THE ROLE OF LIVESTOCK HUSBANDRY IN ECONOMIC DEVELOPMENT OF SOMALIA: CASE STUDY - PUNTLAND STATE OF SOMALIA
BY
YUSUF MOHAMUD MOHAMED BEC/20015/82/DF
A RESEARCH REPORT SUBMITTED TO THE SCHOOL OF ECONOMICS AND APPLIED STATISTICS IN PARTIAL FULFILMENT FOR THE REQUIREMENTS OF THE AWARD OF BACHELOR DEGREE IN ECONOMICS OF KAMPALA INTERNATIONAL UNIVERSITY
DECEMBER, 2011 DECLARATION
I YUSUF MOHAMUD MOHAMED declare that this report on the "Role of livestock in Economic Development in Puntaland State of Somali" is entirely my own effort and has never been submitted to any other academic institution for any form of award.
Name: YUSUF MOHAMUD MOHAMED BEC/20015/82/DF
IZ- ,..zol,\ Signatu~ Date: ...... - t>ec ..
11 APPROVAL
This report on the "Role of livestock in Economic Development in Puntland State of Somali" has been supervised by me and is due for submission.
Supervisor: Dr. ABUGA MOKONO ISAAC
Signature:
lll DEDICATION
I dedicate this piece of work, to my beloved parents Shiekh Mohamud Sheikh Mohamed and Mrs Foos Alinur Mohamed, my brother Bashir Sheikh Mohamud and My sister Maryama Sheikh Mohamud and my Love Hafsa Abdirahman Abshir for their wonderful contribution in my academic career.
May the Almighty reward You Abundantly!
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lV ACKNOWLEDGEMENT
I owe my gratitude to all those who financially, academically and expressively contributed in the carrying out this research. My special appreciation goes to my supervisor Dr. Abuga who diligently corrected and guided me, thanks for the good criticisms, patience and . understanding. Special appreciation goes to all the lecturers who imparted professionalism into this work. Thanks a great deal.
I cannot fail to acknowledge my dear parents My mum Foos Alinur Mohamed and my father Sheikh Mohamud Sheikh Mohamed. And my sister Maryama Sheikh and my elder brother Bashir Sheikh, my beloved aunts Maryan Jama Warfaa and Canab Alinur for their prayers and great contribution in my academic career. I would like to thank the staff of Ministry of Agriculture and Environment in Puntland state Somalia and special thanks go to the chairman of Executive director Mohamed Abdullahi who was co-operative and provided me with all the necessary information and also allowing me to access to the government resource and their report files.
Special thanks owed to my dear friends Mrs Hafsa Abdirihman Abshir, Jama Abdi Bulshale, Deeqo Bashir Bulxan, Mohamed Abdi Canqari, Bahjo Cabdishakuur Cosmaan, Najib Ahmed Ali, Burhan Jama Yusuf and my all class mates for their moral, spiritual and academic support during my stay at the University. It was nice studying together.
Finally, I greatly appreciate all my respondents for their great contribution towards the accomplishment of this work, without which I would have managed through.
May Allah Reward you abundantly.
V TABLE OF CONTENTS
DECLARATION ii
APPROVAL iii
DEDICATION iv
ACKNOWLEDGEMENT V
TABLE OF CONTENTS vi
LlST OF TABLES X
LlST OF FIGURES xi
LlST OF ACRONYMS xii
ABSTRACT xiii
CHAPTER ONE:INTRODUCTION 1
1.0 Introduction 1
1.1.0 Background of the study 1
1.1.1 Historical Background 1
1.1.2 Theoretical Backgroud 3
1.1.3 Conceptual Background 3
1.1.4 Contextual Background 4
1.2 Problem Statement 4
1.3 Purpose of the Study 5
1.4 Objectives of the Study 5
1.5 Research Question 5
1.6.0 Scope of the Study 5
1.6.1 Geographical Scope 5
1.6.2 Content Scope 6
Vl 1.6.3 Time Scope 6
1. 7 Significance of the Study 6
CHAPTER TWO: LITERATURE REWEIW 7
2.0 Introduction 7
2.1 Theoretical Framework 7
2.1.1 Adam Smith's Theory of Economic Development 7
2.1.2 David Ricardo's Theory of Economic Development 9
2.1.3 Keynesian Theory of Social Economic Development 11
2.2 Conceptual Framework 12
2.3 Review of Related Literature 13
2.3.1 Various components of Livestock in Puntland 13 2.3.2 Growth Trends of livestock in Puntland 15 2.3.3 The Role of Livestock in improving Standard of Living of people 17 2.3.4 The role of livestock in Economic Development of Puntland 18 2.3.5 Problems facing livestock of Puntland 20 2.3.5.1 Policy and Institutional Setup 21 2.3.5.2 LIVESTOCK PRODUCTION 22 2.3.5.3 LIVESTOCK HEAL TH 23 2.3.5.5 LIVESTOCK MARKETING AND TRADE 23
2.3.5.6 Cyclical drought problems 30
CHAPTER THREE: __ METHODOLOGY 32
3.0 Introduction 32
3.1 Research design 32
3.2 Research area 32
3.3 Research population 32
3.4 Sample and Sampling Technique 33
Vil 3.5 Data Collection Methods 33
3.6 Source of Data 34 3.7 VALIDITY AND RELIABILITY OF RESEARCH INSTRUMENT 34 3.7.1 VALIDITY OF INSTRUMENT 34 3.7.2 RELIABILITY OF THE INSTRUMENT 34 3.7 Data Analysis 35
CHAPTER FOUR:
PRESENTATIONS, ANALYSIS AND DISCUSSIONS OF THE FINDINGS
4.0 Introduction 36
4.1 Demographic Distribution of the Respondents 36
4.1.1 Gender Distribution of the Respondents 36
4.1.2 Age of Respondents 37 4.1.2 Marital Status of the respondents 38 4.1.3 Types of Livestock Owned by the Respondents 39 4.1.4 Number of Livestock owned 4·1 4.2 The Relationship between livestock husbandry and standard of living 42 4.3 The relationship between livestock and economic development 44 4.4 Measure to improve Livestock farming in Puntland State of Somalia 48 4.5 Problems facing livestock husbandry in Puntland State of Somalia 49
CHAPTER FIVE 52
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 52
5.0 Introduction 52
5.1.0 Summary of the Findings 52
5.1.lLivestock in Improvihg Standard of Living 52 5.1.2 The relation between livestock and Economic development 53 5.1.3 Problems facing livestock husbandry in Puntland State of Somalia 53 5.2Conclusion 53
Vlll 5.3 Recommendations 54 5.3.1 Recommendations for Future Research 55
REFERENCES 57
APPENDIX A: Questionnaire 58
APPENDIX B: Interview for Livestock Agency staff 62
IX LIST OF TABLES
List of Tables Table 1: Estimated numbers of livestock in Puntland ...... 15 Table 2: Gender Distribution of the Responde ...... 36 Table 3:Marital Status of the Respondents ...... 37 Table 4: Age Distribution of the Respondents ...... 37 Table 5: Types of Livestock Owned by the Respondents ...... :········· .. ················· ...... 40 Table6: Number of Livestock owned ...... 41 Table?: livestock husbandry improve standard of living of the people...... 42 Table 8: The role of livestock husbandry in economic development...... 44 Table9: Measure used to improve Livestock husbandry ...... 48 Table 10: Problems Facing Livestock husbandry in Puntland ...... 49
X LIST OF FIGURES
List of Figures Figure 1: Conceptual framework of the study ...... : ... :...... 13 Figure 2: Gender Distribution of the Respondents ...... 36 Figure 3: Age Distribution of the Respondents ...... 37 Figure 4: Types of Livestock Owned by the Responde!lts ...... 40 Figure 5: Number of Livestock owned ...... 41 Figure 6: livestock husbandry improve standard of living of the people ...... 42
Xl LIST OF ACRONYMS
CEO Chief Executive Officer GDP Gross Domestic Product KIU Kampala International University NGOs Non Government Organizations UN United Nations UNCTAD United Notation Conference on trade development UNDP United Nations Development Programme EU European Union SLSS Somalia Livestock Sector Strategy CAHW Community Animal Health Worker FAO Food and Agriculture Organization KSA Kingdom of Saudi Arabia PULPA Puntland United Livestock Professionals Association CINS Cooperazione Italiana Nor Sud FASU Food Security Assessment Unit TLU Tropical Livestock Unit USDA United States Department of Agriculture
Xll ABSTRACT
The study on the "the role of live stock husbandry in economic development" was carried out in Puntland State of Somalia, with specific aims of; examining the role of Livestock; in improving people's standard of living; improving the economic development of Puntland State of Somalia and tracing the challenges and problems facing livestock husbandry in Puntland State of Somalia. A review of related literature was carried out on already existing information on the specific aims of this study as a way of comprehending the problem and enriching and supplementing the study findings. This was through quantitative and qualitative research designs under which questionnaires and interviews were administered to a sample of 41 respondents who were both randomly and purposively selected.
The findings of the study indicated that, there are various components of livestock in Puntland such as Goat, Sheep, Cattle and Camel, the study also indicated that the livestock husbandry can improve the standard of living of the people. The study findings also show that there is direct relationship between livestock husbandry and economic development of Puntland State of Somalia. Since the livestock is the major driver of the economy and it's directly or indirectly related to the economy of Puntland State of Somalia. However the researcher also found out that there is number of problems which hindered livestock husbandry in Puntland state of Somalia such, Health problems, Drought problems, Grazing ffe Land and Shortage of water problems.
The researcher recommends the community as whole must also continue to increasing production and productivity of livestock herds and flocks by improving animal nutrition,
IF production systems and controlling diseases. Because livestock production continues to be the main foreign exchange earner for Puntland State of Somalia, improvements to market access and facilities will help to ease access, reduce trekking losses (body weight, etc.) and improve profit margins. Adding value to livestock and livestock products by improving quality and adding new products to meet export and growing •middle class demands will have the dual effect of increasing incomes and creating employment opportunities
Xlll Chapter One 1.0 Introduction This chapter the researcher presents the background, purpose, objectives, research questions, scope and the significance of the study. 1.1.0 Background of the study 1.1.1 Historical background Most Asian and African nations were at one time or another colonies of western European countries, primarily Britain, France, Belgium, Netherland, Germany, Portugal, and Spain. The economic structure of these nations as well as their education and social institutions, have typically been modeled on of those of their former colonies rulers. Countries like those in Sub-Saharan African that only recently gained their independence are therefore likely to be more concerned with the consolidation and evolving their own national economic and political structures than with simply promoting rapid Economic Development.
At independence the Somali economy was at a near subsistence level, and the new state lacked the administrative capacity to collect taxes from subsistence herders and farmers. The state could rely on the customs taxes from international trade, which were easier to collect, but tariffs failed to meet the needs of a government with ambitious development goals. Somalia therefore relied on Italian and British subsidies, which funded about 31 percent of the new nation's current budget in the first three years of independence (Ministry of Agriculture 1998).
Despite the lack of effective national governance, Somalia has maintained a healthy informal economy, largely based on livestock, remittance/money transfer companies, and telecommunications. Agriculture is the most important sector, with livestock normally accounting for about 40% of GDP and about 65% of export earnings. Nomads and semi pastoralists, who are dependent upon livestock for their livelihood, make up a large portion of the population. Livestock, hides, fish, charcoal, and bananas are Somalia's principal exports, while sugar, sorghum, corn, qat, and machined goods are the principal imports. Somalia's small industrial sector, based on the processing of agricultural products, has largely been looted and sold as scrap metal. Somalia1 s service sector also has grown. Telecommunication firms provide wireless services in most major cities and offer the lowest international call rates on the continent. In the absence of a formal banking sector, money transfer/remittance services have sprouted throughout the country, handling roughly $2 billion in remittances annually. Mogadishu's main market offers a variety of goods from food to the newest electronic gadgets. Hotels continue to operate and are supported with private-security militias. Somalia's arrears to the IMF continued to grow in 2008. Statistics on Somalia's GDP, growth, per capita income, and inflation should be viewed skeptically. (IMF Report 2009).
In the pastoral sector, the Livestock Development Agency, formed in 1965-66, emphasized veterinary services, the provision of water and of holding grounds for cattle while they were undergoing inoculation, and transportation. Somali pastoralists responded with enthusiasm to the prospects for wealth by entering the international market for livestock. In the early 1960s, the value and number of exported livestock approximately doubled, and livestock soon surpassed bananas as Somalia's leading export (Ministry of Agriculture 1998).
