i
SOMALIA: Building household
and community resilience to
drought and related risks in
Somalia.
Value Chain analysis report on local & export marketable crops
and crop products in Gedo, Bay and Lower Shabelle regions of
Southern Somalia.
Copyright © 2019 World Vision International (WVI) Somalia on
behalf of Somali Resilience Program (SomReP)
Some rights reserved.
This is a publication about the Value Chain analysis exercise on
local and export marketable crops and crop products in Gedo,
Bay and Lower Shabelle regions of Southern Somalia, an
exercise that was undertaken in the months of February &
March 2019. The designations employed and the presentation
of material in this information product do not imply the
expression of any opinion whatsoever on the part of World
Vision (Somalia), the legal or development status of any
county, territory, city or area or of its authorities, or concerning
the delimitation of its frontiers or boundaries. The mention of
specific companies or products of manufacturers, whether
these have been patented, does not imply that these have
been endorsed or recommended by WVI in preference to
others of a similar nature that are not mentioned. The views,
findings, interpretations and conclusions expressed in this
information product are those of the author(s) and should not
be attributed to, and do not necessarily reflect the views or
policies of World Vision. While all reasonable precautions have
been taken to verify the data contained in this information
product, World Vision does not guarantee accuracy and accept
no responsibility for any consequences of its use.
This assignment was undertaken by Dr Samuel Karanja and Mr.
Shem Mecheo of Kensome Limited with the support of World
Vision led by Daniel Kanyerere and Richard Mulandi in
collaboration with the SomReP implementing partners
including AAH, ADRA, CARE, COOPI, DRC and Oxfam with the
aim of developing a better understanding of the linkages
between producers, traders and actors in the market system of
crop value chains. This will help in the formulation of a strategy
on suitable market-based interventions to stimulate the
growth of important crops sub-sectors within the study regions
of Gedo, Bay and Lower Shabelle.
.
ii
Abstract/Executive Summary
This report proposes a pro-poor strategy aimed at increasing livelihood options and opportunities for
vulnerable poor farmers in Gedo, Bay and Lower Shabelle regions of Southern Somalia, enhancing their
resilience by increasing their adaptive and absorptive capacities against the multiple shocks that are a
result of the impacts of persistent and prolonged droughts in Somalia. The strategy is based on a Value
Chain study that was undertaken in the three regions of Southern Somalia to review and map 3-4 value
chains, identify factors, weaknesses and opportunities at several levels of the value chain including but not
limited to production, processing, technological, institutional and marketing. The study was conducted
through a very a participatory approach that entailed Key Informant Interviews, field observatory visits,
community surveys, and Focused Group Discussions. The report comprises of perspectives from farmers,
agro-dealers, farm workers, agro-processors, transporters, middlemen, exporters, local government
administration officers, development organization officers and academicians living in the study on the crop
value chains with potential to provide poor household families with alternative livelihood options to
withstand shocks such as drought. This is through improved and diversified livelihood, crop and crop
product preservation and other drought coping mechanisms through crop value chain development within
the bounds of sustainable, profitable and competitive crop value chains. Sorghum, sesame, lemon and
onion stood out to be the value chains identified due to their potential for secondary economic activities
(e.g. value addition) that could be undertaken by youth. In addition, they were found to be having already
existing informal relationships and governance mechanisms among actors along the value chain. The crops
also demonstrated low risk potential in value chain development in the context of Gedo, Bay and Lower
Shabelle (perishability, storage, bulkiness, logistics, existing markets, etc.).
The study unravelled a number of impediments towards the successful engagement of poor farmer
producers in agriculture markets. They include; low crop yields because of low input use levels, moisture
stress, poor farming techniques, pests and diseases, and poor seed quality coupled with an almost
non-existent extension and research service. Farming practices are constrained by low skill level, lack
of appropriate storage facilities, and poor roads, poor or non-existent partnerships between farmers,
government, private sector, agriculture research and development institutions and the development
community. Further, small scale farmers were found to be scattered over wide expanses of land areas,
with small holdings ranging from 0.5 to 3.0 hectares per farm land, which are characterized by
rudimentary farm systems, low capitalization and low yield per hectare as well as uncertainties
pertaining to political instability. Rain-fed farming systems mainly practiced by poor resource farmers
are geared mainly to meeting the subsistence needs of rural households. High insecurity of land tenure
among women partly reflecting complex dynamics extending from the interaction of multiple legal
systems and socio-cultural norms that undermine women’s capacity and agency within Somali society.
While targeting the input segment of the value chain, some key interventions include increased awareness
and skills of using improved farm inputs, building on informal existing groups, pursuing opportunities for
collective access to input while applying the “economies of scale principle”, facilitating access to water
pumps and increasing requisite skills for their repair and maintenance, supply of spare parts, subsidies for
inputs and piloting the use of new appropriate technologies such as solar power water pumps and engines.
Improving the commercialization of farming enterprises in the districts of study through the provision of
entrepreneurship and farm management skills to farmers should be part of the approaches for the
improvement of marketing and trade. Pursuing collective marketing through the existing cooperatives and
iii
small producer groups and mobilising farmers into similar farmer cooperatives will offer better
opportunities for price negotiations.
Infrastructure improvement in form of roads and storage will surely ease movement and storage increasing
access to the better markets. Additionally, discussion with neighbouring governments will help in reducing
cross border tariffs and taxation and improving cross border infrastructure.
Early interventions should focus on supporting small-scale farmers in Somalia by empowering them get
well organized, to produce and sell more food, to become competitive players in local markets.
iv
Table of Contents
Abstract/Executive Summary................................................................................................................. iii
Acronyms and Abbreviations ................................................................................................................ vii
List of Tables/Figures ........................................................................................................................... viii
INTRODUCTION....................................................................................................................................... 1
Demography and Distribution ............................................................................................................ 1
Bay................................................................................................................................................... 1
Gedo................................................................................................................................................ 2
Lower Shabelle................................................................................................................................ 2
The local economy .............................................................................................................................. 2
Crop Value Chains ............................................................................................................................... 4
METHODOLOGY ...................................................................................................................................... 5
Limitations of the Study...................................................................................................................... 6
Selection and Identification process of the Value Chains................................................................... 7
FGD and KIIs ........................................................................................................................................ 8
FGD responses ................................................................................................................................ 8
Qansadere & Xudur Districts’ FGD responses...............................................................................11
RESULTS ................................................................................................................................................13
Understanding the context of the very poor producers...................................................................13
Who are they?...............................................................................................................................13
Poor producers’ vulnerability and resilience measures................................................................14
Market realities facing extremely poor producers .......................................................................16
Challenges in accessing markets...................................................................................................17
The General Crop Market Systems ...................................................................................................18
The Policy framework ...................................................................................................................19
Pro-Poor Value Chains ......................................................................................................................21
Strategies by local communities to make markets work for them...............................................23
CRITICAL VALUE CHAINS .......................................................................................................................24
1. Sesame ......................................................................................................................................28
Geographical areas .......................................................................................................................28
Production..................................................................................................................................... 28
Market........................................................................................................................................... 30
Market Map ..................................................................................................................................32
Price Analysis ................................................................................................................................33
Value Chain Efficiency...................................................................................................................34
Quick win opportunities................................................................................................................35
v
2. Lemon .......................................................................................................................................35
Geographical areas .......................................................................................................................35
Production..................................................................................................................................... 36
Market........................................................................................................................................... 36
Market Map ..................................................................................................................................37
Price Analysis ................................................................................................................................38
Value Chain Efficiency...................................................................................................................38
Quick win opportunities................................................................................................................39
3. Sorghum....................................................................................................................................41
Geographical areas .......................................................................................................................41
Production..................................................................................................................................... 42
Market........................................................................................................................................... 42
Market Map ..................................................................................................................................43
Price Analysis ................................................................................................................................44
Value Chain Efficiency...................................................................................................................44
Quick win opportunities................................................................................................................45
4. Onions .......................................................................................................................................47
Geographical areas .......................................................................................................................47
Production..................................................................................................................................... 47
Market........................................................................................................................................... 48
Market Map ..................................................................................................................................48
Price Analysis ................................................................................................................................49
Value Chain Efficiency...................................................................................................................50
Quick win opportunities................................................................................................................50
RECOMMENDATIONS ...........................................................................................................................52
Recommendation on the most practical and feasible crop VC development approach;.............54
REFERENCES .......................................................................................................................................... 56
vi
Acronyms and Abbreviations
AAH Action Against Hunger
ADRA Adventist Development and Relief Agency
AEZs Agro-ecological Zones
AMISOM African Mission in Somalia
AS Al-Shabaab
BDS Business Development Services
CAPs Community Action Plans
CBOs Community Based Organizations
CMAs Crop Marketing Associations
COMESA Common Market for East and Southern Africa
COOPI Cooperazione Internazionale.
CVA Community Vulnerability Assessment
DRC Danish Refuge Council
ESP Emergency Seed Provision
FAO Food Agriculture Organization
FGDs Focused Group Discussions
GAP Good Agricultural Practices
IDPs Internally Displaced Persons
ILO International Labour Organization
INGOs International Non- Governmental Organizations
IRD Integrated Rural Development
MFI Micro Finance Institutions
MOA Ministry of Agriculture
MRLs Minimum Residue Levels
NDP National Development Plan
PPP Public Private Partnerships
TA Technical Assistants
TOT Terms of Trade
VC Value Chain
PWDs People with Disabilities
SESIMA Sesame Seed Growers’ Association
SHEFA Shabelle Farmers’ Association
SomReP1 Somalia Resilience Program
SoSh Somali Shillings
SP Strategic Plan
SPSS Statistical Packages for Social Sciences
SSB Salaam Somali Bank
US United States
USD United States Dollar
UFDA US Foreign Disaster Assistance
UNFPA United Nations Population Fund
VSL Village Savings and Lending
WVI World Vision International
1 SomRep is a 5-year program which aims at enhancing resilience in Somalia with an overall objective of building household and community
resilience to drought and related risks in Somalia. It is being implemented by a consortium of 7 INGO: Oxfam, CARE International, ACF, ADRA,
COOPI, DRC and World Vision.
vii
List of Tables/Figures
Table/Fig. No Title description Page
Number
Fig 1 Map of Gedo, Bay and Lower Shebelle regions of Sothern Somalia
Table 1 Matrix for the identification of critical pro-poor value chains 1
Table 2 FGD Responses 7
Table 3 Wealth Group characteristics 8
Table 4 13
Farmer Association members among interviewees 16
Table5
Reasons for low farmers subscription to farmer associations 16
Table6 Key crops of the MOA – SP 2016 – 2020
Fig 2 The crops seasonal calendar 21
Table 7 Number of interviewees per crop Value chain 24
Table 8 Sesame production costs 26
Table 9 Sesame Agro-processors 30
Fig 3 The Sesame market map 32
Fig 4 Levels of operation in the sesame value chain by male interviewees 32
Fig 5 Levels of operation in the sesame value chain by female interviewees 33
Table 10 Lemon Exporters 33
Fig 6 Lemon Market map 37
Fig 7 The Lemon Trade routes 37
Table 11 Sorghum processors 38
Fig 8 Sorghum Market map 43
Table 12 Membership to farmer Associations by sorghum VC interviews 44
Table 13 Reasons for low subscription to farmer association’s membership 45
Table 14 Main destination markets for interviewees ‘crops 45
Fig 9 Onion Market routes 49
Fig 10 Markets served with Onions from Southern Somalia 48
Table 15 Interviewee farmers who belong to CMA 49
49
viii
INTRODUCTION
This report provides an analysis and visual summary of the cereals, pulses, fruit and vegetable value
chain in the regions of Gedo, Bay and Lower Shabelle of Southern Somalia from the perspective of
farmers, agro-dealers, farm workers, agro-processors, transporters, middlemen, exporters, local
government administration officers, development organization officers and academic experts living in
those regions.
Demography and Distribution
The Value Chain study was conducted in all the three target regions of Bay, Gedo and Lower Shabelle
of Somalia. Lower Shabelle and Bay regions are located in the South West State of Somalia while Gedo
is within the Jubaland state. The regions are in turn sub-divided into districts. The geographical
districts of focus were Baidoa, Doloow, Qansadere, Xuduh, Buurhakaba, Afgoye, Beled Haawo and
Luuq. These districts comprise of a mix of pastoral, agro-pastoral and internally displaced persons
(IDPs).
There are three primary agricultural
zones covering the three regions of
Southern Somalia (Somalia
Agriculture Issue N°001):
Bay i. Coastal Cowpea Belt Zone in
Southern Somalia
Gedo ii. Shabelle and Juba Riverine
Valleys - rainfed and irrigated maize,
with sesame cash crops
iii. Sorghum Belt in Bay to
Bakool Region - rain fed sorghum
with livestock production.
Lower Bay
Shabelle Bay is an administrative region that is
bordered by the Somalia regions of
Figure 1: The Gedo, Bay and Lower Shabelle regions of Somalia Bakool, Hiran, Lower Shabelle,
Middle Juba and Gedo. Bay’s current
capital is Baidoa.
According to the Population Estimation Survey of 2014 by United Nations Population Fund (UNFPA),
Bay had a total population of 792,182 inhabitants with an average household size of 7 inhabitants.
Out of the total population in Bay 93,046 of the people are in urban centres, 463,330 in rural areas,
195,986 as nomads and a total of 39,820 Internally Displaced Persons (IDPs). The Bay region consists
of four districts i.e. Baidoa District, Buurhakaba District, Diinsoor District and Qasahdere District. The
major towns are Baidoa, Dinsoor, Burhakaba and Berdaale.
Baidoa is the capital city of Bay region with a population of 59,110 people (UNFPA Population
Estimates, 2014).
1
Gedo
Gedo Region, the second largest region in Somalia, lies on the Somalia borders with Ethiopia and
Kenya, and shares borders with four Somali regions of Bay, Bakool and Middle Jubba and Lower Jubba.
It has an estimated total population of 508,405 with a 109,142/177,742 urban/rural divide, 144,793
practicing nomadic lifestyle and an estimate of 76,728 IDPs (UNHCR, January – 2012). The most
populous towns in Gedo are Bardera and Beled Haawo.
With an estimated population of 508,405 persons and average household size of 7 members, majority
of them being nomads, it is one of the regions with the lowest per capita income in Somalia (at USD
100 – 150 per year) according to Somali Diaspora Investment Survey Report of June 2016 by Shuraako
and IFAD.
Gedo has six administrative districts: Garbaharey, Baardheere (the capital), Ceel Waaq in the south
and Belet Xaawo, Doloow, and Luuq in the north.
