines were noted in other markets, where the Somali Shilling slipped by
an average of 10 percent.
Cereal prices increased in nearly all reporting markets during October, as below-normal rainfall so far
this deyr (secondary rainy) season continues to raise serious concerns over deyr harvest prospects, ,
especially in previously drought-affected areas. Local cereals, mainly sorghum and maize, are in short
supply in most markets, such as Bardera and Luq (Gedo) and Jowar (Middle Shabelle), that report much
higher retail sorghum prices than other agriculture markets.
Sorghum prices in most markets increased by an average of 25 percent. High sorghum prices are a likely
result of the poor gu (main season) production earlier this year in Bay Region, which normally provides
much of Somalia with the cereal. However, where food aid distributions are ongoing, prices have
decreased somewhat since September, especially in Huddur (Bakol) and Luq. Markets in Baidoa (Bay),
where sorghum prices are generally low during this time of year, reported high prices at about Ssh 1,975
per kg in October (Figure 4).
Maize prices followed a similar trend as sorghum, with an average price increase across markets of 15
percent. Afgoye (Lower Shabelle) markets saw maize selling at about Ssh 2,000 per kg.

Protein-rich cowpeas, typically the most expensive local pulse in Somalia, play an important nutritional
role for many families. Short supplies and high demand outside of the cowpea growing areas led to price
increases in most markets. High prices were reported in the Cowpea Belt market of El-dhere at about
shs2,000 per kg in October, as well as in Jowhar (Ssh 5,200), in Galkaio (Ssh 6,000), and in Baidoa (Ssh
5,500). The highest cowpeas prices were reported in Bosasso market at about Ssh7,000 per kg.
Supplies of imported commodities such as sugar, rice, oil, and pasta increased sharply in October
as calmer seas returned off the coast of Somalia, allowing traders to import large quantities of food.
While markets close to seaports reported lower prices for imported commodities, other markets away
from the coast, notably in Bay, Bakool, and Gedo regions, still reported higher prices.

Figure 4. Comparison of Sorghum Prices

between July and October: 2000 and 2001

Somalia Shillings per Kg

2,500
2001
2,000
1,500
1,000

2000

High sugar prices were

reported in Baidoa and
Jowhar at about Ssh 9,000
per kg and Ssh 8,000 per
kg, respectively, in
October. Similar increases
were noted across other
markets, but these are
expected to drop when
newly imported supplies
arrive.

500

Prices of other livestock

species are also increasing
0
in southern Somalia. For
Jul Aug Sep Oct
Jul Aug Sep Oct
Jul Aug Sep Oct
instance, in Galkaio local
Baidoa
Huddur
Luq
quality male goat prices
FEWS NET/Somalia
Source: FSAU
increased by 26 percent
between September and
October (from Ssh 184,000
to Ssh 232,500 per head) and in Mogadishu by 60 percent (from Ssh 350,000 to Ssh 400,000). However,
in drought-affected Luq market, local goat prices decreased by 40 percent (from Ssh200,000 to Ssh
120,000) due to poor physical conditions and lack of market demand. Cattle prices increased in most
markets, except in Gedo Region. Due to the reopening of the Kenya border (closed since July) and an
improvement of pasture, markets in Gedo are expected to resume active trading and prices of all livestock
will increase.
Terms of trade considers relative market prices by looking at how much of one product can be obtained
in exchange for another product. Overall, the sorghum/local goat terms of trade for goat sellers
increased in some markets in October, as sorghum prices fell against goat prices. Herders in Galkaio
received about 57 kg of sorghum, up from 37 kg in September. However, herders in Luq received about
75 kg of sorghum per goat, representing a decrease of about 25 percent over the preceding month. In
Jowhar, one goat fetched about 60 kg, while in Baidoa, goat sellers received more than 140 kg.
Recent deyr rains in Southern Somalia have regenerated pasture for grazing. The supply of fresh milk at
the market is very high. Terms of trade for sorghum/camel milk saw milk sellers receiving at least 1 kg
of sorghum per liter of milk in most markets. Only herders from Luq are receiving less than 1 kg of
sorghum. According to field reports, the terms of trade for sorghum/unskilled labor in most markets are
very low, especially for urban workers, due to low wages coupled with inflated cereal pric es, lowering
their purchasing power. In Baidoa, workers earned more than 6 kg of sorghum for 1 days work in

October, compared with 10 kg in September. The FSAU reports that daily unskilled wages in the most
markets in southern Somalia in October were equivalent, on average, to less than 2 kg of cereals
enough to meet the daily cereal needs for a household of about 5-6 people , but leaving nothing for other
expenses.