The economy of Somaliland mainly depends on livestock production, which has historically and culturally been the mainstay livelihood for the majority of the people.   Livestock Production System in Somaliland is predominantly pastoral and agro-pastoral, employing over 70% of the population.   Livestock production contributes to 60% of the GDP and about 85% of foreign export earnings.   It is the source of livelihood for pastoralists, contributes to the government revenues, and provides employment to a wide range of professionals and other service providers. Somaliland has a long history of live animal export to the Arabian Gulf states through Berbera Port on the Red Sea.  In the past several decades, however, these exports have been disrupted by two embargos imposed by Saudi Arabia allegedly due to Rift Valley Fever and Rinderpest infections.

The bans adversely affected the incomes and livelihoods of pastoralist families and the national economy in general for nearly a decade.  In spite of these setbacks, livestock continues to be the major repository of individual and national wealth in Somaliland.  The main livestock export markets are in the oil-rich countries on the Arabian Peninsula, Saudi Arabia, in particular. Sheep and goats were exported in large numbers before the second livestock ban of 2000. During the ban, remittances from abroad became the backbone of Somaliland’s economy, contributing up to 35% of the total income.  Since the end of the ban, exports of livestock have recovered to become a major economic activity again.

There are several types of livestock production and management systems in Somaliland, depending on a number of factors such as the area, availability of labour, and the size and types of livestock raised.  However, in general, there are two main production systems: one based on nomadic pastoralism and the other on agro-pastoralism.

Nomadic pastoralism is the system practiced by most of the rural population and revolves around  the  seasonal  migration  of  herders  in  continual  search  of pasture  and  water. The movement of these pastoralists is often organized and follows a regular pattern in which clan-based groupings have their traditional grazing areas and/or common watering points and temporary camps.  In some parts of the country, pastoralists co-habit with farmers to access crop residues for their animals.  In other places, the pastoralists take advantage of heavy rains and floods for agricultural purposes, planting crops in areas cleared for the production of forage or grain. 

The types of animals kept by nomadic families depend on several factors, including the area inhabited and the availability of labour.   Cattle are predominant in the western parts of the country, which receive relatively large amounts of rainfall, while goats, sheep, and camels are bred mainly in the drier eastern, central and northern regions of the country.  Most pastoralists prefer to keep mixed species of animals, a strategy which has numerous benefits, including the ability to exploit different rangelands, produce different products, and have different survival and recovery rates following droughts.  When the need arises, pastoralists practice a split herding system in which camels and sometimes goats are separately herded away from the main camps where cattle, some milk camels, and sheep are kept.  There is also a strict, clear-cut division of labour among family members, with young men herding camels while cattle and small ruminants are taken care of by women, children, and the elderly. Agro-pastoralism is a production system, which is characterized by the maintenance of a permanent home base in a farming area.  There are several different sub-types of this system ranging from farmers owning large herds but keeping only a few resident animals on the farm to small scale-farmers owning only a few animals.

This production system was initially practiced in the western farming regions but is now common in all parts of the country, being found even in dry regions. The main reason for the increase in agro-pastoralism is that traditional nomads can no longer rely on  livestock  alone  for  their  livelihood;  given  the  fact  that pastureland  has  over the  years diminished and deteriorated.   In this system, split herding based on a division of labour is a common practice, as part of the family moves with most of the herd, while the other family members remain on the farm to cultivate crops and few lactating animals are also usually left behind. 

Livestock is the principal product that Somaliland exports to the foreign markets – mainly to Gulf Countries such as Saudi Arabia and Yemen. Between 2010 and 2014, the country’s livestock exports were estimated to be around 16.3 million heads, 3.5 million heads of which were exported in 2012 alone. Livestock exports are often accompanied by its byproducts (i.e. hides and skins); in 2011, approximately 13.6 million pieces were exported[1].

