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Regulating the Livestock Economy of Somaliland DRAFT ONLY Regulating the Livestock Economy of Somaliland Academy for Peace and Development Hargeysa, Somaliland July 2002 DRAFT Regulating the Livestock Economy of Somaliland 2 Principal Researcher: Maxamed Xasan Gaani Working Group Members: Dr. Cali Yuusuf Axmed Dr. Maxamed Cige Kille Jaamac Nuur Xasan Cabdullaahi Maxamed Xasan Maxamed Jibriil Ibraahim Cabdixakiim M. Axmed Xasan Ibraahim DRAFT Regulating the Livestock Economy of Somaliland 3 TABLE OF CONTENTS 1 Introduction................................................................................................................4 2 An Overview of the Somaliland Economy.................................................................5 The Productive Sectors...................................................................................................................5 Trade and Commerce ...................................................................................................................11 Characteristics of the Private Sector...........................................................................................12 3 The Nomadic Pastoral Production System ............................................................. 15 The Transformation of the Pastoral Production System.........................................................17 Interventions to Protect the Environment................................................................................31 Towards a Sustainable Pastoral Production System.................................................................35 4 The Livestock Trade................................................................................................ 37 Post-war Restructuring of the Domestic Livestock Trade......................................................37 Livestock export ............................................................................................................................44 Market diversification ...................................................................................................................54 Product diversification..................................................................................................................54 5 Animal Health.......................................................................................................... 56 A Brief History of Animal Health Services ...............................................................................56 Animal Health Services in Somaliland since 1991....................................................................58 Veterinary Regulation as a Constraint to International Trade................................................67 6 Conclusion and Recommendations......................................................................... 75 Overall Policy, Strategy and Legislation.....................................................................................75 Recommendations for regulating pastoral environment and livestock trade .......................77 Livestock Trade, diversification and Marketing........................................................................79 Recommendations for improving export animal health services...........................................82 Bibliography................................................................................................................. 85 DRAFT Regulating the Livestock Economy of Somaliland 4 1 Introduction Pastoralism, in one form or another, is the primary production system in Somaliland. The majority of people directly or indirectly obtain their livelihoods from animal husbandry, and the resilience of this mode of production has been critical to Somaliland’s recovery from the war. Taxation on livestock exports is the main source of government revenue and of funding for the re-establishment of government institutions. As pastoral production is closely linked to the social structure of pastoral groups, pastoralism as a ‘way of life’ has a profound impact on the politics and culture of Somaliland. Various economic, social and environmental problems threaten to undermine this economy and the pastoral nomadic way of life. The WSP Somaliland Project Group therefore identified the status of the livestock economy as an Entry Point for in-depth research. A Working Group was formed to take this forward, comprising livestock traders, members of the Somaliland Chamber of Commerce, government officials, elders, professionals and local and international NGOs. After lengthy discussions, the Working Group identified three themes on which to focus the research: • Livestock trade • The pastoral environment • Animal health services Three workshops were held on these themes between August 2000 and March 2001. The first, on the subject of the livestock trade was held in Burco, the second, on animal health, was held in Hargeysa and the third, on the environment, in Oodweyne. Workshop participants included regional and district government officials, Ministry of Livestock officials, pastoralists, livestock exporters, brokers, butchers, enclosure owners, veterinarians, drug importers, women’s NGOs, charcoal makers, fodder farmers, berked owners, members of the Chamber of Commerce, transporters and members of the media. This study is based on discussions and recommendations generated by these workshops, as well as meetings of the Working Group, additional interviews and a review of relevant litreature. A symbiotic relationship exists between livestock production and the environment, and the social and economic well-being of the population is thus greatly affected by environmental and meteorological conditions. The study begins, therefore, with a brief description of Somaliland’s environment and climate. The livestock economy is then described within the context of Somaliland’s emerging post-war economy, before the themes of trade, marketing, and animal health services are dealt with. DRAFT Regulating the Livestock Economy of Somaliland 5 2 An Overview of the Somaliland Economy The Somaliland economy has undergone important structural changes since the war. In a deregulated free market economy, the private business sector has grown rapidly. The dissolution of state monopolies and rigid economic controls, together with private sector expansion, has significantly contributed to the growth of Somaliland’s economy in the aftermath of war, providing employment opportunities and capital investment for the process of reconstruction. Trade through Berbera port has surpassed pre-war levels. The service sector has experienced rapid growth in the post-war period, with a proliferation of companies providing the latest communication facilities, airlines and financial services. Small enterprises like bakeries, restaurants, convenience stores and office supplies have returned to the marketplaces of the urban centres. The Productive Sectors Livestock production Much of Somaliland’s post-war economic growth has been linked, directly or indirectly, to the livestock trade. Livestock husbandry is the dominant system of production in Somaliland. Over half the population of Somaliland is involved in some form of animal husbandry, either as nomadic (or transhumant) pastoralists or as agro-pastoralists. Always the backbone of the economy before the civil conflict, livestock production continues to be main source of daily subsistence for nomadic families and the main source of income and employment for urban dwellers. According to the Somaliland Ministry of Agriculture, about 60% of Somaliland’s population relies for daily subsistence on the main livestock products, meat and milk (Ministry of Agriculture 1998). Livestock production is estimated to represent 60-65% of the national economy (Ministry of Agriculture, 1998), and government revenue is heavily dependent on livestock exports. Between 1991 and 1997, livestock export on the hoof grew considerably, exceeding pre-war levels when Somaliland exported some three million heads of livestock in 1997, mostly to Saudi Arabia (UNDP, 1998). The value of livestock exports in 1997 was estimated to be US$ 120.8 million, yielding as much as 80% of the total hard currency income for Somaliland's population (UNDP 1998). Four species of domestic livestock - sheep, goats, camels and cattle - are reared in Somaliland. Sheep and goats are herded in the largest numbers, although trends in population growth, increased sedentarisation and markets demands have resulted in greater numbers of cattle being reared in recent years. No concrete data exists on the present DRAFT Regulating the Livestock Economy of Somaliland 6 number and distribution of livestock in Somaliland.1 Many observers believe, however, that numbers of livestock have been decreasing during the 1990s, as result of pastoral rangeland degradation and insufficient of grassing space in some areas. Even at a time in which livestock export ban by Saudi Arabia has minimized exports from Somaliland, participants in this study asserted that the livestock population is not increasing, because most of the livestock for export comes from beyond Somaliland’s borders. There are also indications that pastoralists are selling more animals at lower prices into local markets in order to compensate for their lost export earnings as well as for household consumption. Nomadic pastoralism is a complex and sophisticated system, well adapted to Somaliland’s arid environment, and the most efficient way of exploiting the erratic seasonal forage and water conditions. However, environmental pressures, inadequate
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