There were therefore some notable successes among Somalia's early development projects. The nation became nearly self-sufficient in sugar, and banana exports grew, albeit haltingly. Livestock exports increased, and investments in roads and irrigation facilities resulted in some genuine improvements.
But the 1960s also yielded great disillusionment. The country could not overcome its dependence on foreign assistance, even to meet its current budget. Moreover, imports of foreign grains increased rapidly, indicating that the agricultural sector was not meeting the needs of the growing urban population. The modern agricultural techniques of state farms had little influence on traditional farming practices. Because of a boom in livestock export from Hargeysa, cows, goats, and camels were becoming concentrated in northern Somalia, much to the detriment of rangelands. The UN Food and Agriculture Organization (FAQ)
2 foresaw the dire effects of the 197 4 drought in a 196 7 report that noted the severe range deterioration. Finally, and perhaps most important, many Somalis were enervated by the feeling that political incumbents, through electoral manipulations, were squandering the nation's economic resources for their private benefit (IMF Report 2009).
1.1.2 Theoretical Background Lewis theory of development, Lewis explores the relationship between Economic Development and Agriculture. Agriculture leads to increasing returns for the producers and therefore economies of scale, it provides employment to the citizens and more especially to those who underemployed in the agriculture sector especially livestock. 1.1.3 Conceptual perspectives
Livestock refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. The term "livestock" as used in this article does not include poultry or farmed fish; however the inclusion of these, especially poultry, within the meaning of "livestock" is common (Holleman C.F. 2002)
Livestock generally are raised for subsistence or for profit. Raising animals (animal husbandry) is an important component of modern agriculture. It has been practised in many cultures since the transition to farming from hunter-gather lifestyles. Livestock is the horses, cattle, sheep, and other useful animals kept or raised on a farm or ranch (Holleman C.F. 2002).
Economic development is the increase in the standard of living in a nation's population with sustained growth from a simple, low-income economy to a modern, high-income economy. Also, if the local quality of life could be improved, economic development would be enhanced. Its scope includes the process and polices by which a nation improves the economic, political, and social well-being of its people. (Holleman C.F. 2002) .
Economic development is the process of improving the quality of all human lives. There is equally important aspect of development are; raising people living levels-their income and
3 consumptions level of food, medicine service, education etc. though relevant economic growth process creating conditions conducing to the growth of people self-steam through the establishment of social, political and economic system and institutions that promote human dignity and respect, and increasing peoples freedom by enlarging the range of their choices variable as by increasing varieties of consumer goods and service. (UNDP, 2005)
1.1.4 Contextual prospective This research is to be carried out in Somalia particularly puntland state of Somalia. The economy of Puntland State of Somalia is predominately pastoralist and livestock export as exchange earnings. Puntland(Somali: Puntland) is region in northesrtern Somalia, centered on Garowe (Nugal Province), whose leaders declared in an autonomous state in 1998. Puntland state of Somalia consist of Seven provinces (Bari, Nugal, Karkar, Mudug, Sool,Sanaag and Cayn). r (Puntlandgov.net). 1.2 Statement of the Problem
Level of economic development in Puntland State of Somalia is not satisfactory, where the country is currently having various challenges and constraints like overemphasis on live sector, over population, fragile environment and weak governance has limited the rate of economic development. Luck of regulatory and enforcement mechanisms, low institutional capacities, fragile infrastructure, export markets not diversified have also limited economic development. If these persist and continue may lead to further, and unfavorable terms of trade, lower capital accumulation, These problems have been further compounded by unskilled labor force, luck of credibility, poor savings, poor investment, technological backwardness, and vicious circles of poverty, law rate of capital formation, socio-cultural I, constraints and foreign exchange, however, this research will concentrate on agriculture J: and draw how it relates with the level of economic development (Ministry of Agriculture 1998). I; ! I: :~ 1 1(l I l, 11 4 I , I i The majority of Livestock Firms in Puntland undertake subsistence activities. Consultation for poor Livestock productivity related constrains include: lack of sufficient food, lack of land, lack of proximal water sources, and diseases, lack of skills and knowledge lack of capital and access to credit. Market problems (low price, lack of market) poor roads and transport network, lack of storage and processing.
1.3 Purpose of the Study The purpose of this study is to evaluate, the role of livestock on economic development of Somalia Specially puntland State.
1.4 Objectives
1) To study the growth and trends of livestock in Puntland and to examine the contribution of various components of livestock in Puntland and how livestock improves the standard living of people? 2) To examine the role of livestock in economic development of Puntland State of Somalia. 3) To identify problems faced in livestock farming in Puntland?
1.5 Research Questions
2. What is the trend and growth rate of livestock sub-sector in puntland? And What is the various components of livestock that contributes the total production of livestock in Puntland and their relationship in the economic development of Puntland? 3. What is the role of livestock in economic development of Puntland State of Somalia? 4. What are the problems faced livestock farming in puntland?
1.6.0 The Scope the study 1.6.1 Geographical scope The study will be conducted in Puntland State of Somalia. The area covers the country. These areas will be the geographical limit of the scope of our study, as they are reachable by the researcher.
5 1.6.2 Content scope The study will focus on the role of livestock (Camel, Goat and Ships) in economic development of Puntland state of Somalia. 1.6.3 Time scope
This research will take place a period between May and November 2011. f:
1. 7 Significance of the study The study will yield data and information that will be useful for proper planning and decision making for ministry of agriculture and livestock in Puntland and for the set up of a framework for the management actions for the change and development of effective industries backed by efficient agriculture system in Puntland State of Somalia.
The findings and recommendations of the study should also be useful to the Livestock firms and agricultural economists. Hence instead of relating traditional methods, they will base their decision and actions on concrete knowledge issues, which will improve their efficiency in the field.
This study will also useful to the policy makers of puntland state of Somalia towards the improvement of economic development to ensure they meet their targets of improving standard of living, education, investment and healthy. The study will also add to the existing stock of knowledge in Puntland. It can provide reliable data to the concerned statistics bodies. The study will also be very useful to the international agencies; where by international investors can rely on the conclusions drawn from the study to carry out certain projects in Puntland.
To fulfill the partial requirement for the award of the Bachelor of Arts in economics of Kampala international university by the researcher.
The study will also help the potential or future researchers as a basis of related literature in other words; the findings can be used by future researcher to carried out similar research.
6 Chapter Two
Literature Review
2.0 Introduction
This chapter will be consists of the theoret_ical framework, Conceptual framework and Related literature review.
2.1 THEORETICAL FRAMEWORK Several economists have had theories put on ground explaining how economic development can be promoted. This study will be based on three theories namely; 1) Adam smith's Theory by Adam smith 2) Ricardian theory by David Ricardo 3) Keynesian theory by several economists 2.1. 1. ADAM SMITH'S THEORY OF ECONOMIC DEVELOPMENT According to M.L JHINGAN, Adam Smith is regarded as the foremost classical economist. Monumental work, An Enquiry into the Nature and Causes of Wealth of Nations published in 1776, was primarily concerned with problem of economic development. Though he did not expound systematic growth theory, yet a coherent theory has been construct later day economists which is explained below.
Natural law. Adam Smith believed in the doctrine of 'natural 1 economic affairs. He regarded every person as the best judge of interest who should be left to pursue it to his own advantage. in furthering his own self interest he would also further the common "n pursuance of this, each individual was led by an "invisible which guided market mechanism. "It is not to the benevolence of the baker but to his self-interest that we owe our bread," said Smith. Every individual, if left free will seek to maximize his own wealthy therefore all individuals, if left free, will maximize aggregate wealth. Smith was naturally opposed to any government intervention in industry and commerce. He was a staunch free trader and advocated the policy of laissez-faire 1n economic affairs. The "invisible hand"-
7 the automatic equilibrating mechanism of the perfectly competitive market tended to maximize national wealth. •··-_ Division of Labour is the starting point of Smith's theory of economic growth. It is division of labour that results in the greatest improvement in the prod_uctive powers of labour. He attributed this increase productivity: (1) to the increase in the dexterity of every worker; (2) the saving in time to produce goods; and (3) to the invention o number of labour-saving machines.' The last cause of increase in productivity stems not from labour but from capital. It is improved technology that leads to division of labour and the expansion of the market. But what leads to division of labour is a certain propensity in human nature -the propensity to truck, barter and exchange one thing for another. Division of labour, however, depends on the size of the market. One of his famous sayings that 'the division of labour is limited by the extent of the market' implies that the division of labour increases with the extension of the market For this purpose, expansion of commerce and international trade is especially beneficial. With the increase in population and transport facilities, t here is bound to be greater division of labour and increase in capital (Schum peter, J. & Backhaul).
Process of capital Accumulation. Smith, however, emphasized that capital accumulation must precede the introduction of division of labour. Like the modern economists, Smith regarded capital accumulation necessary condition for economic development. So the problem of economic development was largely the ability of the people to save more and invest more in a country. The rate of investment was by the rate of saving and savings were invested in full. But almost all savings resulted from capital investments or the renting of only capitalists and landlords were held to be capable of saving. The labouring classes were considered to be incapable of saving. This is based on the 'Iron Law of Wages'. The classical economist also believed in the existence of a wages fund. The idea is that wages tend to equal the amount necessary for the subsistence of the labourers. If the total wages fund at any time becomes higher than the subsistence level, the labour force will increase, competition for employment will become keener and wages will come down to the I
8 I !: ii subsistence level.. Thus the wages fund could be increased by increasing the irate of net investment (Ranis, G., Stewart, F. & Ramirez).
Agents of Growth. According to Smith, farmers, producers and businessmen are the agents of economic progress. It was free trade,. enterprise and competition that led farmers, producers and businessmen to expand the market which, in turn, made economic developmert possible. The functions of these three are interrelated. To smith development of agriculture leads to an increase in construction works, and commerce. On the other hand, their development leads to increase in agricultural production when farmers use advanced production techniques. Thus capital accumulation and economic development take place due to the emergence of the former, the producer and the businessman (M.L.Jhingan).
Process of Growth "Taking institutional, political and natural factors for granted, Smith starts from the assumption that a social group-we may call it a "nation"--will experience a certain rate of economic growth that is accounted for by increase in numbers and by saving. This induces a "widening of market" which is turn increases division of labour and thus increases productivity. In this theory the economy grows like a tree. This process is no doubt exposed to disturbances by external factors, that are not economic, but in itself it proceeds steadily, continuously. Each situation grows out of the preceding one in a uniquely determined way, and the individuals whose acts combine to each situation count individually for no more than the individual cells of a tree.
2.1.2 DAVID RICARDO'S THEORY OF ECONOMIC DEVELOPMENT
Ricardo never propounded any theory of development. He simply discussed the theory of distribution. Therefore, Ricardo's analysis is a detour. The Ricardian theory is based on the marginal and the surplus principles. The marginal principle explains the share of rent in the national output, and the surplus principle explains the division of the remaining share between wages and profits. The total national output is distributed among the three rent, profits, and wages respectively.
9 Division of Rent, Profits and Wage. Given the total output of corn the share of each group can be determined. Rent per unit of labour is the difference between the average product and marginal product. Or, total rent equals. difference between the average product and the marginal product of labour x (multiplied by) the quantity of labour and capital applied on land. The wage rate is determined by wage fund divided by the number of workers employed at the subsistence level. Thus, out total corn ·produced and sold, rent has the first right and the (residual minus rent) is distributed between wages and profits, while interest is included in profits (Anand, S. & Ravallion)
Process of Capital Accumulation. According to Ricardo, capital accumulation is the outcome of profits because profits lead to saving of wealthy which is used for capital formation. Capital accumulation depends on two factors: First, the capacity to save; and second, the will to save. The capacity to save is more important in capital accumulation.(Geoffrey A. & Stanley B) (i) The Profit Rate. The rate of profit= profits/wages i.e., the rate of profit is equal to the ratio of profits to capital employed. But since capital consists only of working capital, it is equal to the wage bill. So long as the rate of profit is positive, capital accumulation will continue. The labour force will grow proportionately and the total wage fund will also increase. In reality, profits depend on wages; wages on the price of corn depends on the fertility of the marginal land.In this way, there is an inverse relation between profits and wages, and wage rise or fall in keeping with the price of corn. When there are improvements in agriculture. (ii) Increase in Wages. Ricardo tried to show that it is only under different conditions that capital accumulation will reduce profits. In the Ricardian system wages play an active role in determining income between capital and labour. The wage rate increases when the prices of commodities forming the subsistence of the workers increase. The commodities consumed by workers are primarily agricultural products As the demand for food increases, less fertile land is brought under the plough. For this purpose, to produce a unit of the product
10 more labourers are required. The demand for labour starts rising which raise, wages. In such a situation, rent also increases which absorbs the rise in the price of corn. Since wages also increase, profits decline. These opposite tendencies ultimately retard capital accumulation (Gary E. C.) (iii) Declining Profits in Other Industries. According to Ricardo "The profits of the farmer regulate the profits of all other trades. Therefore, the money rate of profit earned on capital must be equal in equilibrium both in agriculture and industry. In manufacturing industry corn is used as an input and the equality in the rate of profit come, through a definite relationship between the prices of industrial goods and the price of corn. Thus, when the profit rate declines in the agricultural sector, it also declines in the manufacturing industry. Following with the rise in the price of corn, the industry will have to raise the wages of labourers, thereby reducing profits. Thus the price of corn determines the rate of profit in industry. When profits decline in the agricultural sector, profits of all trades also decline.