With increased investment, smart regulation, infrastructure development, sector coordination and improved branding, the Somaliland has ample opportunities to capitalize on the growth of the livestock sector in the Middle East and other regions of the Muslim world, while supporting the growing local demand.

Number of livestock (heads) exported from Berbera to Arabian Gulf states from 2018 to 2019

The table below illustrates the category of livestock market share per type of export. The price of livestock per type is mentioned in the table across the regions of Somaliland. The quantity of livestock exported during the annual of 2019 is multiplied by the current local price, which gives the total value of export.

Table 2: Category of livestock market share per type of export.

No

Name

Quantity

Unit Price Export

Total Value

1

Sheep/Goat

1,710,646

$56.91

$97,352,864

2

Cattle

136,6846

$461.1

$63,099,691

3

Camel

50,939

$732.58

$37,316,893

                                                Total                           $197,769,447

Source: Somaliland Chamber of Commerce

*Livestock Marketing Information System (LMIS), is a package hosted by Somaliland Chamber of Commerce, Trade and Tourism for tracking livestock prices.

Table 3: Comparison of Livestock Exportation Jan-December 2018/2019

Sheep/Goat

2018

2019

Difference

%

January

13,872

30,743

16,871

122

February

24,392

50,907

26,515

109

March

8,660

44,149

35,489

410

April

23,781

61,320

37,539

158

May

23,781

46,775

22,994

97

June

90,148

29,570

(60,578)

(67)

July

230,176

870,912

640,736

278

August

832,576

449,224

(383,352)

(46)

September

2,520

14,342

11,822

469

October

5,724

24,371

18,647

326

November

7,992

47,555

39,563

495

December

16,630

40,778

24,148

145

G/Total

1,280,252

1,710,646

430,394

34

Source: MoFD/Customs Department

As the table 3 shows, August 2018 registered the highest monthly exports of livestock in 2018, while July has the highest monthly record of export of livestock sheep/goat in 2019. This figure shows a clear seasonal pattern in the exports of livestock.

Camels on the other hand, were exported only in the months of March, September and December during the entire of annual 2018.  In 2019 camel exportation really picked up and April recorded the highest monthly export.  As Table 4 below shows, there is significant monthly variation in the export of camels. 

Table 4: Comparison of Livestock exportation (Camel) Jan-Dec 2018/2019

 

Camel

2018

2019

Difference

%

January

-

4,811

4,811

100

February

-

5,662

5,662

100

March

437

8,810

8,373

1,916

April

-

13,053

13,053

100

May

-

3,040

3,040

100

June

-

385

385

100

July

-

1,407

1,407

100

August

-

704

704

100

September

40

7,323

7,283

18,208

October

-

5,463

5,463

100

November

-

21

21

100

December

32

260

228

713

G/Total

509

50,939

50,430

9,908

Cattle are the second largest livestock export after sheep and goats. The month July registered the highest export of cattle in the annual export of 2019, while the month December recorded the highest exports of cattle in 2018. Overall, exports of cattle in the annual of 2019 increased by 17% compared to exports in the previous year. 

Table 5: Comparison of Livestock exportation (Cattle) Jan-Dec 2018/2019

Cattle

2018

2019

Difference

%

January

11,150 

14,738 

3,588 

32  

February

10,142 

12,181 

2,039 

20  

March

8,347 

9,708 

1,361 

16  

April

8,433 

10,480 

2,047 

24  

May

8,433 

11,513 

3,080 

37  

June

13,209 

9,998 

(3,211) 

(24) 

July

11,432 

21,280 

9,848 

86  

August

9,773 

4,726 

(5,047) 

(52) 

September

6,360 

8,010 

1,650 

26  

October

2,528 

7,665 

5,137 

203  

November

9,421 

12,371 

2,950 

31  

December

17,477 

14,176 

(3,301) 

(19) 

G/Total

116,705 

136,846 

20,141 

17  

Source: MoFD/Customs Department

 

[1] Ministry of National Planning and Development, 2015; Muhumed, 2016