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Viewing cable 08ADDISABABA369, USG HUMANITARIAN ASSISTANCE TEAM: LIVESTOCK AND MARKET

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Reference ID Created Released Classification Origin
08ADDISABABA369 2008-02-14 04:48 2011-08-26 00:00 UNCLASSIFIED Embassy Addis Ababa
VZCZCXYZ0002
OO RUEHWEB

DE RUEHDS #0369/01 0450448
ZNR UUUUU ZZH
O 140448Z FEB 08
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9549
INFO RUEHAE/AMEMBASSY ASMARA 2126
RUEHDJ/AMEMBASSY DJIBOUTI 8915
RUEHNR/AMEMBASSY NAIROBI 3376
RUEHBS/AMEMBASSY BRUSSELS 3093
RUEHGV/USMISSION GENEVA 4177
RUEHLO/AMEMBASSY LONDON 3026
RUEHRO/AMEMBASSY ROME 6383
RUCNDT/USMISSION USUN NEW YORK 7250
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 000369 
 
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 GPLATT, RFFPO NCOX, USAID/EA 
ROME FOR AMBASSADOR, OHA, HSPANOS 
BRUSSELS FOR USEU PBROWN 
GENEVA FOR NKYLOH, RMA 
USUN FOR FSHANKS 
NSC FOR PMARCHAN 
 
AIDAC 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID PHUM SENV EAGR PGOV ET
REF:  A) ADDIS 3644  B) ADDIS 0134 C) ADDIS 0233 
SUBJECT: USG HUMANITARIAN ASSISTANCE TEAM: LIVESTOCK AND MARKET 
UPDATE 
 
 
------- 
SUMMARY 
------- 
 
1.  U.S. Government Humanitarian Assistance Team (USG HAT) in 
Ethiopia staff report concern regarding the ability of pastoralist 
populations to sell their livestock and purchase staple commodities 
as a result of ongoing movement and trade restrictions within the 
conflict-affected areas of Somali Region.  USG HAT field assessments 
in Somali Region, including livestock markets and livestock watering 
points, indicate a substantial decrease in local trade.  In 
addition, USG HAT staff note that livestock movement restrictions in 
parts of Somali Region undermine the health of livestock herds 
confronted with inadequate pasture and water availability. 
 
2.  However, USG HAT staff report that reduced trade within 
conflict-affected areas of Somali Region has not translated into 
reduced livestock export levels in neighboring Somaliland.  As a 
result, USG HAT staff surmise that cross-border trade from 
conflict-affected areas of Somali Region to Somaliland is ongoing, 
although at great personal risk and at significantly reduced profit 
margins.  However, USG HAT staff emphasize the need for closer 
examination of livestock trade conditions and obstacles within the 
conflict-affected areas of Somali Region to clarify reports of 
reduced internal livestock trade and data indicating no change in 
external livestock market figures.  In addition, USG HAT assessments 
and reports from humanitarian organizations operating in the region 
confirm lower livestock prices in the region.  USG HAT staff note 
that declining terms of trade escalate asset depletion, undermine 
pastoralist livelihoods, and increase food insecurity.  End 
Summary. 
 
----------------------- 
INTERNAL COMMERCIAL AND LIVESTOCK TRADE REDUCTIONS 
----------------------- 
 
3.  USG HAT staff note that reports of livestock movement and trade 
restrictions varied within the region.  However, USG HAT staff 
report a reduction in local trade throughout conflict-affected 
areas.  In some areas, pastoralists identified specific parameters 
of permitted movement, while in other areas pastoralists reported no 
restrictions and noted the onset of dry season migrations.  Current 
insecurity has prevented comprehensive mapping and verification of 
restricted areas within the conflict-affected areas.  During 
regional assessment visits, USG HAT observed only small livestock 
markets characterized by limited livestock sales.  Pastoralists and 
non-governmental organization (NGO) staff also reported an absence 
of previously common livestock trucking operations to move animals 
to export ports. 
 
4.  In addition, USG HAT staff report limited availability and 
increased prices of commodities, up to two to three times 
pre-conflict levels, at rural markets.  Traders consistently 
attributed the commodity situation to infrequent commercial 
deliveries.  As reported in reftel ADDIS 0134 and 0233, commodity 
availability outside of major towns is very low due to restrictions 
that only permit commercial offloading to major towns and district 
capitals.  In addition, delays associated with required military 
escorts and the use of alternate, longer trade routes to bypass 
 
restricted areas have also contributed to increased food commodities 
prices in the region. 
 
-------------------- 
EXTERNAL LIVESTOCK TRADE REMAINS CONSTANT 
-------------------- 
 
5.  USG HAT staff report that reduced trade within conflict-affected 
areas of Somali Region has not translated into reduced livestock 
export levels in neighboring Somaliland, which is traditionally 
dependent on livestock from Somali Region for an estimated 70 
percent of total livestock exports.  Berbera and Bossaso ports in 
Somaliland represent the main livestock export markets in the 
region.  USG HAT staff point out that if cross-border trade from 
Somali Region to Somaliland was blocked, export figures from Bossaso 
and Berbera ports would be expected to decline.   However, FSAU data 
indicates no decline in 2007 export figures, and the number of sheep 
and goats exported prior to the main Muslim holiday Eid in December 
2007 actually increased compared to 2006 levels.  FSAU data did 
indicate a decrease in sales from April to June, corresponding to 
months of increased military activity within the five 
conflict-affected zones of Degehabur, Fik, Korhae, Gode, and Warder. 
 However, the decrease falls within the normal range for dry season 
sales.  USG HAT staff note that a limited portion of export totals 
may be attributed to an increase of livestock from Djibouti to 
Berbera and Bossaso ports, following the reopening of the Saudi 
market to live animal trade in January 2006.  However, USG HAT staff 
emphasize the need for closer examination of livestock trade 
conditions and obstacles within the conflict-affected areas of 
Somali Region to clarify reports of reduced internal livestock trade 
and data indicating no change in external livestock market figures. 
 
