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Benefits and cost of compliance of compliance of sanitary regulations in livestock markets: the case of Rift valley Fever in the Somali Region of Ethiopia

Author

Listed:
  • Nin Pratt, A.
  • Bonnet, P.
  • Jabbar, Mohammad A.
  • Ehui, Simeon K.
  • de Haan, C.

Abstract

A recent outbreak of Rift Valley fever in East Africa has led to an export ban by Saudi Arabia and other Gulf countries on livestock products from Ethiopia. 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 standard Computable General Equilibrium (CGE) model. Investment strategies to regain access to the Gulf market and reduce the probability of future bans are also evaluated. Results show that Somali Region’s GDP is reduced by 25% as a consequence of the ban. In addition, poor and better off producers experience total losses in value added of around 50% of their respective levels in a normal year. The evaluation of an animal health programme in the Somali Region to minimise the impact of future bans shows that its implementation is feasible and justifies further analysis focusing in the main factors driving the results. However, results of the analysis of different alternatives to charge producers for the equivalent amount of the cost of the programme show that distortions introduced by taxes and increased transaction costs affect the viability of the programme. Among these alternatives, increasing taxes on livestock sales offers the best prospect as the way to implement the health certification plan in the Somali Region given that it has pro-poor redistribution effects.

Suggested Citation

  • Nin Pratt, A. & Bonnet, P. & Jabbar, Mohammad A. & Ehui, Simeon K. & de Haan, C., 2005. "Benefits and cost of compliance of compliance of sanitary regulations in livestock markets: the case of Rift valley Fever in the Somali Region of Ethiopia," Research Reports 182867, International Livestock Research Institute.
    • Handle: RePEc:ags:ilrirr:182867
    DOI: 10.22004/ag.econ.182867
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    References listed on IDEAS

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    1. Francois,Joseph F. & Reinert,Kenneth A. (ed.), 1998. "Applied Methods for Trade Policy Analysis," Cambridge Books, Cambridge University Press, number 9780521589970, January.
    2. L. J. Hubbard & G. Philippidis, 2001. "General Equilibrium and the Ban on British Beef Exports," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 87-95, September.
    3. Scott McDonald & Deborah Roberts, 1998. "The Economy‐Wide Effects of the BSE Crisis: A CGE Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 458-471, September.
    4. Harris, Rebecca Lee & Löfgren, Hans & Robinson, Sherman, 2001. "A standard computable general equilibrium (CGE) model in GAMS," TMD discussion papers 75, International Food Policy Research Institute (IFPRI).
    5. Hertel, Thomas W., 1990. "General Equilibrium Analysis of U.S. Agriculture: What Does It Contribute?," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 42(3), pages 1-7.
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    Cited by:

    1. Jabbar, Mohammad A. & Negassa, Asfaw & Gidyelew, Taye, 2007. "Geographic distribution of cattle and shoats populations and their market supply sheds in Ethiopia," Research Reports 181607, International Livestock Research Institute.
    2. Mulugeta, Elias & Gebremedhin, Berhanu & Hoekstra, D & Jabbar, Mohammad A., 2007. "Analysis of the Ethio-Sudan cross-border cattle trade: the case of Amhara Regonal State," Research Reports 181723, International Livestock Research Institute.
    3. Shafaeddin, Mehdi, 2007. "Who Does Bear the Costs of Compliance with Sanitary and Phytosanitary Measures in Poor Countries?," MPRA Paper 6646, University Library of Munich, Germany.

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