mind the gap: commercialization, livelihoods and wealth disparity in pastoralist areas

8/7/2019 Mind the Gap: Commercialization, Livelihoods and Wealth Disparity in Pastoralist Areas

1/55

MINDTHEGAPCommercialization,LivelihoodsandWealthDisparity

inPastoralistAreasofEthiopia

YacobAkliluandAndyCatleyDecember2010


2/55

Contents

Summary..................................................................................................................................................... 1

1. Introduction........................................................................................................................................ 3

1.1 Objectives.............................................................................................................................................. 4

1.2 Methodology......................................................................................................................................... 4

1.3 Structureofthereport.......................................................................................................................... 5

2. LivestockexportsfrompastoralareasofEthiopia:recenttrendsandissues......................................... 6

2.1 Thegrowingtrade:economicgainsoutweighethnicityandtrust........................................................ 7

2.2 ThecrossbordertradefromSomaliRegionandBorana...................................................................... 8

2.3 TrendsinformalexportsfromEthiopia.............................................................................................. 12

2.4 Aboominpricesandthegrowthofbushmarkets............................................................................. 14

2.4.1 TheBoranatrade............................................................................................................................ 14

2.4.2 TheSomalitrade............................................................................................................................. 14

2.5 Theparadoxoflivestockmarketingsystemsinpastoralareas........................................................... 16

3. Commercialization, wealthanddestitution........................................................................................ 18

3.1 Canhistoryhelptopredictthefuture?............................................................................................... 19

3.2 Pastorallivestockmarketingbehaviorbywealthgroup..................................................................... 22

3.3 Varyingdependencyonlivestockforincomebypastoralwealthgroup............................................24

3.4 Commercializationinpractice............................................................................................................. 24

3.5 Communityperspectivesoncurrenttrends....................................................................................... 25

3.6 Impactsontraditionalsocialsupportsystems.................................................................................... 26

3.6.1 Borana............................................................................................................................................. 26

3.6.2 SomaliRegion................................................................................................................................. 27

3.7 Commercialization:otherimpactsonresourcesandbehaviours....................................................... 27

3.7.1 Borana kallosandconsumptionbehaviours................................................................................. 27

3.7.2 SomaliRegion................................................................................................................................. 29

3.8 Localsolutions..................................................................................................................................... 32

4. Policyperspectivesoncommercialization .......................................................................................... 34

4.1 Localactors......................................................................................................................................... 34

4.2 Governmentpolicynarratives............................................................................................................. 36

4.3 DonorandNGOstrategiesandprogramsforpastoraldevelopmentinEthiopia...............................36

5. Discussion......................................................................................................................................... 37

5.1 Thefutureofpastoralisminhighexportareas................................................................................... 37

5.2 Implicationsforpolicies,strategiesandprogramming....................................................................... 39

5.2.1 Theneedforareabasedeconomicanalysis................................................................................... 41

5.2.2 Safetynetsversusoutmigrationandeducation............................................................................ 42

5.2.3 Commercialization,economicdependenciesandconflict............................................................. 425.2.4 Entrypointsforpolicydialogue...................................................................................................... 43

5.2.5 Capacitiesforanalysis..................................................................................................................... 43

5.2.6 NGOprogramming.......................................................................................................................... 44

Bibliography..................................................................................................................................................... 46

Annex1.Focusgroups,keyinformantsandinstitutions................................................................................. 49

Annex2.Livelihoodsbasedinterventionsinpastoralistareas........................................................................ 50


3/55

Acknowledgements

ThisstudywasfundedbyUKaidfromtheDepartmentforInternationalDevelopment,underthe

PeaceforDevelopmentProgrammeinEthiopia.TheauthorsappreciatethesupportofPippaBird,

KateBradlowandAhmedHassenatDFIDAddisAbaba,andthecontributionsofvariousinformants

inSomaliRegion,BoranaandAddisAbaba.

Coverphotos:GezuBekeleandAndyCatley

Disclaimer

ThisreportwasfundedbyUKaidfromtheDepartmentforInternationalDevelopment.However,the

viewsexpresseddonotnecessarilyreflectthedepartmentsofficialpolicies.

Abbreviations

DFID DepartmentforInternationalDevelopment,UK

EB Ethiopianbirr

FIC FeinsteinInternationalCentre

LIU LivelihoodIntegrationUnit

MoARD MinistryofAgricultureandRuralDevelopment

NBE NationalBankofEthiopia

NGO NonGovernmentalOrganisation

ONLF OgadenNationalLiberationFront

OPDC OromiaPastoralDevelopmentCommission

PLI PastoralistLivelihoodsInitiative

SCUK SavetheChildrenUK

SNNPR SouthernNations,NationalitiesandPeoplesRegion

SORDU SouthernRangelandsDevelopmentUnit

SPSLMM SanitaryandPhytosanitaryLivestockandMeatMarketingProject

STI SouthernTierInitiative

TLU TropicalLivestockUnit

UAE UnitedArabEmirates

USAID UnitedStatesAgencyforInternationalDevelopment


4/55

1

Summary

TheissueofpastoralistvulnerabilityinEthiopia,andhowbesttorespondtoit,remainsakeydevelopment

challenge.Differentactorshavedifferentperspectives,butinmorerecentdevelopmentdebates,pastoral

destitutionandpovertyareoftenattributedtoconflict,climatechangeandweakgovernance.Thisreportuses

analternativeentrypointtoanalyzepastoralistvulnerability,beingthelongstandingtrendof

commercializationofpastoralproductionandmarketingsystemsandespecially,exportorientated

commercialization.Whileexportsaregenerallyviewedasbeneficialbygovernmentanddonorsintermsof

promotingnationaleconomicgrowth,lesswellknownaretheimpactsofcommercializationinpastoralareas

andtheextenttowhichgrowingmarketsandtradecontributetovulnerability.Thereporttriestoanswer

thesequestionsbyfocusingontwopastoralistareasofEthiopiawhicharedescribedashighexportareas.

First,SomaliRegionhasalonghistoryoflivestockexports,especiallyliveanimalschanneledintothecross

bordertradetoSomalilandandPuntland,andthenonwardstotheMiddleEast.Datingbackto1920sor

before,thistradeisbothrobustandgrowingasdemandformeatincreaseswithurbanization,population

growthandaffluenceintheGulf.Morerecently,andwithgovernmentsupporttoformalmeatexports,Borana

pastoralist

areas

have

been

supplying

increasing

numbers

of

livestock

to

export

abattoirs.

Butwhobenefitsfromthesetrends,specifically,inpastoralistareas?Theanswerliespartlyinan

understandingofwealthstratificationamongpastoralists,andthedifferingstrategiesusedbypoorerand

richerhouseholdstobuildandmaintainfinancialcapitali.e.livestock.Ingeneral,poorerhouseholdsmust

prioritizethebuildingofherdsiftheyaretoacquiresufficientnumbersofanimalstowithstandshocksand

droughts.Thisstrategy,despiteitsinherenteconomiclogic,alsolimitstheextenttowhichtheycanorshould

sellanimals.Incontrast,richerherdersarethemainsuppliersforlivestockexportmarkets.Theseherders

alreadyhavesufficientanimalstobettersurvivedrought,andhaveexcessanimalstosell.Furthermore,as

wealthierhouseholdsbenefitfromsalestheyalsohavegreatercapacitytocontrolkeylandandwater

resourceswhichdirectlyorindirectly,hasnegativeimpactsonpoorerherders.Thisismostevidentwhen

hithertocommunalresourcesareprivatized.Thesumoutcomeisanincreasingassetgapandagradual

redistributionoflivestockfrompoortorich.Thistrendexplainswhythesepastoralareascanexportincreasing

numbersoflivestock,butarealsocharacterizedbyincreasinglevelsofdestitution.Thereportestimates

annualincreasesinthenumberofwealthypastoralhouseholdsofaround2.5%(inlinewithaverage

populationgrowth),butincreasesinpoorhouseholdsof4.1%.

Lookingfurtherafieldtootherpastoralareasoftheworldwhichhavealreadycommercialized,history

indicatesthatincommonwithagriculturaldevelopmentgenerally,pastoralistcommercializationinvolvesthe

absorptionofsmallerunits(herds)bybiggerunits(herds).Insomecountries,thistrendwasdrivenbygrowing

industriessuchasoilandconsequently,somepastoraldropoutsfoundemploymentintheseindustriesorin

thegrowingtownsandcitieswhichemergedaseconomiesgrew.Fewofthesepeoplestayedinpastoralist

areas,becauseofthelimitednonlivestockeconomicopportunities.Whenappliedtothehighexport

pastoralistareasofEthiopia,thisanalysisraisesimportantquestions,notleastbecauseotherthanlivestock

rearing,therearefewlongtermeconomicoptionsintheseareas.Atthesametime,populationscontinueto

grow.

Commercializationraisesthebarforpoorpastoralists,makingitmoredifficultforthemtobuildorsustain

herds,orwithstanddrought.Whilesomepoorordestitutionhouseholdscanreturntopastoralism,the

majoritywillremainonthemarginsandultimately,falloutofthesystem.Furthermore,commercialization

cannotreallybecontrolled.Thedriversaremarketdemandsoutsidetheregion,and,manyofthemarket

systems,mechanismsandbehavioursareinformaloroccurinthecontextofweakgovernmentsystemsand

complexpoliticaleconomies.


5/55

2

Locally,commercializationandrelatedtrendsintheprivateacquisitionofnaturalresources,contributesto

conflict.However,thelivestockexporttradeischaracterizedbylivestockmovementsoverconsiderable

distances,andthesemovementsrequirecooperationbetweenneighbouringclansandethnicgroups,and

acrossborders.Atanotherlevelthen,commercializationcanbeviewedascontributingtopeace.Intermsof

internationalconflicts,thereislimitedevidencetoshowthatcommercializationisanimportantdriverofsuch

conflicts,whichhavedeephistoricalrootsandrelatemainlytopoliticalobjectives.

Despitetheimportanceofcommercializationasatrendwhichcancauseandreinforcepastoralvulnerability,it

isatrendwhichseemstobeunderstatedorevenabsentfromthepolicynarrativesandrelatedstrategiesof

manygovernmentanddonoractors.Wherelivestockmarketingandexportsarementioned,itisalwaysfroma

positionofuniversalbenefits.However,arapidreviewofdonor,NGOandUNstrategiesforthedevelopment

ofpastoralareasinEthiopiaindicatedageneralabsenceofevidencebasedstrategy.Similarly,intheareaof

livelihoodsbasedprogrammingthereislimitedevidenceavailabletoinformgoodpractice,andinsomecases,

atendencytocontinueorscaleupapproachesintheabsenceofevidence.Generally,experiencesaremore

positiveintheareaofserviceprovisionwithgreaterattentiontoimpactassessmentandevaluationbefore

scalingup.

ThepolicyandinstitutionalenvironmentaroundpastoralisminEthiopiaiscomplex,andforexample,can

includetradeoffsbetweeneconomicandsecuritystrategies.Economically,thefiveyearGrowthand

TransformationPlanof2010isapossibleentrypointforrevisitingthecontributionofpastorallivestockto

Ethiopiasnationaleconomicgrowth,becausepastoralareascurrentlyprovidemostofthelivestockforformal

meatandliveanimalexports.Ifpastoralareasaretoexpandthisrole,livestockproductionefficiencieswill

needtobeexaminedandhere,extensivemobileproductionoutperformsothersystems,suchasranching.

