How Australia Sheep-Export Ban Boosts Somalia Sales

A significant boost has been recorded in Somalia’s sheep market in which is directly linked to the decision by Australia to ban the export of sheep, thus reducing competition globally, aiding Somalia’s sales to hit at least $1 billion this year.

Also helping the booming business is the ongoing war in Sudan, which has also triggered reduced shipments of the sheep abroad to the benefit of the Horn of Africa nation, which is struggling to get its economy back on track.

Somalia ships off between four million and six million head of livestock to the Middle East every year, with the animals becoming the country's most important export despite ongoing conflict and periodic droughts, Bloomberg reports.

According to reports from Somalia, the country's exports climbed from $523 million in 2021 to $974 million last year, according to government data, and that trend is expected to continue given the situation in Australia and Somalia.

“This increase can be attributed to two main factors — first, Sudan, once a major livestock-exporting country, is currently facing conflict. Secondly, Australia, another key supplier to Gulf countries, has reduced exports,” said Qaasim Abdi Moallim, director of animal health at Somalia’s livestock ministry.

“This allowed Somalia to take advantage of the situation and accelerate its livestock exports.” Being across the gulf for key markets, including the United Arab Emirates and Saudi Arabia, also worked in Somalia’s favor, he said.

Australia is actively working towards halting sea shipments of sheep by May 2028. It exported 652,000 of them by sea in 2022-23, from 5.9 million two decades ago, according to government data, Bloomberg adds.

Somalia says it’s also captured a big share of the Gulf markets previously served by Sudan, where two years of civil war have decimated the economy. Saudi Arabia alone took $715 million of live animals in 2023, when conflict erupted, according to a report by the Sudan Transparency and Policy Tracker.

In recent years, animals have become Somalia’s exports despite frequent political and security challenges, coupled with drought. The sheep sales are expected to surpass the government’s domestic revenue of about $430 million.

GAROWE ONLINE