Other Sources of Capital Accumulation. According to Ricardo economic development depends on the difference between production and consumption. He therefore lays emphasis on increasing production and reducing unproductive consumption. However, the productivity of labour may be increased through technological changes and better organization. It is in this way that capital accumulation can also be increased. But the use of more machines will employ fewer workers. This; will lead to unemployment and reduced wages. Since the economic condition of the workers worsens with the employment of more machines, Ricardo regards technological conditions as given and constant.
2.1.3 KEYNESIAN THEORY OF ECONOMIC DEVELOPMENT Total income is a function of total employment in a country. The greater the national income, the greater the volume of employment resulting there from and vice versa. The volume of employment depends on effective demand. Effective demand determines the equilibrium level of employment and income. The effective demand is determined the point where aggregate demand price equals aggregate supply Effective demand consists of
11 consumption demand and investment demand. Consumption demand depends on the propensity to consume. The latter does not increase to the same extent as the increase income. The gap between income and consumption can be made investment. If the requisite volume of investment is not forth the aggregate demand price will fall short of aggregate supply price. As a result, income and employment will fall till the gap is bridged. Thus, variations in employment and income largely depend on marginal efficiency of capital and the rate of capital interest. The marginal efficiency capital is the expected rate of return from new capital assets. Profit expectations are high, businessmen invest more. The interest, the other determinant of investment, depends on the quantity of money and the liquidity preference. Now investment can be either by raising the marginal efficiency of capital or by lower rate of interest. Though a rise in investment usually leads to an employment, this may not happen if the propensity to consume at the same time. This process tends to become cumulative. As a result, a given rise in investment causes a multiple increase in income via the propensity to consume. This, relation between increment of investment and of income is called by Keynes, the multiplier K. The multiplier "establishes a precise relationship, given the propensity to consume, between aggregate investment and income and the rate of investment.... It tells us that where there is an increment of aggregate investment; income will increase by an amount which is K times the increment of investment (O'Sullivan, Arthur)
2.2 Conceptual framework According to James (2009), conceptual framework provides a model for linking categories I of possible variables or concepts in the study as perceived by the researcher. It represents the concepts or variables of the study and shows how they are connected (Amin, 2005).
The independent variable in this study is the Role of livestock, which is the total income receives countries from their employed citizens across the world, while the dependent variable is economic development, which is the increase or improvement of standard of living, which the researcher has broken down into three aspects; 1) Employment, 2) poverty, 3) and the investment, and has been conceptualized as illustrated in Fig. 2.1
12 Independent variable Dependent variable
Figure: 1
2.3.0 REVIEW OF RELATED LITERATURE This reviews how early researchers understood the correlation of the two variables in the study, by breaking down the independent variable (the role of live.stock) Camel, Cattle, and Sheep/Goat, and then relating them to dependent variable (Economic Development).
2.3.1 Various components of Livestock in Puntland Four species of domestic livestock - sheep, goats, camels and cattle - are reared in Puntland. Sheep and goats are herded in the largest numbers, a,lthough trends in population growth, increased sedentarization and markets demands have resulted in greater numbers of cattle being reared in recent years. Puntland and Somali livestock are adapted to a nomadic way of life, limited feed resources and intermittent water supply. They are of a broad range of species but there are few breeds. Because Somali people live in several countries other than geographical Somalia, some of their traditional livestock breeds are also found in Djibouti, Ethiopia and Kenya. These species are including such as camel, cattle, goat and sheep.
13 )------_-;-- - .., ___ - Camels are generally assigned to five breeds: Puntland, Ogaden, Mudugh, and Benadir. The Puntland is the main camel of the north. It has fine sparse hair if it is from the lowlands but longer and thicker hair in the highlands. The largest Puntland camels are owned by the Dolbahanta tribe in the southeast of the breed's range. The Ogaden is the same breed as the one of the neighbouring regions of Ethiopia, is pale to almost white in colour and is large. The Mudugh - also variously known as Mijertein, Galjaal (in Benadir) or Noga) - occurs in the north central areas and is usually tawny in colour often with a black line along the midline of the back and is a good milker. The Benadir, typical of southern Somalia, is the largest of all Somali camels, is usually pale in colour and has a large hump. The Hor of the centre and south is a small dun or pale grey camel used for both milk and transport (Axmed, 1988). [ Almost all Somali goats are short eared. Breeds of this type are classed as "Somali" with a possible four subdivisions known as Abgal, Ogaden, Puntland Protectorate and Kenya (which is usually known as the Galla or Boran). In the traditional Somali descriptive systems the 'yeygirr' is smaller than the 'deguen' and has short prick ears in contrast to the r forward inclined pendent ears of the latter which is bred by the Muruli clan. The goat is of small to medium size with males weighing 30-50 kg and females 25-4-0 kg. A further short eared goat is the Arab (which in this context is a Somali clan name) or Puntland type which corresponds to the sheep breed of the same name. It is the smallest of the Somali goats and is kept by coastal dwellers in the vicinity of towns. The goat is prolific with many twin and not a few triplet births being the rule. Some long eared ('deguen') milk goats are kept in villages and towns. These goats are usually known as Benadir and mainly occur in the southern half of Somalia but north of the Juba River (Ax med, 1988).
The Somali or Black Head Somali is the main sheep breed. This fat-rumped meat breed is found throughout Somalia except in the riverine areas. It is highly appreciated as a meat animal by people in the countries to which Somalia exports livestock. Somali sheep are the immediate ancestor of the Black Head Persian which was developed in South Africa in the late nineteenth and early twentieth century's and that has been widely used for crossbreeding in many parts of Africa and elsewhere in the tropics. The classic colour, as
14 suggested by the name, is white with a black head. The fat rump is the most characteristic feature. The Arab or Puntland sheep is a small fat tailed breed found mainly along the coast.
The Zebu cattle of Somalia mainly belong to a group designated as "Small Zebus of the Somalilands" or Somali Shorthorn Zebu. The main "breeds" are North Somali, Gasara and Garre. Boran cattle similar to those of southern Ethiopia and northern Kenya are found along Somalia's border with these countries. The Jiddu or Tuni is an Intermediate Sanga/Zebu type with long horns and possibly has a certain degree of tolerance of trypanosomosis (Axmed, 1988).
2.3.2 Growth Trends of livestock in Puntland Over the past 60 years an expansion in human and livestock population has been exerting pressure on the pastoral environment. There is no exact data on the size of the herd in Puntland Extrapolating from the 1975 Somalia census of livestock, the following annual growth rates are assumed for Puntland: goat 2.4%, sheep 1.7%, cattle and camels 1.1 % (Puntland Ministry of Planning, 1999). Based on this Table 1.1 presents the total estimated livestock population from 1996 to 2000. For the year 2000, this is estimated to be 25,136,025 heads.
Table 1 Estimated numbers of livestock in Puntland
Year Goat Sheep Camel Cattle Total 1996 9,958,691 5,386,468 5,336,540 2,736,687 23,418,368 1997 10,197,699 5,478,038 5,395,242 2,766,791 23,837,770 1998 10,442,443 5,571,165 5,454,590 2,787,226 24,255,424 1999 10,693,062 5,665,875 5,514,591 2,817,886 24,691,414 2000 10,949,695 5,762,195 5,575,252 2,848,883 25,136,025
15 Source: [Extrapolation from Somalia Ministry of Livestock (Department of Statistics & Research), 1975]
However, the above annual rates of increase are based on the 1975 census and don't take into consideration the deaths and the losses due droughts and other calamities that occurred in later years. For example, in 1999 as result of rain failure for three successive raining seasons in the west of Garowe, almost 70% of cattle in that areas have died. Similarly, about 60% of cattle and 35% of sheep in Sanaag region were loss in between 2000 and 2002. What is more camels as browsing animal has moved from Puntland regions to other Somali regions particularly Zone five of Ethiopia, as tall trees were cut down.
Citing their own observations, most participants in the study believe that there has not been an increase in any of the four domestic species - sheep, goat, camels and cattle - since 1991. Besides, they contend that Puntland's rangelands are unlikely to be able to support the kind of figures projected by the Ministry When 25.1 million heads of livestock is converted into Tropical Livestock Unit (TLUJ it becomes 10.6 million TLU; TLU annually requires about 2.25 tons of fodder (Axmed, 1988). Therefore, 10.6 million TLU needs annually about 23.85 million ton of fodder. The estimated fodder production of Somalia and Puntland combined in 1986 was 13.7 million tons (Axmed, 1988), equivalent to only 6 million TLU, excluding the needs of donkeys, horses, and wildlife. In other words, Puntland's rangeland capacity is far below the level required to support the Ministry's estimates (Axmed, 1988).
Nevertheless, some regions have been experiencing an increase in livestock numbers. One participant cited the growth of his own family's herd as proof of growing livestock numbers ,- in his region: "Before we had three xero (kraal) and now we own 13 xero of adhi (shoats)". ,j An officer of the FASU (Food Security Assessment Unit), who has undertaken studies and 1:j .i assessments over the past decade on the Nugaal, Sool and Sanaag regions explained that I trends in livestock population growth (and decline) are not the same across Puntland: •::.;: I. ) 1 :.! Today livestock are increasing in some regions like Sanaag and decreasing in some places 1 like the Mudug. Livestock are increasing along with the growth of the population in some ! Ii i 16 I I I?,.=. places, and in some places like Mudug the population is increasing while numbers of livestock are decreasing. Whoever says that livestock is increasing or would increase in the Mudug is dreaming. In reality, total livestock population may have increased due to population expansion in some regions, but ownership per household has declined over the years.
The disparity in livestock growth across Puntland is attributed by some people to the area of grazing available for the animals. According to some informants and workshop participants, animals in Sanaag region and Sool have more space for grazing when compared to Mudug and Galkacyo regions. It is widely believed that the Mudug may have already reached the limit of its capacity to support more animals, and that the current trends, without urgent intervention, could spell environmental disaster. One can see in some of the grazing plains of Sanaag, a thousand sheep or goats owned by one family grazing alone in some of these plains, whereas in the Oodweyne area [in the Hawd], wherever you go, you will find berkado, villages, enclosures and people, so no space for animals.
There is no reliable demographic data on Somaliland. But Somaliland's population has been steadily increasing since 1991, due to the combined effects of the returning population from southern Somalia, from refugee camps in Ethiopia, and a high fertility rate.
2.3.3 The Role of Livestock in i1nproving Standard of Living of people
The livestock husbandry has increased the standard of living of the people especially those live in rural areas or countryside since Livestock raising and selling, mainly sheep and goats but also camels and cattle, is the leading productive activity in Puntland. Livestock and associated products are the main export primarily to the Arabian Peninsula with Saudi Arabia being the leading market (when its periodic bans of Somali animals and products are not in effect). Every rural family is dependent, in part or wholly, on livestock for its livelihood.
17 As in the rest of Somalia, herds and flocks productivity is low because of a number of factors not all inherent to pastoral systems such as: overuse of grass and browse, declining water supplies, absence of health and husbandry support services, isolation from markets and unimproved genetic potential of animals. Somalia has not exploited the market potential for higher quality animals, milk and meat products for export and opportunities in the local market. Animal health and meat quality needs to be improved by enacting suitable standards, regulations and inspection.
2.3.4 The role of livestock in Economic Development of Puntland
Much of Puntland 1 s post-war economic growth and Development has been linked, directly or indirectly, to the livestock trade. Livestock husbandry is the dominant system of production in Puntland. Over half the population of Puntland 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 Puntland Ministry of Agriculture, about 60% of Puntland'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, 2000), 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 Puntland 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 Puntland's population (UNDP 1998).
