VZCZCXYZ0004
OO RUEHWEB

DE RUEHDS #0134/01 0161416
ZNR UUUUU ZZH
O 161416Z JAN 08
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9200
INFO RUEHAE/AMEMBASSY ASMARA 2080
RUEHDJ/AMEMBASSY DJIBOUTI 8872
RUEHNR/AMEMBASSY NAIROBI 3330
RUEHBS/AMEMBASSY BRUSSELS 3054
RUEHGV/USMISSION GENEVA 4132
RUEHLO/AMEMBASSY LONDON 2988
RUEHRO/AMEMBASSY ROME 6345
RUCNDT/USMISSION USUN NEW YORK 7192
RUEHC/DEPT OF INTERIOR WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RHMFIUU/HQ USCENTCOM MACDILL AFB FL//CCJ2/CCJ5/CCJS//
RHEFDIA/DIA WASHDC
RHMFISS/CJTF HOA
RHEHNSC/NSC WASHDC

UNCLAS ADDIS ABABA 000134 
 
SIPDIS 
 
STATE DEPARTMENT FOR A/S FRAZER, DAS AF JSWAN, AF/E, AF/PDPA, OES, 
A/S PRM SAUERBREY, AND PRM/AFR 
AFR/AA KALMQUIST, WWARREN, JBORNS, KNELSON, CTHOMPSON 
DCHA/AA MHESS, GGOTTLIEB 
DCHA/OFDA KLUU, ACONVERY, CCHAN, PMORRIS, KCHANNELL 
DCHA/FFP JDWORKEN, PMOHAN, SANTHONY, PBERTOLIN 
LONDON, PARIS, ROME FOR AFRICA WATCHER 
CJTF-HOA AND USCENTCOM FOR POLAD 
USDA/FAS FOR U/S PENN, RTILSWORTH, AND LPANASUK 
NAIROBI FOR OFDA/ECARO JMYER, GPLATT, RFFPO NCOX, USAID/EA 
ROME FOR AMBASSADOR, OHA, HSPANOS 
BRUSSELS FOR USEU PBROWN 
GENEVA FOR NKYLOH, RMA 
USUN FOR TMALY 
NSC FOR PMARCHAN 
 
AIDAC 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID PHUM SENV EAGR PGOV ET
REF:  A) ADDIS 0064  B) ADDIS 3610 
SUBJECT: USG HUMANITARIAN ASSISTANCE TEAM: FIELD VISIT #2 - 
LIVELIHOODS UPDATE 
 
 
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SUMMARY 
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¶1.  Summary:   Between January 2 and 9, U.S. Government (USG) 
Humanitarian Assistance Team (HAT) in Ethiopia staff, including a 
USAID/Ethiopia Assets and Livelihoods Transition program 
coordinator, traveled to Degehabur and Fik zones in Somali Region as 
part of a second field visit to assess the current humanitarian 
situation, including livelihood conditions.  USG HAT staff note that 
the current situation in Somali Region is fluid and varies 
throughout the region.  Despite an easing of access and market 
restrictions in recent weeks, USG HAT staff report that reduced 
commercial activity and ongoing Government of the Federal Democratic 
Republic of Ethiopia (GFDRE) restrictions on livestock, commodities, 
and population movement in parts of Degehabur and Fik zones continue 
to undermine livelihoods and food security.  In addition, the poor 
performance of the 2007 gu and deyr rains in parts of Somali Region 
has exacerbated chronic water shortages, including some areas within 
Degehabur Zone.  USG HAT staff recommend targeted emergency 
assistance for vulnerable populations, but emphasize the need for 
improved access and a resumption of commercial trade, including 
livestock and staple and non-staple commodities, to restore normal 
livelihood patterns of pastoralist and agropastoralist populations 
in Somali Region.  End summary. 
 
---------- 
BACKGROUND 
---------- 
 
¶2.  According to the joint Save the Children/U.K (SC/UK) and GFDRE 
Disaster Prevention and Preparedness Agency (DPPA) baseline 
livelihood study of Somali Region, 60 percent of the region's rural 
population is pastoralist, 25 percent agropastoralist, while the 
remaining 15 percent represent a combination of sedentary and 
riverine farmers.  In Degehabur Zone, pastoralists comprise 65 to 75 
percent of the total population and agropastoralists represent 25 to 
35 percent, while an estimated 5 percent represent urban groups.  In 
Fik Zone, the population livelihood composition is similar, with 
pastoralists representing 70 to 80 percent of the total population, 
agropastoralists accounting for approximately 15 to 25 percent, and 
the remaining 5 percent classified as urban. 
 
¶3.  Pastoralist and agropastoralists populations are heavily 
dependent on market access for livestock sales, which represent the 
predominant source of income generation, and for the purchase of 
staple and non-stable commodities to fulfill annual food needs.  For 
example, livestock sales account for 70 to 80 percent of annual 
income among poor households in Fik pastoral areas. Accordingly, any 
restriction or disruption to local and export markets has a 
significant adverse effect on income, livelihoods, and food 
security. 
 