Lower Shabelle
The Lower Shabelle region lies to the west, northwest, and southwest of Mogadishu. It is bordered to
the south by the Juba region, to the east by the Indian Ocean and Mogadishu, the Middle Shabelle
region to the north and the Bay region to the west. It has an estimated population of 1,202,219
inhabitants with an average household size of 9 people (UNFPA, 2014). The total urban population is
estimated to be 215,752 people, while 723,682 of the population is said to be rural inhabitants,
159,815 nomads and 102,970 IDPs. The topography is composed of plains, coastal areas and semi-
desert stretches such as the Brava district. The population is classified under four categories; agro-
pastoral, agricultural, pastoral, and urban sedentary.
The region comprises of eight districts: Merka (the regional capital), Afgooye, Wanle Weyn, Koryoley,
Sablale, Brava, Kurtun Warrey and Audegle.The Shabelle River passes through the middle of Afgooye
town which is the capital of the Afgooye District, a district in the South-eastern Lower Shabelle region
of Somalia. Afgooye is situated about 25 kilometres west of Mogadishu, the nation’s capital.
The local economy
The political instability and civil strife in Southern Somalia, among other areas in the country have
resulted in governance difficulties and institutional breakdown that have taken a toll on the economy.
Most public infrastructure and institutions have deteriorated or been destroyed. Livelihoods have
been drastically eroded; people’s coping strategies disrupted resulting in large-scale migration and
displacement. Mobility, whether customary livestock-based pastoralist or distress afflicted flight from
insecurity or crisis has become a defining feature of the contemporary communities particularly in the
Bay and Lower Shabelle regions.
Bay, Gedo and Lower Shabelle; like other regions in Southern Somalia maintain an informal economy,
based mainly on pastoralism/agriculture (livestock & crop), remittances from abroad, and service
sector (telecommunications).
1. Agriculture
Bay and particularly the town of Baidoa is the trading centre of the Sorghum-Belt, Somalia’s sorghum
breadbasket. The Sorghum-Belt is the sorghum producing regions of Gedo, Bay, Bakool and Hiran
regions. Baidoa is surrounded by two rural livelihood zones: Bay Agro-pastoral High Potential and Bay-
Bakool Agro-pastoral Low Potential Livelihood Zones. Baidoa is a major economic centre of Southern
Somalia, with strong economic links to neighbouring rural and urban centres, including Mogadishu,
2
Merka, and Qoriyoley (Lower Shabelle region), Bardera and Beled Hawa (Gedo region) and Hudur and
Wajid (Bakool region). The roads are mainly marram roads with patches of tarmac around major
trading towns. Main economic activities in Baidoa town and the Bay region at large include small,
medium and large-scale business, casual labour, self-employment, and livestock and agricultural
trade.
In Gedo, the economy mostly depends on rearing livestock and farming, but also has strong inter-
regional and international cross-border trade with Kenya and Ethiopia, to some extent. Produce is
transported from Gedo to Ethiopia via Dolado to Addis Ababa. Lemons are exported to Djibouti- Dubai
via Berbera routes. Traders also transport lemons and sesame to Dubai through Dolado- Jijgar- Gothe-
Waajale- Berbera routes. The Beledwyne- Bosaso- Berbera route is also an option despite the security
and poor infrastructure constraints. Some onions are also sold to northern parts of Kenya via Mandera
border town.
In the northern zone the pastoralists rear sheep, goats, camels and cows. The agro-pastoral zone
extends from east to west of the region. The riverine zone also extends from east to west and is mainly
a farming area where crops such as sorghum are produced. The region has two major rivers running
through it, the Dawa and the Jubba Rivers. The Dawa River runs along the border of Ethiopia into
Somalia’s Gedo region. The Jubba River starts from Doloow, just north of Luuq district, and flows to
Buur Dhuubo and Baardheere.
Beled Haawo is Gedo’s commercial gateway for export crops i.e. onions, sesame and lemons as well
as that of neighbouring regions including Ethiopia, Djibouti and Kenya, while Baardheere is Gedo’s
breadbasket. Agricultural products from Baardheere’s fertile grounds that include maize, potatoes,
sorghum, tobacco, onions, sesame and fruits such as papaya, mangoes, water melons and bananas
are shipped to many different parts of the country and beyond.
In Lower Shabelle, Afgooye district is blessed with a large area of farmland that has agricultural fields
that are suitable for cultivation of fruits such as banana, citrus (lemon & grape fruit), mango and paw
paw. There is a crops market based in Afgooye town which is the main supplier of fresh produce to
Mogadishu town. This region is the breadbasket of South-Central district of Somalia as well as
neighbouring districts.
The fields are suitable for vegetable cultivation (i.e. Tomato, onion, pumpkin, spinach, Lettuce, Bottle
ground-katitow, sweet pepper, carrots and sweet potato) and cereals grain such as Sorghum,
cowpeas, mung beans, sesame, groundnuts, maize and sunflower. The Afgooye district has Shabelle
River, which is the longest river in Somalia and is crucial for most of the food produced through
irrigation. Despite the huge potential, the export market is not well developed and most of the farmers
are subsistent farmers where by the crops they grow are mostly for household consumption. The
researchers visited the Afgooye farmers in the north and south sides whereby the areas are mostly
cultivated with cereal crops such as Sorghum, Maize, and Sesame.
2. Remittances
About 1 million Somalis live abroad as part of the “diaspora”. Most left to escape war rather than
famine. This, combined with a strong Somali entrepreneurial streak, positioned many to thrive
overseas. Strong family and clan ties mean that much of the remittance’s income is from relatives or
close members of the clan. According to a recent Shuraako and IFAD study Somalia’s diaspora alone
sent more than $1.4 billion home in 2014, nearly twice the level of development assistance ($832
3
million) and five times that of humanitarian aid ($253 million). This enables most families to thrive
despite the high unemployment rates. Populations who do not benefit from remittances are
disproportionately found in the south of Somalia, where there is a larger rural population, and where
structurally marginalized and ethnic minority populations are more numerous (D. Maxwel & Majid,
2016).
Remittance income contributes to different areas of the household economy and beyond. The bulk of
money sent is used by families to cover basic household expenses – food, clothing, education, and
medical care. Contributions are also made to pay for family emergencies or weddings, to community
development efforts, to make investments, to promote political projects, and to settle clan disputes
(Lindley, 2012; Hammond et al., 2011).
The role of remittance in Southern Somalia is extremely important towards economic regeneration by
helping drive the economic engine through cash circulation and transfers used to make investments
in agriculture production, in business and trade, in reconstruction and for livelihood security and
maintenance.
3. Service sector
A growing third sector is the services sector, mainly financial and telecommunication services. Services
appear to be the fastest growing sector in Somalia today. They account for over 23 percent of GDP –
approaching the size of the livestock industry and growing faster (J. Coyne, 2008).
Telecommunications, internet, radio, print, television and postal services in the nation are largely
concentrated in the private sector. Telecommunications, financial services (money transfer) and
construction are among the largest services industries, but the category also includes electricity and
water supply, wind and solar power, retail trade, trucking, car hire, hotels, television and radio
broadcasting, vehicle repair, well drilling, security services and waste disposal, among others.
Crop Value Chains
Agriculture production is the first income source and plays key role in Somali’s economy. Before the
civil war the Somali government exported hundreds of thousands of tons of crops produce, but after
the collapse of the central government in 1991, Somali cropping sector lost in their position in the
world market. In the recent years political stability has returned in some regions, which is somewhat
enough for agricultural production, thereby partially meeting requirement of local needs. The report
of FAO, Dec. 2015, mentions that roughly 50% of Somalia population’s cereal requirements are met
through domestic production, because mostly the population is agro-pastoralist, which means they
mix livestock and crop production.
From rapid market appraisal, it was noted that several crop value chains do exist, though in varying
production magnitudes. Some of important crop value chains include maize, sorghum, sesame,
sunflower, banana, mung beans, cowpeas, pawpaw, citrus (lemon & grapefruit), pumpkin, tomato,
onions, Okra, spinach, lettuce, carrot, sweet pepper, guava, spandesa, coconut, tobacco, cotton,
watermelon, groundnuts, mango, sweet potato and bottle ground (katitow). Principle crop exports
include banana, citrus, sesame, onion, sunflower, cotton and mango. Sorghum, corn and all the rest
are products for the domestic market. Citrus, sesame, sorghum, corn, tomato are some of the crops
that undergo processing along the chain within the study regions.
Sorghum, sesame, lemon and onion were identified as the most promising crop value chains
especially for the poor.
4
METHODOLOGY
The study used primary data extracted from agro-dealers, farmers, farm workers, agro-processors,
transporters, middlemen, exporters, local government administration officers, officers from
development organizations and academic experts living in Gedo, Bay and Lower Shabelle regions. The
assessment also involved a comprehensive review and analysis of relevant literature materials,
policies that affect the crop value chains, value addition and agro-processing, market access including
relevant state Governments’ policies and market liberalization strategies. Examples include the
National Development Plan 2016-2019 and the Ministry of Agriculture (MOA) Strategic Plan, covering
a five-year period from 2016-2020
The participatory value chain study process engaged key project stakeholders and potential
beneficiaries through Key Informant (KI) interviews, short surveys, and Focus Group Discussions
(FGDs). Site visits were utilised to meet as many Value Chain stakeholders as possible for interviews.
The field data was complemented by the review of documentation from other sources (see Annex)
including an analysis of the relevant legal and policy environment in the study areas.
Therefore, several mechanisms were applied to ensure that the study is based not only on sound
analytical work but also on extensive and comprehensive consultations with a broad range of
stakeholders. Consultations entailed: (i) Meeting with the World Vision team (ii) Discussions with the
SomRep field managers based in Gedo, Bay and Lower Shabelle; (iii) key informants’ interviews; (iv)
Thematic group discussions; (v) external reviews; (vi) Observatory surveys & field visits. The
researchers also held discussion with the local state Government officers, officers from institutions of
credit and one officer from the Port of Mogadishu.
The researchers then conducted a survey collecting data from 158 respondents spread across the
three study regions using a quantitative questionnaire. In total 85 questionnaires were administered
on farmers, 15 each on agro dealers, traders and processors and the 6 Focus Group Discussions.
Further, 28 Key informants were interviewed. In total 204 persons were reached, and data collected
from them using a mix of quantitative and qualitative survey tools. None of these persons was a person
with disability.
A collection of purposive and Snowball sampling was used in order to identify potential respondents.
In practice, this meant that enumerators asked respondents to identify other potential respondents.
This is a particularly effective tool for value chain studies, especially in sensitive locations (Babbie, E.
2001) such as the study regions due to the very high level of insecurity.
Field work for the study was conducted from February 14th - March 8th, 2019 by the research team,
assisted by a team from COOPI, DRC, CARE International, ADRA and the World Vision – Somalia and
local partners. The study covered 9 rural and peri-urban districts of Baidoa, Dolow, Qansadere, Xuduh,
Elbarde, Buurhakaba, Afgooye, Beled Haawo and Luuq. For some of the districts such as Xudur,
Elbarde, Qansadere and Buurhakaba consultants also used Voice over IP communication (e.g. Skype
and WhatsApp). This was further complimented by the administration of questionnaires via email on
a selected team of Key Informant Interviewees.
In parallel to the value chain study, the researchers also conducted a rapid market assessment to
gather broad data on wider market trends. Several tools were used:
5
Observational analysis was carried out in the study area’s principal areas of economic activity using a
detailed checklist to provide a systematic account of market activity. The information collected
included products available and costs.
Consumer demand interviews were conducted among a purposive-then-random sample of male and
female respondents recruited from commercial areas in the District capitals. The interviews identified
levels of satisfaction with current market products and demand for new products. Qualitative focus
group discussions were held with – two in each region. The focus groups contained a mixture of
youths, women and men.
Local stakeholder interviews (qualitative) were conducted among government officers in relevant
departments and agencies depending on security and availability. Qualitative interviews were
conducted face-to-face or over the telephone by native Somali speakers and lasted 30-45 minutes. A
total of 7 interviews were conducted with local stakeholders.
Limitations of the Study
It was extremely difficult to collect enough primary data due to the security situation particularly in
Lower Shabelle and Bay regions.
Information on crop yields and areas were estimated using conventional methods this included
validating farmers response with that of their peers but not statistically valid techniques. Due to
absence of earlier data in some of the areas it was not easy to assess the correctness of information
given by farmers. However, where data were clearly questionable, an attempt was made in adjusting
them based on interviewer’s experience.
Units of measurement on quantities traded are either in sacks or boxes. No attempt was made to
measure the actual weights of these common units since they are heterogeneous, but farmers gave
estimates of their kilogram average equivalent.
It was difficult to get some quantitative data on crop value chains. Local producers and market actors
operated informally and across the three borders of Somalia, Kenya and Ethiopia. However, the
additional data collection and triangulation of data from several sources was useful in addressing the
above challenges, and the report is useful in forming the basis for further understanding of the value
chains.
In relation to People with Disabilities (PWDs), and as a result of poor accessibility to public
transportation, roads, and buildings, none of them was interviewed as they remained trapped in their
homes, unable to participate in society on an equal basis with others. People living in the remote rural
areas faced particular difficulties in accessing transportation, since public transportation in the study
locations is either very minimal or does not exist at all, and where it does exist, it is overwhelmingly
inaccessible to PWDs.
The primary quantitative data from producer questionnaires were managed and analysed in SPSS data
software, while the qualitative data from interviews and FGDs were summarized and analysed by the
responses targeting the different questions and summaries under various themes. The analysis was
made for each of the selected commodities to display a product flow map, functions of actors,
constraints and opportunities along the value chain for each of the commodities.
6
Field research data was triangulated with existing secondary sources of information to arrive at
creditable conclusions and recommendations.
Selection and Identification process of the Value Chains
A participatory approach was used to identify all the crop value chains in the three regions of study
for analysis.
Based on the data collected from farmers and other value chain actors, the key informants’
interviews and literature reviews a simple selection criterion was used to identify the pro-poor value
chains that contain the best potential for promoting pro-poor growth and livelihood improvement.
Numerical scores for a series of ‘appropriateness’ metrics was used to help to reduce any degree of
subjectivity. The value chains represented in the table below are those that were collected during the
participatory process, from reports on local markets, those mentioned in key informant interviews,
questionnaire survey and focused group discussions, and those for which several scores could be
extrapolated either directly or by inference.