Four species of domestic livestock - sheep, goats, camels and cattle - are reared in Puntland. Sheep and goats are herded in the largest numbers, although trends in population growth,
18 increased sedentarisation and markets demands have resulted in greater numbers of cattle being reared in recent years.
No concrete data exists on the present number and distribution of livestock in Puntland. 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 Puntland, participants in this study asserted that the livestock population is not increasing, because most of the livestock for export comes from beyond Puntland'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 Puntland's arid environment, and the most efficient way of exploiting the erratic seasonal forage and water conditions. However, environmental pressures, inadequate infrastructure, substandard veterinary services, and the impact of commercialization on the livestock economy threaten this mode of production and the nomadic way of life.
There are numerous pressures on the pastoral environment. Some are natural, such as i declining rainfall, recurrent drought, wind erosion and flash floods. There are few figures to substantiate complaints of declining rainfall throughout the country; however, community elders and concerned professionals believe that there is a general decline in precipitation and that rainfall has become more erratic. For example, in Purtinle District of Nugaal region, where precipitation readings were recorded between 1992 and 2002, precipitation has declined slightly and has also been very erratic.
According to a researcher with the international NGO known as Cooperazione ltaliana Nor Sud (CINS): "One month or one week it rains heavily and the other weeks or months it just trickles. When you add up these readings it might be slightly less than the annual average in previous years, but other factors such as rising temperatures, high run-off, and evaporation, combine to diminish the rainfall effectiveness."
19 Other pressures on the environment are man-made, such as the increase in the number of water points and settlements (two related phenomena), the increase in off-road vehicle traffic, charcoal production, the expansion of enclosures and excessive livestock numbers. These factors have contributed to the degradation of the pastoral rangelands, notably through deforestation and overgrazing. Indicators of serious land degradation _include gully erosion, changes in the composition of vegetation species, a decrease in vegetative cover and the spread of sand dunes. As discussed belo'A'. in the section on Rangeland Degradation, the pastoral habitat has been changing over a long period of time and these concerns have been expressed for almost as long. However, as result of the cumulative pressures on the pastoral environment, there is growing evidence that the limits of Puntland's ecosystem to support current levels of livestock production may soon be reached, if they have not already been surpassed (WSP /PCPD, 1999).
2.3.5 Problems facing livestock of Puntland
Livestock in Somalia and Puntland are the major repository of individual and national wealth. In relation to potential, however, they have failed to achieve their potential in contributing to increased incomes and greater food security. Growth in output has varied over the years but in general has barely kept pace with population growth inside and outside the country and hence the demand for products of animal origin. Livestock furnish end products that include milk, meat and hides and skins and intermediate products such as manure, fuel and power for draught and transport. They thus contribute to food security but in addition are a store of wealth that is readily realizable in times of need, reduce the risk associated with crop failure in the agropastoral areas and have important social and cultural connotations. Domestic animals in the broader Somali context are, nonetheless, an f indispensable source of human livelihoods and welfare. [FN: 98]. i
. i I: : In addition to the technical constraints to animal production associated with nutrition, ;: 1 ;:_. ·I disease, genetic resources and poor management, there are other constraints that include structural and institutional weaknesses, marketing constraints, domestic price distortions, production and consumption orientations due to the adoption of inappropriate policies and (often artificially) limited intra- and inter-regional trade. Cross-border trade barriers have ,· I 20 1.
Ii undermined the trade in livestock especially since the early 1990s. Many potential trading partners have imposed import taxes, licensing and other fiscal and non-tariff barriers for reasons that have not always been fully transparent.
2.3.5.1 Policy and Institutional Setup Prolonged absence of a central government has hindered the establishment of economic management institutions. The livesto~k sector has become increasingly hampered through lack of investment, insufficient trained manpower and the absence of a relevant legal and regulatory framework to enforce rules and regulations, health standards and quality control. There is minimal extension and research other than that carried out by some NGOs supported by the UN system or the European Union. I
A major challenge is to rehabilitate services along the entire production chain in the face of additional internal and external pressures. Private sector involvement, innovation and I entrepreneurship will be the dominant forces and features of this scenario with the public sector role being reduced to regulatory and supervisory functions. This applies equally to ii~ the medium and long terms as it does to the immediate future. Economic aspects of I:i production must increasingly be decoupled from the still entrenched political tenets of centralized command and control. Technical and economic aspects of revitalization will I also need to transcend narrow national realms: Somalia as a whole no longer comprises a I discrete economic entity but is part of a global whole. Technical standards, structures and terms of trade of this global context must be applied.
2.3.5.2 LIVESTOCK PRODUCTION Factors contributing to poor production and productive performance by livestock include policy related ones, such as partial or unwilling support for private sector development and unclear land tenure rights; inadequate budgetary allocations ( even of cost recovered monies); and human resource and institutional ones including low numbers of adequately trained professionals and an inability to carry out strategic planning. The inherent qualities of indigenous livestock and their adaptive traits are insufficiently characterized and their comparative advantage is certainly not fully exploited. Poor nutrition is a permanent or
21 seasonal problem throughout almost all of Somalia. The nascent intensive and peri-urban systems often have to make use of feed supplies of variable and inferior quality (PULPA; Puntland United Livestock Professionals Association).
There has been an increasing tendency since the early 1990s for grazing land - and usually the best grazing land - in the valleys and other high value areas, to be enclosed as private farms and pasture~. These areas had formerly been reserved by pastoralists in the clan structure for use in the dry season. Enclosure and de facto privatization of this land disrupts traditional movements of nomadic and transhumant herds and effectively removes key resources and refuge areas from the overali production system. This, in turn, forces livestock owners and herders to use the remaining pastures more intensively, thereby rendering them more vulnerable to erosion and desertification. At the height of the civil war, with the resulting displacement of people from the areas of most intensive fighting, trees in many areas were cut for firewood or to make charcoal for sale. There can be no doubt that this coping mechanism helped untold thousands of people to survive in the short term but at the cost of destroying many thousands of hectares of forest and pasture and prejudicing long term survival (PULPA; Puntland United Livestock Professionals Association).
Water is almost always a problem for livestock. During the civil war and afterwards many traditional water points, wells and 'barket' (earthen or concrete tank or reservoir) as well as modern boreholes were destroyed or damaged beyond repair. This has often had an effect similar to that of the private enclosure of rangeland in that it has driven livestock onto areas that would formerly have been reserved for special grazing periods. The opportunity should be taken to provide new water points but care must be taken to see that their location and capacity are such that the rangeland resource is not abused and there should be some participatory mechanism to ensure that numbers of livestock and times of use do not exceed the ability of the feed resources to satisfy livestock nutritional needs without the resources being completely destroyed.
22 2.3.5.3 LIVESTOCK HEAL TH Spot disease checks in accessible areas were undertaken by the FAO/UNDP Central Rangelands Development Project in the 1980s. The Project's Veterinary Component started collecting baseline data on important diseases by systematic cross sectional surveys and longitudinal investigations on a representative sample of herds and animals in herds in 1985. These activities had to be terminated in 1990 as the security situation deteriorated. Since then plani:iing and implementation of veterinary interventions has been impeded by a lack of understanding of cur-rent levels of mortality and morbidity caused by all classes of diseases (viral, bacterial, parasitic) and for all livestock species. The magnitude of such losses and the geographical and seasonal incidence has yet been quantified. The skewed distribution of livestock species with more cattle in the south and sheep and goats and camels in the central and northern regions and their resulting production systems, undoubtedly have an important influence on the types of disease that occur in different areas. (SERECU 2004, the Somali Ecosystem Rinderpest Eradication Coordination Unit)
Following the civil war the already limited public veterinary service in the country collapsed. Buildings were destroyed, occupied by other people or vandalized, and roofs, doors and windows stolen. The Serum and Vaccine Institute in Mogadishu that used to produce a range of vaccines has been completely destroyed and other laboratories in the country are occupied only by broken and unserviceable equipment. In June 2003 the Veterinary Laboratory of the Ministry of Livestock of the Republic of Puntland in Garoowe was perhaps typical of the prevailing situation throughout the country. It was not adequately equipped and manned with appropriately trained manpower with which to carry out serious disease investigation procedures such as tissue sampling for bacteria, virological investigations, serology or simply adequate storage of submitted samples (Minister of Agriculture report 2005).
2.3.5.5 LIVESTOCK MARKETING AND TRADE The livestock trade and especially the export trade face three major challenges: • Competition from other livestock exporting countries for existing and new markets;
23 • Compliance with livestock trade regulations and international code; and • Overcoming barriers to trade including bans on import of live animals and products of animal origin (RVF Rift Valley Fever).
The crisis in livestock exports fr_om the Horn of Africa stems from a complex combination of history and regulatory and infrastructure deficiencies. The event that precipitated the crisi.s, however, was the imposition of a ban on livestock imports from all African countries by Kingdom of Saudi Arabia (KSA) in February 1997, following an outbreak of RVF. Although the ban was lifted, it was re-imposed in September 2000 and was still in force in June 2003. Livestock exports to KSA and to other countries on the Arabian Peninsula and in the Arabian Gulf are a major source of tax revenues to the Governments of the Horn of Africa countries and in particular are the primary source of "hard" currency for Somalia. [WSP, 2005, p. 235; FN: 57].
The KSA import bans on livestock have been devastating to the economies of the Horn and have demonstrated the negative effects of over-dependence on a single market. The. situation is further exacerbated, however, by over-dependence on the port of Jizan as a single route of entry which has limited competitive pricing for animals from the Horn. Somali traders again find themselves overly dependent on the single market of Dubai which is relatively expensive and difficult of access. It is susceptible to over supply resulting in a temporary market crash with prices falling to as low as US$10 per head. [WSP, 2005, p. 235; FN: 57].
Traders have stated that they have little knowledge of the market for livestock and livestock products from the Horn in the importing countries. Who are the consumers of the Black Head Somali sheep, the Galla goat, the Boran cattle and the Somali camel. What are the characteristics of these animals that consumers find favourable and which are unfavourable here are changing tastes and trends in purchasing meat and meat products in the importing countries. Supermarkets are replacing traditional live auctions and butcher shops. Meat is being purchased less live or warm killed and more by the piece and chilled.
24 Modern supermarkets in the Gulf feature lamb, goat, and beef from Australia, New Zealand, India and Pakistan, as well as local production .. [Hashi, 2006]
A major constraint to the profitability of the livestock and meat export trade is thus poor knowledge of the market. In Dubai, for example, which maintains a free or spot market for live animals and chilled meat, and because it has very limited capability to hold animals or store chilled meat, prices are extremely supply sensitive. If shipments from Somalia coincide with shipments from other suppliers, prices crash. Some larger traders have family members or agents working in Dubai who supply them with market forecasts but many smaller traders do not have access to this information. Even with good relationships and information, however, supplying the Dubai market is a risky business. A solution to this problem would be the lifting of the RVF ban which would re-open the direct market to the KSA. Although former reliance on the spot livestock market in Jizan resulted in the same problems as just discussed for Dubai, at least in this instance there would be two market alternatives. This would enhance the possibility of not oversupplying the market and being forced to sell at depressed prices. (RSL TC Red Sea Livestock Trade Commission)
A public market news and information system operating out of the Arabian Peninsula would also be helpful. The countries of the Arabian Peninsula provide livestock and meat price information as a regular service to their citizens and a system designed to gather and supply this spot market information to the Horn of Africa would be feasible along with a rudimentary system that would gather world market data and forecast trends on supply and demand. This type of information would be useful to Somali traders in guiding decisions relating to livestock and chilled meat shipments. (SLSS Somalia Livestock Sector Strategy)
A similar deficiency in market information is evident internaily in the Horn of Africa. I Pastoralists and small traders selling in local markets rely on word of mouth to determine I the current value of their stock. As in any market without a good price dissemination system, buyers inevitabiy have better knowledge of prices than sellers. This results in a steady downward bias in prices. Some market price data are collected by the agencies II I I 25 I •·ill= ( monitoring food security and some NGOs working in various communities as is (in the case of the Somali National Regional State in Ethiopia) the Ethiopian Government. This information is not, however, disseminated in a manner or format useful to pastoralists or small traders. An important need to help the export process is to develop a market news reporting -?ystem. Three types of clients need to be served through a market information network. The first type comprises pastoralists and small traders (AU_IBAR) with European Union (EU) funding.
