Inherent risk factors
All the livestock is exported to the Middle East, with the principal markets in order of importance being the Kingdom of Saudi Arabia, Yemen, Oman, Egypt and the United Arab Emirates. The sole reliance on the Middle East Market perhaps represents one of the biggest risks to the stability of the export market in Somaliland.
There were no exports of meat in 2011, partly due to the escalating cost structure in the procurement of slaughter stock which needs to be addressed. However, about 13.5 million pieces of hides and skins were exported. The export of hides and skins seems rather unstable. For example, in the first five months of 2011, about 9 million pieces of hides and skins were exported, compared to a paltry 1.5 million for the same period in 2012. This is an area that needs a lot of attention.
The rapid growth of the export sector will most likely have a negative impact on the ecosystem. Investments are therefore needed to promote fodder bank establishment and development to support dry seasons grazing and sustain current growth in exports.