The scores are based on the following premises:
Table 1: Metrics for the identification of the critical pro-poor value chains
Score Premise
1 Inferred reference to very poor performance
2 Inferred reference to poor performance
3 Default score/uncertainty
4 Inferred reference to good performance
5 Inferred reference to very good performance
NA Not enough information to make a judgment
Crop Impact Analysis criteria points Sustainability Analysis criteria points Suitability
Sorghum Low Potentially Short- Long- value potential production Aggregation Total
Maize Investment Large no. of term term addition secondary levels potential score
Sesame beneficiaries impact impact opportunities markets
Mung beans 5 5 5 38
Cow peas 3 5 5 5 4 4 4 5 30
Carrot 4 4 3 3 4 4 5 5 38
Onion 3 5 5 4 5 5 3 3 24
Okra 4 3 3 3 3 3 5 5 32
Tomato 3 5 4 3 3 3 3 3 21
Banana 4 2 3 3 2 2 5 5 37
Pawpaw 3 5 5 5 3 5 2 2 22
Lemon 4 3 3 3 3 3 4 4 32
Grape fruit 3 4 4 4 4 4 4 4 30
Spandes 3 4 4 4 3 4 3 2 23
Sweet 3 2 4 3 3 3 5 5 36
pepper 3 5 4 5 4 5 3 3 24
Guava 3 3 3 3 3 3 3 3 21
Water melon 3 3 2 2 2 3 3 3 32
Mango 3 3 3 3 3
Sunflower 3 3 3 30
Spinach 4 2 3 3 4 3 4 3 30
Lettuce 3 3 3 3 3 3 3 4 28
Ground nuts 4 3 3 4 4 4 3 3 29
Bottleground 4 3 4 4 5 3 3 3 25
Sweet 4 3 3 3 3 3 3 3 25
potato 3 3 3 3 3 3 3 3 24
3 3 3 3 3 3 3 3 24
4 3 3 3 3 3 3 3 25
3 3 3 3 3
7
Pumpkin 4 3 33 3 33 3 25
Coconut 3 3 34 3 33 3 25
Cotton 3 3 33 3 33 3 24
Rice 3 4 44 3 33 3 27
Tobacco 3 3 33 3 33 3 24
Based on the above scoring, the value chains selected for an in-depth value chain analysis were
sorghum, sesame, lemon and onion. In addition using the ILO Value Chain Development (VCD)
framework, Samuel Hall (a research and consulting company based in Asia and East Africa) conducted
a study entitled “Market Opportunity Mapping in Somalia; A value-chain analysis and rapid market
assessment in Baidoa and Beletweyne Provinces” in 2017 and identified sorghum and onion as value
chains with high potential in driving socio-economic growth among poor households.
FGD and KIIs
Following ILO’s2 Value Chain Development (VCD) methodology, a total of six participatory focus group
discussions were held (2 per region) each with 15-20 participants to map out the value chains and
actors and their geographic locations. Focus group participants were drawn from the local markets
and their neighbourhoods and contained a mix of value chain actors based in those markets. FGD
participants comprised of practicing small holder farmers, agro-processors, traders (brokers,
retailers/wholesalers, and exporters), agro-dealers and transporters. Key Informants included officers
from locally based development organizations, local state government officials, academia and large-
scale processors.
The sessions lasted between 1 and 2 hours and provided important qualitative information to help
guide both the analysis and the subsequent value chain interviews.
Table 2: FGD Responses
FGD responses Responses
Region - The farmers noted that the average land size per household is 15ha. An
average household size was 7.
GEDO
- Most rainfall is received in April – June and a shorter rain season in Oct -
FGDs we conducted December
in Doolow and Beled
- The land tenure system in Doolow was said to be either individually owned or
Hawo cooperative owned and in both cases, farmers have title deeds. Leasing was
not a common phenomenon in the area.
- Farmers in Dolow also practice irrigation from River Dawa whereby water is
gotten to the farms through Irrigation canals.
- Diesel-powered engine pumps are used to pump the water to the river.
- COOPI has been working with the farmers and supported them by meeting fuel
costs, though the farmers also contribute among themselves.
- The main types of irrigation used are surface and flood irrigation.
- Household labour is used in the farm with weeding being the most laborious
farm activity.
- Hired labour could be compensated with food/meal while monthly casual
labour costed USD 150 per month.
- The proposed crop for an agribusiness program intervention in Dolow according
to the farmers include Onions, Sesame, Sudan grass (fodder), lemon, water
2 International Labor Organization
8
LOWER Melon, and tomatoes. Green pepper, Parsley and sorghum were also reported
SHABELLE to be profitable crops in the region.
- Export market crops preferred in Doolow are Onions, Water melon and
Afgooye FGDs tomatoes.
responses - On credit financing, COOPI extends credit to small-scale farmers who are
beneficiaries of the organization’s program interventions through organised
Revolving Fund linked to the Dahabshili bank which is usually repaid back.
- Farmers can also get input credit from Agro dealers based in Dolow town.
Examples of such agro dealers are Mohammed Luh and Daynh.
- Farmers also get cash from the sale of cash crops such as lemon, Onions and
tomatoes, sale of livestock, foreign remittances and Humanitarian support in
form of farm inputs e.g. in Luuq.
- Sesame, onion, water melon, maize, beans, occupy the greatest proportion of
land. Sesame is then sold to Ethiopia and/or Kenya. It is also processed to oil in
Dolow town by an entrepreneur called Abdi Fatah and the oil is also sold to
Ethiopia and/or Kenya.
- Lemon is the most exported crop from the region. Lemon is transported to
Djibouti, through Port Berbera and then to the Gulf. The trade route is Dolo Ado
– Gothe -Wajale – Hargeisa – Berbera and then Djibouti. Alternatively, traders
use the Belethwene- Bosaso – Berbera route to get the lemons to the Gulf.
- Onion was said to be a prime crop besides fodder with huge potential for
economic empowerment of poor household in Gedo Region. Onions are
transported through Dolo-Ado to Addis Ababa, Ethiopia or Dolo Ado to
Mandera, Kenya.
- The region is well served by River Shebelle and Juba that usually has water
during the Deyr and Gur seasons. The most common crops in Afgooye are;
Maize, Sorghum, Tomato, Sesame, Beans, Pumpkin, Sweet potato Lemon,
Banana and Sweet Pepper. Tomato, Lemon and Maize are a good source of
income for households, while Pumpkin and cowpeas could be for household
consumption and for sale. Farm labour is in great demand during land
preparation, Planting, weeding and harvesting. From the FGDs in Afgooye,
farmers enlisted lemon, Sesame and maize in that order as the most preferred
cash crops for the export market and Tomato, Cow peas and green vegetables
in that order as the most preferred crops for the domestic markets. Spinach,
Onions (whose seeds are sourced from Yemen), Water melon and carrot were
the other preferred crops for household income generation.
- Land for cultivation is leased from landlords or it could be communally owned.
Land owners negotiate with tenants, whereby the tenant cultivates the land
and the harvest from the land is shared based on the agreed Terms of Trade
(TOT). Alternatively, the tenant may agree to incur the input cost and all related
expenditures but shares the land harvest with the landlord based on the TOT.
The landlord may be responsible for canal digging and provision of inputs in
some circumstances and the tenant will then be responsible for farm labour
provision.
- In Afgooye district, land under rain fed farming was leased out at a cost USD
50 per a hectare per cropping season, while land under irrigation was being
leased out at the cost of USD 200 per hectare per cropping season.
9
BAY - One meter of Canal digging would cost USD 2. Diesel engine water pumps are
were being leased out at USD 1.5 an hour in addition to buying the fuel for
Baidoa District irrigation water pumping into the farm lands.
FDG
- Only 5-10% of the farmers had access to borehole or shallow well water and
many of these are banana farmers. The irrigation systems in place were mainly
flood irrigation and very few cases of drip irrigation.
- Average household size was 8 persons with the smallest and highest household
population ranging from 5 – 15 people.
- Most at times land produce is collected by middlemen right from the farm gate.
The produce is sold in Afgooye, or at Bakaara market in Mogadishu, while
sometimes it is transported to Baidoa, Hargeisa, Busaso by the traders. Sesame
processors operating in Mogadishu supply Mogadishu, Afgooye, Baidoa,
Buurhakaba, Dolow and Hargeisa markets with Sesame oil. Sesame is also
exported to India and Turkey among other export market destinations.
- In Afgooye, a 70 kgs bag of maize was being sold at USD 7 per bag. During
festivities such as Ramadhan maize is expensive, and the same quantity of
maize can significantly go up to USD 40. During rainy seasons, it is not easy to
get the bananas to the market, and due to lack of cold storage facilities at the
producer’s level, much of the banana produce ends up rotting in the farm. In
Mogadishu 1 banana piece goes for USD 0.005 – 0.03 while in Afgooye 5 banana
pieces were being sold for USD 0.001.
- Cow peas were also found to be a well-paying crop than maize. A kilogram of
cow peas was going for USD 3 at the market while middle men get it at USD 1.5
at the farm gate. Cowpea was therefore said to be the most economically
important pulse in Afgooye.
- There are no rivers nearby Baidoa, therefore 95% of the farmers in this region
depend on rain fed farming for growing of crops. The nearest rivers are in
Afgooye. Only a few farmers based at the Farm Arabis region use irrigation from
underground springs and water reservoirs with dug out canals to the farm.
- Marketing of produce is mainly done during designated market days mainly on
Fridays and Wednesdays across different villages. Government forces and
Ethiopian Soldiers (AMISOM) provide security during the market days.
- Main Crops for Bay region
i. Sorghum- Is the most important food crop for farmers in this region. It
is also the most widely grown by 90% of the farms in Bay region. The
weather is favourable since Sorghum is a hardy crop that needs
minimum amount of rainfall. Sorghum is mainly used for household
consumption in the form of Ugali, pancakes, also it is mixed with
cowpeas before boiling. Sorghum is also used as fodder for the
animals. The stalks are either baled into hay or ferried over donkey
carts to feed animals.
ii. Cow peas: It is the 2ndmost important food crop in the area. It also
occupies the 2nd largest portion of cultivated lands by the farmers after
sorghum in Bay.
iii. Maize: Maize is the third most cultivated crop in Bay region.
- Farmers in the area mainly source for financing from the village savings and
loaning associations (VSLA). There are no formal financial institutions offering
small scale farmers credit.
10
Qansadere & - Most commonly grown crops in order of importance according to farmers are
Xudur Districts’ Sorghum, Cowpea, Maize and Groundnuts.
FGD responses
- Sorghum is the most produced crop in the area. It’s grown under rain fed
Buurhakaba & conditions. However, little has been done in strengthening the value chain.
Elbarde Farmers sell sorghum and cowpea to Baidoa market. However, some business
traders transport it to Mogadishu- Galkayo and Hargeisa. Sorghum is also
important constituent of the livestock feed. Farmers sell the sorghum as fodder
mainly on donkey carts.
- Gur has more rainfall, but farmers get less production due to pest infestations,
weeds and crop disease. In Deyr- they produce more. Crops are rotated from
one season to the next thanks to the trainings from COOPI on Good Agricultural
Practices (GAP). The farmers noted that the trainings offered have been very
impactful on output since they can now produce maize and sorghum with
bigger combs.
- Finance access: Several Financial institutions are available including
Dahabshill, Dara - salaam bank but they are not lending to small scale farmers.
This is because not only are the banks not having small scale farmer-tailored
credit products, but are also overlooked due to the cost of processing and
servicing small unsecured loans. Additionally, farmers in Somalia are
frequently exposed to the uncertainties of weather, disease, prices, etc. and
many farmers therefore live on the edge of poverty and are never attractive to
commercial banks for business.
- A main crop being grown is Sorghum in the area. It is both a food crop as well
as fodder for the livestock. Land is mainly inherited, and each household has an
average of 8 people.
- Farmers lease tractors from individual contractors at USD 20 per 1hour of
ploughing. Farmers also noted that NGOs like DRC give them some farm inputs.
There are large input dealers in Barwaaqo who brings in input supplies from
Kenya. Farmers however have limited information regarding inputs quality.
- Farming is solely rain fed in the area. Sorghum being the most produced crop
just like in Baidoa
- The farmers take their produce directly to the market. The state government
taxes the produce when offloading at the market. Each sack of produce is
charged at 2,000 Somali shillings. The traders noted that when importing
produce from Mogadishu to Baidoa, Al-Shabaab also charges tax once at USD
0.5 per sack.
- The challenges Baidoa traders and farmers face include: Influx of NGO
supported humanitarian relief food arriving during harvest periods. This makes
them fetch very poor prices of their produce. For instance, when relief food is
distributed the cost of sorghum drops from $0.5/kg to less than $0.1/kg thereby
discouraging most producers.
- Outward migration from the region is influenced by the need to source for
better education by the youth, looking for job opportunities in urban centers,
drought and conflict.
- The town of Buurhakaba is named after a large mountain that located at the
centre of the city.
- It is believed to have huge mineral and rock deposits including Uranium, Iron,
Aluminum, phosphorus, Kaolin,bauxite,Granite, marbles, sandstones, Crushed
rocks, and Limestone.
11
- Burhakaba has a strategic advantage that it connects between the three regions
of Bakool, Hiiraan and Lower Shabelle.
- Burhakaba is a hub for livestock trading.
- Business people from the regions around it come to this town on Mondays
mostly to trade livestock.
- is mainly dependent on agriculture and livestock and has suffered continuously
from drought.
- Kansadere District is situated in Bay Region of Somalia.
- The region consists of high potential sorghum producers accounting for about
45% of their livelihood (mainly in Baidoa, Burhakaba and Kansadere Districts),
followed closely by agro-pastoral livelihood accounting for about 38%, mainly
in Baidoa, Dinsor and Kansadere.
- There is high dependence on cereals (mainly sorghum) and animal products
(milk) for majority of the residents in Qansadere.
- Kansadere district is dominated by agro-pastoral community with about 50% of
the population being in the high potential sorghum, cattle and camel producing
zone and about 40% in being Southern agropastoral area with less potential for
food production.
12
RESULTS
Understanding the context of the very poor producers
Who are they?
The very poor producers are individuals and households with few assets, the landless smallholders,
pastoralists, rural women (especially women-headed households); ethnic minorities, and indigenous
populations. They were found not to be a homogeneous group.
The poor producers of Somalia were small holder farmers who have much unprofitable land and lack
the resources to put the land into productive use and maintain it fertile. Many of these rural poor
producers were family farmers, subsistence producers, or landless agricultural workers. They include
agro-pastoralists, pastoralists, and internally displaced peoples with limited access to productive
means.
Wealth Group Characteristics - Source of Income - Expenditure pattern
The main sources of income The largest amount of money
Poor - were sales of cereals (in real - was spent on non-food
terms and/or the vegetative - essentials including fuel, oil,
Source of food - material), small scale spare parts and repairs for the
- In a normal year the poor will - horticulture. irrigation pumps.