The second is large traders. The third is the community of government, NGOs and agencies charged with the improvement of the living standards of the pastoralist people. A Market Report for the Horn of Africa based on an internet website cannot directly serve the pastoralists and small traders, but it could serve as the organizer of data to be republished through print and radio media. Market news information must, however, be disseminated in locally understood languages including English, French, Arabic, Somali, Amharic, Kiswahili and Afar.
In addition to reporting market information, including prices and numbers moved, a website can report important news affecting markets in various importing countries. This might include reprints of reports published by other agencies and countries relevant to the ·: markets in the Arabian Peninsula and the Horn of Africa. Other relevant news, such as I ·-:- weather and market prices for locally produced and imported commodities that are 1' ·••-:: collected by other agencies and projects can be either directly reported or reported I -:·-.. through web links. Information about livestock disease outbreaks and vaccination 1 campaigns can be reported in a map format. This will help traders avoid purchasing potentially infected livestock, and inform authorities where to concentrate resources to I~' ~ stop the possible export of infected animals. A website can also serve as a forum or advertising site to link traders in the Horn and the Arabian Peninsula. In the long term, this activity may evolve into a market place where traders can offer livestock or meat for sale and receive bids (AUJBAR) with European Union (EU) funding.
26 · A further hindrance to efficient export relates to market infrastructure and its ancillaries. Following 12 years of civil war by mid 2003, and the incomplete restoration of peace and stability in many parts of the former Somali nation, the livestock marketing infrastructure is severely degraded. A great deal of both private and public investment will be required . before the physical market infrastructure is restored or in many cases created for the first time. In June 2003 the market infrastructure was an uneven patchwork of private and public facilities most of which were at best rudimentary (Minister of Agriculture report 2003).
Security continues to be a major hindrance to trade and adds considerable cost and uncertainty. Ultimately it is the primary producers who bear the cost of insecurity in lower livestock prices. Southern Somalia is rife with unresolved conflicts that often result in I militia gangs imposing checkpoints at major bottlenecks (which cannot be avoided) where they demand fees for allowing export oriented livestock to pass. In June 2003 there was an area of conflict in eastern Puntland around the town of Lascaanod which hindered trade between Puntland and Somaliland. Within Puntland there were still unresolved clan issues around the town of Garde. There and in Bossasso itself, where militias were actively guarding access to the town and to the port, it was reported that they demand up to US$1 per sheep and goat to cede right of passage. Some nine checkpoints between Belet Wayne and Galkacyo demand a payment to allow lorries to pass and most lorries owned by southern clans are not allowed to move beyond Galkaaio. Cargo must, therefore, be offloaded and transported to Bossasso or Berbera in lorries owned by northern clans.
Livestock within the Horn and in Dubai are bought and sold in a free and open market system. Prices are negotiated in an unorganized forum rather than through an auction system. In neither case are the terms of trade necessarily beneficial for the seller. In the case of Dubai market, the seller makes all the investment to get livestock to the market. Any delay in selling tends to increase the costs without a guarantee of better prices at a future date. The risks and unpredictability of the Dubai market, therefore, controls the market in the interior of the Horn of Africa. Export traders know the costs and risks they run in sending livestock to Dubai and the market price is consequently capped at a very low level,
27 to the detriment of pastoralists or local traders. (CAHW Community Animal Health Worker 2003).
This situation can only be redressed by a market system that is more efficient, less risky and less costly. In the first place there needs to be more competition from buyers in the importing countries. Given the eventual resumption of direct trade with KSA, the Somali traders need to maintain sales through as many channels as possible. Port Suez, Jeddah, Jizan, Al Maka, Salalah, Muscat and Dubai need to be actively accessed as do the various ports of entry for chilled meat. Only through cultivating a multiplicity of markets can the Somali people maximize the competition and thereby the possibility of higher prices. With better infrastructure, and a more secure and efficient financial and market system some sales may eventually be made through forward contracts. This would help to stabilize the prices with the prospect of better rewarding the primary producers for their work and effort.
II The banking and financing system provides largely inadequate support to livestock trade but the Bank of Puntiland has some ability to assist livestock and chilled meat exports. It has agreements with the German AG Bank of Frankfurt, the Commercial Bank of Ethiopia and the Banque de Commerce et Industrie: Mer Rouge to facilitate loans, letters of credit and fund transfers. This is a step in the right direction to fostering a better business climate I for livestock and chilled meat exports. Other international banks have assessed the possibility of operating in Puntland but none had made a commitment by June 2003. (CAHW Community Animal Health Worker 2003).
In other areas of Somalia, banks and financial institutions have collapsed and remain ineffective. In the resulting vacuum, however, a very efficient money transfer system has developed that can almost instantaneously move large sums of "virtual" money between remote areas in Somalia and almost anywhere else in the world. Fees for this service are very low and generally about 2 percent of the total sum. Before this system developed in the mid 1990s, businessmen including livestock traders had to carry large sums on their
28 persons at considerable cost and even greater risk. This 'hawala' transfer system has greatly assisted the development of a cash market for livestock and has replaced, to a large extent, the former barter system that required livestock to be traded in terms of other commodities.
One major problem faced by Somali traders and veterinarians is the opacity of regulations concerning live imports, especially in KSA. Other than the requirement of a test for brucellosis, KSA has never been forthcoming with its veterinary regulations. In the period 1990- 2003 hundreds of thousands of livestock were denied entry into KSA with no explanation on the part of the authorities. These rejections, usually of entire shipments, have caused Somali traders economic losses into the hundreds of millions of US dollars. Rejections, however, have not been limited to Somalia's livestock. Australia has experienced similar unexplained rejections and as a result Australia refused to sell sheep to KSA for a number of years. Sudan has also had shipment rejected. Even Saudi-owned companies are not exempt and one such had a shipment of sheep and goats which it had purchased in Bossasso rejected in 1996. It cannot, therefore, be said that Somali traders are unfairly singled out for rejection nor can it be concluded that the rejections were unjustified. The fact that KSA refuses to supply reasons or evidence for rejection leaves livestock traders in a difficult position (CAHW Community Animal Health Worker 2003).
The shifting or unpredictable regulatory framework within Somalia is a further problem. The tax structure is a case in point. It is evident from the large differences in the number of livestock exported through Bossasso port as opposed to Berbera that high taxes in Puntland were a disincentive to the use of Berbera. Discussions with traders and officials in Puntland in June 2003 led to the conclusion that official taxes and fees were, to say the least, rather fluid. In the past the largest tax in Puntland has been the Development Tax. In Puntland the largest tax in a more simple structure has been the Customs Tax. It is clear I 1: from a comparison of the fees at both ports that it is the Puntland Development Tax which inhibits exports from Berbera (CAHW Community Animal Health Worker 2003). I r I Ii I 29 i
I Without a clearly reliable product, animals from the Horn may not have a future in a constantly changing and fluctuating market. In order for there to be a future for live animal and chilled meat exports from the Horn promotion and advertising and improved commercial relations will be necessary. Promotion and advertising without a clearly reliable quality product will not, however, be effective. In order for exporters from the Horn to be able to market a consistent and quality product there will need to considerable improvements in market and trade infrastructure. This will in turn be dependent on. the Somali people evaluating their institutional and cultural practices and where necessary, adapting to a more straightforward and business oriented system with regard to livestock and meat exports. The meeting held in Dubai in April 2003 was probably the first official opportunity for some 15 years, for Somali veterinarians and veterinary authorities to talk directly with officials from some of the importing countries. The continuation of that dialogue is critical if importing health and veterinary officials are to haveconfidence in the validity of Somali veterinary certification.(DFID, 2006).
2.3.5.6 Cyclical drought problems
In Puntland's drought is a recurrent phenomenon and is considered one of the main environmental pressures on the livestock economy. Between 1911 and 1974 there were eight prolonged periods of drought in Puntland (1911, 1914, 1918, 1927-28, 1933-1934, 1945- 4 7, 1950-5 l, 1959) (Bothman, 197 5). Since then, there has not been any documentation on the number of droughts that took place. But the countries did experience prolong droughts in the seventies, eighties and nineties, with an exception of 1974-5 droughts none of them led to people encampment (Sullivan 1996).
The consequences of a prolonged drought can be devastating. A lack of rainfall reduces the vegetation cover and bio-diversity of the land, which can lead to a loss of livestock from starvation or water stress. Droughts can trigger food shortages, the forced liquidation of livestock at depressed prices, migration to urban centres or camps, and the loss of human life from starvation or social conflict. On the other hand, some experts argue that droughts help to keep livestock growth in check, by enforcing the balance between range capacity and livestock numbers.
30 Most theories of environmental change are based on two broad schools of ecological thought, which are "equilibrium" and "non-equilibrium" principles (Lind, Kitevu, Huggins, and Nyukuri, undated). The "equilibrium" ecology principle is based on the premise that the environment is an inherently inflexible ecosystem (Sullivan 1996). Any environmental change, therefore, is viewed as an abnormal disturbance to the system, rather than an integral part of the system. For example, excessive livestock numbers can lead to degradation, and there is therefore a need to regulate their numbers to maintain the "equilibrium" of the ecological system.
The "non-equilibrium" ecological principle stresses that ecological characteristic or environmental changes are the result of dynamic interactions between many factors (physical and non-physical) whose certainty is not always predictable (Lind, Kitevu, Huggins, and Nyukuri, undated). Physical factors in the environment, such as drought or rainfall variability, for example, will have a greater impact on plant growth than any marginal fluctuations in the stocking rates of livestock (Benke and Scoones 1993). In the pastoral areas of the North Rift Valley in Kenya, it has been noticed that plant growth will respond more to climatic fluctuations more than adjustments made to stocking rates (Ellis and Swift 1988). So according to 'non-equilibrium' principles, environmental change is a normal function of a dynamic ecosystem (Lind et al, undated).
In the risk-prone environment of Puntland, pastoralists have developed strategies to ameliorate the impact of rainfall failure. Hiring trucks to transport water and grass to drought affected-flocks areas and building berkado to harvest rainwater are two such strategies. There is some evidence, however, that their coping capacities have been weakened by various factors, such as private enclosures, and increased water points. In order to soften the socio-economic impact of drought on pastoralists and to enhance their coping capacity, organizations and preparedness plans should be established to predict and respond to droughts.
I 31 If I CHAPTER THREE METHODOLOGY 3.0 INTRODUCTION This chapter presents the overall procedure and methodology, which was followed during the process of carrying out the research. It further describes the manner, in which data was collected, analyzed, presented and interpreted. It shows the research design, population, research area, data collection, validity and reliability of the research instrument, and data analysis. 3.1 RESEARCH DESIGN This is the master plan or map by which the researcher would be able to provide to research questions and by which he/she is be able to control variance, (School of economics and applied statistics, KIU. Research Guidelines 2009) The study was carried out using the cross-sectional survey design to attain the relationship between the role of livestock and Economic Development. However, to Amin (2005), a cross sectional research design is the most commonly used research method in social research. This design is selected on the ground that it aims at providing a systematic description that is as accurate as possible. 3.2 RESEARCH AREA The study was restricted to Somalia especially Puntland State of Somalia. Puntland(Somali: PuntlandJ is region in northesrtern Somalia, centered on Garowe (Nugal Province), whose leaders declared in an autonomous state in 1998. Puntland state of Somalia consist of Seven provinces (Bari, Nugal, Karkar, Mudug, Sool,Sanaag and Cayn). (Puntlandgov.net).
3.3 RESEARCH POPULATION The study was prin;iarily focused on Livestock of Puntland State of Somalia. There are four Species of Livestock in Puntland such as Camel, Cattle, Goat and Sheep. from which the sample is taken. The study will use both secondary and primary data, secondary data will be collected from Government Documents and offices, where the primary will be collected from the non-management staff and this is the target population of this study.
32 3.4 Sample and Sampling procedure
A probability sampling method is any method of sampling that utilizes some form of random selection. Using a Probability sampling method with a 20% sample, 41 out of 100
Lvistock owners and employees were selected to participate in this study. Among the 41 respondents, five (5) respondents were on the managerial staff of livestock agencies and
(36) were ordinary Livestock owners from various villages. The sampling technique or procedure was simple random sampling, which involves giving a number to every subject or member of the accessible population, putting these numbers in a list and then picking any number randomly. The subject corresponding to the numbers picked are included in the sample (Mugenda 2003). l
3.5 DATA COLLECTION According to Amin (2005), this concerns the methods, and the instruments was used during data collection, however, both primary and secondary techniques of data collection was used. The records a_nd the financial reports of the company will be used to get data on the relationship between Livestock and the Government's expenditure as well as the market share. Questionnaires and Interviews was used for collecting data concerning the relationship ! between Livestock and the Government's ability to pay its employees. This was chosen due to the data to be collected, time and financial constraints as well as considering the objectives of the study.
