Factors influencing livestock export in Somaliland’s terminal markets

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.