Thereisalogicaleconomiclinkbetweenpastoralmobility,efficientproductionandlivestockexports.Thislink

hasbeenrecognizedbyregionaleconomicbodiessuchasCOMESAandIGAD,andissupportedintheir

emergingpolicyframeworksforpastoralareas.Similarly,thenewAfricanUnionPolicyFrameworkfor

PastoralisminAfricastatestheneedtosupporteconomicgrowththroughpolicysupporttopastoralmobility,

andemphasizestheadaptivenatureofpastoralism,anditsecologicalandeconomiclogic.Withtheseregional

policyframeworksinmind,andgiventheinherentregionalnatureofpastoralisminmuchofEthiopia

includinghighexportareaspastoralpolicyandprogramminginEthiopiashouldbebetterintegratedwiththe

policiesofAfricanregionalorganizations.

Thereportconcludesbysuggestingthatgovernmentanddonoranalysisofpastoralismandthedevelopment

oflongtermdevelopmentstrategiesshouldbebasedonafarbetterunderstandingofpastorallivelihoods.

Centraltosuchunderstandingistheroleofcommercialization,andinthefaceofthegrowingexporttrade,the

optionsforassistingpooreranddestitutepastoralists.TheMovingUp,MovingOutscenarioshowswhyitis

increasinglydifficultforpoorerherderstoreachahigherwealthgroup.Thistrend,togetherwiththelimited

nonlivestockeconomicopportunitiesinpastoralareas,indicatesthatoutmigrationisanimportantpolicy

option.However,outmigrationaspolicycontrastswithcurrentsafetynetandassetbuildingstrategies,which

mayencouragedestituteandpoorhouseholdstostayinpastoralareasdespitetheeconomictrends.Therapid

accelerationofeffortstoimproveeducationseemscentraltosupportlivelihoodsbothinandoutofthese

areas.


6/55

3

1. Introduction

RecentdebatesandpolicynarrativesaroundrisingpastoralvulnerabilityanddestitutionintheHornofAfrica

tendtofocusonenvironmental,demographicandclimatictrends,realorotherwise,andareoftensetagainst

thebackdropsofhumanitariancrises,droughts,conflictandweakgovernance.Althoughallofthesefactors

andtrendsmaybeimportant,thisreportfocusesonarelativelyunderstatedtrendinpastoralistareas,beinga

gradualcommercializationofpastorallivestockproductioninsomeofthemostmarginalizedpastoralistareas

ofEthiopia.Thistrendiseitheroverlooked,or,increasinglivestocktradeisviewedasapropoororpro

growthstrategywithbenefitsbeingdistributedevenlyacrosspastoralareas.

ThisreportfocusesontrendsinpastorallivestockcommercializationinEthiopiaandtheideasbehindthe

studywereinfluencedby:

Asubstantialbodyofresearchonextensivelivestockproductionandpastoralismglobally,datingbacktothe1960s,andwhichdescribesprocessesofcommercializationandhowpastoralistsrespondto

marketopportunities.Thisresearchispertinentbecausecommonly,itdescribesprocessesof

impoverishmentandisolationofpoorerherders,or,predictsfuturepauperizationofpastoralists

whofalloutorareforcedoutofanincreasinglymarketorientatedsystem.Pastoralismsurvives,but

onlyforthosewhostayinthesystem.

MorerecentresearchinEthiopia,KenyaandSudanwhichexaminedthebenefitsoflivestockexportsbypastoralwealthgroup,andwhichconcludedthatdonorandgovernmentsupporttothepastoral

livestockexporttradewasaquestionablepropoorstrategyforpastoralareas,andcouldeven

contributetoincreasingpastoraldestitution(AkliluandCatley,2009).

Duringthelasttenyearsorso,thefocusoflivestockdevelopmentinterventionsintheHornhasshifted

towardspromotinglivestockexportsfrompastoralareas.DonorssuchastheWorldBank,African

DevelopmentBank,EUandUSAIDhavefinancedvariousregionalandcountryspecificprogramswith

emphasisonsupporting:theformulationofenablingpolicies,andrelatedimprovementsinsanitarystandards;

constructionoflivestockmarketsandquarantinefacilities;andmarketassessmentsinpotentialimporting

countries.Theseeffortswereinfluencedbytwointerconnectedtheories.Thefirstisbasedonthenotionthat

inadditiontonaturalfactors(e.g.drought)andmanmadecauses(e.g.conflict),pastoralpovertyisintrinsically

linkedtolowaccesstolivestockmarkets,sothatpastoralistscannotsellanimalsasandwhentheywish.The

secondtheoryrelatestothefirst.Ifdomesticmarketscannotabsorbexcesssuppliesfrompastoralareas,then

thesolutionlieswithexportmarkets.Exportmarketsareseenasguaranteedmarketoutletsforpastoralists,

andalsohavethepotentialtogenerateforeignrevenueforthecountriesinvolvedandthelatterisoftena

majordriverofnationalpolicy.

Althoughitisdifficulttodeterminetheimpactsofdonororgovernmentinvestmentsinthelivestockexport

trade,therehasbeenanincreasedvolumeofexportsfromtheregionduringthelastfivetosevenyears.This

isespeciallythecaseforSomaliland,DjiboutiandEthiopia.However,atthesametimenosubstantial

improvementswereevidentinthelivelihoodsofpoorerpastoralists.Eveninthefaceoftwodroughtsduring

thisperiod,livestockexportsremainedrobust,furtherindicatingthatthemainbeneficiariesofthetradewere

wealthierpastoralists(AkliluandCatley,2009).Furthermore,poorerhouseholdsenduremorehardshipinthe

faceofshockssuchaslivestockexportbans,aswealthierherdersredirecttheirlivestocktodomesticmarkets.

Inthissituation,poorerhouseholdsarelessabletosellthefewanimalstheyrelyonforcashandfood.

Thesefindingsposeanotherchallenge.Ifwealthierhouseholdsbenefitdirectlyanddisproportionatelyfrom

commercialexportsandifpoorerhouseholdsareimpactedindirectlyincasesofexportbans,doesthe

commercializationoflivestocktradeleadstoincreasedwealthstratificationofpastoralists,andthereby

contributetopastoraldestitution?


7/55

4

1.1 Objectives

Thisstudywasbasedonfourmainresearchquestions.

Towhatextentiscommercializationandlivestockredistribution,frompoortowealthierhouseholds,arealityinpastoralareasofEthiopia?Howdotrendsvarybyregion?

Wheresuchtrendsareevidentandgiventheproblemofpastoraldestitution,howdocommunityleaders,religiousleadersandothersseethefutureofpastoralism?Whatarethelivelihoods

diversificationoptions?

Towhatextentaretheseissuesunderstoodbypolicyactorsatdifferentlevels,indifferentorganizations?

Whataretheimplicationsintermsofpolicyprocessandthedevelopmentoflongtermstrategiesandplansforpastoralistareas?

1.2 Methodology

Theframeworkofthisresearchusedfourconceptualapproachesthatfocusedonwealthstratificationof

pastoralists;marketingbehaviorofpastoralists;emergingtrendsarisingfromenhancedlivestockexporttrade;

andtheextenttowhichthesetrendsareunderstoodbyrelevantactors.Theseconceptualapproacheswere

intendedtoprovideinformationon:

Theextentofpastoralwealthgroupdifferentiation; Pastoralistsmarketingbehaviorbywealthgroup;whosellswhat?Whichwealthgroupsdependmoreon

livestockfortheirannualhouseholdincomeandfood?

Emergingtrendsofindividualsorgroupsastheytrytomaximizethebenefitsfromlivestockexports;arethesebehavioursfurtheraggravatingpastoralwealthdifferentiation?Dotheyprovidelivestockandnon

livestockbaseddiversificationoptions?

Thepolicyimplicationsoftheabovetrends arerelevantactorswellinformedofthesedevelopments?DataonwealthstratificationofpastoralistswasobtainedfromSCUKforSomaliRegion(20042005data)and

fromtheLivelihoodIntegrationUnitforBorana(LIU,2008,referenceyeardatafrom20062007).Secondary

sourceswereusedforanalyzingthemarketingbehaviorofpastoralistsdrawingheavilyondetailedstudies

carried

out

in

southern

Ethiopia

and

northern

Kenya

(e.g.

Osterloh

et

al,

2003),

and

from

previous

work

involvingtheanalysisoflivestockexportbenefitsbypastoralwealthgroups(AkliluandCatley,2009).

PrimarydatawascollectedthroughfieldtripstoBorana(12daysinBoranaandGujizones)andtheSomali

Region(11daysinJijiga,Harshin,Hartisheikh,TogWuchale,BabileandShinile).Purposivesamplingwasused

inselectingfocusgroupsandkeyinformantsonthebasisofhistoricalknowledge(elderpastoralistsfocus

groups)forrecountingpastandpresenttrends;directinvolvementintrade(livestocktraders,middlemen,

marketingcooperativesandunions,exportersagents,livestockmarketadministrators);andthoseclosely

associatedwithlivestockmarketoperations(marketdatacollectors,regionalagriculture/livestockbureaus,

pastoraldevelopmentoffices).

Focusgroupsandkeyinformantinterviewswereusedtocollectdataontrendsarisingfromexploitingthe

prevailingexportmarketopportunities,theirimpactsonthefutureofpastoralism,anddiversificationoptions.


8/55

5

Theseinformantsincludedfocusgroupsandkeyinformantsconsistingofcommunityelders,womentrading

groups,livestockmarketingcooperativesandunions,livestocktraders,marketdatacollectors,alivestock

marketadministrator,middlemen,anofficialinalivestockmarketingcompany,exportersandtheiragents

,andseniormosquesheiks.Thesecondlevelofkeyinformantsincludedzonalandregionalagriculturalor

livestockbureaustaff,zonalandregionalinvestmentbureaus,relevantregionalofficials,seniorMoARDand

NGOstaffinthefield,academicinstitutions,aconsultingcompany(involvedinlivestocktrade)andprivate

consultants(specializinginpastoralareas).Theseinformantsprovidedinformationinteralia,onlivestocktrade

data,thechangingnatureoflivestocktrade,visionsandstrategiesonpastoralareadevelopmentincludingthe

extenttowhichtheywereawareofcommercializationoflivestocktradeandrelatedimpacts.Thefindings

fromthesetwogroupsofinformantsweretriangulatedwithrelevantsecondarysources(literaturereview)as

needed.

Toconductarapidreviewofdonor,NGOandUNstrategiesforpastoraldevelopmentinEthiopia,we

purposivelyselected10organizationswithexperienceinEthiopiapastoralareasandrequestedcopiesoftheir

strategydocumentsorequivalent.Someagencieshadbeenoperationalintheseareassincethe1970s.

Schematicrepresentationofmethodology

1.3 Structureofthereport

Thereportisstructuredintothreemainsections.

Section2providesgeneralbackgroundinformationoncrossborderlivestocktradefromEthiopia,including

crossborderexportsfromSomaliandBoranaareas,followedbyindicativetrendsonformalexportsfromthe

country.Thissectionalsoexplainshowdemandisbecomingthemaindrivingfactorforcrossborderexports

ratherthanethnicaffinity,trustorproximity.Thesectionconcludesbyassessingtheparadoxoftheapparent

problemswithpastorallivestockmarketingsystemsasperceivedbyoutsiders,comparedtotherealitieson

thegroundthatsupportstheefficiencyofthesystemundertheprevailingcircumstances.