The questionnaire is a carefully designed instrument for data collecting in accordance with the specifications of the research questions, which consists a set of questions to which the subject respondent responds in writing, Oso willis (2003) The questions was semi-structured and close-ended questions. The researcher believe this tool was most reliable instrument to get the necessary information. Furthermore, 33 I questionnaire is less cost than other instrument, where each respondent will be given a chance to express his/her ideas, opinion and views without fear in a provided space as shown in the methodology.
3.6 SOUR OF DATA Primary source This was obtained through the use of s~lf administered questionnaires, interviews and observation. Secondary source Textbooks, periodic reports, publications, magazines, published and unpublished documents, agency reports, internet sources and other related documents on Livestock and Economic Development was used to assist the researcher to obtain the required data to throw more light on the area of study.
3.7 VALIDITY AND RELIABILITY OF RESEARCH INSTRUMENT The validity and reliability are the two major concepts in the acceptability of the use of an instrument for research purposes (Amin 2005).
3.7.1 VALIDITY OF INSTRUMENT The validity of the instrument is the n1ost important idea to consider when preparing or selecting it for use (Amin 2005). The validity of the questionnaire as the research instrument will be checked and discussed with my supervisor, through Lekerts scale namely, not relevant (NR), somehow relevant (SR), quite relevant (QR), and very relevant (VR), to make sure the information I obtain through use of the instrument to serve my research purposes and objectives.
3.7.2 RELIABILITY OF THE INSTRUMENT According to Amin (2005), reliability of the instrument refers to dependability or trustworthiness and in the context of a measuring instrument; it is the degree to which the instrument consistently measures whatever it is measuring. However, this will be
34 established through a test- retest method, which the researcher will conduct before gathering the actual data required for the study.
3.7 DATA ANALYSIS According to Amin (2005), the process of data analysis in_volves making sense out of the text, it involves moving deeper and deeper into understanding the data, representing the data and making the interpretation of a large amount of data. However, for the study, both qualitative and quantitative methods will be used.
After the questionnaires were filled by the respondents, the researcher used SPSS
(statistical package for social science) to process and analyzes dat2 by using descriptive statistics. The data were manually entered and stored in SPSS worksheet and by the advantage of statistical tests; information will be generated by using tables and Graphs.
I I I
II I I I I 35 I I CHAPTER FOUR PRESENTATION, INTERPRETATION AND DISCUSSION OF THE FINDINGS 4.0 Overview This chapter is to present, interpret and discuss the field results. Results are presented in tables and in form_ of frequency counts and percentages. The results and discussion are central on the set objectives which were to: investigate the relationship between livestock and economic development in Puntland State of Somalia, This chapter has a part to elaborate the responses in relation to the literature review followed by presentation, analysis and interpretation of responses related to research questions and interviews.
4.1 Demographic Characteristics of Respondents The researcher needed to know the demographic distribution of respondents to help categorize the respondents. The researcher distributed 41 questionnaires out of 100 Owners of livestock and employees. 4.1.0 Gender of the respondents The researcher needed to know the sex distribution of respondents to help categorize the respondents. Through the researcher distributed questionnaires to owners of livestock and government employees, the gender of respondents were as below;
Table 1
Sex Frequency Percent
Male 28 68.3
Female 13 31.7
Total 41 100.0
Source: Field Research Findings {2011)
36 Sex distribution of the respondents
Source: Field Research Findings (2011) From the table and illustration above, it shows that the majority of the respondents 28 (68.3 %) ware male while 13 (31.7 %) respondents were Females. The reason that the majority of the respondents were males is that most of the respondents we were questioned was married, and according to Somali culture the father is the one who is responsi bJ,e the whole wealth of the family, so the men own and responsible the livestock of farming on behalf of their family members. If someone else want to know about the family's wealth intact, he must see the father first, and that why the majority of our respondents are Male. 4.1.1 Age of Respondents The researcher needed to know the age distribution of respondents to help categorize the respondents. Through the researcher distributed questionnaires to owners of livestock and government employees, the age of respondents were as below; Table 2 Respondents age
Age of the Respondents Frequency Percent
18-25 15 36.6
25-35 11 26.8
------( 37 ) -- .------·., ------.- -- 35-45 9 22.0
45-60 6 14.6
Total 41 100.0
Source: Field Research Findings {2011)
Table 4.1 shows that majority of respondents 15 (36.6 %) were in the 18-25 years age bracket, followed by 11 (26.8%) in the 25-35 years age bracket. The table also shows that 9 (22%) and 6 (14.6%) respondents were in the 35-45 and 60+ years age bracket respectively. According to the study the majority of the respondents were between 20 and 40 years this is because this age group is the working class of the people who is always responsible to manage and take care of the livestock 4.1.2 Marital Status of the respondents The researcher needed to know the Marital Status of respondents to help categorize the respondents. Through the researcher distributed questionnaires to owners of livestock and government employees of Livestock agencies, the marital status of respondents were as below; Table 3 shows the marital status distribution of the respondents Marital status of the respondent
Frequency Percent
single 10 23%
married 22 58%
widow 5 10 %
divorced 4 9%
Total 41 100.0
Source: Field Research Findings (2011)
38 Marital Status of the Respondents
■ Married
■ Single
Window
■ Divorced
Som..:e: Field Research Fir1dinys (2011)
Table 4.2 shows that the majority of the respondents 23 (58 %) were married, followed by 10 (23 %) were single, the table also shows that 5 (10 %) and 4 (9 %) were windows and divorcetl respectively.
The reason that most of the respondents are married is that only married ones which are independents from their parents and have responsibilities of looking their families to get food and survive, while singles were dependents to their parents, they cannot have their own livestock spieces..
4.1.3 Types of Livestock Owned by the Respondents
The researcher needed to know the type of livestock owned by the respondents to help c..atP.eorizP. thP. rP..spondents. Through thP. resP..;:irchP.r'.s di.strihuted questionnaires to owners of livestock and government employees of Livestock agencies, the livestock owned by the respondents were as below;
39 Types of livestock owned by the respondents
The type of livestock owned Frequency Percent
Goats 9 22.0
Sheep 3 7.3
camel 5 12.2
cattle 2 4.9
goat/sheep cattle and camel 22 53.7
Total 41 100.0
Source: Field Research Findings (2011) Illustration 4.1.3 shows that the type ofthe oflivestock owned by the respondents
Types of livestock owned
60 50 40 30 20
10 ■ Frequency 0 ■ Percent
Sonn::e: Field Research Findings (2011)
Table 4.1.4 shows that the majority of the respondents 22 (53.7) were owned goat/sheep, cattle and camel followed by 9 (22%) own Goats, the rahlc also shows that 5 (12.2%) of the respondents own Camels only, while 3 (7.3 %) and 2 (4.9 %) of the respondents own sheep and .cattle respectively
40 Most of the respondents own all species of livestock like Goat, sheep, Cattle and camel, there reason is that each one of these livestock species has its own significant and respondents were trying to maximize their wealth.
4·.1.4- Number of Livestock owned
The rfsearcher needed to know the number of livestock owned by the respondents to help ·~ categorize the respondents. Through the researcher's distributed questionnaires to number of livestock owned by the respondents were as below; Table 5 Number of livestock owned
Number of Livestock Frequency Percent
20-35 5 12.2
35-55 8 19.5
55-75 8 19.5
75-95 12 29.3
100 and above 8 19.5
Total 41 100.0
Source: Field Research Findings (2011) Illustration 4.1.6 show that the number of livestock owned by the respondents
41 Number of livestock owned by the respondents 35 F 30 r e 25 q 20 u 15 e ■ Frequency n 10 ■ Percent C 5 y 0 20-35 35-55 55-75 75-95 100 and above
Age groups
&m.i'i:~: Field Research Findings (2D11)
Table 4.1.6 shows that, the majority of the respondents 12 (29.3 %) were owned 55-75, followed hy 8 (19.5 %} , 8 (19.5 %) and 8 (19.5 %} owned 35-55, 55-75 and 100+ respectively, whHe only 5 (12.2 %) of the n~spondents owned 20-35,
4.2 The Relationship between livestock husbandry and standard of living The researcher want to know the relation.<.Mp ben.'1-'een Hvestock husbandry and standard of life, weather the livestock husbandry can improve the standard of living or not the re~ec:trcher asked the question, did the livestock husbandry improve t.he standard of living of our people. Through the researcher's distributed questionnaires to owners of livestock and government employees of Livestock agencies, the respondent's response towards the improvement of standard of living is shown the table and illustration below,
42 Table 6
Did the livestock husbandry have improved the standard of living of the people
Respondents response Frequency Percent
strongly disagree 1 2.4
Disagree 5 12.2
not sure or undecided 2 4.9 ,. Agree 6 14.6
strongly agree 27 65.9
Total 41 100.0
Source: Field Research Findings (2011)
Percentage l 9-.------I 8 7 6 5
4 Ill Percentage 3 2 1 0 Disagree Strong agree Agree Strong disagree Undecided
Source: Field Research Findings {2011)
As shown the above table and also illustration the majority of the respondents 27 (65.9%) responded and strongly agree that the livestock husbandry has increased the standard of living of our community, followed 6 (14.6 %) agreed that the livestock has increased the i standard of living of the people, while 5 (12.2 %) and 1 (2.2 %) of the respondents I disagreed that the livestock husbandry has increased the standard of living of the people, I and also 2 (4.9 %) of the respondents refused to decide and answer the question. I 43 I I I According this information the researchers find out by using interviews of some of the respondents that the livestock husbandry has increased the standard of living of the people especially those live in rural areas or countryside since Livestock raising and selling, mainly sheep and goats but also camels and cattle, is the leading productive activity in Puntland. Livestock and associated products are the main export primarily to the Arabian Peninsula with Saudi Arabia being the leading market (when its periodic bans of Somali animals and products are not in effect). Every rural family is dependent, in part or wholly, on livestock for its livelihood.
As in the rest of Somalia, herds and flocks productivity is low because of a number of factors not all inherent to pastoral systems such as: overuse of grass and browse, declining water supplies, absence of health and husbandry support services, isolation from markets and unimproved genetic potential of animals. Somalia has not exploited the market potential for higher quality animals, milk and meat products for export and opportunities in the local market. Animal health and meat quality needs to be improved by enacting suitable standards, regulations and inspection.
4.3 The relationship between livestock and economic development The researcher want to know the relationship between livestock husbandry and Economic Development of Puntlancl State of Somalia, a possible list of indicators is mentioned through the researcher's distributed questionnaires and interviews to owners of livestock and government employees of Livestock agencies, the respondent's response towards these indicators is shown the tables below.
44 Table 7 Indicators Agree Disagree Total The livestock husbandry reduce and fight 18(44%) 23(56%) 41 poverty in our community Livestock husbandry reduces income inequality 12(30%) 29 (70%) 41 among different classes of the society.
Livestock Husbandry Increases the Gross 31 (75%) 10 (25%) 41 Domestic Products (GDP) of the country
Improving market and employment 29(70%) 12(30) 41 opportunities Livestock farming promote economic 27(68%) 14(32%) 41 development and growth.
According to table 7, it was established from the respondents that, there were different roles which the Livestock plays in the improvement the social-economic development and growth of Puntland state of Somalia and these were determine to be; Livestock farming reduce poverty in our community 23 (56%) of the respondents disagree while 18 ( 44%) of the respondents agree that livestock farming reduce poverty. By the using interviews the researcher found out the livestock farming cannot reduce the poverty since the poorest people in region is those who settles in rural areas, which spent less than a dollar per day and their daily life depends on livestock products like meat and milk.
According to the interpretation of study findings, table 7 above shows that the livestock i husbandry did not reduce the income inequality since the majority of the respondents 29 l (70%) out of 41 disagree. The researcher found out that the reason, through the use of i interviews that the livestock husbandry is considerate in rural areas where most of people I are less educated and low level of income since there is no access of social services like I electricity, health care education and other social benefits where urban settlers have an f f
45 I I I I I. access of social welfare services and this increases income inequality between rural an urban areas.
According to the table 7 above and use the government resources of livestock statistics the researcher found out that the livestock husbandry increases the productivity and Gross Domestic Products (GDP) of Puntland State of Somalia. Since much of Puntland's post-war economic growth and Development has been linked, dir~ctly or indirectly, to the livestock trade. Livestock husbandry is the domiraant system of production in Puntland. Over half the population of Puntland 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 Puntland Ministry of Agriculture, about 60% of Puntland's I population relies for daily subsistence on the main livestock products, meat and milk (Ministry of Agriculture 1998). I Livestock production is estimated to represent 60-65% of the national economy (Ministry I of Agriculture, 2000), and government revenue is heavily dependent on livestock exports. Between 1991 and 1997, livestock export on the hoof grew considerably, exceeding pre I~-- war levels when Puntland 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 Puntland's population (UNDP 1998).
