On behalf of CSM
Proponent
Fred Wesonga, Haileselassie Gheberemariam
Main responsible entity
Terra Nuova, East Africa
Date/Timeframe
Survey conducted 10th - 20th March, 2016
Funding source
Terra Nuova, through EU-funded Development Education “Hands on the Land” project
Location
SOMALIA: Wajaale and Hargeisa - key marketing and production centres in Somaliland
Background/Context
The Somaliland dairy industry is plagued by a variety of problems such as: lack of commercial dairy farms, low productivity due to poor nutrition, weak infrastructure, lack of financial facilities, and the ready availability of raw milk to a poor and uneducated population. In urban areas, milk is available to consumers in two forms, either as loose/unprocessed milk or as packed/processed milk. Although, there is no reliable data on the proportion of household incomes spent on milk in Somaliland, milk is on average consumed twice a day and provides about 60% of the caloric intake for both rural and urban populations. Milk is highly valued in the Somali food tradition and is an integral part of the pastoral staple food.
Hargeisa is the main centre for milk trade in Somaliland. The bulk of the fresh raw milk consumed in Hargeisa originates from the agro-pastoral areas of the country. In Somaliland, milk is mainly produced in a traditional system based on nomadic or semi-nomadic low producing indigenous breeds of camels, zebu cattle and goats. The primary objective of the study was to explore opportunities and challenges that exist along the major urban (Hargeisa and Wajaale) milk value chains. The study was designed to provide information to understand how actors along the milk chain are interlinked to facilitate the conveyance of milk from the remote nomadic or semi-nomadic production areas to the consumers. The study also explored if social practices and traditions play a role in the sustenance of the milk marketing system particularly during production shock periods such as dry seasons or droughts.
Focus/Objectives
The broad objective of the study was to determine the role of the informal sector in the marketing of milk produced in a pastoral/ urban interphase.
Key characteristics of the experience/process
• Milk marketing in Somaliland is characterised by a unique efficient system that contributes to food security in a pastoral milk production environment.
• The players along the milking chain have developed a system that ensures members have access to milk during periods when there are fluctuations in milk supply.
• Trading along the milk chain in Somaliland largely operates on shared culture, values, and trust.
Key actors involved and their role
Milk marketing in Hargeisa urban and peri-urban areas is largely a woman’s domain, while transportation of the milk is male-dominated. The milk chain consists of primary rural producers, primary collectors, transporters, primary and secondary retailers. Women are key both as primary and secondary retailers and in milk production with regard to the management of small ruminants (goats), while men are central in milk collection and transportation to the markets.
Key changes observed with regards to food security and nutrition and sustainable agriculture and food systems
The milk marketing system in Somaliland is efficient and sustainable. Trading along the milk chain in Somaliland largely operates on shared culture, values, and trust. This is highlighted by a unique system (known as “Hagbed”) that is in operation in Somaliland whereby producers organize themselves in groups of 10-15 with the objective of minimizing operational costs. Members of the group contribute towards the daily milk requirements of their customers. The milk is then sold to customers on behalf of one of the producers in the group at a time. The selected producer retains the money. Then s/he contributes milk to another producer in the group the following day. This is repeated until all members of the group have had a chance to sell milk. The system benefits the consumers in ensuring a relatively regular supply of milk. This indigenous system also ensures that all actors have equal opportunities of accessing customers and guaranteeing income. This “informal” marketing system plays an important role in food security and should therefore be supported by appropriate policies. This can be achieved through lobbying for policies and services that recognize and favour this kind of “invisible” trade.
Another important aspect of the Somaliland milk trade is a service offered by cooperatives to ensure members have access to milk during periods when there are fluctuations in supply. For instance, if a milk trader fails to get milk from her /his regular suppliers, the trader can obtain milk from other cooperative members for sale to her/his customers. This system is important in creating strong social and economic bonds among members and in sustaining supply along the milk chain.
It is also important to note that there are no major multinational companies operating in the country. These companies are known to have a monopolistic approach that interferes with indigenous marketing systems. The unique attributes of the Somaliland marketing system would be ignored if multinational companies were operating in the country and it can be argued it could contribute to food insecurity and the marginalization of women who are the backbone of the milk supply chain.
There is rapid increase in the urban population of the country, mainly attributed to rural urban migration. Increasing and un-met demand for fresh/raw milk particularly in the rapidly growing urban centres is reported to be increasing the demand for packaged/processed milk particularly among the middle class. Although the changing pattern in milk consumption in urban areas has so far not had significant impact on the consumption of raw milk, the changing rural–urban population dynamics is likely to influence milk consumption patterns in the long run. This is an aspect that cannot be ignored when formulating milk trade regulation policies in the country.
Challenges faced
The challenges include poor milk hygiene, under-developed transportation infrastructure, inadequate credit facilities, lack of cooling facilities along the milk chain, poor market infrastructure and nascent milk trade regulation policies.
Lessons/Key messages
In spite of absence of a strong lobby movement on consumption of locally produced products, the community using the platform of a growing co-operative movement is able to sensitize the population on the benefits of consuming raw milk, especially the economic benefits which trickle down to household level. Milk marketing in Somaliland plays an important role in food security and provision of balanced and nutritious food. Investing in milk production and trade will therefore improve food provision, social and environmental sustainability and safeguard livelihoods for the majority of the population, as livestock is the country’s main source of livelihood.
Sra. Teresa Maisano