Section3beginsbyprovidingasimpleaccountoftheprocessesofchangeindemanddrivenlivestock

commercializationsystems,followedbysomedetailedaccountsofdirectandindirectimplicationsof

commercializationonlivestocktrade.Thissectiondrawsheavilyfromactualexperiencesunfoldinginthe

Communityfocusgroupandkey

informants

Trendsinlandacquisition,access

controltowater,changesinlivestock

wealthandzakat/busagonofa

systems,levelofdropouts,

diversificationoptions,futureof

pastoralism,livestocktrade

dynamics,profitability

Keyinformantsgovernment,

NGOs,others

Levelofawarenessiftrade

aggravateswealthclassification;

perceivedmajorproblemsinpastoral

development;visionsandplanned

strategies;thechangingnatureof

livestock

trade;

data

on

pastoral

wealth,livestocksales

Secondarysources


9/55

6

SomaliRegionandinBorana,withspecificfocusonlandacquisition,controlofwatersources(e.g.through

birkeds1),andincreasedconsumptionofalcoholandchat.Thissectionalsoprovides:

Insightsintohowwealthtransfersfrompoorertowealthierhouseholdstakeplacethroughthecontrolofcriticalresources.

Dataonlivestockassetsofdifferentwealthgroupsofpastoraliststoillustratethelevelofdisparitybetweenpoorerandwealthierhouseholds.

Adescriptionoftheperspectivesofcommunitiesonassetdepletionandfutureoptions,includingperceivedmajorrisksandcapacitiesintraditionalsupportsystems.

Asummaryofthemarketingbehaviorofpastoralistsbytheirwealthstatus,therebyexplainingwhyspecificwealthgroupsbenefitfromlivestockmarketsindifferentways.

Section4describesperceivedlinksbetweencommercializationanddestitutionamongpolicyactors,

concludingwithvisionsfromregionalofficialsforthefuturedevelopmentofthepastoralcommunityinthe

twostudyareas.Thissectionalsopresentsarapidreviewofdonor,NGOandUNstrategiesforpastoral

development,anddiscussestheextenttowhichcommercializationandrelatedprocessesareconsidered.

Section5offersconclusions,anddealswithpolicyandprogrammingimplications.Thesectionexplainshowan

initialentrypointofcommercializationleadstoanunderstandingofincreasingwealthgapsinpastoralareas

andinturn,aneedtorevisitsafetynetandassetbuildingstrategies.

2. LivestockexportsfrompastoralareasofEthiopia:recenttrendsand

issues

Aphysicalproximitytoneighbouringstateswithahighdemandforlivestock,andthenonengagementofthe

countryinformalexportmarketsforalmost30years2,positionedEthiopiaasthemajorcrossborderlivestock

exportingcountry,unparalleledanywhereinAfrica.Ethiopiascrossborderlivestockexportsarenowdirected

toallitsneighbours,principallytoSomalia,DjiboutiandKenya,andmorerecently,toSudan.3Whilecross

borderexportsfromEthiopiaintoKenyaandSudanaredestinedmainlyforthedomesticmarketsinthose

countries,EthiopianexportstoDjibouti,SomalilandandPuntlandaremostlyreexportedtotheMiddleEast.

ThemaincrossborderlivestocktraderoutesfromEthiopiaareasfollows:

Sudan crossborderlivestockexportstoSudanoriginatemainlyfromAmharaRegion,butalsofromBenishangulRegion

4ofEthiopia;

Djibouti receiveslivestockmainlyfromSomaliRegionandtosomeextent,fromAfarRegion;

1Birkedsarelocallyconstructedwaterstoragefacilities,commoninSomalipastoralistareas.Typically,theyconsistofan

excavatedarea,oftenlinedwithconcreteakindofingroundcistern;theyarefilledbynaturalrunoffofgroundsurface

waterfollowingrainfall.2Thisisroughlydefinedastheperiodfrom19752005.

3TheEthiopiancrossbordertradetoSudanisbecominglyincreasinglyimportantfollowingtheDarfurconflict,asthe

conflictreducedlivestocksuppliesfromDarfurforthedomesticandexportmarketsagainstarisingmeatdemande.g.

domestically,duetotheoilindustryinSudanandgrowingaffluenceofKhartoum.FordetailsseeYoungetal.(2004)and

Aklilu(2006).ThetradefromAmharaRegionisrelativelyformalizedviatheMetemaGondarcorridor,andlivestock

quarantinefacilitiesattheborder.4SomecamelsoriginatingfromAfararealsotradedacrosstheborderintoSudanthroughTigray.


10/55

7

SomalilandandPuntland SomaliRegionisthesolesupplieroflivestocktotheseareas; Kenya suppliestoKenyaoriginatemainlyfromSomaliRegion,BoranaareasofOromiyaRegion,and

toalimitedextentfromSNNPR.

Clearly,theSomaliRegionofEthiopiaremainsthemajorsupplyareaforcrossborderlivestockexports,bothin

termsofvolumeandinthenumberofcountriesitserves.Boranaisadistantsecond.Thisreportfocuseson

thesetwopastoralgroupsbecauseoftheirinvolvementinvibrantlivestocktrade,bothpastandpresent.

2.1 Thegrowingtrade:economicgainsoutweighethnicityandtrust

ThewellestablishedcrossborderlivestocktradefromSomaliandBoranaareasofEthiopiaisoftenexplained

byreferencetoethnicaffinity,proximity,trust,andtheneedtoaccessessentialcommodities(e.g.Ahrens,

1998;PCI,2005;Devereux,2006).Inaddition anddespiteevidencetothecontrary betterpricesinKenya

arealsocitedastheimpetusforcrossborderexportsfromEthiopiatoKenya(Mahmoud,2003). However,

muchofthecrossborderlivestocktradetoDjibouti,SomaliaandKenyahasbeenduetotheabsenceof

alternativemarketsinEthiopia.Untilrecently,bothSomaliandBoranherdershadlittlechoicebuttoselltheir

livestockatthemoreaccessiblemarketsacrosstheborders.Typically,thevariousdrivingfactorsforcross

bordertradelistedbymanyresearchpapersaresimplytheextendedfunctionsofinterdependencyamongst

marketactors(asinalloperationallivestockmarkets)andassuch,aresubjecttochangeaccordinglyto

circumstance.Essentially,prices,profitmarginsanddemandsoutweighissuesoftrustandproximity,and

SomaliandBoranpastoralistsandherdershaveahistoryofexploitingnewmarketopportunities.Forexample,

Inthe1980stheEthiopiangovernmentlivestockexportagencypurchasedaroundhalfamillionsheepandgoatsperyearfromSomaliRegion,throughpurchasearrangementsthatincludedpartial

paymentswithsugarapreciouslocalcommodityatthetime(Aklilu,2006).

SomaliscurrentlysupplymostofthecamelsfortheEthiopianformalcamelexporttrade,amountingtosome74,000animalsin20092010.

5Around80%ofthecamelssoldatBabilemarket(inOromia

region)originatefromLiban,Afder,Fik,KebrideharandGodeinSomaliRegion,becauseofbetter

marketopportunitiesthaninsouthernSomalia.Similarly,mostofthecamelssoldinMoyaleandto

someextentinNegelemarkets,originatefromnorthernKenyaandsouthernSomalia.

BabilemarkethasalsobecomeamajorsecondarymarketforsheepandgoatsoriginatingfromSomaliRegion,forformalHajexportsfromEthiopia.Similarly,inrecentyears,theBoranshavebeen

supplyingthebulkofthesheep,goatsandcattletoEthiopiasexportabattoirsandfeedlotoperators,

forlaterformalexportfromEthiopia.

Thesetrendsshowthatcrossbordermarketsareincreasinglydrivenbybusinessinterests,withethnicfactors

becominglessimportant.Locally,producersmayhavesomechoiceintermsofwheretheysellalthoughtheir

optionscanbelimitedinmoreremotearease.g.duetoissuesofphysicalaccessandsecurity.Themost

accessiblelocalmarketstendtobewithinclanareas.However,afteranimalshavebeensoldintheselocal

markets,ourresearchindicatesthatpastoralproducersdonotreallyhavemuchinfluenceonthefinal

destinationoftradedstock.Theflowoftradeofanimalsafterpurchaseisdeterminedbydemandbymarket

actors,aftertheanimalshavelefttheiroriginalowners.Inthepast,theseactorsdirectedtheflowofanimals

towardsSomaliaandKenyabecausetherewasnosignificantdemandinEthiopianforlowlandlivestock.Asthe

demandhasincreasedinEthiopia,theflowoflivestockisbeingreversedsubstantiallyfromBoranaandtoa

lesserextentfromSomaliRegion,includingfromnorthernKenyaandsouthernSomalia(mainlycamels,but

5ThereisacommonmisperceptionthatallcamelsexportedformallyfromEthiopiaoriginatefromBorana.


11/55

8

alsoincludessmallersheepandgoatsforabattoirs,fromKenya).Theunprecedentedlevelofexportrevenue

collectedfromliveanimalandmeatexportsinEthiopiain20092010,amountingtoUS$125million,supports

thenotionthattradeflowsarechanging.Again,thesetrendsindicatethatalthoughethnicaffinity,trustand

proximityhaveaninfluenceonmarkets,marketdemandsandpricesarebecomingmorecriticalfactorsasthe

exportsincrease.6Furthermore,newcamelmarketshaveemergedinJigandAboshaalongtheroadtoFik

(SomaliRegion)andinMidega,BurkaandMayuBulukeofWesternHararghe(Oromia),inresponsetothe

growingdemandforcamelsinBabile.Tradersarethemainactorsinthesemarketsbothasbuyersandsellers,

whereasproducersareconspicuouslyabsenthavingsoldtheircamelsatthevillagelevel.Similarly,exporters

ortheiragentsbuyingcamelsatBabiledeterminethefinalroutesforexportsformallythroughDireDawa

andDjibouti,orinformallythroughHargeisaandDjibouti,orHargeisaandBerbera.

EmerginglivestockmarketingtrendsinBoranaalsoindicateamajorshiftinthedirectionoftheflowoftrade

herds.ThegrowingdemandforBorancattle,sheep,goatsandcamelsbytradersandexportersinEthiopiais

redirectingtheflowtowardsthecentreofthecountry,forsubsequentexports.Nearlyalltheanimalfeedlots

(nownumberingover200incentralpartsofthecountry)sourcetheirsuppliesfromBorana,andtosome

extent,fromthelowlandsofBale.Morethanhalfofthemillionsheepandgoatsslaughteredforchilledmeat

exportsin20092010weresourcedfromBorana.7

RecentdevelopmentsalsoshowthatBorantradersarenowbringinglivestockuptosecondarymarkets(to

Adama,forexample),whilelocally,theyareventuringdeepintothebushtocollectsupplies.Newbush

marketssuchasElWayaandSurupainBoranaaregrowinginimportance,partlyduetonewroadand

telephonenetworks(PLIPolicyProject2010).AsinSomaliRegion,Borantraderssellcattleandcamelsto

feedlotoperatorsandexportersoncredit,althoughtheyarenotethnicallyaffiliated(paymentisimmediate

forsheepandgoatssoldtoexportabattoirs).Despitethesetrends,iftheformalEthiopianlivestockexport

businessdeclinesforsomereason,BorantraderswillprobablyrevertbacktotheKenyamarket.

Thesefindings,andpastresearch,indicatethatthatlivestocktradeintheregionisadynamicprocessdictated

bydemandsandaccessibility(oftendefinedbysecurityfactors)atanygiventime.Thetradeflowsarefluid

andcantakealmostanydirection,asinfluencedbytheprevailingbusinessopportunities,andsecurityissues.

Ethnicaffiliationsandproximityaresecondaryfactors.