Additionally, they could take a Food purchases include sugar,
access their food through own - credit loan that they pay back tea and oil.
production (sorghum, maize). - from the next sale of their Other needs are household
- Additionally, a small amount - own harvest. items such as kerosene,
of food comes from the - Household land size was 3-5 clothing and schooling.
market including sugar, oil & - ha
skimmed milk. 0-1 irrigation pump(s) owned Expenditure pattern
- Wild foods and/or gifts could Similarly, to the poor, the
amount to part of source of Source of Income - largest amount of money was
food (mainly grains/cereal) spent on non-food essentials
for some. Cereals production; maize, including fuel, oil, spare parts
sesame, onions. and repairs for the irrigation
Middle Middle households will take a pumps and pesticides & seed.
loan. However, more money was
Source of food Household land size 8-15 ha. spent on fuel and oil to pump-
- The middle group sources of Foreign remittance was part irrigate a larger piece of land.
of the income source Other costs included food
food were found to come 1-2 irrigation pumps owned purchases (oil, sugar, meat,
from their own production of vegetables & wheat flour) and
maize and cowpeas, with a household items, clothing &
small proportion coming from schooling.
purchasing sugar, oil, wheat
flour & meat.
-
Table 3: Wealth group characteristics
The Small-scale producers and poor farmers were characterized by a large degree of marginalization,
lacking access to natural resources (both land and inputs), technologies (including irrigation), capital
markets and credit. Geographic marginalization was found to be restricting the ability of these
producers to buy inputs and sell produce, an isolation deepened by lack of access to good roads and
13
motorized transport. Many of these producers in Somalia utilize donkey carts for transportation of
goods. A low level of skills was also noted as a restriction to opportunities for individuals and
households.
Just like other regions in Somalia, farmers in the regions of Bay, Gedo and Lower Shabelle live in
extremely poor and underdeveloped conditions. Livelihoods are broadly based on subsistence farming
and pastoralism with limited opportunity to earn wages. Agriculture is an important livelihood activity
in Somalia not only in terms of meeting household food needs (nearly 50% of population's cereal
requirements are met through domestic production) but also in terms of generating income through
crop sales and agricultural labor opportunities (USAID, 2014). Agriculture is a major component
particularly for two of the main rural livelihood systems: Agro-pastoralist - mix of agriculture and
livestock production-based livelihood. Agro-pastoralists are found in the inter-riverine regions of Bay,
eastern Gedo and Lower Shabelle in Southern Somalia. Agriculture was found to be primarily rain fed
making this livelihood extremely vulnerable to climatic hazards.
Poor producers’ vulnerability and resilience measures
Somalia’s poor producers face tremendous challenges. The crops sector has been buffeted by the
increasingly fragile and degraded natural environment, by more frequent and extreme cycles of
drought and floods related to an intensifying climate change and by the lack of research and extension
services. Crop production has also been severely affected by the continuing insecurity, lack of or weak
government institutions with no legal/regulatory framework and consequent deterioration of the
flood control, irrigation and transport infrastructure in the Southern Somalia regions.
The impact of drought on the Somali people is compounded by an interrelated set of factors that
include the environment, governance, conflict, displacement and poverty. Recurrent drought and
subsequent famine risks have become devastating and increasingly an unsustainable cycle in Somalia
in past years.
The increasingly erratic and diminishing flows of Somalia’s major rivers— caused partly by a drier
climate and related increased use of their water in the upstream Ethiopian highlands—threaten the
recovery and growth of irrigated crop cultivation. Severe deforestation and soil erosion from
unregulated human activity, overgrazing of rangelands, and climate change threaten both the growth
prospects and the viability of Somalia’s traditional nomadic pastoralism and rain fed crop cultivation
(upon which the subsistence of rural households largely depends).
In crop production the attainable yield is greatly reduced by the effect of diseases, insects and weeds.
At this stage of the value chain pests and diseases are the leading primary and secondary yield loss
causing factors. At post-harvest level, poor handling is another contributing factor to significant yield
losses. For example, even for short-term storage (less than 6 months), the moisture should be less
than 15% for most of the cereal crops e.g. sorghum and maize. Inadequate drying can result to mould
growth and significant yield losses during storage.
The underground storage pits for sorghum in Somalia are for example exposed to moisture from the
surrounding soil walls after heavy rains and floods, development of fungi and insects, providing
conducive conditions for rodents and the multiplication of fungi called Aspergillus – that is deadly to
humans.
14
In fruits and vegetables, crop bruising is a serious problem and is a major cause of pathogen attack
and increased incidences of disease. It is also a major cause of consumer complaint due to lowered
quality of final product and subsequently an economic drain on the industry.
Resilience to drought is essential as the three regions of Gedo, Bay and Lower Shabelle are in a
drought-prone environment and have suffered from some of the worst famines in recent history.
Building climate resilient systems can help people with food security, support the restoration of
livelihoods, promote basic services to build resilience to recurrent shocks, and catalyse more
sustainable solutions.
In this regard, thousands of families beat the odds and produce good yields, thanks to concerted
efforts from government and partners, and solid donor investment such as SomRep in building
farmers’ resilience against drought. Achieving these yields require a special selection of quality seeds
sourced from certified local traders. Farmers receive training in drought-resilient practices, such as
intercropping, to retain soil moisture; on-farm support to plough or irrigate fields, where appropriate;
and livelihood packages tailored to the needs and conditions of different production areas. Cash
transfers are also included as part of the package, so farmers could afford to feed their families while
restoring their own food production capacity.
Other additional activities designed to strengthen the agricultural resilience to climate change in
Southern Somalia regions include implementing water harvesting schemes in the form of berkeds
(sub-surface water tanks), distribution of solar lanterns to communities by Humanitarian and
community development organizations, and the creation of shallow wells and community water-
storage ponds that can be used for basic human and livestock needs. These water harvesting measures
are supplemented with embankments and check dams that climate proof the communities and their
infrastructure against floods. Infrastructural improvements targeting agro-pastoralists include
rangeland and habitat improvement works that protect against water and wind erosion. Lastly,
economic development focusing on Village Savings and Loans Associations (VSLA) has been a source
of alternative income for investment in agriculture and other productive activities which contributes
to resilience building of the farmers.
It is also evident that in their efforts to further build their resilience to unfavorable circumstances in
their environment:
o More are seeking credit facilities – (especially by the middle and better-off) signalling appetite
to invest.
o The poor will look for work on other farms (crop shareholding, labouring)
o Increased self-employment (bush products, charcoal, firewood)
15
Market realities facing extremely poor producers
Even with the significant potential for increasing production and marketing in the three study regions
of Gedo, Bay and Lower Shabelle, the market systems are hampered by several interlocking
constraints including insecurity and absence of the rule of law, the insufficient technical and support
services, insufficient infrastructures, poor market integration and development, the absence of a
credit system, and in-effective natural resource management and environment protection. Production
and marketing are fragmented, and farmers have multiple goals thereby not engaging in specific crop
enterprise(s).
For example, in many previous seasons as maize was available in the relief distribution, producers
opted to sell the maize, sorghum and legumes as fodder, rather than wait for the crop to mature for
harvesting as this had more immediate returns.
The level of processing of crop produce is also limited, with estimated crop losses standing at 25 – 30%
of the production, resulting from pest and diseases, poor handling, and inadequacy of storage facilities
FEWSNET (2004).
Farmers are not well organized. This denies farmers the ability to access input and output markets at
lower cost, failing to reap from the benefits of economies of scale. To mitigate the challenges that
come with working in isolation − and to increase profitability and productivity − these smallholders
need to form organizations.
Table 4: Farmers who reported to be members to farmer associations
Frequency Percent Valid Percent Cumulative
Percent
no 82 96.4 96.4 96.4
Valid
100.0
Yes 3 3.6 3.6
Total 85 100 100
In Table 4 above, out of the farmers interviewed during data collection, only 3 of all the respondents
reported to be a member of an association representing a mere 3.6% of the respondents, while a
whopping 96.4% are not; the major reason being (Table 5) that such associations don not exist.
However, 15.3 % of the respondents said they have no knowledge of the existence of such associations
if at all they exist. From this data, the magnitude of farmer fragmentation in the three regions of study
is significantly huge.
Table 5: Reasons for the low membership of respondents to farmer associations
Frequency Percent Valid Percent Cumulative
Percent
They don’t exist 72 84.7 84.7 84.7
Valid No knowledge of them 13 15.3 15.3 100.0
Total 85 100.0 100.0
16
One way of circumventing the problem of scale diseconomies is by smallholders banding together to
form producer cooperatives. Cooperatives can help farmers by allowing them to reap on the
economies of scale, allowing them to compete with larger producers or bargain with buyers who
prefer to buy from them. When farmers come together and form a group, it is easier for them to share
resources like equipment, new farming techniques, ideas and access to services. They can also be a
means by which farmers can link to markets through collaboration in a value chain or supply chain.
Cooperatives may also reduce some risks (although it can create others if the cooperative fails due to
bad governance and management). And when farmers thrive, they're better positioned to improve
their food security and move out of poverty. Other players in food systems benefit too.
A cooperative means uniting people to help everybody, and this is already a strong social pattern in
Somali culture. Farmers should be encouraged to band together by engaging them in discussions and
offering them technical support. The board members of each cooperative should be trained on
management, as the cooperative is really a social and business entity while encouraging and
supporting them to develop their ideas and share their needs with each other. First, hold discussions
with community elders, community opinion leaders and other authorities before the start of any
intervention/program. Then share with the farmers the program's goals and expected outcomes.
Afterwards, answer any questions they might have and listen to their feedback, including suggestions
that could improve the program. Work mainly with pre-existing informal farming cooperatives.
Challenges in accessing markets
Similar to all the three regions of the study (Gedo, Bay and Lower Shabelle), the majority of the farmers
interviewed engage in smallholder agriculture characterized by low productivity, asymmetric
information in prices and selling opportunities, and limited market access. Many of these farmers
reported that they sold their commodities in markets that were less demanding but also less
rewarding, such as village open-air markets. Others sold through intermediaries, due to the small scale
of their production, the high transaction costs involved in reaching more distant markets, and their
inability to comply with the stringent requirements relating to volume, quality, and timely delivery
demanded by modern agricultural value chains. The multiple challenges faced by smallholder
producers in the study regions pose major obstacles that prevent them from integrating into rapidly
evolving national and international markets, contributing to sluggish growth and lingering poverty in
the rural households.
Somali farmers experience 30% post-harvest losses due to lack of appropriate storage, processing
techniques, and marketing facilities FEWSNET (2004).
Due to a lack of storage and market options, most smallholder farmers in the study areas would sell
their produce at harvest, when prices are at their lowest. Immediately after harvest prices begin to
rise, representing a lost income opportunity for the poor smallholder famers. Physical constraints
(such as poor roads and infrastructure, lack of storage facilities, poor communication infrastructure
and other infrastructural support systems that adversely affect their terms of trade) are an
impediment to reaching markets. Marketing of fruits and vegetables is currently a major problem e.g.
in Afgooye region due to poor roads and very important due to many roadblocks where militia exhort
money from traders through illegal taxation.
Other challenges include capacity constraints (such as lack of credit and financial services that inhibit
them from improving their productivity, poor knowledge of market requirements such as quality,
17
health and safety standards particularly for export cash crops) and policy constraints such as domestic
policies that disfavour the agricultural sector (red tape and overly restrictive legal frameworks;
excessive licensing requirements; heavy taxation; poor legal framework to support farmers such as
contract enforcement) and trade policies that distort the real exchange rate, turning the terms of
trade against agriculture.
The low rate of commercialization in the crops sub-sector in Somalia may also be explained by factors
such as remoteness, low production, low farm-gate prices, high marketing margins, lack of
information, or simply farmers’ unwillingness to participate in the market.
The General Crop Market Systems
During the study, it was observed that farmers rarely used high quality farm inputs. In cases where
they were reported to be in use, only very few inputs, mainly seeds which are generally supplied by
seed traders especially for vegetable crops. Otherwise farmers’ own seed savings particularly for
cereal crops were reported to be the main source of seed for planting. Some of the farm inputs e.g.
onion seeds are sourced from outside the country. Sometimes they are not suited to the local
conditions and environment and therefore their productivity is limiting. An example of such seeds
(sourced from distant foreign markets) is Zorzi seeds with local distribution outlets in Bakaara Market
in Mogadishu.
Yields for most crops are very low, because of low input levels, moisture stress, poor farming
techniques, pests and diseases, and poor seed quality coupled with an almost non-existent extension
and research service. Farming practices are constrained by low skill level, a lack of government
extension services, lack of appropriate storage facilities, and poor roads.
In the face of growing food demands from a burgeoning population, crop markets in Southern Somalia
are plagued by poor integration. Poor integration has a major effect on both farmer incomes and on
food security – movement of food from food surplus to food deficit regions. It is costly to do business
with dispersed small-scale farmers, which may prevent traders and buyers from directly engaging with
farmers.
Poor roads and infrastructure are also a blame for the isolation of crop food markets in Southern
Somalia, in addition to price dispersions regularly exceeding estimates of transport costs. Imperfect
market information and contractual uncertainty leads to disenfranchised opportunities, high search
costs and large information rents for intermediaries while farmers become hard hit victims as they are
cut-out of the information cycle. Farmers and traders need information about different markets to be
able to access and relate to them. Even with market information, lacking the means to provide their
own transportation to alternative markets, farmers appear unable to take advantage of this
information and so fragmented interventions do not offer farmers any truly improved outside option.
The Southern Somalia context is also characterised by poor or non-existent partnerships between
farmers, government and with the private sector in trade, agricultural research and development to
stimulate greater investment. The partnerships cut across the entire value chain, from breeding to
markets, providing channels for farmers to access new crop varieties, as well as adding value to crop
products through processing and marketing opportunities.
18
To improve the ability of smallholders to participate in emerging markets, these constraints need to
be addressed. Efforts should be directed towards supporting smallholder producers to build
entrepreneurship, compete more effectively, address the above-mentioned challenges, establishing,
strengthening, and promoting farmer organizations as well as encouraging productive alliances
between rural producer organizations and private agribusinesses. Working with other humanitarian
and relief agencies such as the World Food Programme (WFP) to procure food for humanitarian
operations and other food assistance programmes in Somalia and build the marketing capacity of
smallholder farmers will be another quick and short-term intervention. Efforts should be made to
supporting the government and non-government organization’s efforts in resilience building by
transitioning communities out of food assistance through market linkages. Improving post-harvest
handling and storage at community level, and disseminating aflatoxin mitigation strategies e.g.
distribution of metallic silos in areas prone to contamination, supporting communities to earn more
income from agriculture through value addition for grains i.e. milling and fortification, and enhancing
smallholder grain farmers’ access to e.g. village School feeding program markets, relief distribution
programs and other markets will yield quick results.
In addition, a stable government in Somalia would enhance this aspect, which would stimulate
production.
