mind the gap: commercialization, livelihoods and wealth disparity in pastoralist areas
TRANSCRIPT
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MINDTHEGAPCommercialization,LivelihoodsandWealthDisparity
inPastoralistAreasofEthiopia
YacobAkliluandAndyCatleyDecember2010
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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
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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
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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.
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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.
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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?
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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.
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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
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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).
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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.
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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).
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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.
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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.
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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.
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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).
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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.
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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
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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.
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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