Abstract
Livestock export from Somaliland to the Arabian Peninsula countries is an important economic activity and the main source of Somaliland’s foreign exchange earnings. We have employed multiple regression time series analysis of secondary data to understand factors that influence the monthly volumes of small ruminants (sheep and goats) and cattle traded for export in three terminal markets in Somaliland. Results show that the Hajj season, number of livestock exporters active in the markets, market location and livestock ban imposed by the import countries are the main factors that influence the monthly volume of livestock transacted for export. Further, the results indicate that though drought does not influence the volume of small ruminants, it has an influence on the volume of cattle, while the implementation of quarantine stations has a significant influence on the volumes of livestock exports. Finally, border restrictions imposed by Ethiopia do not influence the volume of livestock transacted for export in the study markets. Most of the factors analysed to have influence on monthly volume livestock transacted for export are institutional and policy-related hence can be corrected though requisite regulatory, institutional and policy reforms in consultations with stakeholders.
Highlights
Livestock trade is one of the Horn of Africa’s (HoA) economic success stories (Little et al 2015)
Saudi Arabia was responsible for most of the bans based on claims that it found Rift Valley fever (RVF) on Somali livestock; the analysis reveals that the ban imposed by Saudi Arabia had caused sharp falls in the volumes of small ruminants’ export
The findings indicate that the average monthly price has a positive and significant influence on the monthly volume of small ruminants transacted for export (exp (0.0164934) = 1.016, p < 0.05); this implies that a 1% increase in the price of animal leads to a 1.6% increase in Coefficient Std
Summary
Livestock trade is one of the Horn of Africa’s (HoA) economic success stories (Little et al 2015). This indicates that the agricultural sector, and in particular livestock industry, has potential for economic growth in sub-Saharan Africa (Diao et al 2010). The region’s proximity to the Arabian Peninsula markets, the largest market for live animal trade (Knips 2004), offers a potential opportunity for live animal exports. Majid (2010) reported that livestock export from Somalia, including Somaliland, is the largest concentration of live animal export in the world.. Majid (2010) reported that livestock export from Somalia, including Somaliland, is the largest concentration of live animal export in the world. Live animal export is
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