2.2 ThecrossbordertradefromSomaliRegionandBorana

Estimatesofthevolumeandvalueofcrossborderlivestockexportsvarybysource.Forexample,estimates

from2009fortheannualcrossborderlivestockexportsfromEthiopiatoDjibouti,Somaliland,Somaliaand

Kenyaare350,000cattle,1,100,000smallruminantsand125,000camels,withanestimatedvalueofbetween

US$250millionandUS$300million(SPSLMM,2009).MostoftheseexportsweredirectedtoSomaliland,and

weresourcedentirelyfromtheSomaliRegionofEthiopia.Theregionisalsothemajorsupplieroflivestockto

Djibouti,whilecontributinglesstothecrossbordertradeintoKenyacomparedtotheBorans(particularlyfor

cattle).

6Obviously,trustplaysaroleinlivestocktransactionsbetweenproducersanditinerantvillagetradersormiddlemen

(usuallykinsmen).Similarly,localtradersormiddlemenalsoextendthesametrusttotradersofotherethnicgroupswhen

sellinganimalstothemoncredit.NonSomaliornonBoranexporterspurchaseandexportanimalsfromlocaltraderson

creditinthesamewayastradersofthesameethnicoriginsastheproducers.Forexample,localSomalitradersstatedthat

theywereowedEB6millionbyanEthiopianexporter,duringaninterviewinBabilemarket.Proximitycouldbeimportant

toproducersintermsofdisposingofanimalsinthenearestoutlets,butnotforthechainofmarketactorsbeyondthat

levelsincedistancerelatestoprofit.Forexample,tradersoperatingatthelevelofBabilemarketbringsuppliesfrom

remoteareassuchasChireti,Liban,andAfderinSomaliRegion,Elkere(Bale)andtheWesternHarargheareaofOromia.710,000MTofsheepandgoatcarcassesexportedin20092010equatestoonemillionliveanimals.Theauthorsassume

thatatleasthalfofthese,ifnotmore,camefromBorana,asthisregionisthemajorsupplierforexportabattoirs.


12/55

9

TheSomaliacivilwarfromthelate1980sledtotheriseofBerberaasthemajorSomaliportforlivestock

exports,attheexpenseofMogadishuandKismayoportswhichweremoreaffectedbytheconflict.However,

followingtheSaudilivestockexportbanin2000tolate2009,BossasoinPuntlandbecamethemainportafter

introducingastuteincentives,suchasataxreductionfortraders,andbydirectingexportstoSaudithrougha

thirdcountry.Oflate,Berberalivestockexportshavebeenrecovering,andtheliftingoftheSaudibaninlate

2009boostedthelevelofexportsfurther(Tables1and2).

Table1: ExportsfromSomaliland,2008and2009

Year Camels Cattle Sheepandgoats Chilledsheepand

goatcarcasses

(tons)

2008 18,517 59,519 940,976

2009 34,274 121,845 1,640,065 193

Total 52,791 181,364 2,581,041 193

Source:SomalilandChamberofCommerce.

Onaverage,BerberaandBossasonowexportabout1.2millionsheepandgoatsperyear(Majid,2010),overa

hundredthousandcattle,andtensofthousandsofcamels(SomalilandChamberofCommerce,2008/9).8In

addition,theBuraomeatfacilityinSomalilandhasbeenexportingtheequivalentofabout5,000sheepand

goatspermonth,althoughtheoperationsofsimilarfacilitiesatGalkayo,BeledWeynandMogadishuhave

beenlessconsistent(Majid,2010).

Variousreportsassumethatapproximately50%ofthesmallruminantswhichareexportedthroughBerbera

originatefromtheSomaliRegionofEthiopia(Ahrens,2008;Stephens,1998;Majid,2010),withsimilar

estimatesforEthiopiaderivedlivestockroutedviaBossaso(Holleman,2002).AccordingtoMajid(2010),

EthiopiaisalsothemainsourceofcattleexportsthroughBerberaandBossaso. Notonlyaretheseestimates

difficulttoverify,butthereisprobablyasubstantialdomesticconsumptionofEthioSomalilivestockin

SomalilandandPuntlandnotalllivestockexportedinformallyfromSomaliRegionisofexportquality.Ifthis

domesticconsumptioncouldbequantified,thenthevolumeoflivestocktradedfromtheSomaliRegionof

EthiopiatoSomalilandandPuntlandwouldbesubstantiallyhigherthancurrentestimatesofexportvolumes.

Table2: LivestockexportedfromSomalilandbydestination,2009

Destination Sheepandgoats Cattle Camels

SaudiArabia 566,391 995 0

Yemen 561,992 76,260 1,857

Djibouti 351,235 8,549 2,472

Egypt 57,483 0 14,664

Dubai 10,556 0 0

Oman 2,897 2,418 54

Bahrain 0 588 0

Source:SomalilandPortAuthority.

LivestockfromBerberaandBossasoareprincipallyexportedtoYemen,SaudiArabia,Djibouti,Egypt,Dubai,

OmanandBahrain.The2009figuresforSomalilandindicatethevolumeofexportstoeachofthesecountries

(Table2).ThefiguresindicatethatwithinmonthsoftheliftingoftheSaudiArabiaexportbaninlate2009,the

volumeofsmallruminantsexportedtoSaudiArabiafromSomalilandexceededtheexportstoYemen(which

was

the

main

export

destination

from

2002).

The

volume

of

exports

to

Saudi

Arabia

in

2010

is

likely

to

increase

8www.somalilandchamber.com


13/55

10

evenfurther.Also,thevolumeofofficialexportsfromSomalilandtoDjiboutisignifiestheemerging

prominenceofDjiboutiasanimportantlivestocktradinghubintheregion.Thedatadoestakeaccountofthe

additionallivestocktradedcrossborderfromSomalilandtoDjibouti,orthroughtheofficialLowyeCaddo

borderinSomaliland.

DjiboutisrecentprominencealsoextendstoofficialandunofficialcrossborderexportsfromEthiopia.

EthiopianformalliveanimalexportspassthroughthequarantinecentreinDjibouti,andsoarereexported.In

20082009,EthiopiasformalexportstoorthroughDjibouticonsistedof103,010cattle,137,576sheep,79,349

camelsand11,319goats.TheinformaltradevolumefromEthiopiatoDjibouticouldbesimilarorhigher,

exceptforcamels.Notsurprisingly,Djiboutihasbecomeasignificantlivestockexporterintheregion,while

havingnotenoughanimalstomeetitsowndomesticmeatrequirements.AccordingtoMajid(2010),

exportsofsheepandgoats(fromDjibouti),forexample,jumpedfromjustafewthousandheadbefore2006to

around1.5millionin2007and2008.AlthoughexportlevelsarelikelytofallfollowingtheliftingoftheSaudi

banonBerbera,Djiboutiwillremainanimportantoutletforbothformalandinformallivestockexportsfrom

Ethiopia,unlessforexample,thelatterestablishesaquarantinecentrethatisacceptabletoimporting

countries.

Alivestocktraderoutemap(Figure1)indicatesthecomplexpathwaysfromtheSomaliRegionofEthiopiato

thethreeportsofDjibouti,BerberaandBossaso,andalso,toKenya.Asexplainedabove,thesetraderoutes

aredynamicandthedirectionofflowcanchangesubjecttodemandandsecurityfactors.Inaddition:

formalEthiopiancattleexportssourcedmainlyfromBoranahavetotraveladistanceofbetween1,500and1,700kilometerstoreachDjibouti;

camelssourcedfromLibanandAfderinthesouthofSomaliRegionaretrekkedtoBabilefor15to20days,andmayrequireanotherweektoreachBerberaorDjibouti;

9

formalEthiopiancamelexportstoDjiboutiattractsuppliesfromasfarassouthernSomaliaandnorthernKenya(althoughnotrepresentedinFigure1),extendingoveradistanceof2,000

kilometers.10

Inshort,livestocksourcesandsupplyroutesforthethreemainportsinSomalilandandDjiboutiextendovera

vastareafromAfarinthenortheastofEthiopia,tosouthernSomalia,northernKenyaandsouthernEthiopia.

Assumingthatallactorsinvolvedinthistradearemakingsomefinancialgains,proximityissecondaryto

profitabilitygiventhelongdistancesoverwhichlivestockaretrekkedortruckedtoreachterminalmarkets.

WhilesupplyroutestoSomalilandandPuntlandarerelativelysafe,accesstothesouthernSomaliportsof

MogadishoandKisimayuisverylimitedduetoconflictandanimositywithAlShabab.11Asaresult,camels

sourcedfromLiban,AfderandChiretiinthesouthernSomaliRegionofEthiopiaarenowredirectedtoBabile

market.SignificantnumbersofcattleandcamelsarealsodirectedfromsouthernSomaliatoGarissainKenya.

Recently,tradersfromsouthernSomaliaandnorthernKenyaareincreasinglybringingcamelstotheMoyale

market(inEthiopia),attractedbyhigherpricesontheEthiopiaside.SincecamelbuyersinMoyaleareneither

ethnicSomalisnorBorans,thisimpliesthatlocaltradersgiveprioritytothehighestbidder.Thefactthatmost

transactionsinthismarketarecarriedoutoncreditalsosuggeststhattrustisnotlimitedtoclanmembers

only,oncefamiliarizationwithtradersofotherethnicgroupstakesplace.

9InterviewswithSudiMaalimandAbdiIgal,twocameltradersinBabile.10InterviewwithMohammedMaalimHassan,Moyalelivestockmarketadministrator.

11InterviewwithMohamedJama,alivestocktraderinBabile.


14/55

11

Figure1: MainlivestocksupplyroutesfromtheSomaliRegionofEthiopia

Source:SCUK(2008)

Note:AlthoughthemapshowslivestockflowsfromAfderandLibanzonesintheSomaliRegionofEthiopiatoMogadishu,

tradersexplainedthattheserouteshadbecomenonoperationalbecauseofsecurityproblemswithAlShabab.Asaresult,

livestock,particularlycamels,werebeingredirectedfromLibanzonetoNegelle,andfromAfdertoBabile.

Relatively,livestocktraderoutesfromSomaliRegiontoBerbera,andtosomeextenttoBossaso,arerelatively

short.Fortheseroutes,thesafedeliveryofanimalstothefinalportsisguaranteedthroughclan

arrangements,includingmovementthroughdifferentclanterritories.Ingeneral,tradepromotespeace

becauseitbenefitsnumerousactorsinoneoranotherway(althoughitcanalsobeacauseforconflictinsome

cases).

12Forexample,thetrekkingofcamelsfromsoutheasternSomaliRegiontoBabile(inOromiaRegion)

involvesmovementthroughdifferentclanorethnicareas.Thismovementhasnotdeterredtradersof

differentSomaliandOromoclans,spanningfromChireti,Afder,Liban,GodeandElkereinSomaliRegionand

westernHararghe,andFedisinOromiaRegion,fromoperatingintheBabilemarket.Similarly,althoughmost

ofFikzoneisinaccessibleinaformalsenseduetosecurityreasons,theemergenceofnewlivestockmarketsin

thiszonehasattractedtradersfromvariousclangroups thisshowsthatsafepassagecanbearrangedand

guaranteedacrossdifferentclanandethnicgroupsasthesituationrequires.

Theseexperiencesdemonstratethatinthebusinessofpastorallivestocktrade,newalliancescanreadilybe

formedacrossethnicandclangroupsifeachgrouphasastakeinthebusiness.Notably,despitethevolatile

historyoftheHorn,livestocktradingcontinuesduetofactorssuchasnewalliancesevolvingwithvaryingclan

12Forexample,insouthernSomaliathecontrolofportshasbeenacauseofconflictbetweencompetingwarlords,andin

part,thiscontrolrelatestolivestocktrade.