Lack of accessibility to credit services also characterises the Southern Somalia context. Mogadishu
which is 25 Kilometres from Afgooye hosts several banks namely; Al Barakaat Bank, Amal Bank, Trust
African Bank, First Somali Bank, International Bank of Somalia, National bank of Somalia, Premier
Bank, Salaam Somali Bank, Somali Commercial Bank, Universal Bank of Somalia and Dara-Salaam Bank.
Some of these banks such as Salaam bank have branches in other towns such as Doolow and Baidoa.
However, none of the small holder farmers can access credit from any of these banks due to stringent
terms of loan application and servicing that farmers are not able to meet. A good example is the
repayment terms that are not appropriate and affordable to smallholder producers as the repayment
model is not tied to the cycle of crop harvesting.
The Policy framework
There is a lingering vacuum in the policy functions, monitoring, and services normally provided by
state governments in Southern Somalia or the Federal Government. Ministries at the federal and state
level are not capable of providing agricultural services in southern Somalia—and even where they do,
it is only in a very limited, fragmented, and inefficient way, because of limited skilled staff, funding,
and access to most rural areas.
The three regions studied i.e. Gedo, Bay and Lower Shebelle, have neither policy guidelines nor
regulations to address the gratuitous huge exports of many natural resources such as wood, coal and
wildlife, all of which are greatly an integral part of the soil and land resource sustainability.
There is great potential to cater for the export markets of sesame and lemon and cross border trade
for onions. According to the Somali Federal government priority investment sectors, the oil crops, fruit
and vegetable sector is a high priority industry for the development of the rural sector.
The realization of the potential of sesame production in the acquisition of foreign currency and food
security for the country has made increased production of the crop a prominent priority in the national
Agenda of the Federal Government. To this end, farmers are being encouraged to produce sesame in
all southern regions of the country. However, Southern Somalia does not have the technology to
19
produce significant output of sesame for export in view of the current condition in terms of yield and
technology.
According to the National Development Plan - NDP (2017-2019), the Federal Government of Somalia’s
vision for the agriculture sector is to ensure food and nutrition security and to pursue economic
growth, social capital development including the empowerment of youth and women in agricultural
activities while reducing the process of environmental degradation. The plan anticipates reducing
poverty, increase livelihood, increase employment and income through a ―” Resilience Based and
Market-Driven Approach” in pursuit of a countrywide strategy towards Climate-Smart Agriculture and
supporting crop and livestock value chains and markets development, introducing appropriate policies
and technologies.
According to the NDP, the agriculture sector is expected to have achieved the following by the end
the development plan:
- Increase in cereal yield from 200,000 metric tons to 240,000 metric tons which will represent
a 20 percent increment in cereal production by 2019.
- Increase in farm land under irrigated agriculture from 62000ha to 75000 ha, which will
represent 1.2 percent of the land cover and 12% of the area under production.
- Increase number of HHs growing and consuming nutrients dense vegetables from an
estimated 10,000 households to 20,000 households by 2019 as a result of technical support,
demonstration plots, awareness raising and nutrition campaigns.
- Re-introduction and cultivation of underutilized or orphaned crops such as cassava with
increase in yields from 1,170 metric tons to 5,000 metric tons by 2019 as a result of technical
support, demonstration plots, and awareness raising and nutrition campaigns.
- Development, endorsement, implementation and operationalization of a vegetable
production master plan by 2019.
- Development of at least two major regulatory frameworks and/or policies and guidelines to
influence internal and external trade by 2019.
- Development of crucial regulatory frameworks i.e.:
a. Phytosanitary laws
b. Agriculture credit laws
c. Land and water use
d. Food security policies
e. Policies on pricing-tax relief
The Federal Republic of Somalia Ministry of Agriculture (MOA)’s Strategic Plan (SP) 2016 – 2020 also
presents the MOA’s proposed three-year Strategic Plan and Strategy prioritization guide for the period
September 2016- August 2020. The SP envisions an enabling environment for Somalis and other
investors to develop the agricultural sector that will improve the livelihoods of rural households
ensure a reliable supply of quality and affordable food while sustaining the natural environment. The
SP unveils three strategic areas of focus, namely:
Strategic Goal 1: Increase Agricultural Production
Strategic Goal 2: Improve and Rehabilitate Productive Agricultural Infrastructure
Strategic goal 3: Strengthen Institutional Capacity of Ministry of Agriculture (MOA)
20
This strategic Plan also incorporates a list of the key crops of the Somali agricultural sector.
TYPE IRRIGATED RAINFED
CEREAL Maize Sorghum
Legume - Cow peas Cow peas
OIL Mungbeans Mung Bean
VEGETABLES Sesame Sesame
Sunflower Groundnuts
FRUITS Tomato
Onion
Pumpkin
Spinach
Lettuce
Bottleground (Katitow)
Sweet Potato
Sweet Pepper
Carrots
Banana
Citrus (lemon & grape fruit)
Mango
Paw paw
Guava
Spandesa
Coconut
Water melon
Table 6: Key crops of the Somali agricultural sector (MOA –SP)
To attract the needed private investment, the government policies should be designed in a manner
that will make it easier and more attractive for investors to lease and develop large tracts of land into
commercial scale farms. Furthermore, the federal government should offer several incentives to
facilitate private sector investments in the form of guaranteed security, improved infrastructure, duty
free imports of agriculture machinery and low tax rate for export income. Public private partnership
models are already in place to lease or auction / lease suitable parcels of land to the targeted sectors
such as Banana, Sesame, vegetable cultivation and processing facilities.
Pro-Poor Value Chains
Somalia’s major staple food crops are sorghum (mainly rain fed, with an annual gross value of $47.6
million); maize (mainly irrigated, $35.4 million); sesame (mainly irrigated, $33.3 million); and cowpeas
(mainly rain fed, $15.4 million). Many fruit crops are grown, mostly under irrigated conditions in
southern Somalia and virtually many for domestic consumption, including lemon ($39.3 million),
watermelon ($31.5 million), papaya ($23.1. million), and grapefruit ($19.7 million), among others. In
the Southern Somalia region, unlike before the war when there were large-scale banana exports, only
dry lemons from Mogadishu are currently exported. Many vegetables are also grown for domestic
consumption under both rain fed and irrigated conditions. The major ones are tomatoes ($102 million)
and onions ($77 million), (USAID, 2013).
Much of the crop sector activities are currently focused on low-output subsistence agriculture instead
of production for markets. Among the significant reasons for this are:
21
(i) It involves small scale farmers scattered over wide expanses of land area, with small
holding ranging from 0.5 to 3.0 hectares per farm land, which are characterized by
rudimentary farm systems, low capitalization and low yield per hectare;
(ii) The need for improved agricultural inputs and techniques such as seeds and fertilizers,
storage facilities and advisory services, and irrigation development;
(iii) The difficulties faced by farmers in accessing markets due to the poor road network, lack
of other transport modes and nuisance taxes and charges;
(iv) The lack of a critical mass of farmer and rural producer associations as a means of entering
the market place with the aim of minimizing the cost of inputs, accessing loan finance at
affordable rates and influencing farm-gate prices; and
(v) Uncertainties pertaining to political instability.
Rain-fed farming systems mainly practiced by poor resource farmers are low-input agriculture systems
geared mainly to meeting the subsistence needs of rural households. Rain fed farming is common
throughout the Southern Somalia region where irrigation is not feasible, except on the coastal sandy
plains and in high limestone areas. The major rain fed crops are sorghum, cowpea, and, to a more
limited extent, Sesame and maize. These crops are grown in four main cropping systems in Southern
Somalia.
Men and women in pastoral and agro-pastoral communities maintain a well-defined, synergistic
partnership in crop production activities. According to the FAO, women account for about 45 percent
of people involved in crop and natural resource harvesting. Somali men and women have always
shared crop-related responsibilities, especially in subsistence farming, where women provide more
than 60 percent of labour (Action Aid, 2017). The productivity of women, however, has been
constrained by even weaker land tenure and more limited access to extension services than for men,
with negative implications for food security, rural poverty, and overall economic growth.
The insecurity of land tenure for women partly reflects complex dynamics extending from the
interaction of multiple legal systems and socio-cultural norms that undermine women’s capacity and
agency within Somali society. Agricultural extensions also never reach women farmers effectively.
Somali women confront numerous barriers to expanded economic engagement. They include lack of
access to financial resources; extreme time poverty- linked to domestic and reproductive constraints;
insufficient market research on viable opportunities; and lack of access to formal networks to provide
business guidance. Narrowing gender gaps in agricultural production would yield significant benefits
for growth, poverty reduction, and food security.
Economically, Somali women face long-standing inequalities in the distribution of resources placing
them at a disadvantaged position relative to men in their capability to participate in, contribute to and
benefit from the broader processes of agribusiness development.
The Somali society in general maintains clearly delineated gender roles and responsibilities. Men are
traditionally identified as protectors of family security, primary breadwinners, and the central decision
makers in both public and private settings. Women are responsible for the bearing and raising of
children, the full range of domestic tasks, and petty trading.
22
If further developed and modernized, the crop sector presents a promising opportunity for women’s
economic expansion. A revived sesame, onion, lemon, sorghum, tomato, cowpea, banana sectors
would create many jobs, including for women.
In relation to People with Disabilities (PWD), the study identified them as a particularly marginalized
and at-risk group within Somali society as a result of the numerous attitudinal, environmental, and
institutional barriers they face, and the lack of concerted efforts to include them. There is ample
anecdotal evidence and acknowledgements that the negative experiences of people with disabilities
is a pressing issue across Somalia, as well as a very small number of research reports looking at
disability in Somalia. As a result, there are still numerous evidence gaps in relation to the experiences
of people with disabilities living in Somalia on crop farming. Even research reports which have been
conducted on disability in Somalia acknowledge that little research has been produced and further
research is needed (CEVSI & HI, 2012, p. 6). The small numbers of studies which have been carried out
in Somalia have focused on mainly on children with disabilities and on people with psychosocial
disabilities (mental health conditions). Further research with people with different types of disabilities
and in different areas of Somalia and how this relates to livelihoods and agricultural production in
particular is needed to more fully understand the experiences of people with disabilities living in
Somalia, the barriers and challenges they face, and how they and their families have responded to
them, including in relation to livelihoods.
Strategies by local communities to make markets work for them
o Though to a very minimal scale farmers and traders are coming together in the form of
associations to sell high quality products and address challenges experienced by members in
their daily routines. Good examples include Somali Lemon Union, Dried Lemon Association,
Shabelle Farmers’ Association and Sesame Seed Growers Association.
o More are seeking credit facilities – (especially by the middle and better-off) signalling appetite
to invest.
o Small holder farmers continue working on their plots of less than two hectares; producing a
significant proportion of food for household consumption and for sale of the surplus.
o There are also existing informal relationships and governance mechanisms among actors
along the value chain. These relationships include; farmers and traders doing cost sharing for
transport of produce to markets.
23
CRITICAL VALUE CHAINS
Crop value chain’s Market size and relative importance to the poor communities in Somalia
1. Sesame
Sesame is an incredibly resilient and stable crop in Somalia, hence the reason why it is grown
traditionally. Crop growth requires a short rainy season (Deyr), followed by a longer dry season (Jilaal),
conditions ideal in Somalia’s climate. Sesame matures earlier and requires less input and irrigation
than cereals.
Annually, sesame revenue in the whole of Somalia is estimated at USD 300 Million, accounting for
5.25% of the country’s total Gross Domestic Product (GDP) of USD 5.71 billion according to 2016
statistics (CYMMIT, 2012).
Sesame is an important crop of Somalia’s agricultural production and export. The crop is grown in all
southern regions of Somalia. It is a high value crop with ready domestic, regional and international
markets. Sesame is produced by smallholder farmers who grow it both for home consumption and as
a cash crop. With the recent surge in global demand for sesame and sesame oil, farmers in Somalia
have huge potential increasing to growing sesame as a cash crop.
In 2014, the sesame production was 40,200 Metric tonnes where 30% of the production was exported
(CYMMIT, 2012). Major destinations for export include China and the Middle East. The higher demand
of Sesame is due to its many uses both in domestic and export markets. The crop is used as an additive
for bread and the confectionery industry, for food in Middle Eastern cuisines, and as a source of
valuable and high-quality oil for local consumption. However, due to excess sesame supply in the
market and falling global prices since early 2015 as a result of demand contraction in the China market,
many sesame farmers have reduced planted areas.
-Land preparation, April - Crop planting (sorghum
ploughing, ridging, etc) maize, cowpeas, sesame)
-Onion harvest every two JILAAL GU -Onion nursery
months from nursery -Planting & weeding
- Decrease in maize prices Main dry Main rainy season -Green maize/beans
Season (long, hot consumption
-Maize harvest and dry) -Early maize harvest
-Increase in cereal prices
January DEYR HAGAY Cool prior to harvest
Dry season
-Increase in maize prices prior to Short July
harvest Rains
-Green maize/cowpeas -Bulk of maize/sesame
consumption. October
-Planting & weeding harvest
-Onion harvest every two -Decrease in maize
months/4 months from nursery prices
- Crop planting (Maize, cowpeas, - Onions harvested every
four months from
sesame) nursery
Figure 2: The Crops Seasonal Calendar 24
Sesame has huge potential in Somalia and can bring about investment opportunities, for both local
and foreign markets. A well-structured value chain will create employment opportunities, especially
for the women and youth of Gedo, Bay and Lower Shabelle regions of Southern Somalia.
With limited global output of sesame, international demand is on the rise, as is the product’s price.
Somalia is one of the few countries in the world, where sesame is grown as a traditional crop. The
traditional sesame crop rotation with maize benefits both crops. Sesame exports are Somalia’s
second-largest export. They reached an historical peak of $40 million in 2014 before falling 15 percent
in 2015 (CYMMIT, 2012).
The country produces 300kg per hectare, on average, compared with 1800kg per hectare in
neighbouring Ethiopia. This is because farmers in southern Somalia do not have access to improved
seeds and other inputs. FAO has developed a genetic improvement programme, which has
substantially improved the seed quality and crop yield. Under this activity, FAO has supported and
equipped a Sesame Growers Association in Southern Somalia, trained two field technicians, and
conducted market and performance tests on six sesame varieties.
It has also developed a strong recent growth and export performance, including under rain fed
conditions. There is further increased private investment in oil extraction in Southern Somalia main
cities and towns.
