Fsnau-Post-Gu-2012-Technical-Report

sugar, wheat flour, vegetable oil and petrol) also declined in
June 2012 when compared to same month last year (Jun’11)
and six month ago (Jan’12). This decrease is mainly due to
appreciated SoSh against the USD; increased supplies from
the Bosasso and Mogadishu port as well as supply from
humanitarian assistance in Beletwein areas. The decline
in food prices is reflected in the purchasing power of poor
households. The ToT local quality goat to white sorghum
significantly increased in June 2012 by 575 percent (189kg/
head) compared to the same month last year and by 69
percent (112Kg/head) compared to six months ago (Figure
44). This is due to decreased cereal prices and increased
livestock price. However, August 2012 trends showed a
decline (6%) due to increase of white sorghum price (7%).
Similarly, ToT between daily labour wage rate and white
sorghum increased by 275 percent (15kg/daily labour wage)
in June 2012 when compared to June 2011 and 36 percent
compared to six months ago (Jan’12) (Figure 45); the ToT
remained stable in August 2012. However, cereal availability
in the market is expected to decline and the prices of cereals
are expected to increase in the coming months (before the
next harvest in January- February 2013), which will affect
the purchasing power of the poor households.
Income Sources
This season, income from crop sales and agricultural labour
activities declined in both agropastoral and riverine areas
of the region owing to the poor seasonal performance.
However, more income could be generated through livestock
sales because the improved livestock body condition has
meant more favourable prices this season. In addition,
income from milk sales has also improved and is expected
to improve further in November-December 2012 due to
expected camel calving in most pastoral livelihoods. The
volatile security situation, which affected economic activities,
led to a slight decrease (by 5%) in the daily wage rates
(SoSh 105,000 /daily labour wage) in the first half of the
year and over the past one year (8%); however the rates did
increase slightly (6%) in August 2012. Also, this season the
poor and lower middle households benefitted from labour
opportunities in cash crop agriculture and irrigated cereals.
Figure 46: Terms of Trade Goat Local Quality to
White Sorghum
Watermelon production, Beletwein, Hiran region, FSNAU,
July 2012
In the agropastoral livelihoods, households also had selfemployment
opportunities such as charcoal production and
bush products sales.
Coping Strategies
Currently, the poor agropastoral and pastoral households
have access to a number of coping strategies. These include
agricultural employment (cash crop) in riverine areas,
collection and sale of bush products, labour migration to the
urban centers, seeking social support (gifts and zakaat),
production of lime and limited honey production.
FSNAU Technical Series Report No. VI 48
Issued October 18, 2012
Regional Analysis
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