Four species of domestic livestock - shee·p, goa_ts, camels and cattle~ are reared in Puntland. Sheep and goats are herded in the largest numbers, although trends in population growth, I increased sedentarization and markets demands have resulted in greater numbers of cattle I being reared in recent years. I No concrete data exists on the present number.. and distribution of livestock in Puntland . i Many observers believe, however, that numbers .of livestock have been decreasing during f the 1990s, as result of pastoral rangeland degradation and insufficient of grassing space in I I 46 1f l I " some areas. Even at a time in which livestock export ban by Saudi Arabia has minimized exports from Puntland, participants in this study asserted that the livestock population is not increasing, because most of the livestock for export comes from beyond Puntland'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 earnii:igs as well as for household consumption.
According to the study findings in table 7 above shows that the majority of the respondents 29 (70%) agree, livestock husbandry increases market and employment opportunities in both rural and urban settlers. The researcher found out that the reason why livestock husbandry increases the gross domestic production, by using interview and government statistics of data for livestock that the livestock products did not only contribute to the livelihood of the nomads, but are also a substantial portion of the daily food intake of the population living in rural and urban areas. The economy of Puntland is largely dependent l on livestock exports, which contribute to approximately 60% of employment I opportunities, 80% of foreign exchange earnings of the country, and 40% of the Gross I Domestic Products (GDP) of the country. It Employment in the Seylad system. The number of people involved in the seylad system •• (marketing and trading of export livestock) is difficult to estimate, though it is apparent that the number is significant. The marketing of most livestock exports follows traditional marketing channels known as the merchant-jeeble (middleman) system. This system of trade has a long history and is characterized by a complex network of intermediate brokers and multiple formal and informal transactions. As most livestock exports still pass through these traditional market channels, the net effect is that livestock exports generate numerous business transactions and thereby create jobs both directly and indirectly. It is estimated that between 24 and 30 different transactions take place from the time livestock is sold by the pastoralist, collected in smaller markets, transported for sale to larger markets, and finally loaded onto a ship for export. The individuals involved in this marketing chain include livestock tenders, herders, loaders, different types of brokers, pen owners, verifiers, registrars, markers, transport owners, drivers, sales
47 persons, fodder and water providers, watchmen, security providers, quality controllers, port loaders and caretakers on board the vessels.
In addition to jobs directly related to the export of livestock, there are a number of secondary services that support and depend on it to varying degrees, such as tea shops, small restaurants, 'retail shops, and Qat traders in the livestock markets and along the livestock marketing trade routes.
In addition to the above study findings from the above table 7, the majority o the respondents 27 (68%) agree that livestock husbandry increases the economic growth and development of Puntland state of Somalia. the researcher also found out that the livestock husbandry promotes the economic development and growth of the country. Since the economy of the country is directly or indirectly based on livestock trade, which the main source of government revenue either as taxes or export earnings of livestock and foreign exchange.
4.4Measure to improve Livestock farming in Puntland State of Somalia. The possible list of measures which can improve livestock husbandry in Puntland State of Somalia is shown the table below. Table 8 Measure taken to improve livestock Agree Disagree Total farming Improved Health care to the livestock 24(75%) 17 (25%) 41 Government Promote assistance to the 27(66%) 14 (34) 41 livestock owners and agencies Bank provides Loans to livestock agencies 23 (56%) 18 (44%) 41 and owners to enhance their business.
From the above table it shows that almost 75 % of the respondent agrees that the livestock farming or husbandry can be improved if there health care services are increased, while
------11( 48 )------only 25% of the respondents disagree this. The reason that most of the respondents are eager to improve the health care of livestock in Puntland is to avoid livestock diseases which would reduce the livestock production and export since the importing countries imposed livestock export ban for unhealthy animals. The table also shows that 66% of the responqents agree that government help or assistance can improve livestock farming this because since the most of livestock owners is uneducated people wh9 based in rural areas which is not aware whether their animals is health or not the government must provide consulting services to the livestock owners and livestock agencies to avoid a wide spread diseases to the whole livestock in the region and also must provide labtory and drug services to ensure the exporting livestock is health. On the other hand the table also shows that the majority of the respondents 56% out 100% or 23 out of 41 respondents agree that bank loans can improve livestock farming. The reason is that most of the respondents' livestock husbandry is small scale and family bases, they are eligible to bank loans since they are lacking the collateral security which banks require in order to give loans. In addition to this according to the researcher's point of view if small scale livestock farming may have an access of bank loans and governments assistances they can expand their productivity and change the traditional family bases farming into business bases \ farming of livestock. 4.5 Problems facing livestock husbandry in Puntland State of Somalia The study was also focused to the challenges or problems facing livestock farming in Puntland state of Somalia, a list of possible problems is listed in the table below. Table 9 Problems facing livestock husbandry in Puntland Possible Problems Agree Disagree Total Cyclical drought problems 33(83%) 8 (17%) 41 Health problems 28(68%) 13 (32%) 41 Shortage of Water 30 (73%) 11(27%) 41 i!!';;:: Shortage of Grazing land and over grazing 25(69%) 16 (39%) 41
probiems
49 Monopolistic market problems 21(52%) 20(48%) 41
From the table above it shows that a list of possible challenges which faces livestock husbandry in Punland State of Somalia. According to the study findings the majority of the respondents 33 (83%) agree that there is cyclical problems which faces livestock problems and only 8. (17 %) of the respondents disagree that there is drought problems facing livestock husbandry. The researcher found out that the reason which most of the respondents experience drought problems to their livestock husbandry is that there is a consequence of a prolonged drought can be devastating the livestock production of Puntland state of Somalia. A lack of rainfall reduces the vegetation cover and bio-diversity of the land, which can lead to a loss of livestock from starvation or water stress. Droughts can trigger food shortages, the forced liquidation of livestock at depressed prices, migration to urban centers or camps, and the loss of human life from starvation or social conflict. On the other hand, some experts argue that droughts help to keep livestock growth in check, by I enforcing the balance between range capacity and livestock numbers.
On the other hand the study findings and table above also shows that the majority of the respondents 28 (68%) agree that there is Health care problems for livestock husbandry. This because livestock health problems exist mainly diseases such as viral, bacterial, and parasitic diseases for all livestock species Puntland state of Somalia which effects and reduces the production and the export of livestock, which in turn reduces the level of business transactions and income of livestock agencies.
According to the table above it indicates the majority of the respondents 25 (65 %) agree that there is a grazing land problem for livestock husbandry which also reduce livestock ·.. I... production and export. According to the researcher's point of view this is because, there has been an increasing tendency since the early 1990s for grazing land and usually the best grazing land in the valleys and other high value areas, to be enclosed as private farms and
50 pastures. These areas had formerly been reserved by pastoralists in the clan structure for use in the dry season. Enclosure and effectively privatization of this land disrupts traditional movements of nomadic and transhumant herds and effectively removes key resources and refuge areas from the overall production system. This, in turn, forces livestock owners and herder:-s to use the remaining pastures more intensively, thereby rendering them more vulnerable to erosion desertification and shortage of grazing land c!Vailable for livestock rearing.
The increase of livestock numbers, compounded by dissolution of the traditional grazing patter which implied the distinction of the pastoral lands into dry season and wet season grazing lands, have caused serious over grazing of most of the Puntland range lands. This breakaway from the traditional migratory pattern of animal husbandry has resulted into serious over-grazing and over-browsing of pastoral lands. Goats and camels are kept widely and their continual browsing even during prolonged drought around the same area has led the removal of the most of the consumable biomass in the region. Other irrational resource management behaviours that have been brought by the mushrooming of the villages consists
In addition to this information the table above also shows that the most of the respondents almost 73% 52% of the respondents agree that there is a problem of shortage of water and Decline of Livestock products respectively. According to the use of interviews and researchers' point of view these problems was caused by the lack of strong central government which can control the supply of water and electricity of Puntland State of Somalia. Apart of this there is also the problem of a lack of rainfall for the raining seasons which reduces the vegetation cover and bio-diversity of the land, which can lead to a loss of livestock from starvation or water stress that leads shortage of clean water supply for both the community and livestock. On the other hand since there in no government policies which is used to control the market activities monopoly and black markets are widely spread through all market of Somalia and Puntland State of Somalia.
51 On the other hand, As a result of the depletion of animal feeding in the region, the productivity of the livestock has enormously declined. During the last three years livestock reproduced less profusely, milk production was scarce, and there is clearly manifested negative weight gain of all species of herds, particularly camels. The decline of livestock productivity depri_ves to the herders of sufficient household consumption of milk and meat as well as the essential cash flow needed to cover the fast growing household expenditures. The proportion of the pastoral household expenditure that have to be earmarked for the payment of water and veterinary drugs is growing faster in respect to other expenses on stable food and other items needed by household members. This kind of pressure, which persisted during the last three years, has already forced many poor pastoral households to relinquish herding of animals. It is also unlikely presumable those even wealthy nomads would in the long run afford to continue to sustain the current deficit spending on animal husbandry.
52 CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.0 Introduction
This chapter covers the summary, conclusions and recommendations of the study findings on the four major variables.
5.1 Summary of the Findings
According to the findings it was revealed that Livestock husbandry play an important role in improving the standard of living of the people; Gross Domestic product as well as improving the formation of income of the people and the economic development , this however, is not without challenges. There are a lot of problems facing livestock husbandry I in Pun ti and State of Somalia. 5.1.1 Livestock in Improving Standard of Living Il
The study findings revealed that the Livestock husbandry has brought about an improved I' standard of living in the community by; improving the capacity of people through the husbandry of livestock species and also slaughtering and making money income either by selling their products like meat milk and skin or selling them to the livestock agencies which export the livestock to the foreign countries to increase the economy and the production of the country. Livestock raising and selling, mainly sheep and goats but also camels and cattle, is the leading productive activity in Puntland. Livestock and associated products are the main export primarily to the Arabian Peninsula with Saudi Arabia being the leading market (when its periodic bans of Somali animals and products are not in effect). Every rural family is dependent, in part or wholly, on livestock for its livelihood. r
53 II I L
::?:,-.-:: ... ::. :.. ;•,.•.'.:;_-,·_;,·:., .•.•:, : ..-, ... :·;.:_;_,_:'.-;' .. :.-_-::.. ,.:.', ,;, :·: :.:... '.'.;; .:.. ; .'• .... ·.: ;, ... ·; .. :.;,,:,.;, .'.·.•.•::.•;;,: ::,7.:..:...... :, ,::;.;:,:.;;,. ::·. ;.· ..':; ..·::::.::;.• ... ;, ,...... :..... ,•,, ,.:· ... ·, :.;.',;,.'..... ,.·;;·;•;·...... :;;.;, ...... ;,.,.,•.·. ·.::::•.:; .. .;:. ;,:•:.·...... ::.;q, .. !;,•:•:•:•;•.' · ;.... ~·. ; .•~.~····":"''';' ,o;r.,: >.• . = r, .,,,__J,,,,,,,,,,~-,r_.. __ ,,-.. ••·· ., l ' '·. 5.1.2 The relation between livestock and Economic development Much of Puntland's post-war et:6homic growth and Development has been linked, directly or indirectly, to the livestock trade. Livestock husbandry is the dominant system of production in Puntland. Over half the population of Puntland 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 incom~ and employment for urban dwellers. According to the Puntland Ministry of Agriculture, about 60% of Puntland'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, 2000), 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 Puntland 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 Puntland's population (UNDP 1998).
5.1.3 Problems facing livestock husbandry in Puntland State of Somalia
Puntland regions are by definition characterized as a serious water deficit area. Consequently, in response to the natural increase of human and livestock population major efforts were exerted to improve water supply in the region. Despite these efforts, the general picture is an insufficient level of the water actually harvested, unreliability of almost all existing water points and inadequacy of the most of the harvested water for human consumption.