15/55

12

andethnicgroups,andtheuseofalternativemarketswithrelatedchangesintradeflows.Thisviewconcurs

withMahmoud(2010)whostatesthatsincethefalloftheBarreregimeinSomalia,

..thenewlyemergingbordertradingregimespointtothefadingimportanceofclanrelationsinthese

borderareas(southeasternEthiopia)andaccordingtoonetrader,Mahmoudquotes,tradersare

friends,noclanissuesarisebetweenthem.asaresult,aKenyanSomalitradingacrossborderswill

oftenhavecontactsinEthiopiaandSomaliawhofacilitatehisstay,livestockprocurementand

trekkingbutdonotnecessarilybelongtohisclan.

AbdiIgalandSudiMalim,twocameltradersinterviewedinBabile,alsostatedthat,

Profitiswhatmakesapassagesafesincemanyalongsuchroutesgetsomethinginreturnfrom

sellingwater,herding,trekkingordirectlyinvolvingintrade.Ifthereisnobusiness(profit),noone

usestheroutesandsuchunusedroutesbecomeunsafe,outofdesperationwhenpeoplehavenothing

todo.

CrossborderexportstoKenyafromBoranalargelyinvolvecattle.ThemainentrypointsareMoyale(forcattle)

andMandera,throughDoloandSuftu(fromSomaliRegion).Thelattersuppliesmainlysheepandgoats.Ofthe

twopointsofentry,thetradethroughMoyaleissubstantial;in2001,morethan58,000cattleweremovedto

Nairobithroughthispoint(Mahmoud,2003).13

However,theimportanceofthisrouteisbeingcompromised

followingthegrowthinformallivestockexportsfromEthiopia.Forexample,nearlyallofthecattleformally

exportedfromcentralEthiopiaaresourcedfromBorana,plus,over50%ofthesheepandgoatsforexport

abattoirs.Thishasledtopricecompetitionovercattle,camelsandsmallruminants.Asaresult,cattleare

largelysoldacrosstheborderinKenyaonlywhenthereisalullinexportdemandfromtheEthiopiaside.

CamelsarealsobroughtfromKenyaintoEthiopia,asaresmallersheepandgoatsrequiredbyEthiopiasexport

abattoirs.Largersheepandgoatsaretradedinthereversedirection,intoKenya.Aspreviouslynoted,despite

thecleartrendintradeflowsfromtheEthiopiaKenyaborderareasandBoranatothecentralEthiopian

feedlotsandabattoirs,thecrossbordermarketintoKenyawillstillbeimportantforBoranherders.

2.3 TrendsinformalexportsfromEthiopia

DespitehavingthelargestlivestockpopulationinAfrica,Ethiopiasformalliveanimalandmeatexportswere

almostnegligiblecomparedtoneighbouringSomaliaandSudan,foraboutthreedecadesfollowingthe

revolutionin1974(Aklilu,2006).However,thelastsevenyearshasseenarevivalofthelivestockexporttrade,

andthisbeganwithexportsofchilledgoatmeatandmutton,followedbyincreasingnumbersofliveanimals.

ArecentannouncementbytheMinistryofAgricultureandRuralDevelopment(MoARD)14

inEthiopiarevealed

exportrevenueearningsofUS$125millionfrommeatandliveanimalexportsfor2009201015

,ofwhichUS$34

millionwasraisedfromchilledsheepandgoatcarcasses,andUS$91millionfromliveanimalexports.Thislevel

ofexportearningsfromthelivestocksector(excludingexportsofhidesandskins)isunprecedented,and

represents36%and28%increasesinvolumeandvaluetermsrespectivelyforchilledmeat,and55%and15%

increasesforliveanimalsrespectively,comparedto20082009(SPSLMM,2010).The20092010livestock

exportearningsexhibitathreefoldincreasecomparedto20052006.

13ThismayrepresentonlytheofficialfigureinMoyaledestinedforNairobi.CattlesuppliesfromBoranathroughthe

porousborderincludethosedestinedforMombassa,andfromSNNPRtoTurkana(formerlytoLokichogioandalsoto

Lodwar).14ReportedbytheSPSLMMTradeBulletin2,22

ndSeptember,2010.

15TheEthiopianfinancialcalendarbeginsinJulyandendsinJune,andsofallsintwoEuropeancalendaryears.


16/55

13

Table3:VolumeandvalueoflivestockexportsfromEthiopia

Year Liveanimals Value(US$1,000) Meat(tons) Value(US$1,000)

20056 163,000 27,259 7,717 15,598

20067 234,000 36,507 7,917 18,448

20078 298,000 40,865 5,875 15,471

20089 150,000 77,350 6,400 24,480

200910 334,000 91,000 10,000 34,000

Source:NationalBankofEthiopia/SPSLMM

Critically,nearlyallthesuppliesforEthiopianformallivestockexportsaresourcedfrompastoralareas.Key

supplyareasareBorana(mainlyforcattleandchilledsheepandgoatcarcasses,andtosomeextent,camels),

andtheSomaliRegion(mainlyforlivecamels,andsheepandgoatexports).Otherssupplyareasincludethe

lowlandsofBale(forcamelsandcattle),SNNPR,AfarandmidaltitudeagropastoralzonesofOromia(for

sheepandgoatschanneledtoexportabattoirs).Aswiththecrossbordertrade,BoranaandtheSomaliRegion

alsodominatetheformalexporttradeintermsofsupply.

FormalliveanimalandchilledmeatexportsfromEthiopiafollowtwodifferentchannelsandprocesses.

Liveanimals cattleandcamelsaregenerallyexportedlive,asarejustover100,000sheep.Cattleareusually

reconditionedforuptosixmonthsinfeedlotsbeforetheyareexported.Thereforethecattleexportmarketis

stratifiedduetothisvalueadditionprocess(highenddomesticmarketsalsofollowthesamestratification

process).Camels,sheepandgoatsdestinedforliveexportsarenotfedinfeedlotsbutarelefttograzeor

browseonrangelanduntiltheyarebulkedfortransportationpurposes,enroutetoexitpoints. Liveanimal

exportsdonotusuallyreachtheirfinaldestinationsdirectlyfromEthiopia,butinstead,exporterssellthe

animalstoArabimporterswhoresidein,orvisitEthiopia,forthispurpose.Alternatively,Ethiopianexporters

mayselltotradersinDjiboutiorYemen,fromwherethelivestockareusuallyreexportedtothefinal

destinations.Thesearrangementsexistfortwomainreasons.First,liveanimalsexportedfromEthiopiahave

togothroughaquarantineprocessinDjibouti,thecostsofwhicharedifficulttobearforEthiopianexporters

(especiallythosenewtothebusiness).ThisenablesDjiboutibasedexporterstoexploitthesituation.16

Second,

afteralongabsenceEthiopianexportersarestillfamiliarizingthemselveswiththemainbusinessactorsinthe

MiddleEastmarkets.Apparenteffortsarebeingmadeinthisregardincludingplanstosetupquarantine

centreswithinEthiopia.17

Regardless,theliveanimalexporttradefromEthiopiaisadebtriddenchannel(asin

SudanandSomalia),wheremosttransactionstakeplaceoncredit,bothatsourceandattheexportend.

Underthisarrangement,theproducerisnearlyalwaysowedsomethingbythewholechainviz.middlemenor

traders,feedlotoperators,orthefinalexporter.

Chilledmeatrefersmainlytogoatsandtosomeextentsheep,whichareexportedaschilledcarcasses(about

1millionfromEthiopiain20092010).Novalueadditionisusedfortheseanimalsbeforeslaughter,which

takesplacefollowinga24hourinspectionprocessinlairagesafterarrivalattheabattoirs.Carcassesare

exportedbyair,primarilytotheUnitedArabEmirates(UAE)andSaudiArabia,butalsotoYemen,anddirect

paymentsareeffectedthroughlettersofcredit.Exportabattoirsalsopaydirectlytotheirdomesticsuppliers,

whoaremainlylocaltraders,cooperativesandinsomecases,individualproducers.

16TheDjiboutiquarantinecentreisownedandregulatedbyaprivatelivestockexporter,soaprocessofselfcertification

seemstotakeplacewhichcontradictsinternationalstandards.17

TheMoARDissettinguptwoquarantinestationsinEthiopiafromwheredirectliveanimalexportsmaymaterializeto

finaldestinations.MoARDandSPSLMMhavebeenorganizingfamiliarizationtoursforMiddleEastimporterstoEthiopia,

inadditiontosupportingEthiopianexporterstoattendtradefairsintheMiddleEast.


17/55

14

2.4 Aboominpricesandthegrowthofbushmarkets

2.4.1 TheBoranatrade

InBorana,themajorpastorallivestockmarketswhichsupplytheformalexporttradearelocatedinHarobake,

Dubluk,

Negele,

Teltele

and

Finchowa

along

the

main

roads,

and

the

bush

markets

of

Surupa

and

El

Waya.

Thesemarketshavegrowninprominenceinthepastfewyearsduetoincreasingdemandforliveanimaland

meatexportsfromEthiopia.Arecentstudyshowedaveragepriceincreasesbetween2009and2010of34%

forcattle,astaggering86%forcamels,andabout32%forsmallruminants.Thesechangeswereexplainedby

growingdemand,whichfaroutweighedinflationarytrends(PLIPolicyProject,2010).

InBorana,increasedcompetitionbetweenlocaltradersandoutsidershasalsoresultedinthegrowing

importanceofsomebushmarkets,attheexpenseofmarketsalongthemainroads.Bettermobilephonesand

roadnetworksareintensifyingthecompetition,byenablinglocaltraderstoventurefurtherintoremoteareas,

withtheirownIsuzutrucks.Insomeareas,pastoralistshavestartedtoprovideservicesfortradeherds,such

astheprovisionofholdinggrounds(inenclosedkallos),loadingramps,andwateringservices(PLIPolicy

Project,2010).SomeyearsagotheincreaseincamelownershipinBoranawasassociatedwiththehigh

droughttoleranceofthisspeciesrelativetocattle.Now,therapidlyescalatingpriceofcamelsisafurther

incentivetorearmoreoftheseanimals.ThenumberofcamelssoldinHarobake,Negele,SurupaandFinchowa

marketsisincreasing,andpastoralproducerswhocanaffordtodoso(i.e.thoseinthehighwealthgroups)are

switchingmoretocamelsalesinsteadofcattle.Serviceprovisionaroundthesemarketsincludesthe

constructionofahotelatHarobake,about7kmawayfromYabellotown.

Table4:LivestocksuppliesandsalesinBoranamarkets,Ethiopia

Market Cattle Shoats Camels Timeperiod

Supplied Sold Supplied Sold Supplied Sold

Negele 14698 7374 24551 15528 3540 2295 JanuarySeptember,2010

HaroBake 19806 18105 13865 12920 7075 6722 JanuaryOctober,2010

Dubluk 39755 34470 21260 19823 3420 3053 JanuaryOctober,2010

Source:Zonalandworedaagricultureoffices.

2.4.2 TheSomalitrade

InSomaliRegion,thelivestockmarketssouthofJijigamainlyserveasfeedermarketstoSomalilandand

Puntland,ratherthantoformalexportmarketsfromEthiopia.MajormarketsintheregionincludeJijiga,

Deghabur,Gode,HartisheikandTogWachale.Devereux(2006),citingBaulchandUmar(2005),reportsatotal

dailyrevenuefromfourofthesemarkets(excludingDeghabur)averagingEB1,306,830,withaveragedaily

salesof569bulls,124cows,496goats,550sheepand66camelsduringathreemonthobservationin2005.

