Quarterly Journal of International Agriculture No. 3/09
Benefits and costs of compliance of sanitary regulations
in livestock markets:
the case of Rift Valley Fever in the Somali Region of Ethiopia
Alejandro Nin-Pratt
International Food Policy Research Institute, Washington, DC, USA
Mohammad A. Jabbar
International Livestock Research Institute, Addis Ababa, Ethiopia
Simeon Ehui
The World Bank, Washington, DC, USA
Abstract
An outbreak of Rift Valley Fever in East Africa in 1998-2000 led to an
export ban by Saudi Arabia and other Gulf countries on livestock
products from Ethiopia lasting several years. An evaluation of the
costs of the ban on Ethiopia’s main exporting region (Somali) and their
distribution among different types of households, producers and traders
is conducted using a CGE model. Investment strategies to regain access
to the Gulf market and reduce the probability of future bans are also
evaluated. Results show that GDP in the Somali region is reduced by 36
percent as a consequence of the ban. In addition, poor and better off
producers experience total losses in value added of around 50 percent
of their respective levels in a normal year. The evaluation of an
animal health program to minimize the impact of future bans shows that
it increases welfare and benefits poor livestock producers.
Keywords: ban on exports, Ethiopia, livestock, rift valley fever, trade
JEL: O13, Q17
Vol. 48 (2009), No. 3: 219-241