¶4.  According to U.N. and humanitarian agencies operating in Somali 
Region, the impact of increased insecurity, ongoing military 
operations, and restrictions on cross-border trade and population 
and livestock movements within the five conflict-affected zones of 
Degehabur, Fik, Gode, Korahe, and Warder have significantly hindered 
market access and increased population vulnerability.  In addition, 
 
the poor performance of the 2007 gu and deyr rains in parts of 
Somali Region has exacerbated livelihood and food insecurity 
conditions.  The November 24 to December 14 DPPA Deyr/Karan Needs 
Assessment identified nearly 1.6 million people in Somali Region 
confronting survival and livelihood protection deficits, including 
an estimated 745,000 people in need of immediate food assistance and 
approximately 843,000 people in need of livelihood protection 
interventions.  (REF: ADDIS 3610) The most affected zones include 
Fik, Gode, and Degehabur. 
 
¶5.  The DPPA-led team utilized the household economy approach (HEA) 
methodology for the Deyr/Karan Needs Assessment.  The HEA 
methodology applies traditional inputs, such as crop and livestock 
prices, to a livelihoods framework, enabling a more holistic 
understanding of livelihood and food security conditions and 
identifying gaps to inform appropriate interventions.  Current and 
projected conditions are measured against a reference baseline year 
in order to demonstrate gaps in survival and livelihood security. 
SC/UK first introduced HEA in Somali and Afar Regions with USAID 
funding.  In recognition of the value and importance of 
livelihood-based analysis, USAID/Ethiopia is now funding baseline 
studies for remaining regions in Ethiopia and supporting its 
institutionalization within the DPPA's early warning division. 
 
-------------------- 
LIVESTOCK CONDITIONS 
-------------------- 
 
¶6.  USG HAT staff report that livestock observed in both Fik and 
Degehabur zones appear healthy and in good condition.  However, 
water and pasture availability varied between the two zones as a 
result of more robust deyr rains reported in Fik Zone, specifically 
in Fik District and to a lesser extent in Hamero District.  USG HAT 
staff characterize pasture conditions as fair to poor, but note that 
available pasture will continue to decline throughout the January to 
March jilal dry season.  According to a January 6 report by the 
Somali Region Disaster Prevention and Preparedness Bureau (DPPB), 
the poor performance of the deyr rains in most parts of Somali 
Region has already triggered abnormal livestock migrations, 
including in parts of all five conflict-affected zones, as well as 
parts of Afder, Liban and Shinile zones.  The DPPB report also noted 
that migrations represent a coping strategy to minimize the impact 
of pasture and water shortages and that any restrictions on 
pastoralist movement will increase the risk of livestock loss.  USG 
HAT staff received reports from pastoralists, as well as from U.N. 
and NGO staff, of GFDRE restrictions on livestock movement to 
prescribed areas in some locations of Fik Zone. (Note: During the 
first USG HAT staff field visit to Degehabur Zone, USG HAT staff 
also received reports from local villages of GFRDE restrictions on 
population and livestock movement.  End note.)  (REF: ADDIS 0064) 
 
¶7.  According to the DPPB, herd sizes in the conflict-affected areas 
of Somali Region have declined by 20 to 35 percent over the last two 
years, including in Degehabour and Fik zones.  Herd sizes continue 
to diminish as households utilize coping strategies in response to 
poor terms of trade and market disruptions.  Coping mechanism 
include the increased slaughter and household consumption of 
livestock, in addition to the increased barter and sale of animals 
above normal levels to acquire basic food and other items. 
 
Pastoralist and agropastoralist populations are experiencing poor 
terms of trade as a result of reduced demand and price of livestock 
and higher than normal staple food prices.  The DPPA Deyr/Karan 
Needs Assessment identified an increase in staple food prices of 
between 150 to 300 percent and an increase in imported non-staple 
food prices of approximately 400 percent in Fik Zone.  During the 
jilal dry season, terms of trade will continue to decline as 
livestock body conditions worsen.  USG HAT staff note the need for 
additional information and field analysis to substantiate reports of 
livestock decline. 
 
¶8.  The DPPA Deyr/Karan Needs Assessment also reported a 30 to 40 
percent decline in livestock milk production in Somali Region in 
terms of yield and number of female lactating livestock when 
compared against the reference year.  In Kasangas village, Hamero 
District, Fik Zone, USG HAT staff reported that milk prices were 
approximately 150 to 200 percent above normal levels due to reduced 
supply.  However, USG HAT staff also received reports from local 
populations and NGOs operating in Fik District, Fik Zone, 
characterizing milk production as consistent with, to slightly 
below, normal levels for a dry year.  The Somali Region DPPB reports 
that both milk production and livestock conditions are expected to 
further deteriorate with the onset of the jilal season.  (Note: Milk 
production and consumption patterns routinely decline during the 
jilal dry season.  However, routine declines in addition to already 
significantly reduced production is of concern. End note.) 
 