However,thesefiguresmayhavebeencomputedwhensalesweredepressedduetothemarketbanbySaudi

ArabiaonbothSomalilandandPuntland.Thesamereportadds,Duringthethreemonthsofdailymarket

monitoringin2005,moreanimalswereofferedthanpurchasedeveryday,inallfourmarketsmonitored.This

istypicalinallpastoralmarkets,butperhapswiththebanleadingtofurtherreductionsinsalesatthattime;

theactivityofmostofthelivestockmarketsintheSomaliRegioniscloselytiedtotheperformanceofmarkets

inSomalilandandPuntland.

TherearealsoanumberofbushmarketsinthefarsouthernpartsofSomaliRegion,visitedbyagentsofcross

bordertraders.SheepandgoatsmakeupthebulkofthelivestocksoldinSomaliRegionmarkets,astheyare

themajorexportspeciesfromSomalilandandPuntland(seeTable5).


18/55

15

Table5:SuppliesandsalesvolumeinselectedmarketsinSomaliRegion,December2009toJuly2010

Market Cattle Camels Shoats

Supplied Sold Supplied Sold Supplied Sold

Jijiga 21,162 8,970 5,739 1,464 26,404 11,485

Deghabur 723 501 4,446 3,657 44,931 32,302Harshin 7,345 2,991 2,419 1,029 44,514 22,685

Source:compiledfromdatacollectedbytheregionalAgricultureMarketingDepartment.

AttemptsbysomeEthiopianexportcompanies(e.g.Elfora)topenetratethemarketsinSomaliRegionhave

beenaffectedbythehigherpricesintheinformalcrossbordermarkets.Eventheconstructionofnew

livestockmarketshasfailedtoattractmoreanimalsforsale(PLIPolicyProject,2010).However,threemarkets

doattractlivestockfromSomaliRegionandcontributedirectlytoformalEthiopianexports.

Moyalemarket insouthernSomaliRegion,isapredominantlycamelmarketthatattractssuppliesfrom

neighbouringareasofEthiopia,northernKenyaandsouthernSomalia.AccordingtoMohamedMaalimHassan,

thelivestockmarketadministrator,theMoyalemarketontheSomalisideoperatessixdaysperweek,and200

to300camelsareofferedforsaleeveryday.ThemainbuyersareexportersofArabandEthiopianorigins.

Transactionsarecarriedoutbydilalsrepresentingeitherthesellerorthebuyer,theformerbeingitinerant

bushtradersorsmallscalelocaltraders.ThesealsoincludethreeMoyalebasedlivestockmarketinggroups

whichpurchasecamelsfromthebushinEthiopiaornorthernKenya.Transactionsarecarriedoutmostlyon

credit,andsometimesthroughpartialcashpaymentsandcredit.OnlyoneArabexporterhasbeenknownto

providefullcashpaymentsimmediatelyafterpurchase,andonlyonasingleoccasion.

Babilemarket theothermarketthatpartiallycontributestoformalcamelexportsfromEthiopiaisBabile,in

OromiaRegion.About80%ofthecamelsbroughttothismarketaresaidtobesourcedfromSomaliRegion.18

Babileisatwiceweeklymarketwithsupplyandsalesvolumesofabout10,000and5,000camelspermonth

respectively;pricesrangedfromEB3,000(US$213)toEB12,000(US$923)perhead.Mostofthecamelssoldin

thismarketweredestinedforBerbera,butsomewereexportedformallytoDjiboutithroughDireDawa.Sheep

andgoatswerealsopurchasedfromthismarketforformalliveexports.

NegelemarketalsoinOromiaRegion,Negeleisthethirdmarketthatattractssuppliesofcamelsandtosome

extentcattlefromLibanzoneoftheSomaliRegion.Some2,295camelsweresoldinthefirstninemonthsof

2010inthismarket.

Ofthethreemarketslistedabove,MoyalecatersformostoftheformalcamelmarketexportsfromEthiopiaas

theseanimalsentertheformalchannelimmediately,astheyaretruckedtotheinteriorofthecountry.In

contrast,camelssoldatBabileareoftentrekkedtoSomaliland.CamelsbroughttoMoyalearelargerinsize

(particularlythosefromsouthernSomalia)comparedtothoseinBabile,andattractpricesashighasEB18,000

(US$1,385).ThishaspushedupthepriceofcamelsinthenearbymarketsofBoranaaswell.Moyale,Babile

andfourmarketsinBorana(Harobake,Finchowa,NegeleandSurupa)areallcontributingtothephenomenal

growthofcamelexportsfromEthiopia.Ofthe334,000liveanimalsexportedfromEthiopiain20082009,

79,439werecamels,equivalentto24%offormalliveanimalexports.Incomparison,thisisnearlytwicethe

numberofcamelsexportedfromSomalilandin2009. Intermsofincome,thiswouldbeproportionallyhigher

becausecamelsaremorevaluablethancattleorsmallruminants.TheEthiopiancamelexporttradebased

entirelyoncamelssourcedfrompastoralareas islikelytocontinuetogrow,andwillexceedothercountries

intheregion.

18AccordingtotheregionsAgriculturalMarketingDepartmentviathelivestockmarketdatacollectorinBabile,and,

MohammedJama,alivestocktrader.


19/55

16

2.5 Theparadoxoflivestockmarketingsystemsinpastoralareas

Africanpastorallivestockmarketingsystemshavelongbeenassociatedwithtwopersistentmisperceptions.

Thefirstisthatmarketingisinefficientbecausetherearetoomanyintermediariesinthechaintofacilitate

directandimmediatetransactionsbetweenproducers/sellersandbuyers.Thesecondperceptionisthat

pastoralistslackregularaccesstolivestockmarketsanditisthislimitedaccessthatkeepstheminperpetual

poverty,inadditiontotheimpactsofnaturalshocks.Theseviewsareimportantbecausetheyinfluencepolicy,

leadingtopolicynarrativeswhichassumethatpastoralpovertycanbealleviatedwithimprovedaccessand

efficiencyoflivestockmarketingsystems.However,althoughthesenarrativeshavedominatedpastoral

livestockmarketingpoliciesandprogrammesfordecades,fewsuccessesareevident.19

Thisisbecausemuchof

thediagnosisonpastorallivestockmarketinghasbeenflawed.

Intermsofmarketaccess,baselineearlywarningsurveysinpastoralareasshowthatmostpastorallivelihoods

intheregionrequiretheexchangeoflivestockforcereals,withthelattermakingsubstantialcontributionsto

annualfoodenergyintakes.Itfollowsthatatsometimeinanygivenyear,virtuallyallpastoralistsintheregion

accessmarketseitherdirectlyorindirectly.Whencomparedwithbasicserviceprovision(e.g.health,

education),pastoralistaccesstomarketsfarexceedstheiraccesstobasicservices,andthisexplainswhy,in

ourexperience,pastoralistsrarelycomplainaboutmarketaccessotherthanintimesofdrought. Thisimplies

thatingeneral,pastoralistshavereasonableaccesstobushmarkets,orprimaryorsecondarymarkets.

Althoughthephysicaldistancesbetweenherdersandmarketscanbesubstantial,thesedistancesdonotseem

topreventaccesstomarketsinnormal,nondroughtperiods.

Theapparentinefficiencyofthemarketingsystem,asdiagnosedbyoutsiders,isalsoquestionableifviewed

fromtheperspectivesofpastoralistswhosemotivewhensellinganimals,inmanycases,isaimedatmeeting

immediatehouseholdneeds.Thetaskofdeliveringanimalstoterminalmarketsfallstotradersandtrekkers,

and

increasingly,

truckers.

Studies

as

far

back

as

1969

indicate

that

traditional

marketing

systems,

although

complex,performwellintermsofdistributinglivestockandmeatproductsatreasonablylowcosts(Jahnke,

1982,quotingHerman,1979andSedes,1969).

Existingtraditionallivestockmarketingsystemsareperceivedtosufferfrominefficiencies,abusesin

marketconductandtechnicalimperfectionsthereliefofwhichwouldbenefitthepastoralsystem.But,

studiesoftraditionalmarketingsystemsshowthat,inspiteofbeingcomplexandtraditionallybased,

theygenerallyperformwelltheirfunctionofdistributinglivestockandmeatproductsatreasonably

lowcosts.Effortstodeveloppastoralproductionsystemsviamarketingthereforehavetotakeinto

account

thatthestructureandperformanceofexistingtraditionalmarketingisgenerallysatisfactory; thattheexistingsystemdoesnotappeartodiscourageproductionandsupplyoflivestockfromthedryareas(Jahnke,1982).

Furthermore,suchtraditionalmarketsexhibit,

ahighdegreeofcompetitionatmoststagesofthemarketingcircuitwithtradeherdflowsbeing

responsivetochangesinrelativepricesandthattrekkingcostsaremuchcheaperthantruckingorrail

orairtransport(Staatz,1979).

19ArecentexampleistheconstructionofnewlivestockmarketsinpastoralregionsofEthiopiabytheUSnonprofit

organization,ACDI/VOCA.Animpactassessmentconductedin2010reportedverylimitedornoincreasesintradethat

wereattributabletothenewmarkets(PLIPolicyProject,2010).


20/55

17

Unfortunately,manylivestockmarketingprojectsinpastoralistareashaveoverlookedthisresearch.

Marketingprojectsdonotgenerallyventureintothesphereofpastoralbehaviorandstayclearofthe

complexitiesofproduction,operatingonthedoorstepofthesystemratherthangettinginvolvedinit

(Jahnke,1982).20

Forexample,themuchmalignedintermediariesormiddlemenprovideusefulservicestobothproducersand

tradersintraditionalmarkets(Jahnke,1982,BekeleandAklilu,2008).Marketinformationalsoseemstobe

readilyavailabletoproducersthroughtraditionalnetworks,despitetheassumedlackofinformationbeing

usedtojustifynewmarketingprojects(Jahnke,1982;AkliluandCatley,2009;PLIPolicyProject,2010)21

by

outsiders.Amazedbytherangeoflocallyavailablemarketinformationtoallactors,Osterlohetal.(2003)

concludedthat,

Oneneedstoaskpreciselywhatsourceofpriceinformationseemstobemissingfromthelocal

marketinordertojustifysignificantnewexpendituresinsupportofadditionalmarketprice

informationgenerationanddisseminationactivities.

Inaddition,ruralroadsandmobiletelephonenetworkexpansionsarefurthersimplifyingtheflowofmarket

information.Tosummarize,traditionallivestockmarketsserveadesiredfunctionatreasonablylowercosts

andwithintherealmsofthecomplexpastoralproductionsystem.Thissystemischaracterizedbyrecurrent,

severeshocksanddroughts,andthereforebalancestheneedtoprotectandgrowlivestockherdsagainstthe

needtosellanimals.ThecombinedpastorallivestockexportsofSomalia,Somaliland,Puntland,Sudanand

Ethiopiacombinedtotalaroundfivemillionsheepandgoatsperyear,andhundredsofthousandsofcamels

andcattle,inadditiontomeetingdomesticmeatdemandsexclusivelyinSomaliaandSudan,andtosome

extentinEthiopia.TheseexportfiguresfarexceedotherregionsofAfrica.

Aswithothertypesoflivelihood,povertyinpastoralareasisassociatedwithlimitedordiminishingassets

(beingmainlylivestockinthepastoralistcase)amongspecifichouseholds,ratherthantheinefficiencyof

livestockmarketingsystemsorlimitedaccesstomarkets22

.Aswediscusslaterinthisreport,thekeyissue

aroundpastoralpovertyislesstodowithdecliningpercapitalivestockholdingsinpastoralareas,buttrendsin

assetownershipbywealthgroup.Asmorepoorpastoralhouseholdsownfewerlivestock,marketsare

financiallyinaccessibletothepoorbecausethepoordonothaveassetsthatcanbeexchanged.