2. Sorghum
Sorghum was selected primarily for the opportunity it presents for post-production processing and for
the fact that it is widespread, with potential to absorb a large workforce. Sorghum is the primary cereal
crop in Lower Shabelle, Gedo and Bay. Bay is the main sorghum-trading hub in Somalia (FEWSNET,
2014). Sorghum in both regions has multiple end uses, including as porridge, flour, snacks,
couscous and other products for human consumption; inputs for feed for animals. Trade
networks for sorghum stretch across the country and it has well-establish commercial links with
neighbouring markets. The basic skills base is already in place among the labour force since sorghum
cultivation has been carried out for generations. Cereal crop yields in general are low and have been
hit hard by the war (USAID 2013). This gap is being filled by imports and food aid. The main problem
with the sorghum value chain today is the lack of storage facilities for surplus grain, and the near
complete absence of post-production processing such as cleaning, milling, and packaging, labelling
and marketing. While many young people are disinterested in the traditional sectors of their parents,
there is great potential for simple value-added production stages, which offer commercial as well as
vocational opportunities for young people such as bulking, weighing, cleaning, sorting, grading and
milling with a great opportunity on renewable power (solar, wind, water, etc.) tapping. Moreover,
interventions could be staggered over a series of phases to allow incremental growth to proceed
alongside concomitant market and skills developments. For instance, in the first stage SomRep or any
program intervention could provide silos to store grain. In the second phase it could train local metal
workers to make these silos. In the third stage it could train farmers how to clean, sort and mill surplus
grain for wider trade. In the final stage it could stimulate packaging and marketing entrepreneurship.
25
Sorghum was also selected as a critical value chain because it is indigenous to the study regions and is
a hardy perennial/biennial drought resistant crop that thrives in climatic environments and soils where
many crops do not. Sorghum is a basic staple for many Somali rural communities besides Maize, rice,
and cowpea. Sorghum is important as a food and fodder crop in the Sothern Somalia region and the
whole of Somalia. It is close to Ethiopia, which is considered as the probable origin and domestication
of Sorghum.
Frequency Percent Valid Percent Cumulative
Percent
grains 40 47.1 47.1 47.1
1.2 48.2
vegetables 1 1.2 74.1
25.9 100.0
Valid grains and vegetables 22 25.9 25.9
100.0
fruits 22 25.9
Total 85 100.0
Table 7: No. Of producers in each crop subsector among those interviewed
The highest numbers of respondents to the administered questionnaire of the study were found to be
actively involved in the grains value chain (Table 8). This includes sorghum, sesame, maize, sunflower,
mung beans, and cowpeas.
Although 60% of the income in the Southern Somalia comes from the animal sector, sorghum is
important as a food and fodder crop (Manzelli, M. et al. (2006). For example, during the dry season
(Jiilal), the stems of sorghum are the only fodder source and an important family income, while the
grains are used to obtain flour from which, after fermentation, a traditional bred is made (Injera).
Sorghum represents an important local resource, typically sold in the market and it is well known and
accepted by farmers, who have access to the grain.
Sorghum production at times fluctuates wildly - sorghum production in 2014 was as high as 55,000
tons but dipped to 14,000 tons in 2015 following drought (FAO 2017). Little incentives exist beyond
basic needs to boost commercial sorghum production. Sorghum growing in Southern Somalia like the
rest of Somalia has a dual-purpose nature in agro-pastoralist households where crop residues and
failed crops are repurposed as livestock feed. Despite the challenges, Southern and Central Somalia
has massive sorghum production potential– Jordan faces the same climatic challenges as Southern
Somalia but registers impressive sorghum yields as high as 12.7 tons per hectares compared to
Somalia’s average of 0.38 tons per hectare; Yemen, a country with similar climate patterns to Somalia
and double the population density, is ranked number 26 in world sorghum production yielding an
impressive 220,000 MT each year.
3. Onions
Like most cash crops, onion growing is a labour-intensive activity generating great labour demand
thereby creating job opportunities. Onion was selected because future growth potential of the value
chain is strong. The demand for onions is high across the country, as most households use onion as a
basic cooking product. Domestic production cannot keep up with consumption and Ethiopian imports
often make up the deficit (FSNAU, 2009). Riverine locations in Lower Shabelle and Gedo (Dawa river)
make them ideally suited for onion growing, and like Ethiopia, the two regions often exports onions
to other regions in Somalia (such as Baidoa). During data collection Gedo and Lower Shabelle locations
26
were also found to be potentially promising tomato growing regions. The demand for tomatoes is
high, as most households use tomatoes, or tomato paste for pasta dishes3. However, very little post-
harvesting processes currently take place in Somalia for tomatoes, which means that the current
demand for sauce is being met from overseas. Also, since tomatoes are highly perishable, good surplus
tomatoes often go to waste. Additionally, looking at the potential risks involved in value chain
development in the context of Gedo and Lower Shabelle regions, onion stood out since unlike softer
fruits and vegetables, onions tends to travel better and remain fresh longer. Extant regional trade
networks could provide further opportunities for growth. Onion growing can also be done by
sharecroppers and may therefore offer potential opportunities for IDPs who do not own their own
land. Further opportunities exist in the associated support services such as generator and pump
irrigation leasing, sorting, grading, and packaging.
4. Lemon
Given the collapse of banana exports, dry lemon is the only sizable export among vegetables and fruits,
the combined export value of which is only about 20 percent of pre-war levels. This could be in the
form of the Fresh Lemon (Green), which is the original lemon without being dried and is produced in
its organic status and most at times whose chain ends in the domestic market. The Yellow Dry
Lemon/Lime is characterized by its quality, as it is purely organic, and it is harvested twice a year
making its supply reliable and continuous throughout the year. It is also suitable for long-term storage.
There is also the Black Dry Lemon/Lime and it is called the black dry lemon because of its black colour.
The process of harvesting and that of drying under the sun are the same as that of the yellow dry
lemon. The difference is that after it is fully dried under the sun, very hot water steam is poured over
its surface turning it into black. They are used whole, sliced or ground, as a spice in Middle Eastern
dishes and are popular in cookery across the Persian Gulf, Asia cultures and Arab countries.
Lemon was found to be a suitable pro-poor value chain due to its potential in economic empowerment
of the poor as almost every homestead has a lemon tree in Somalia and due to the huge market
potential, domestically (for fresh lemon) and export markets. Secondly, lemon farmers are fairly
organized into a farmer organization with regional structures across the country. The Somali Lemon
union formed in 1996 unites lemon farmers and lemon traders providing a leverage point for the
development of the lemon value chain. The union is the largest of its kind in Somalia and some of its
main responsibilities are to develop the farming/agricultural system of the lemon value chain, to
explore new markets for the lemon and to resolve any issues that may arise between the lemon
farmers and lemon traders.
Traders (mainly exporters) have equally established the Dried Lemon Association in response to the
civil war to enable the continuance of the trade in Dried Lemons despite the difficulties imposed by
the security situation. It was established with assistance from the Somali Chamber of Commerce in
Mogadishu. To date it has achieved its objectives in being able to maintain trading in the sector and
enabled sales of Dried Lemons to continue contributing significantly to the economy and generation
of income to thousands of Somali lemon farmers.
3 FEWSNET (2004) Op. Cit. p.16
27
1. Sesame
Geographical areas
Sesame is almost found in all the three regions of study of Bay, Gedo and Lower Shabelle. Sesame
seeds and oils are widely used in Somalia and represent an important component of Somalia’s
economic growth. Sesame is adapted to fertile, well-drained soils and is not salt tolerant. Medium
textured soils are most favourable. Sesame is very drought-tolerant, due in part to an extensive root
system. However, it requires adequate moisture for germination and early growth and a minimum
rainfall of 20 to 26 in. per season is necessary for reasonable yields. Moisture levels before planting
and flowering have the greatest impact on yield. Sesame is intolerant of water-logging. Late rainfall
in the season prolongs growth and increases shattering losses. Wind can cause shattering at harvest
and is cited as one reason for the failure of commercial sesame production in Somalia. Sesame does
not like heavy clay soils or irrigation water containing high concentrations of salt. Sesame is adaptable
to many soil types, but it thrives best on well-drained, fertile soils of medium texture and neutral ph.
Due to its extensively branched feeder root system, Sesame appears to improve soil structure.
In sharp contrast to the drop in cereal production, sesame seed production and exports appear to be
on the upswing and to have surpassed their peak pre-war levels in Southern Somalia. About 80 percent
of sesame production takes place in the Southern Somalia regions of Lower Shabelle, Bay in Middle
Shabelle and Gedo, with much smaller, localized production in the other areas. Sesame is well adapted
to the geographic and climatic conditions of these regions.
Production
One major industry challenge in Sesame production is a lack of access to quality seeds that are critical
for cultivation of high-yield varieties that are competitive in the global sesame market. However, with
interventions from development programs, Somalia’s sesame industry has grown over the last several
years, as has demand in all the major sesame-consuming countries over the past decade. Poor
production on Somali Sesame farms has negatively impacted exports. Local varieties are partially to
blame: the maximum production of local sesame seed varieties reached 1-2.5 quintals per hectare, a
relatively low yield. One (1) quintal equals to 100 kilograms. In addition, Somali farmers lack the latest
knowledge and skills to maximize production, and the soaring price of inputs keeps yield low. Other
challenges include a lack of ongoing research into high yielding varieties suited to Somalia’s agro-
climatic conditions, outdated and rudimentary agricultural practices contributing to poor germination
and low yields, poor quality and/or limited availability of agricultural inputs (seeds, pesticides, and
fertilizers), accessibility to extension services, and limited processing capacity.
Women and youth have a vital role in Sesame cultivation in Gedo, Lower Shabelle and Bay regions.
Land preparation and planting activities are usually done by men while the other activities are carried
out by women as well as youth. Farmers derive the motivation of undertaking Sesame production
based on their business linkages with other Sesame seed value chains actors among them, traders,
processors, wholesalers, exporters, end-users, etc.
Most sesame smallholders farm an average of 1–2.5 hectares and yields of just 0.2 tons per hectare
under rain fed conditions and 5–8 hectares and 0.4 tons per hectare in irrigated areas can be realized
(UNDP and SATG 2016b). Yields range from a high of about 0.35 tons per hectare in Afgoye; the
average yield for irrigated sesame, including small and large farms, is about 0.4 tons per hectare. These
28
low yields stem mainly from a lack of good-quality seeds (farmers using own local saved seeds),
endemic pests and diseases (especially armyworm), and poor crop management practices. With only
slight improvements in the irrigation system, seed quality, pest management, and related gaps, Somali
farmers have demonstrated that they can increase sesame yields to 1.5 ton per hectare or almost four
times (FAO 2016c).
In Afgooye district, land under rain fed farming (for Sesame and other crops) is leased out at a cost of
/USD 50 per a hectare per cropping season, while land under irrigation infrastructure is leased out at
the cost of USD 200 per hectare per cropping season.
The ploughing costs also depend on the prevailing fuel prices as it fluctuates. Alternatively, a hand-
hoe is used which in labour costs nears a tractor plough, unless it is family labour that is being used
which may have no other income opportunity. A hand hoe was said by farmers to reduce yields which
again make it a less favourable option. The tractor plough is charged per hour and can range between
USD 8-12 largely influenced by fuel prices. Normally 3 hours of ploughing is used per ha with varying
quality of work. Furthermore, farmers often provide a meal for the tractor operator which could be
added to the costing. The ploughing cost of USD 24-36, weeding and harvesting/threshing costs are
especially the major cash investments for small scale sesame farmers where they incur the largest
financial burden.
Planting time is determined by the availability of soil moisture and the probability of pest and disease
infestation. The farmers of Lower Shabelle said that for rain fed production they usually plant the
Sesame crop at Deyr season. Under irrigated production, there are two types of planting time known
ShiniAbaaris (pre-irrigation sowing) and post-irrigation sowing.
Sesame is planted in two ways i.e. broadcasting and row planting. The broadcasting can be done into
two ways such as pre-irrigation sowing and post-irrigation sowing. The seeds are broadcast over the
field then a bushy tree or fork is pulled over the seeds in order to cover with light soil. A Miigo (planting
stick) is used also to plant after the floodwater with spacing pattern of 1m x1m. However, some
farmers particularly in Afgooye said they do plant with a spacing of 60 cm between the plants and 60
cm between the rows. The seed rate varies from 8-12 kg per ha, which costs about USD 8-12. No seed
treatment is done. For direct sowing method 20 man-hours are required per ha at a rate of USD 1.0
per hour or about USD 20 per ha.
Weeding (Haramayo) is usually done by hand and mainly by women using a small sickle just before
Baaqbaaqid (hoeing) is done. Weeding in Sesame is done once, however this depends on the location,
rainfall received after planting and/or irrigation frequency. The cost of weeding is about USD 50 per
ha. The farmers mentioned that men then collect the weeds removed from the farm and use it as
fodder and/or transported to nearby towns where they can fetch additional income of about 25-30
USD depending on the season.
Common sesame pests include aphids, stem borers, shoot fly, white grubs, tiger moth, and smut
diseases. Wild animal pests such as the African wild hog can also cause huge crop damage while in the
farm.
Since the local varieties are a dehiscent type and hence are prone to shattering, care must be taken
during harvesting by ensuring harvesting is done just before the pods are fully dried i.e. immediately
after yellowing. The plants are cut with sickles when they have yellowed and then stoked for further
drying. In a period of 2 weeks the harvest is threshed and then winnowed. As earlier on mentioned,
29
yield per ha is estimated at 200-250 kg. Harvesting and threshing cost USD 36 and 40 per hectare
respectively.
Operation Unit Qty Unit cost SOS Total SOS USD
3.0 6,942 20,826 36
Ploughing Hours 1.0 34,710 34,710 60
8.0 578.50 4,628 8
Bund formation Bulldozer hours 12.0 626.70 7,520.50 13
20.0 578.50 11,570 20
Irrigation Man-hours 50.0 578.50 28,925 50
36.0 578.50 20,826 36
Seeds Kg 40.0 578.50 23,140 40
Planting Man-hours 152,145.50 263
15,214.55 26
Weeding Man-hours
167,360.05 289
Harvesting Man-hours
Threshing Man-hours
Subtotal all
Miscellaneous 10%
Total costs all
Table 8: Sesame production costs
Therefore, the production cost of sesame crop in the study regions of Bay, Lower Shabelle and Gedo
is estimated at about almost 290 USD per ha and farmers need to produce 223 to 290 kg of sesame
seeds per ha in order to reach break-even point, depending on the market price of sesame seed.
Market
There are several sesame exporters in Mogadishu who buy sesame seeds from local farmers in
supplementation of their own productions. The main markets are India, Turkey, Jordan, and Saudi
Arabia. The most important exporter, with about 11,000 tons exported in 2014, is Al-Mizan, who has
also entered other markets, including the Netherlands, India, China, Israel, Iraq, Iran, Germany, and
the United Kingdom. Other exporters include the Moumim Group, Horn of Africa Trading, and
Danwadaag.
There are about 300 sesame oil microprocessors in Mogadishu alone, but they operate with old
machines that can produce just 100 litters of oil a day (UNDP and SATG 2016b), and the machines’
filtering system does not produce high-quality oil. There appears to be a missed opportunity for the
private sector to invest in high-quality sorting/cleaning machines with high processing capacity to
satisfy market needs. Doing so would help increase oil production capacity for local consumption and
exports while lowering maintenance costs.
