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End Market Analysis of Ethiopian Livestock and ... - USAID Microlinks

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A. END MARKETS BY MEAT TYPE<br />

1. CATTLE AND BEEF<br />

Of the various breeds <strong>of</strong> cattle found in the Horn, the Boran breed (found in Borena Zone in the Oromiya Region <strong>of</strong><br />

Ethiopia) is one <strong>of</strong> the most prized in the Middle East markets.<br />

The data on beef (volumes <strong>and</strong> prices) is for boneless beef only. More detailed information on quality <strong>and</strong> type <strong>of</strong><br />

meat (frozen vs. chilled) is not available, so price comparisons should be made carefully. For this reason, the analysis<br />

below focuses primarily on comparing volumes <strong>and</strong> volume trends.<br />

• Live cattle: In recent years, Yemen has been the major live cattle importer in the region, importing 175,757<br />

head in 2006, though its imports are primarily destined for re-export to GCC member countries with stricter<br />

SPS regulations. (Yemen’s import figures reported by FAOSTAT in 2007 are significantly lower; the reason<br />

for this is unclear.) Saudi Arabia is an important final market for live cattle, with 2007 imports <strong>of</strong> 58,362 head<br />

<strong>and</strong> a 2005-07 growth rate <strong>of</strong> 116 percent. Lebanon <strong>and</strong> Israel are the region’s leading cattle importers, but<br />

may be a difficult market for Ethiopia to penetrate due to their geographic distance.<br />

• Beef: Egypt is by far the largest market for beef in the region, with imports exceeding 250,000 MT in 2007.<br />

With a growth rate <strong>of</strong> 68 percent from 2005 to 2007, this market deserves significant attention. Saudi Arabia’s<br />

imports, though far behind Egypt’s at approximately 74,000 MT, are growing at a rate <strong>of</strong> 90 percent per year<br />

(2005-07) <strong>and</strong> are also an important target market. The prices paid by Egypt <strong>and</strong> Saudi Arabia for boneless<br />

beef are the lowest amongst the 20 top beef importers worldwide, reflecting their reliance on low-cost frozen<br />

beef imports from Brazil <strong>and</strong> India. Israel is the third largest beef importer in the target markets, although<br />

<strong>Ethiopian</strong> exporters may need to target a niche market there, such as the <strong>Ethiopian</strong> Jewish (Falasha)<br />

community, in order to gain a foothold.<br />

END MARKET ANALYSIS OF ETHIOPIAN LIVESTOCK AND MEAT 19

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