The Economics Of Sudan Chilled Mutton Exports To Saudi Arabia

Abstract

Field surveys were conducted in both Khartoum where mutton exporters reside and Omdurman where sheep terminal market and merchants were found, during the period from April to June 2002. It was found that, about 71% of exporters were university graduates, 62%of merchants attended Khalwa. It was, also, found out that 82% of exporters purchased live sheep from terminal market (Omdurman), 82% of merchants bring the live sheep from primary and secondary markets, mainly from Western cities i.e. El Obeid, Nyala, El Daein, Kosti, and Gebash etc. The animals are transported by trucks hence the high cost of transportation which amounts to about 8% of the total variable costs. The types of sheep used for exports were the Swakini, Hamari, Kabashi, and Baladi. The net weight range between10 to 12 kg. The sheep marketing is characterized by various and complicated marketing channels The total variable cost for marketing live sheep was 7530 SD / head, and for export of mutton was about 784960SD/ tone. The gross margins for marketing live sheep and export mutton showed profitability for both merchants and exporters. They equal to170 SD and 73290 SD for merchants and exporters respectively. The time series analysis indicated that the trend for exporting quantities declined during the period January, 1998 to December 2000, because of the spread of Rift Valley Fever in E est African countries and the high internal variable costs. The seasonal indices showed that the quantities started declining in January to reach a minimum level in March due to season of pilgrimage when live sheep is exported. Then it started increasing during the period from Marsh to July when there were shortages in quantities exported by other countries to Saudi markets. Exporters endeavor to fill the gap (shortage) by increasing the quantities exported in October reaching its maximum level in the month of December the period that precedes the month of Ramadan. During Ramadan the consumption of meat increases. The market structure analysis, using the concentration ratio, revealed that few exporting companies were monopolizing the market. About 69% of the trade volume of mutton exported to Saudi Arabia during the year 2000 to 2002 was loaded by the top four companies