Lookingspecificallyatlivestockexportmarketsandthenotionthatincreasedexportshelppoorpastoralists,

thisassociationisunlikelyorweakatbest(AkliluandCatley,2009).Increasingly,poorerpastoralhouseholds

strugglefromyeartoyeartorebuildandacquiretheminimumherdsizetheyneedtosustainthehousehold

againstahostofshocksanddroughts,andtherefore,havefewersurplusanimalstosell.Also,mostofthe

directbenefitsfromenhancedlivestockmarketingopportunitiesarecapturedbyrelativelywealthierherders,

whichinturn,increasesthecapacityoftheseherderstobuyupanimalsfromthosewhoarestrugglingto

acquireormaintainminimumherdsizesi.e.thepoor.Therefore,thegrowthofdomesticandexportlivestock

markets,andincreasedcommercializationinpastoralareas,canexplainatleastinpart thewideninggap

20Oneexampleisthe25newlivestockmarketsconstructedbyACDIVOCAinBoran,SomaliandAfarpastoralareasof

Ethiopiasince2006.In10oftheoperationalmarketsassessedin2008,only20%ofthefacilitieswereused.Theother15

marketscouldnotattractenoughsuppliestobefullyoperational(PLIPolicyProject,2010).21

Forexample,theGTZandtheSouthernTierInitiative(USAID)projectssetouttocollectmarketinformationinsouthern

Ethiopiahaveneitherbeensustainableinprovidinginformationoncontinuousbasisnorprovidedanytangiblebenefitto

theintendedbeneficiaries producersbeforetheprojectswerephasedout.22Forexample,fewanalystssuggestthatpovertyisabsentinurbanareasbecausepeoplehavereadilyaccessiblemarkets,

whicharerelativelystreamlinedandefficient,andwherethereisnolimitationtoaccessingmarketsinthephysicalsense.


21/55

18

betweenpastoralwealthgroupsintheregion(Bonfiglioli,1992;AkliluandCatley,2009).Section3ofthe

reportdiscussesthistrendinmoredetail,andfocusesonSomaliRegionandBoranainEthiopia.

3. Commercialization,wealthanddestitution

Inlate2009aregionalstudystartedtoexplaintwoapparentlycontradictorytrendsinpastoralistareaofthe

HornofAfrica(AkliluandCatley,2009).Onetrendwasincreasingpastoralistdestitution,asreportedby

variousearlywarningsystems,humanitarianbulletins,andthefundingproposalsofUNagenciesandNGOs.

Thiswasthehighprofiletrend,withamediaprominence theoverallmessagewaspastoralismincrisis.

Lessobvioustomanyactorswasanothertrend,beingtherisingexportoflivestockfromtheregion,especially

fromSudan,Ethiopia,SomalilandandPuntland.Whenthesetrendswerecompared,anobviousquestionwas

Ifpastoralistsareincrisis,howdotheymanagetoexportsomanyanimalsandwhyarepeoplebecoming

destitute?Thereportofferedarelativelysimpleanswerviz.thathighexportpastoralistareasseeagradual

redistributionoflivestockfrompoorertoricherhouseholds,withthelatterengagingmoreintheexporttrade,

andtheformerdroppingoutofpastoralism,especiallyashumanpopulationrises.23

Whilehumanitarianactors

reportdecliningpercapitalivestockownershipinpastoralistareasandthistrendisprobablytrue,whatreally

mattersisthedistributionoflivestockassetsacrosshouseholdsbywealthgroup.AsstudiesinKenyaand

Ethiopiademonstrate,measuresofwealthandpovertyamongpastoralistsneedtofocusonlivestockassetsby

23Theabsorptionofsmallerunitsbylargerunitsistypicalofagriculturaldevelopmentglobally,butseemstobelesswell

knownorreportedforpastoralistareasofAfrica.

Section2 KeyPoints

Althoughpastoralistsareoftendescribedasnoncommercialandconservativebygovernmentsanddevelopmentagencies,theexportofpastorallivestockfromtheHornofAfricaisasubstantial

economicactivityintheregion.ForSomaliareas,thistradehasexistedfordecadeswhereasfor

Boranaareas,ithasincreasedsignificantlyinthelastfewyears.

InEthiopia,bothSomaliandBoranapastoralareascanbedescribedashighexportareas.Althoughinformalcrossbordertradestilldominates,increasingpolicysupporttomeatexports,andtoalesser

extent,liveanimalexports,hasresultedinagrowingformalexportofmeatandanimalsfromEthiopia.

ThistrendhasalsobeendrivenbyhighdemandsintheMiddleEast,EgyptandSudan.Camelexports

arebecomingincreasinglyimportantforEthiopia.

ThelivestockexporttradeinEthiopiasourcesanimalsfromsimple,butefficientlocalmarketsinpastoralareas.Improvementsinsecondaryroadsandmobilephonenetworkshaveenabledthetrade,

whereaseffortstoenhancethetradewithnewlivestockmarketinfrastructurehavemetwithvery

limitedimpactandseemtobelessofapriority.

Demands,pricesandprofitsdeterminehowthetradeevolvesandchangesovertime.Themovementoftradeanimalsoverconsiderabledistancesillustratestheeconomicinterdependencyofdifferent

clansandethnicgroups,andhasimplicationsintermsofpeaceandsecurity.

Povertyinpastoralareasrelatestolimitedordecliningfinancialassetsi.e.livestock,amongspecifichouseholdsratherthaninaccessibilitytomarkets.Anunderstandingoftrendsinwealthdifferentiation

in

pastoral

areas

should

be

central

to

analysis

of

pastoral

livelihoods,

and

policy

and

programming

responses.


22/55

19

wealthgroup,ratherthan,forexample,themoreconventionalmeasuresofcashincome(Littleetal.,2008;

TacheandSjaastad,2010).

3.1 Canhistoryhelptopredictthefuture?

When

describing

pastoral

livelihoods

in

Ethiopia

and

neighbouring

areas,

analysis

of

market

trends

and

behavioursisnotnew.Similarly,commercializationprocesseshavelongbeenassociatedwithpovertyin

pastoralistareas,eitherinreportswhichdescribesactualtrends,orinreportswhichpredictfutureproblems.

Theseolderreportsmayuselanguagewhichdiffersfromthelivelihoodsterminologyoftoday,butthe

conceptsareverysimilar.Forexample,aftersevenyearsofprojectimplementationandresearchbyGTZinthe

centralrangelandsofSomalia(anareawhichborderstheSomaliRegionofEthiopia)fromtheearlytolate

1980s,theeconomicanalysisconcludedthat:

Economicparameters,calculatedfordifferentlysized(Somali)pastoralherds,supporttheevidence

thatherderswithundersizedherdsaresubjectedtoadisplacementprocess:ahouseholdsincome

increaseswiththenumberofanimalsownedItisshownthathouseholdsorganizeandutilizetheir

resourcestoachievenotonlysubsistencebutalsoasurplusforcommercialuse;thelatterhoweveris

onlypossibleforpastoralhouseholdswithlargeherds(Abdullahi,1993,ouremphasis).

Drivingthisdisplacementprocesswascommercialization.Somaliswererespondingtoagrowingdemandfor

liveanimalsintheMiddleEast,andtheexportofsheepandgoatswasgrowing.Contributingtothe

displacementofpoorerhouseholdswereothertrends,suchastheprivateenclosureofrangelandbywealthier

livestockowners,andprivateownershipofwaterpoints.InEthiopia,althoughcommercializationhasrarely

beencitedasthemaincauseofpastoraldestitution,ithasbeennotedasanimportantcontributingfactor.

HerethelongtermresearchstudiesinBoranawereprophetic.

Humanpopulationgrowth,drought,inappropriatewaterdevelopment,landappropriation,peri

urban

influences

and

even

livestock

commercialization

have

reportedly

contributed

to

an

increased

pauperization,wealthstratificationandtheculturalalienationofpastoralists

(Coppock,1994).

Lookingmorecloselyathumanpopulationgrowthanddrought,thesefactorsseemnottoaffectpastoral

wealthgroupsequally.Desta(1999)reporteddroughtrelatedlivestockmortalitiesinBoranabetween1980

1997at67cattleperhouseholdonaverage,whilenetlossesperhouseholdwere34cattle(or37%).However,

poorhouseholdsexperiencednetlossesof60%whilemiddleclassandwealthyhouseholdshadlossesofonly

25%.24

Althoughthewealthysufferlargerabsolutelossescomparedtotheirpoorercounterparts,they

usuallyretainedasufficientlylargenucleusherdtoreboundinanefficientmannerwhilethepoormay

loseenoughtobepushedout(Coppock,1994,ouremphasis).

Assuminga2%to3%annualhumanpopulationgrowthrateinpastoralistareas,sincethestartoftheresearch

studiesmentionedabovethenumberofpeoplehasalmostdoubledinBorana.Aslivestockholdingsdecline

amonganincreasingnumberofpoorerhouseholds,theimpactofdroughtworsensintermsofrisingnumbers

ofpoorerhouseholdswhoareunabletowithstanddrought.Thispartlyexplainsthewidelyreportedproblem

ofincreasingdroughtintheseareas.Ifmeasuredusingrainfalldata,therearenolongtermtrendsinannual

rainfallinpastoralareasofEthiopiaandsodroughtisnotbecomingmorefrequentfromarainfall

24Thecategorizationofwealthgroupswereasfollows:wealthyhouseholdswereclassifiedashavingaratioofcattleto

peopleof14:1,middleclasshouseholdswitharatioofaround6:1,andpoorhouseholdswitharatioofaround2:1.


23/55

20

perspective.25

However,theimpactsofdroughtaremoreevidentasmorehouseholdsareaffected,and

especially,poorerhouseholds.Droughtexacerbateswealthdifferentiationandforcesincreasingnumbersof

householdsoutofthesystemasproductionlevelsswingbetweentheboomandbustcycle(Hogg,1980;

DestaandCoppock,2002;Bekureetal.,1991). Thishelpstoexplainwhypastoralistskeeplargeherdsasa

cushionagainstdroughtandshocks.

MorerecentlyinEthiopia,thecombinationofdemographics,drought,commercializationandchangingaccess

toproductiverangelandwasusedtoexplainaMovingUp,MovingOuttrendinShinilezoneinSomaliRegion

(CatleyandIyasu,2010).Partofthisanalysisuseddataonlivestockownershipcoveringa60yearperiod

(Figure2),presentedasa30yearperiodbefore1974,anda30yearperiodafter1974.

Figure2:TheMovingup,MovingOutscenario trendsinlivestockownershipbywealthgroupover60years

(19442004),Shinilezone,SomaliRegion

Source:adaptedfromKassahunetal.(2008).

Notes:databasedoninterviewswith300households.Theyear1974separatesthetwotimeperiodsasthiswasayearof

particularlybaddroughtandfamineamongtheIssapastoralistsinShinilezone,andtherefore,easytorecallasapointof

referenceamonginformants.Theverypoorandpoorwealthgroupswerenotidentifiedintheperiodbefore1974,

whereasthebelowmediumwealthgroupwasnotidentifiedintheperiodafter1974.Changingherdcompositionby

livestockspeciesrelatestochangesinpasture,especiallybushencroachment,andchangingmarketdemands.

After1974,twonewwealthgroupswerenamedbylocalinformantsinShinileviz.thepoorandverypoorwealthgroups,whichhadnotexistedbefore1974.Forbothofthesenewwealthgroups,thelevelof

livestockholdingsfellbelowapastoralminimumherdsize,especiallyforverypoorhouseholds.This

indicatedthatthesepeoplewereonthevergeofdroppingoutofpastoralism(poorwealthgroup)or,were

notlivingaspastoralists(verypoorwealthgroup).