Market linkages with a number of these processors should be facilitated as an intervention to further
enhance the development of the Sesame value chain in the study areas. Some of these processors
include:
Processor Description (Volumes, market size, off-take markets, etc)
ADCO – Afgoi based in ADCO is a Somali General Trading Company established in 2014 under Nabuko
the Lower Shabelle Company. The company has attained extensive experience over the years in the
region. sesame possessing and trade. It has developed strong relationships with sesame
growers in the Lower Shabelle. In addition to trading in sesame, ADCO also
imports and trades with farm inputs such as fertilizer. From 2014 to 2017, the
company exported a total of 4,625 MT of clean sesame seed to UAE, India and
30
Al-Ashraf international China. The company has recently acquired 200 ha of agriculture land from lower
Shabelle and claims to have 25% of the sesame export market share in Somalia.
Al-Ashraf international is a professional processor as well as an exporter of
sesame seeds, offering high quality Somali origin sesame seeds to both local and
international clients. The company has been in sesame seeds export business
since 2006. The first load of 259 MT of un-cleaned sesame shipment went to
Kuwait in 2006 and later to other countries like Turkey, UAE and China. In 2016
Al-Ashraf installed Akyurek technology cleaning machine from Turkey with a
processing capacity of 2.5MT of sesame per day. Since the installation of the new
seed cleaning machine in 2016, the company exported 1,239 MT of clean sesame
seed to Turkey and UAE. The company has its own farms (on 1,100 ha) in addition
to contracting 500 sesame out-growers in the Bay and Lower Shebelle regions.
The company has 10-15% of the market share.
AMITCO in Mogadishu Al Mizan Trading Company (AMITCO) Limited is a registered agribusiness
(and in Jowhar) company in Somalia and Kenya. The company has been operating in Somalia over
the last 18 years. Previous business engagement of AMITCO has been in the areas
Dan-wadaag of extraction, value addition, and exports of various types of gums and sesame. In
recent years, Sesame production and value addition has been the core business
Dayah Brothers of the company. For instance, in 2014 the company exported 11,400MT of sesame
(6,000MT of factory processed Sesame seed and 5,400MT of unprocessed sesame
Company in Mogadishu seed). Given its recent engagement in the Sesame value addition and marketing,
the company decided to upscale its business line due to the vast global potential
(and based in Jowhar). for sesame. Al Mizan has its own farm to produce sesame and purchases sesame
from contract growers.
Like most other companies, Dan-wadaag operates mainly in the Lower Shabelle
region. The company buys sesame from its own contracted farmers and from the
market. It has a sesame seed cleaning machine with a 3MT capacity per hour. The
company exported 298 MT of sesame in 2014.
Dayah Brothers Company is engaged in many business activities, including Sesame
processing and export. The company has a sesame-processing machine in
Mogadishu, near Halane, and exports about 2,000 MT annually. In addition, the
company exports about 1,000MT of hulled sesame to international markets. The
company has a farm in Afgooye district of Lower Shabelle and purchases sesame
from the farmers.
Horn Afric in Mogadishu Horn Afric is a registered company, which ventured into the business of Sesame
and Jowhar in 2001 in Middle Shabelle (Jowhar) and Mogadishu, especially in the Bakara
Market. From April 2006- 2009, Horn Afric had a trade partnership with Taran
Mumin Group in Jowhar trading company that exports the sesame to Dubai. However, in 2009 the
and Mogadishu collaboration stopped and Horn Afric continued to export sesame on its own.
Horn Afric invested in equipment to clean the sesame, attracted investors, and
managed to increase their export to Saudi Arabia. They exported 350MT of
Sesame in 2014. In 2015-2016, export to Turkey increased significantly. Now, the
company exports to three different countries: Dubai, Saudi Arabia, and Turkey.
The company owns 300 ha of farmland in the Middle Shabelle region. In 2015, the
company exported 2,000 tonnes of sesame to the Middle East.
Mumin Group is a Somali General trading company, one of the exporters and
processors of Sesame in Somalia. Mumin Group was founded in 1983. Sesame is
31
sold (in some countries through their own trading offices) to Turkey, India, China,
and Saudi Arabia. The company exported 2000MT of sesame in 2014. The initial
strategy was to buy sesame strictly from the local market. Since 2013, 1,200 ha of
farmland has been hired to produce sesame, of which about 600 ha is being
utilized. Value addition is limited to cleaning with their own equipment, with a
capacity of 18MT/day.
Table 9: Sesame Agro-processors
Market Map
Heavy taxation by the national and local governments is one of the constraints that limit market
expansion of the sesame value chain among other crop value chains. Transporters mentioned many
check points by militia as a big constraint and heavy taxation as they move from one state to another
during transit, off-loading and loading costs at the militia manned checkpoints and high Motor vehicle
insurance costs. This they said is systemic constraints to the integration of small holder producers to
formal markets since this to a great extent cuts farmer’s profit margins.
Exporters said export permits take time to secure thereby constraining their trading activities. Other
constraints include frequent foreign currency exchange rate fluctuations, international market price
fluctuations, high export taxes imposed on exports, check points by militia en-route to the ports of
discharge such as Kismayo, Mogadishu and Berbera and international market competitors e.g. from
Sudanese and Chinese exporters.
Fig3: The Sesame Value chain market map
Domestic Market Export/Cross border Market The Market support functions e.g. finsnce, etc.
Consumption
Agro processors/oil extractors Exporters
Crop Large Scale Traders
marketing Middlemen/Brokers
& trade
Sesame Farmers/Producers
Production
NGOs & Development Organizations Retail Agro-dealers/Farmer’s stored seed
resource
Inputs
Farmer Input Suppliers
32
Operation Level along the Sesame Value Chain among Male
interviewees during the study
Operation Level Farmer & Trainer 5.9 26.5
Processor 5.9
20 30 40 50
Retailer/Wholesaler 2.9 Representation (%)
Exporter
58.8
Farmer/Producer 60 70
0 10
Figure 4: Operation Level along the Sesame Value Chain among Male interviewees during the study
The interpretation from figure 4 above is that already there exists huge potential in sesame production
as a bigger population of those interviewed male folk is of producers followed closely by off taking
retailers and wholesalers. This therefore points to the fact that with good sesame producers’
organization at production level, training, capacity building and facilitation of linkages with the
apparent huge off taking market, sesame is one of the value chains where we should expect quick
wins in the short-term among poor households. The same is reflected in Figure 5 below.
Operation Level along the Sesame Value Chain among Female interviewees
during the study
Broker/Middleman 2
Operation Level Processor 9.8
Retailer/Wholesaler 9.8
Exporter 2
Transporter 3.9
Farmer/Producer
72.5
0 10 20 30 40 50 60 70 80
Representation %
Figure 5: Operation Level along the Sesame Value Chain among female interviewees during the study
Price Analysis
Sesame prices are highly dependent on the international market and sesame production is
highly responsive to market prices. For example, international prices increased continuously
between 2005 and 2016, reaching a peak of USD 1,700 per ton in 2016. In that year, the
estimated production cost was USD 0.60 per kilogram while the farm gate price was USD 1.51
per Kilogram (UNDP and SATG 2018b). Subsequent price declines resulted in a significant
33
reduction of production as the average farm gate price dropped to USD 0.70 two years later.
The local buying and selling prices are highly correlated with market prices. Prices of Sesame
seed also vary according to their quality (fullness of the grain) which is determined by the
availability of water during the germination period. Three main factors determine the price
of sesame oil in Somalia: market demand, the cost of the seed and processing costs.
In Afgooye, traders were reported to be buying raw sesame seeds directly from farmers at a farm gate
price of USD 1.2 – 1.5 per kg. The same was reported in Doolow, Luuq and Baidoa. About 2.8 – 3 kg
of sesame seed is required to produce 1 litre of sesame oil. A 20 litre jerrican of sesame oil was said
to sell at USD 53 in the domestic market. Sesame cake usually obtained as a by-product after oil
extraction, was said to fetch USD 0.50 per kg.
Value Chain Efficiency
Unfortunately, local sesame landraces are contaminated and genetically exhausted. Due to the poor
genetic value, yields are low (250-420 kg/ha) and the seed quality is poor. Consequently, Somalis are
not benefiting from sesame, as they should due to these bottlenecks.
There exists room for improving the market efficiency of the Sesame Value chain and promoting
market integration of the small-scale producers through contract farming. The sesame producers in
Somalia are also well organized into Sesame Seed Growers’ Association (SESIMA); and the Shabelle
Farmers’ Association (SHEFA) both of which provide a spring board for easier engagement of farmers
and integrating them into mainstream formal markets. However, these Sesame farmer organizations
had strong presence in Lower Shabelle region. Efforts therefore should be directed towards
encouraging farmers from other regions to join through mobilization and recruitment drives and
campaigns throughout Gedo and Bay in close coordination and collaboration by the national farmers
organization officials, government and development partners. One major value chain challenge is a
lack of access to quality seeds that are critical for cultivation of high-yield varieties that are competitive
in the global sesame market. The study identified various constraints related to production, finance,
price fluctuation, and low-quality standards which have affected the entire value chain.
It is therefore critical that high yielding sesame crop varieties suitable for the agro-ecological zones in
Somalia are studied and introduced in a sustainable manner. Sesame farmers should be supported in
accessing relevant farm inputs while facilitating credit access to farmers and sesame processing
companies. Sesame farmers and other dealers should also be provided with market information to
enable them to make good decisions e.g. on the production volumes, strategies for production,
pricing, off-take markets, etc.
Since sesame matures earlier and requires less input and irrigation than cereals including under rain
fed conditions, strong recent growth and export performance, as well as further private investment in
oil extraction, can be sustained by public-private partnership interventions.
To integrate the small holder farmers into the value chain and mainstream markets, government,
development partners and the private sector e.g. the processors, exporters, etc. should support the
use of farm machinery (e.g. through a cost-sharing arrangement) to reduce the cost of production at
the farm level and maximise land productivity while encouraging Sesame exporters to implement
contract-based out-grower farming models.
34
Improvements to the country’s flood control and irrigation infrastructure, seed quality, pest
management, and related good agricultural practices are needed if farmers are to place more land
under cultivation, raise productivity, and strengthen their resilience to future weather shocks. All such
improvements require stronger security in the rural areas of Gedo, Bay and Lower Shabelle regions of
southern Somalia and a supportive and efficient public sector in all the regions.
Quick win opportunities
In the short-term, there is a growing need for the provision of high-quality seeds in addition to
knowledge-based training initiatives which focuses on passing down expertise in terms of farmer
organization, good production practices, post-harvest handling, Improvements in storage, compliance
to market end-market requirements and standards by grassroot value chain actors.
There are investment opportunities to introduce high-quality machines (for seed cleaning and oil
extraction) with efficient processing capacities in order to satisfy local and international market needs.
This is a medium-term intervention.
The sesame value chain has also created opportunities for financial services, with such a large sector
in need of pre-financing.
Finally, and in regard to the long-term interventions, Sesame also creates openings for branches of
the Federal Government of Somalia such as the Ministry of Commerce and Industry to put into effect
legal requirements such as import/export licenses or granting certificates with strict quality control
measures in order to maintain an authentic value chain.
Short-term and early quick fixes include;
Building on the small-scale producer farmers associations, to strengthen the capacity of the
farmers associations and equip them with relevant skills e.g. on Good Agricultural Practices
(GAP), entrepreneurship, business management, good governance with agriculture
professionalisms.
Promote contracts farming models and arrangements between produce buyers
(processors/exporters) and farmer associations.
Facilitate farmers’ accessibility to high quality farm inputs appropriate for the agro-ecological
zones of Sesame production, machinery as well as access to relevant storage and market
information systems and to credit facilities by farmers and sesame companies;
Rehabilitating and upgrading pre-war flood control and irrigation public infrastructure
particularly in the riverine of River Shabelle, Juba and Dawa in Gedo.
Promote sustainable extension service provision to the farmers e.g. by the Federal
Government, development partners, processors/exporters, private commercial service
providers, etc.
2. Lemon
Geographical areas
From the FGDs in Afgooye, farmers enlisted lemon, Sesame and onions in that order as the most
preferred cash crops for the export market. All the three study regions of Lower Shebelle, Bay and
Gedo were reported to be main lemon production areas in addition to, Middle Shabelle, Lower Juba
and Hiran. Although lemon trees can grow in nearly any soil with good drainage, they grow best
in loamy or sandy loam soils. Trees planted in salty, heavy clay soils suffer problematic and
declined growth. Lemons also prefer soil pH levels between 5.5 and 6.5. Light loam, well drained
35
soils are best for lemon cultivation. Both arid and humid climates are acceptable as citrus trees are
sensitive to low temperatures.
Production
In 2013, as per FAO Statistics data suggests that total lemon exports in 2014 from southern Somalia
were estimated at 28,390 tons or US$ 56.8 million (an increase from 15,450 tons in 2012). During data
collection, one exporter stated exports of 11,000 tons of dried lemon in a six-month period from just
300 lemon farmers in two regions of Lower Shabelle and Bay. The Mogadishu Port Authority also
indicated that 22 containers of dried lemon were shipped in a six-month period.
Although lemon production has increased to the point that (processed) dry lemons are now exported,
yield per hectare per year is very low, ranging from 2.3 to 4.1 tons/ha, compared with average yields
in major lemon producing countries like Brazil and South Africa that range from 30 to 45 ton/ha.
Foreign demand well outpaces Somalia’s still limited production, suggesting room for growth (ILO,
2014). For one to break even, producers indicated that they must own up to 300 lemons trees, which
mature in about 3.5 years.
An assessment, undertaken by the Somali Agriculture Technical Group (SATG), indicated that the total
area under lemon production in surveyed districts of Lower Shabelle (only) was approximately 315 ha.
Farm size ranged from 3 to 70 ha and average farm area was 14.3 ha. The total number of lemon trees
in the surveyed area was 65,701 out of which 59,627 were productive. The average number of trees
per ha was 209 and the average age of the trees in the surveyed areas was 18.2 years.
Market
While onions are exported unprocessed, lemons are dried in the open, packaged in 50Kg bag and then
transported to Port cities of Mogadishu and Mombasa for subsequent shipping to the Gulf.
The dried lemons are currently exported to the Middle East for processing and trading to other market
destinations. Fresh lemons are sold in the local market. It was learnt from the study findings that part
of what lemon buyers in the export market look for in lemons is:
Uniform sizing
Uniform colouring for both Black and Yellow
Low moisture content
No moulds and yeasts; calling for testing to establish if consignments meet maximum limits.
