Potential of Sudanese Exports of Sheep and Sheep Meat to the Middle East

Abstract

The thesis focuses on interlocking themes of Sudanese sheep industry – production, livestock markets, trader's performance, foreign trade, standards, service delivery, organizational arrangements, policy debates and field-level experiences along the market chain till the ultimate consumers. The objective of the study was to describe the socioeconomic characteristics along the market chain of sheep and goats in the Sudan and to shed light on health and market constraints at specific market point, or points along the chain from producers to consumers. The supply chain framework used to design the study was suggested by Jabbar and Majok (2004). In order to characterize the chains and their health and market constraints limiting smallholder access to markets, the following sample units were studied: Village level condition of livestock resources, services and marketing infrastructure, b. Households flocks, c. Livestock markets- primary, secondary and tertiary, d. Traders and exporters at these markets, e. Veterinary services at local, district and federal levels serving producers, f. Veterinary quarantines. The study covered sheep producers and markets in the three states Gedarif, Blue Nile and West Kordofan, together with El Salam terminal market in Omdurman. The criteria for selecting the three States are dominance of sheep, diversity of production systems, market outlets, and prevalence of poverty, dominant sheep breeds. With regards to competition, Sudan's market share in live sheep exports to Saudi Arabia was low, 29% in spite of the potentials and advantage of being near the Gulf markets. The Sudanese sheep and sheep meat faces tough competition from countries like Australia, New Zealand and Syria. Competition is in the form of price, reliability of supply and terms of trade in case of Australia and New Zealand, and in form of quality of product and other non-price factors in case of Syria. The problem faced by Sudan is thus to enhance its competitiveness in the Middle East markets for sheep and sheep meat in order to increase and maintain its market share and in order to make use of the great potential it has. The methodology depends on secondary data collection, at the national and state levels as well as at the local authority and administration unit levels. Questionnaires were used to interview market participants (producers, market intermediaries, traders, exporters) in addition to personal interviews and group discussions. The data were coded and entered in the SPSS data management section of the computer programme. Descriptive analyses were performed using the SPSS statistical software. Econometric Views (E Views) software was used to analyse price time series data for Cointegration. Hence provision of numerical values and parameters for economic relationships e.g. marginal values, regression analysis and cointegration. The results indicate that lack of market infrastructure, inadequate legislations and regulation and the absence of Institutions. Cointegration test was applied to test the relationship between supply markets and the terminal markets. It show that there is cointegration between Omdurman and El Obeid sheep markets as well as Omdurman and El Damazeen markets and between El Damazeen and El Obeid sheep markets. A highly integrated market is likely to increase market efficiency through efficient resource allocation and price transmission, which is likely to lower transaction costs and increase incomes to actors. Regression analysis results indicated the traders' performance in terms of profit margin. The relationship between the traders profit margin in adult sheep and the independent variables (number of adult sheep sold and price per adult sheep sold) are progressively related; the increase in them will increase the trader\\\\\\\'s profit margin in adult sheep. While the relationship between the number of adult sheep purchased and price per adult sheep purchased is inversely related; the increase of price per adult sheep purchased will decrease the trader's profit margin in adult sheep and so is the increase in number of adult sheep purchased. The implication from the analysis is that Sudan Government’s policy should focus on enabling legislation and infrastructural development. This entails improving the internal marketing system to enhance its efficiency, improving the quality of products by enforcing grades and standards, preparation of the product for the market and protecting the disease-free status. It is of Paramount importance to establish a Single Administrative unit in the Sudan with legislations and full Responsibility for Livestock and Meat marketing.