Thepossessionofhighlivestockholdingsbymediumandwealthygroupswasevidentthroughoutthe60yearperiod,despitedroughtsandconflict.

25BasedonouranalysisofrainfalldatafromsixlocationsofnorthernKenya(earliestrecordsfrom1926),sixlocationsin

southernandeasternEthiopia(earliestrecordsfrom1966),andsixlocationsinSomalia(earliestrecordsfrom1921).


24/55

21

Ashiftinthespeciescompositionofherdsamongthemediumandwealthygroupswasalsoevident,withless

preferenceforcattleanddonkeysovertime,andagreaterpreferenceforcamels,goatsandsheep.Thiswas

attributedtoenvironmentalconditionssuchasreducedgrasslandsandgreatertreecover,andhencethe

preferenceforbrowsers(e.g.camels)overgrazers(e.g.cattle).However,otherfactorsmayalsohavebeenat

play,suchasmarketdemandfordifferentlivestockspecies(wealthierherderstendtosellmoreanimalsthan

poorerherders,andaremorestrategicintermsoftheirsellingbehaviour),andthepotentialforincome

generationfrompackcamels.

DatafromotherpartsofSomaliRegionoveramuchshortertimeperiodshowscomparabletrends.For

example,datafromSCUKcanbeusedtocompare19981999with20042005forthelowlandHawdarea

(Figure3),andshowsthewealthierandmiddlewealthgroupsincreasingtheirlivestockassetsovertime,

whereastheassetsofthepoorremainedconstant.

Figure3:Shorttermtrendsinlivestockownershipbywealthgroup,lowlandHawdarea,SomaliRegion

Source:adaptedfromSCUK(1998,2005).

Trendanalysisnotonlyneedstoconsiderlivestockownershipbywealthgroupovertime,butalso,the

absolutenumberofpeoplemovingbetweenwealthgroups.Again,SCUKdataprovidessomeinsightsby

comparing

the

proportion

of

households

in

each

wealth

category

between

reference

years.

We

combined

this

proportionaldatafor10livelihoodzonesinSomaliRegion,withastartreferenceyearofeither19961997

(forfivelocations)or19981999(forfivelocations),andalllocationswithanendreferenceyearof2004

2005.26

Theresultsindicate,acrossthe10livelihoodszonesandoveraneightyearperiod:a5%increaseinthe

proportionofpeoplecategorizedaspoor,withacorresponding5%decreaseinproportionofpeople

categorizedasmiddlewealth;and,nochangeintheproportionofpeoplecategorizedasbetteroff.

However,theseproportionalchangesdonotshowtheimpactofhumanpopulationgrowth.Ifweassumea

2.5%annualhumanpopulationgrowthinSomaliRegionacrossallwealthgroups,thenabsolutetrendscanbe

estimated.Overa10yearperiodfrom19962005,theestimatedtrendswere:

26ThelivelihoodszoneswereHawdpastoral,Fikpastoral,Shinileagropastoral,Shinilepastoral,Degahaburagropastoral,

Afdherpastoral,Godeagropastoral,Libanpastoral,FiltuDolowpastoralandMoyaleWayamopastoral.


25/55


26/55

23

Table6: Livestockassetsownedbypastoralwealthgroups

Zone Verypoor Poor Middle

income

Betteroff Reference

year

Source

Fik

(Somali)

3050shoats

46cattle

46camels

6090shoats

515cattle

2535camels

150200shoats

1020cattle

4570camels

20045 SCUK

Shinile

pastoral

(Somali)

3060shoats

35cattle

35camels

70100

shoats

810cattle

1016camels

130170shoats

1525cattle

2040camels

20045 SCUK

Hawd

pastoral

(Somali)

6585shoats

913camels

115165

shoats

4560camels

150235shoats

85105camels

20045 SCUK

Afder

pastoral

(Somali)

2038shoats

610cattle

35camel

5595shoats

1020cattle

3040camels

100200shoats

3050cattle

6080camel

20045 SCUK

Teltele,Dilo

andDier

(Borana)

79goats

04cattle

1214goats

58cattle

7595goats

6585cattle

5camels

150190goats

130170cattle

10camels

20067

LIU

Moyale

pastoral

(Borana)

13shoats

13cattle

48shoats

57cattle

02camels

1729shoats

1525cattle

68camels

3547shoats

3545cattle

1520camels

20067 LIU

BoranaGuji

pastoral

(Borana)

35goats

57cattle

710goats

810cattle

2030goats

6080cattle

57camels

4060goats

110130cattle

1015camels

20067 LIU

Note:SCUKusesthreewealthcategories;theLIUusesfourwealthcategories.

WhereascamelsarerelativelynewtoBorana,otherareasofOromiahaverearedcamelsformanyyearse.g.theKerreyu

andIttuareas.

Thesamestudyalsoshowedthatgreaterlivestockholdingsinfluencednotonlythefrequencyofmarket

attendance,butalsothenumbersoflivestockmarketedandthecapacityandwillingnesstosellanimals.Yet,it

waspoorerhouseholdswhoreliedonmarketpurchasesforrestockingandtheauthorsconcluded,asthey

donothavesufficientherdsizeforbreedingwhereaswealthierhouseholdsrelyalmostexclusivelyonnatural

reproduction,perhapspurchasinglivestocktodiversifyriskbyinvestinginalternatetypesofspeciesof

livestock.

Table7:Marketengagementbywealthgroup,northernKenyaandsouthernEthiopia,20002002

Meanlivestockholdingsper

household

Numberofquarterswhen

marketactivityrecorded

10.8TLU 0

16.0TLU 1

45.9TLU 7

48.3TLU 8

TLU

Tropical

Livestock

Unit


27/55

24

3.3 Varyingdependencyonlivestockforincomebypastoralwealthgroup

Aslivestockassetsinfluencethemarketingbehaviorofpastoralists,itfollowsthattherelianceonlivestock

salesforincomealsovariesbywealthgroup.Thegeneralpatternisthatpoorerhouseholdssellfeweranimals

anddependonmorediversesourcesofincome,largelyoutofnecessity. Forexample,AkliluandCatley(2009)

reportedthatinBorana/Gujiareas,theverypoorearnedtheircashincomefromlivestock(58%),labour(12%),

firewood(8%)andsafetynet(22%),whilealmostallcashincomewasgeneratedfromthesaleoflivestockfor

middleandbetteroffgroups.

InTeltele,DilloandDierinBorana,themiddleandbetteroffincomegroupssoldrespectivelysixand18timesmoresmallruminantsthantheverypoor(LIU20062007referenceyeardata);

InBoranaGuji,themiddleandbetteroffincomegroupsalsosoldrespectivelysixand12timesmoresheepandgoatsthantheverypoor(LIU20062007referenceyeardata).

InSomaliRegion,similarpatternswereevident.Forexample,inFikthemiddleandbetteroffhouseholds

generatedalltheircashincomefromthesaleoflivestockandlivestockproductsinthe20042005reference

year,whereaspoorerhouseholdshadtorelyonadditionalincomefromzakatandsellingbushproducts.Inthe

Shinilepastoralzone,poorergroupsacquiredcashthroughlivestock,labour,zakatandremittanceswhereasin

theAfderpastoralzone,poorerhouseholdsacquiredabout50%oftheirincomefromsellingbushproducts

andalsothroughremittances,whilemiddleincomeandbetteroffgroupsdependedforalltheircashincome

onsellinglivestockandlivestockproducts. Thisdatashowstheincomegapsbetweenwealthierandpoorer

households,andtheextenttowhichdifferenthouseholdsdependonlivestockmarketsfortheirannualcash

incomes.

3.4 Commercialization inpractice

ThecommercializationoflivestocktradeinpastoralareasoftheHornisusuallystimulatedbyincreasedexport

demand(inSudan,SomaliaandrecentlyinEthiopiaandDjibouti).Asdemandincreasesthesearchfor

additionallivestocksupplyextendsinitiallyintomoreaccessiblelocations,andthenintolessaccessibleand

remoteareas,includingcrossbordersourcing.Truckingandtrekkingarrangementsfacilitatethedeliveryofall

availablesuppliestoprimary,secondaryandterminalmarketswithinthecountryortocrossborder

destinations.Thefurtherthesupplysourceisfromtheendmarketorthenearestaccessiblepoint,thelonger

themarketchainandviceversa.Exportdrivenlivestocktradeprovidesnewsourceofincomeforvarious

actors,includinglocallivestocktraders,middlemen,localauthoritiesorselfappointedofficials,taxcollectors,

movementpermitissuers,veterinarypersonnel,trekkers,truckers,watchmen,marketattendants,andeven

armedguardsinsomecases.Traditionalpowerrelationsshiftinfavourofthosecontrollingthemarkets(or

whoarefinanciallymorepowerful),andnewrulesandnormsmaybeestablishedasdefinedbythenewpower

brokers.

Serviceprovidersareattractedintoareasaslivestocktradeexpands,includinglivestockdrugvendors,

restaurantandbarowners,commoditysellers,chattraders,holdinggroundandloadingrampproviders,and

watervendors(e.g.frombirkedsortrucks).Permanentsettlementscanemergearoundnewmarkets,and

influentialpeoplesuchasmajortraders,localofficials,wealthypastoralgroupsandothers,willstartinvesting

inlivestockproduction.Relatedtrendsincludetheconversionofcommunallyownedresourcesforprivateuse,

andmoreindividualisticbehavior,asdiscussedinsection3.7.


28/55

25

3.5 Communityperspectivesoncurrenttrends

Inthesedays,therearemorepeoplewithnolivestockthanwith.

BoraneldersinElWaya,July2010

Duringthestudy,eldersinSomaliRegionandBoranaemphasizedtheincreasingdestitutionofpastoralistsand

thedeclineinhouseholdherdsize.InBorana,elderswereaskedtocomparetheherdsizeofwealthy

householdsingadaJiloWakasreign,40yearsago,andnow.27

Theirresponseswereasfollows:

DuringgadaJiloWaka,wealthyhouseholdsownedbetween700800cattle(expressedas78ulesin

Boranaterms).Nowsuchhouseholdmayown3050cattleandsell5cattleperyear.Thoseowning20

headofcattlemaysellthreeandthosewith10sellonlyone

Dublukeldersfocusgroup

Wealthyhouseholdsownedabout500headofcattle(or5ules)duringgadaJiloWaka.Nowtheyown

about5060headofcattleandsome10camels.Thesehouseholdsmaysell46cattleperyearandone

cameleverytwoyears.

DidHaraeldersfocusgroup,Yabelo

FourtosixhundredcattlewereownedduringgadaJiloWakabywealthyhouseholds,andcurrentlyin

theregionof4060plusfiveorsocamelsareowned.Thesehouseholdsmaysellabout5cattleper

yearbutmaynotsellanycameluntiltheyhaveaminimumoften.

ElWayaeldersfocusgroup

Werememberourfatherstalkingabouthouseholdswhoownedfivetosevenules(500700head)

duringthereignofGadaJiloWaka.Nowweconsiderhouseholdsowningabove40headasbetteroff

and

for

every

10

cattle

they

own,

these

groups

may

sell

one

every

year.

Such

households

may

also

own

upto10camels

RodaObaPastoralUnion,Moyale

Despitethedifferentlocationsofthesecommunities,theyseemedtoconcuronanumberofpoints.

Asubstantialreductioninthehouseholdherdsizeoveraperio

mind the gap: commercialization, livelihoods and wealth disparity in pastoralist areas

Documents