-------------------- 
DECLINING TERMS OF TRADE INCREASE PASTORALIST VULNERABILITY 
-------------------- 
 
6.  USG HAT staff report that the combined effect of reduced 
livestock sales and prices and an increased cost of commodities is 
negatively affecting pastoralist terms of trade and increasing 
livelihood insecurity.  According to the Save the Children/UK 
(SC/UK) livelihoods profile for Korahe Zone, an average sheep or 
goat provides enough income to purchase 130 kilograms (kg) of cereal 
in a normal year.  However, currently an average sheep or goat will 
purchase only about 15 kg or wheat flour or 17 kg of rice. 
Similarly, in Gode Zone, the SC/UK livelihoods profile suggests that 
an average sheep or goat will provide enough income to purchase 70 
kg of sorghum in a normal year.  Currently, one sheep or goat will 
only purchase approximately 40 kg of food aid wheat or local maize. 
(Note:  Sorghum was not available on the Gode market for comparison. 
 End note.) 
 
7.  According to a U.N. Office for the Coordination of Humanitarian 
Affairs (OCHA) Somali Region report, only 36 percent of pastoralist 
household calorie intake is from milk and meat.  The remainder comes 
from grains, sugar, tea, beans, pulses, and cooking fats, all of 
which must be purchased by pastoral families.  The combined effect 
of limited commodity availability and increased commodity prices 
require pastoralists to sell more animals in order purchase staple 
foods.  Terms of trade will continue to worsen as the dry season 
 
progresses, livestock conditions decline, and basic commodity prices 
increase.  At the same time, pastoralist asset depletion will 
increase through the increased sale, slaughtering, or loss of 
livestock to malnutrition or disease, leading to increased 
livelihood insecurity and population vulnerability among 
pastoralists. 
 
---------------- 
STRESS MIGRATION 
---------------- 
 
8.  USG HAT staff note abnormal pastoralist migration patterns 
within conflict-affected areas of Somali Region, where populations 
are confronting the onset of the dry season, exacerbated by the poor 
performance of the 2007 rains and disruptions to normal routes, 
resulting from ongoing insecurity.  USAID's Famine Early Warning 
System Network (FEWS NET) reports migration movement along the 
Wabishebelle River up to Babile Zone, Oromiya Region, in addition to 
movement in the southern corridor through Afder Zone and into Bale 
Zone, Oromiya Region.  However, USG HAT staff note cross-border 
trade into Somalia does not appear to be significantly affected. 
U.N. agencies and NGOs operating in the region attribute ongoing 
cross-border trade to high-risk, clandestine trade and the use of 
alternate, extended trade routes. 
 
9.  Local NGO staff operating in Somali Region report that the 
Ethiopia National Defense Forces (ENDF) is focusing on camel 
movement and trade within conflict-affected areas of Somali Region, 
due to the perception that camels are being used to sustain and 
support the Ogaden National Liberation Forces (ONLF).  Camel milk is 
high in nutrients and can sustain adult populations.  Local 
residents report that camel herders risk military reprisals if 
detained by the ENDF.  As a result, pastoralists are keeping camels 
close to towns in large numbers, which is rapidly depleting 
available resources in these areas. 
 
---------------------------- 
CONCERNS AND RECOMMENDATIONS 
---------------------------- 
 
10.  Livestock movement restrictions within the conflict-affected 
areas of Somali Region are exacerbating the impact of the poor 
performance of the 2007 rains on available browse and water 
resources, undermining livestock health and pastoralist livelihoods. 
 Restrictions and the resulting depletion of limited browse and 
water resources will increasingly negatively affect animal health in 
the coming weeks and months, especially if the April gu rains do not 
perform well, as predicted by FEWS NET.  USG HAT staff recommend 
continued monitoring of livestock health and nutrition during the 
duration of the current dry season through March 2007 and longer if 
the April rains are poor.  In addition, USG HAT emphasize that need 
for continued advocacy to ease livestock movement restrictions in 
order to protect pastoralist livelihoods in the region. 
 
11.  Worsening terms of trade, particularly with regard to cereals 
and grains, indicate a strong likelihood that both adults and 
children may face serious food shortages as the dry season 
progresses and milk availability declines.  USG HAT staff recommend 
careful monitoring of nutrition indicators in the coming weeks and 
 
months, particularly among the elderly and pregnant and lactating 
women, to identify vulnerable populations and inform appropriate 
response efforts. 
 
12.  To address the limited availability and increased prices of 
staple commodities within the conflict-affected areas of Somali 
Region requires improvements in both access and availability. 
Although USG HAT staff note limited improvement in commercial access 
in the region since September 2007, USG HAT staff emphasize that the 
opening of trade routes is necessary to prevent a serious decline in 
humanitarian conditions, including rural areas.  In addition, USG 
HAT staff note that an increase in the number and predictability of 
required military convoys to accompany commercial traffic would 
significantly facilitate the movement of goods into the region, 
improving the availability and reducing the price of staple 
commodities. 
 
 
 
YAMAMOTO