5.2 Conclusion The study concluded that livestock farming and husbandry plays an crucial role in improving people's standard of live since the greater portion of the population of Puntland depends on livestock trade both employment and income for their daily life
54 I
t.... •:·!:-.7.... ::. :·:·:.·:·::.: ;:::::. .-:.::..:.:.·::'.·;.::·.·. :.,:: _. ... !. :.... ,.,·.. :.::'::.'.····S-,,::;".,.:,.: :...... :,_..:·...... :.,..,.: .... ::-: .. -:.. ·.-:.:', :·= ·:· • ··:· ~-·:~·- •J:·, ❖ · ·,··-·=··-·=···'· .~... .-j· ¾ ··-: ···-·••• , ·r... ':~-;.-,-.: --·.. :·.::·:· .. :·.: ;-_ ...;. .. :::.-::> ..-.-.:.-; .. _.·,. :.: ... ::::>. :-.:: ... .. ::::.-.•:·.. '."':.".:': .. ·.: .'·> .· ... _...... >... :.: > -: .-,.,.7--1 ...... · ····". I-~· bases. The study also concludes that livestock husbandry plays an important role promoting economic development and growth of Puntland State of Somalia. Since Livestock husbandry is the dominant system of production in Puntland. Over half the population of Puntland 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 and rural settlers.
The study concluded that livestock husbandry plays a significant role in improving Gross Domestic Product through increasing the export and the production of livestock commodities in the country. Livestock husbandry plays important role in establishing both production and service industries, thus production increases and this contributes towards self dependent of the country. However, the Livestock farming focuses on improving production capacity of the country which is economically sustainable. In addition to this the study also concludes that there is a number of challenges or problems facing livestock husbandry or farming in Puntland State of Somalia, these problems may include; Drought problems, Health problems, Shortage of Water, Shortage of Grazing land and over Grazing problems and also monopolistic market problems.
5.3 Recommendations On summarizing the findings and drawing conclusions of the findings, the researcher made the following recommendations;
There is need to increase the production of livestock to support the livelihoods of the poor people directly or indirectly through Livestock husbandry and livestock farming for livestock agencies which also creates employment for the people and participates the improvement of the economic development by facilitating and increase the export livestock The researcher also recommend that the government of Puntlad must enhance and improve the pastoral livestock production since the livestock production is at the core of
55 most rural livelihoods and, together with agro-pastoralism, represents the major income and security asset for more than half of the Somali and Puntland population: Almost every family keeps livestock. Goats and poultry often represent "the" family's coping and survival strategy. However, like the other productive sectors, livestock production has been constrained by the governance crisis and ensuing capacity and infrastructure issues.
The researcher recommends the community ~s whole must also continue to increasing production and productivity of livestock herds and flocks by improving animal nutrition, production systems and controlling diseases. Because livestock production continues to be the main foreign exchange earner for Puntland State of Somalia, improvements to market access and facilities will help to ease access, reduce trekking losses (body weight, etc.) and improve profit margins. Adding value to livestock and livestock products by improving quality and adding new products to meet export and growing middle class demands will have the dual effect of increasing incomes and creating employment opportunities.
Lastly the researcher recommends that livestock agencies must proposes to continue and expand their activities that have been successful such as upgrading veterinary skills and delivery, disease monitoring and control, improving meat and milk handling and safety and facilitating export arrangements. Other activities have been piloted with success and will be expanded over the coming years. Range management and rehabilitation, market chain infrastructure, watering point rehabilitation and construction and products value addition will also be emphasized. 5.3.1 Recommendations for Future Research This study looked at the relationship between livestock and economic development. The researcher therefore suggests more studr to be conducted on specific subjects especially on how to boost economic development through efficiently utilizing the natural resources such as Livestock, oil, gas and fisheries.
<·
56 I
••••,,,:,-,.,,,,.,•,-.:=.:•'•••••~•:.. ~••••••••~,.:::.',•,•,-,"•,•••;••.":( ...... :...... ::,,,,,,:,:•,,:•:,,,;,::'••••••••••••~•••:.: ...... : ... :•;.";!:./;;•:,•.~•••: .Z.;•••••••:. • .:,::••• ::.:::•i:.:• ... :.... •••••••••::••:. (.:••••• ;.,:.•.::.;•. ;'::•;,..,.;::•:,,•:c": ••:,::' 7•••:.••H••=:'!::,..:-;,:::,.:.;.::.;•:.u:. ...:.::.•.,:..-;.;;-.v .<-~::. .// •' / •;,••~•••J"•,,,..,, '••"'•••••••••-•-.r •• ·-••••~•.f "•" •••.,•~•" ,•~•• tf References FAQ. 2002. Support to Livestock Exports from the Horn of Africa (EXCELEX): Project Docbment. Food and Agriculture Organization, Rome, Submission Form. Food and Agriculture Organization, Rome. Holleman C.F. 2002. The socio-economic implications of the livestock ban in Somalia. Early Warning System Network, Nairobi. IDCO-'2001. Support to Livestock Exports in North-West Somalia: Terms of Reference for Formulation Mission. Italian Development Coordination Office, Rome.
Kammer D. 1986. Proposal for establishment of a monitoring system at selected surface water reservoirs in Somalia. Food and Agriculture Organization, Rome. King A. 2003. Hargeisa Urban Household Economy Assessment. FEWS-NET, Washington, D.C. Little P.O. 2003. Somalia: Economy without a State. Indiana University Press, Bloomington. Lomax Morey Consulting, LLC. 2001. Proposal: Request for Assistance for Meat Production and Quality Enhancement Project. Lomax Morey Consulting, Burao.
Mahdi G Quyad. 1998. Somali Livestock Baseline Information. Terra Nuova, Nairobi. Marchal R. 2002. A survey of Mogadishu's economy. Somali Unit, European Commission, Nairobi. Maxamed Xasan Gaani. 2002. Regulating the Livestock Economy of Puntlnadliland. Academy for Peace and Development. MNPC. 2000. Somaliland in figures. Ministry of National Planning and Coordination, Hargeisa. MoL/Sland. 2001. Master Plan for the Ministry of Livestock, Final Report May 2001. Ministry of Agriculture Puntland. SACB. 2003. Draft minutes, Livestock Working Group, 9 June 2003, 2.30 p.m. World Bank Offices Somalia. Livestock Working Group, Food Security/Rural Development Sectoral Committee, Somalia Aid Coordination Body, Nairobi. (EXCELEX): Joint Government of Italy/FAQ Project Formulation Mission
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·· .. -.-., . .' ... •.. _: ...... - .. , .-:-... _:_._.-, ..... ,,., .. .:,_. __.,.,.,.:,.._ .. ,; ...... , . .-:,.; .::.-:; .... :... ~.-:' .. : .. :,.. :, ..:::, .... :.·.: ... ?... :..,.:·.:• ,.:::.:.. : ....· ... >.· ... :.:.::.::'. .. :.: .... :: ..s· .. :;:;::.: . .= ... , .... : .... , . :. ..:, .. :.;·:.. :::.:; ,.:: ... <.::•.··.: .. :...• :. ·'·'·· :··. :., ... ::. .: .•:: .,·.,.¢•.··.;. .e:·,,.:··,:.? .. ½ • • Y..·. ; ,7,;•·-'·'. 7 y,,,__,.,._,,m, ... ,<_...... ,,.,•. , ...,, ...__ ._., ...... ,. ····-····· .. -··· .. . i GCP /INT/811/IT A. End of Mission Technical Report, Livestock Marketing and Range Management. Food and Agriculture Organization, Rome. TAMU. 2002. Livestock Information Network and Knowledge System (LINKS) for Enhanced pastoral Livelihoods in East Africa. Department of Rangeland Ecology and Management, Texas A&M University: College Station, USA. Thornton P.K., Kruska R.L., Henninger N., Kristjanson P.M., Reid R.S., Atieno F., Odero A.N. and Ndegwa T. 2002. Mapping poverty and livestock in the developing Vv'.Orld. International Livestock Research Institute, Nairobi. ULPA. 2002. The Constitution, 2002. United Livestock Professionals Association, Hargeisa. UNDP. 1987. Somalia's Annual Development Report 1986. United Nations Development Programme, Mogadishu. UNDP. 2001. Human Development Report for Somalia, 2001. United Nations Development Programme, Nairobi. UNDP. 2003. Country Re-engagement Note: UNDP /World Bank Somalia. United Nations Development Programme, Nairobi. UNDP /FAQ. 2001. Support for the Somali livestock export industry (UNDP /SOM/01/008/12). Food and Agriculture Organization, Nairobi. UNICEF. 2002. UNICEF Indicator Multiple Cluster Survey and Primary School Survey 2001/2. United Nations Children's Fund, Nairobi. I USDA. 2002. GAIN Report: Saudi Arabia Lifts Import Ban Imposed on Sudanese Livestock. l United States Department of Agriculture, Washington, D.C.
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~· . ,.._;_•. :,::_,~•.0•. ~::::Y--.):.-/-.":-,;:.;::,,,. ,.,.,:, .. ,·.•.:,-.·.·.JS.--·,,::;,.:.::_-.->:.:·;·.... -~.---·-·· - • •' ✓--- :,·.· •• •••• .. •••• ...... J.n,-·:-:·.;:/.,·;- :.<--r- ... x.c; .-,;, . .✓ • ✓:,··-"::. -..'~·.····•.·"·r-' •. ·-..._.,_ ... ~ .. ,c.,m,;,.•; .=«·.. ,,,__,,.~-. ,,, .,H,,,,. .. , .. ,·--,~·." ·····~-·.~--······----··. I APPENDIX A QUESTIONNAIRE FOR LIVESTOCK AGENCIES DEALERS
Dear Respondent My name is Yusuf Mohamud Mohamed pursuing a Bachelor of Arts degree in Economics ?f Kampala International University. I am c11.nducting a research on "the Role of Livestock in Economic Development": A case study of Puntland State of Somalia.
INSTRUCTIONS Please answer the following questions to the best of your knowledge. The infonnation given will be treated with utmost confidentiality. Section A: Background Information, Please fill and tick where appropriate
I. Personal information
1. Age a) 18-25 D b) 25-35 D c) 35-450 d) 45-60D e) 60 and above D
11. Sex Male D Female □
111. Marital status
a) Single D b) MatTied □ c) Widow □ d) Divorced D
1v. Type of Livestock owned t:-- 1. a) Ships/Goats D b) Cattle D c) Camel d) both cattle and Goat/Ships D
v. Number of Livestock owned a) 20-30 b) 35-55D c) 55-75D d) 75-95 D e) 100 and above D
59 Section B: The Relationship between Livestock and Economic Development Please use the key below to answer the following statements by indicating: (1) Agree and (2) disagree
Indicators [ Agree Disagree Total Livestock husbandry in improving the standard of live The livestock husbandry reduce and fight poverty in our community Livestock husbandry reduces income inequality among different classes of the society. Livestock Husbandry Increases the Gross Domestic Products (GDP) of the country
Improving market and employment opportunities Livestock farming promote economic development and growth.
Section C: Please use the key below to answer the following statements by indicating: (1) Agree and (2) disagree
Measure taken to improve Agree Disagree Total livestock farming
60 Improved Health care to the livestock Government Promote assistance to the livestock owners and agencies Bank provides Loans to livestock agencies and owners to enhance their business.
Section D: Problems facing Livestock Husbandry: Please use the key below to answer the following statements by indicating: (2) disagree and (1) Agree
Possible Problems Agree Disagree Total Cyclical drought problems i Health problems I. Shortage of Water ' .:; Shortage of Grazing land and over grazing problems
Monopolistic market problems
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IIt APPENDIX B: Interview Guide for Departmental Heads of Livestock Agencies in Puntland State of Somalia
IDENTIFYING INFORMATION
A) YUSUF MOHAMUD MOHAMED. Interviewing Date: ......
B) Interview number 1_ - 7
C) Survey Interview
D) Livestock Husbandry contributes to the socio-economic improvement of communities, by create jobs and improve income and wealth of the society. However, despite these positive contributions Livestock husbandry faced with a number of challenges or problems. This therefore a realized need to revisit the operation of the Livestock Companies or agencies for better results. Guiding areas; Have you receive any Loans to any institutions or banks? Which form of loan have you received? Has the livestock husbandry played any Role in improving the standard of living of the sociality or community? Comment on the overall contribution of the livestock to the economic development to the community at large? How has Livestock husbandry created job opportunities in the community? How is your business doing? What challenges or problems do you think is encountering m Livestock Husbandry? What advice would you give to the owners of Livestock to overcome these challenges?
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