Clear and easily identifiable Expiry dates dependent on date of harvest and drying
Clear standards for the preparation of Black Dried Lemons and resulting quality standards
An intervention to build the capacity of farmers, traders/aggregators in the handling and preparation
of Black Lemons is critical. Achieving a consistent standard in terms of colour and flavour would help
achieve a premium pricing and the technical assistance would provide guidance towards achieving
this. Farmer incentives would be higher yields achieved as a result of the improved drying and reduced
losses.
Market feedback has identified that up to 15% of Dried Lemons are rejected due to under sizing or
other poor-quality considerations including inconsistent colour during the grading of the lemons
(USAID, 2013). It will be good to develop a pricing model that will incentivise the grading.
36
Difficulties in complying with export market regulations and meeting the set Minimum Residue Levels
(MRLs) after pesticide and fertiliser use (particularly, the European market) restricts export
opportunities.
Most dry lemon processors are in Mogadishu, because the city offers proximity to both growers,
especially in the Shabelle basin and port facilities. There are also a big number of producers in Gedo.
Examples include:
Processor Description
Dayah brothers Dayah brothers and Mumin Group are among the major lemon exporters. They
and Mumin purchase the lemon from small scale and large-scale farmers throughout Somalia. In
Group some cases, they offer credit scheme to the lemon farmers in the form of tractor hours
and fertilizer. The lemon is sun dried for about 60 days, packed in a 50kg sacks and
stored. Most of the lemon is exported to Dubai and Iran. Total exports have increased
from 15.5 MT in 2012 to 40.2 MT in 2014.
The Ifra family The Ifra family farm is in the Luuq area, southern Somalia and close to the Kenyan border.
farm The family owns 4 farms close to each other totalling 133 Hectares. The farm is managed
by a separate manager and each farm employs 6-8 people engaged in various activities.
Currently the farms have some 400 tonnes of Dried Lemons drying with an annual
production of around 800 Tonnes. Adjacent to the farm are other small sized Dried Lemon
producers, some of them belonging to women headed households. There are 2,950 citrus
farms in the Luuq and Dolow districts, Gedo Region, southern Somalia.
Table 10: Lemon Exporters
Market Map
The weeding, fertilizer application, harvesting, sorting, drying and packaging of lemons also provided
excellent labour opportunities for IDPs and the urban poor. Following the two harvests in the year,
large scale traders (some of whom are also producers) purchase lemons from the local producers, dry
it in the open, package into 50Kg bags, and export them to Dubai through Mogadishu and Mombasa.
Consumption Domestic market for fresh green lemon Export Market
level
The Lemon Agro-processors/Drying entrepreneurs VC Support functions e.g. financing,
marketing and Large Scale traders /Exporters BDS, etc.
trading level
Production Small traders/brokers
Lemon Farmers/Producers
Inputs Agro-dealers/Nursery seedling suppliers (e.g. NGOs)
Fig 6: Lemon Market gap
Dried Lemons are transported to Mogadishu for export to Dubai and Gulf countries or transported to
Mombasa via Jamaame and Kismaayo for eventual export to these destinations. Lemons are also
exported to Djibouti- Dubai via Berbera routes. Traders also transport lemons to Dubai through
37
Dolado- Jijgar- Gothe- Waajale- Berbera routes. The Beledwyne- Bosaso- Berbera route is also an
option despite the security and poor infrastructure constraints.
Besides Mogadishu
port from where
dried lemon is
exported, lemon is
also transported to
Port Berbera, Djibouti
and then to the Gulf.
The trade route
especially for lemons
from Gedo is Luuq,
Dolo-Ado, Gothe,
Wajale, Hargeisa and
then Berbera. The
other route is via
Beledweyne,
Garoowe, Burco and
then Berbera port.
Alternatively, from
Garoowe traders
could proceed to
Boosaaso. The
condition of the
mentioned trade
route’s road network
is critical for the
strengthening of the
lemon value chain.
Figure 7: Lemon trade routes
Price Analysis
The estimated cost of production at farm level is estimated at USD 1,100-1,200/tonne or USD 0.11 –
0.12 per kg. Farm gate price for dried lemon at the time of data collection was USD340/tonne or USD
0.34 per kg. Transport from farm gate in Gedo to Mogadishu is estimated at USD 1,800/tonne. Buyers
in Mogadishu purchase from traders at USD 3,500/tonne.
Value Chain Efficiency
In order to enhance market efficiency and promote small holder lemon producers’ integration to
mainstream markets there is need to develop a sustainable extension services system that entail full
in-situ review of the farmers and their farm operations. Provision of specific advice aimed at improving
production techniques and increasing productivity based on the operations listed below. Particular
attention should be put on assessing specific lime producing operations including:
o Spacing
38
o Age of trees
o Inputs including fertiliser
o Disease prevalence
o Propagation methodology
o Nursery husbandry
o Planting out procedures and success rates
o Mulching use
o Irrigation source, reliability
o Irrigation methodology, frequency, wastage
o Disease and pest control, identification and subsequent Management
o Harvesting techniques and post-harvest handling
o Harvesting labour resources
o Transport from field to drying area
Detailed assessments and capacity strengthening of farmers, traders and exporters on the actual
processing operations including:
o Selection of site of drying
o Preparations for drying
o Depth of limes at drying position
o Frequency of harvesting during harvest period and availability of drying areas
o Human resources involved in the drying process and operations
o Frequency of turning of dried lemons
o Accurate measuring of days for drying needed and levels of moisture content achieved
o Grading procedures
o Availability of produce sacks, filling and weighing, sealing and storage
o Detailed costs and revenue analysis incorporating cost benefits analysis
Such an intervention should be backed by the provision of specific market access advice including:
Modalities of accessing markets directly including preparation of necessary documentation, phyto-
sanitary certificates, certificates of origin etc., preparation of specifications and other standards
compliance, advice and assistance on linkages to direct customers such as the Dayah brothers and
Mumin Group in Mogadishu through structured trading systems i.e. aggregation and contract-based
lemon supplies. Assistance on logistics will include well-coordinated efforts in lemon drying and
aggregation, arranging transportation to Mogadishu/Mombasa, storage and shipping from
Mogadishu/Mombasa as well as assistance on market communications and communications with
individual customers overseas.
Quick win opportunities
Improve production methodologies. Any production organisation should be actively working on behalf
of its constituents to seek improvements in technology and other methodologies to maintain highest
standards and productivity. Technical assistance should be sought in improving farm productivity,
improved drying techniques, Grading of Dried Lemons and Preparation of Black Dried Lemons through
farmer associations.
While working very closely with the already established farmer and traders’ associations and within
transparency requirements for value-chain operations, there is a need to:
39
- Ensure small holder lemon farmers at rural grassroot areas are well organized into groups and
that their capacity is strengthened to be able to produce, harvest, sort and dry the lemons
while observing all the relevant phyto-sanitary and quality requirements;
- Establish contract farming arrangements with small holder producers and establish clear
points of contact for farmer and customer contract negotiation and conclusion in the chain;
- Encourage the farmers to join the existing lemon related Farmer Associations while clearly
explaining the benefits accruing from such an arrangement;
- Establish clear advantages and benefits for farmers to sell through the farmer associations
through collective marketing as opposed to fragmented direct sales and publicize these to the
farmers;
- Establish clear and consistent procedures for farmer delivery to the aggregation points, sale
of that farmer’s produce and prompt payment to that farmer for that produce;
- Clearly understand the links between stocks that are available right from the farm gate to the
aggregation centers, on transport, at warehouses and to whom they belong, the chain of
custody – including actual ownership of the Dried Lemons along the chain and ensuring
payments are promptly made;
- Establish clear pricing for the different standards – either FOB4 Mogadishu or FOB Dubai.
- For the marketing requirements, there is a need to provide information to the market in global
terms concerning current state of Somali production, expected crop availabilities and quality,
standards established, standards compliance and comparison to competitive markets.
Interventions should also seek to promote new methodology in production based commercial
orientation among poor farmers and seek to establish an information base e.g. through hubs on
annual production capacity and availability. Early efforts in seeking to establish clearly identifiable
market contact points in Dubai and Somalia (initially) to act as sales points and linkages along the value
chain facilitated will be important in developing the lemon chain.
Alternatively, there also exists an opportunity to develop a pilot programme for direct sales to
international customers through entrepreneurs such as the Infra Family farm that could be extended
to other farms in the immediate area through a contract farming arrangement. Depending on the
uptake and potential interest, a new grouping could be organized that would perform group hub
operations and take advantage of economies of scale as well as provide greater assurance to potential
buyers of sustainable product availability. At the same time while seeking access to international
markets directly, technical assistance could be extended to the farm again on a pilot basis that seeks
to work directly towards increased productivity, improved processing and grading including
neighboring farmers in an out-grower scheme model.
As a long-term measure, there is need to establish a more transparent strategy, that seeks to establish
quality standards in the production of Dried Lemons among small scale farmers and seek to promote
the sale of Dried Lemons in its key markets.
4 Free On Board – Term of sale under which the price invoiced or quoted by a seller includes all charges up to placing the goods on
board of a ship at the point of departure specified by the buyer. Also called collect freight, freight collect or freight forward.
40
3. Sorghum
Geographical areas
Grain sorghum can be grown on many different soils. Sorghum will yield best on deep, fertile, well-
drained loamy soils.
Sorghum grown on deep, well drained permeable soils usually develops extensive root systems.
Mature plant roots may penetrate to depths of 4 to 6 feet in an ideal soil. Root development can be
severely restricted by soil conditions such as excessively high or low soil moisture levels, hard pan
and compaction.
Sorghum has moderate salt tolerance. It does well in pH range of 6.0-8.5 as it tolerates considerable
salinity and alkalinity. Sorghum is sensitive to aluminium toxicity and soils with acid saturation higher
than 20% can pose a problem. Sorghum can grow in a wide range of ecological conditions and can
still yield well even under unfavourable conditions of drought stress and high temperatures such as
those in Southern Somalia. Sorghum requires about 26-30oC temperature for good growth. The
minimum temperature for the germination of the sorghum seed is 7 to 10oC.
The ability of sorghum to grow in drier environments is due to
several physiological and morphological characteristics;
Produces many roots compared to other cereals,
Has reduced leaf area thus reducing water loss through transpiration,
Can remain dormant during drought and resume growth when conditions are favorable,
Above ground parts of plant grow only after the root system is well established,
The leaves have a waxy coating and can roll in during drought thus effectively reducing
transpiration,
Competes favorably with most weeds.
Sorghum is the largest cereal crop in Southern Somalia. The Lower Shabelle and Bay regions account
for 70 percent of sorghum production in Southern Somalia. Baidoa (Bay region) is the main sorghum-
trading hub in Somalia (ILO 2013).
Somalia’s sorghum basket zone is in the Bay agro-pastoral high-potential livelihood zone, which covers
the Qansahdhere, Baidoa, and Dinsoor districts as well as some areas of the Burhakaba district. This
area is characterized by good fertility with productive vertisols (soils with a high content of expansive
clay that forms deep cracks in drier seasons or years) and calcisols (soils with a substantial secondary
accumulation of lime) (Swalim & FAO, 2007). It also has some of the highest rainfall in Somalia (500–
600 millimetres) and an altitude of 100–500 meters above sea level. This region produces about half
the sorghum production of southern Somalia. It also produces maize, cowpea, sesame, and
groundnut. Farming systems are largely agro-pastoral, with cattle reared more than other species.
Sorghum cultivation takes place mainly in the Deyr season, because it is more resistant to water stress.
Both sorghum and cow peas are often intercropped with watermelon.
Crop production is based purely on rainfall and the harvesting of rain water (in bunding, berkads, check
dams, and diversion furrows). Farming systems are predominantly subsistence in nature. However,
some farmers produce large surpluses of grains from high-yielding, local, late-maturing sorghum
landraces (six month maturing Elmi Jama sorghum variety), whose products are consumed as a staple,
41
sold locally, and stored in underground pits. Crop residues and failed sorghum and maize sowings
contribute significantly to livestock feeding, and the heavy sowing rates used for both crops (10–32
kilograms per hectare for sorghum in 2011) reflect the dual-purpose nature of household planting
policies (FSNAU 2011).
The Shabelle and Juba riverine valleys also have rain fed sorghum, sesame, and cowpea crops
combined with irrigated crops, such as maize, sesame, fruit trees, and horticulture.
Production
Sorghum yields are also low, at about 0.3 tons per hectare, with inter-annual variations from just
below 0.2 tons to 0.4 tons per hectare. These low yields reflect poor access to good-quality inputs and
the widespread use of low-yielding varieties (Manzelli, M. et al. (2006).
Postharvest losses for sorghum are substantial across the country. Average annual grain losses in
southern Somalia are estimated to be on the order of 50,000–80,000 tons, valued at $15–$20 million,
representing about 20–30 percent of the harvest. According to the Somali Agricultural Technical
Group (SATG), the losses associated with traditional storage systems such as underground pits are
significantly higher (40 percent) than losses associated with downstream harvesting, transportation,
and drying (20 percent). The traditional underground storage pits lined with clay are highly prone to
moisture contamination, particularly during the rainy season, and contamination from aflatoxins,
other bacteria, and fungi. The health hazards— including stunted growth, delayed development, and
liver damage and cancer— have even more serious effects than the economic loss. These postharvest
losses for producers and health hazards for consumers can be mitigated by widespread rehabilitation
of underground storage pits and adoption of household metal silos produced by local artisans each
holding 120–250 kilograms of grain.
Armed militias with little farming skills and experience continue to occupy prime farmland in the Lower
Shabelle region. Political and taxation control over much of the riverine and inter-riverine areas is still
being contested by Al-Shabaab. Continuing insecurity makes access to farms and markets risky, costly,
and unprofitable. It also makes interventions by aid agencies extremely challenging.
Market
Seasonal price variability is high for sorghum. The production of cereals remains acutely sensitive to
seasonal fluctuations and weather patterns, more so for sorghum. Because there are few modern
grain storage facilities in Somalia, between the two harvest seasons the supply of grains is not able to
meet the demand and prices spike. After the harvests, the market is flooded with local grains and
prices drop. Main barriers faced by sorghum farmers in their efforts to integrate to mainstream
sorghum markets include;
i. Poor quality of seeds and varieties inappropriate for the various uses.
ii. Poor quality of product at harvest, with grains of inconsistent size and coloration.
iii. Inadequate threshing techniques and post-harvest drying and storage, which reduce
quantity and market quality.
iv. Inadequate grading.
v. Insufficient market development and communication with markets regarding varieties
and quality of sorghum desired.
vi. Insufficient training and finance for improved post-harvest management.
42
The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.
Value Chain Analysis Final Report
Discover the best professional documents and content resources in AnyFlip Document Base.
Search