------------------------------------ 
MARKET ACCESS AND TRADE RESTRICTIONS 
------------------------------------ 
 
¶7.  USG HAT staff report that general insecurity, required military 
escorts, border restrictions, and Ethiopia National Defense Force 
(ENDF)-enforced limits on urban to rural transport of food item 
restrictions continue to negatively affect commercial trade and 
market access in Degehabur and Fik zones.  Consistent with findings 
from the USG HAT initial field visit to Degehabur Zone, USG HAT 
staff note that local traders in Fik Zone also report that general 
insecurity and border restrictions have resulted in a significant 
reduction in commercial livestock trade, beginning in June 2007.  As 
a result, the primary market for livestock in the area is for local 
slaughter due to the absence of cross-border traders, representing 
the export market.  (REF: ADDIS 0064)  In addition, both commercial 
vendors in Fik town and pastoralists in Fik Zone reported ENDF and 
local militia-enforced limits on urban to rural transport of food 
items, including a 50 kilogram (kg) limit for cereals and 2kg limit 
for sugar for small groups.  However, USG HAT note that enforcement 
is inconsistent and reports indicate that restrictions have eased 
compared to the June to September time period. 
 
¶8.  Delays in required military escorts in Degehabur and Fik zones 
continue to hinder commercial traffic.  Military escorts are not 
required from Jijiga to Degehabur towns, according to NGOs and ENDF 
stationed in the area.  However, required military escorts for 
onward travel from Degehabur town and throughout Fik Zone continue 
to cause significant delays and disruptions to normal commercial 
patterns, according to local traders and NGOs operating in Fik and 
Degehabur zones. 
 
¶9.  However, USG HAT staff also note consistent reports of slowly 
improving access in recent weeks and months, but emphasize that 
current conditions vary throughout the region.  Commercial truckers 
and local traders interviewed in Fik Zone noted an easing of 
commercial trade restrictions in late September when limited 
commercial goods were permitted to be transported with emergency 
food shipments in the region.  In addition, on January 1, the ENDF 
permitted three commercial trucks to accompany a food assistance 
convoy from Babile town, Jijiga Zone, to Fik town, resulting in an 
immediate improvement in the terms of trade for local populations, 
including a decline in the prices for sugar and rice by between 10 
and 20 Ethiopian Birr (ETB).  Despite slight improvements in 
commercial access and transport delays, benefits are predominantly 
contained to district capitals and have been slow to reach outlying 
and rural areas.  In the more remote Garbo District of Fik Zone, the 
cost for a 50kg bag of maize is two times higher than in Fik 
district.  Terms of trade for rural populations remains poor due to 
disruptions in livestock trade and elevated prices for food 
commodities, particularly rice and sugar. 
 
¶10.  USG HAT staff also note reports of informal trading outside of 
traditional market structures, which represents an important coping 
mechanisms for local populations confronting market and access 
restrictions.  However, the ability to evaluate and quantify such 
reports is limited. Potential costs of informal trading include 
lower prices for livestock and loss of livestock.  In addition, 
increased travel often excludes participation from the poorest 
households. 
 
------------------------------ 
 
CONLUSIONS AND RECOMMENDATIONS 
------------------------------ 
 
¶11.  Pastoralist and agropastoralists in Degehabur and Fik zones are 
confronting significant disruptions in commercial trade and market 
access which form the foundation of normal livelihood patterns.  The 
poor performance of the 2007 gu and deyr rains in many parts of 
Somali Region have further exacerbated population vulnerability.  In 
concurrence with DPPA Deyr Karan Needs Assessment findings, USG HAT 
staff recommend the need for targeted food assistance for the more 
than 745,000 people identified as survival deficit in the region. To 
facilitate critical food assistance delivery, as well as commercial 
trade and access, current delays associated with required military 
escorts in the conflict-affected areas of Somali Region need to be 
addressed. 
 
¶12.  In addition, USG HAT staff underscore the need for continued 
advocacy and discussion of appropriate interventions to address the 
needs of the nearly 843,000 people identified as livelihood deficit 
in the DPPA assessment to prevent them from slipping into the 
survival deficit category.  These populations are meeting daily food 
requirements but at the cost of depleting assets and undermining 
future livelihood security.  Potential interventions include 
targeted food assistance, as well as cash-for-work and food-for-work 
programs to increase vulnerable population purchasing power and 
prevent livelihood deficit groups from expending productive assets. 
Time constraints represented by the onset of jilal season and 
ongoing trade restrictions currently limit the utility of non-food 
livelihood interventions, such as livestock market development. 
 
 
¶13.   USG HAT staff emphasize the need for improved access and a 
resumption of commercial trade, including livestock and staple 
commodities, to restore normal livelihood patterns of pastoralist 
and agropastoralist populations in Somali Region.  With a reduction 
in current restrictions, longer term development interventions, 
including the improvement of veterinary and extension services, 
formalization of external trade, enhancement of internal trade 
routes to the highlands, and improved marketing and market 
information systems should be considered to reduce long-term food 
insecurity concerns. 
 
¶14.  In the coming weeks, the USG HAT will continue to conduct 
assessment visits in Somali Region to develop an improved 
understanding of humanitarian conditions and inform appropriate 
response efforts.  In addition, USG HAT staff are scheduled to 
participate in a joint U.N. ten-day market survey of Somali Region 
beginning the week of January 20. 
 
 
YAMAMOTO