Livestock wealth drives growing market power in Hiiraan

By Ahmed Abdi Hussein Thursday April 30, 2026

Somalia has one of the strongest livestock sectors in the region, yet the country still sells much of that wealth through an outdated system that leaves producers with little power and limited returns.

From the country’s wide rangelands come millions of goats and sheep raised under pastoral systems refined over generations. The animals are hardy, naturally grazed, and well matched to global demand. They have long supported livelihoods and played a central role in the national economy. But the way that value is marketed abroad has changed little.

At major export ports, the familiar pattern continues. Foreign buyers arrive with ships and purchasing agents, inspect the animals, bargain over price, and set the terms for volume. Deals are often struck quickly and in bulk, with the buyer holding most of the leverage. For Somali producers, the result is a familiar set of risks: volatile pricing, seasonal uncertainty, weak bargaining power, and external valuation of an asset whose worth is determined elsewhere.

What could be a strategic national advantage is still being handled like a low-margin commodity. The system functions, but it does not grow easily—and it is far from sustainable.

The deeper issue is one seen in many resource-rich developing countries: production happens without real market knowledge. Whether the product is livestock, minerals, or agricultural goods, the gap is the same. Producers make the product, but they are disconnected from the end consumer. That leaves them without key information about who is buying, what format they want, whether they prefer chilled or frozen products, what certifications are required, and what separates a premium item from a basic one.

Without that intelligence, production becomes reactive. Goods are sold in the easiest form to move, not the form that delivers the highest value. Into that gap step intermediaries—traders, importers, and distributors—who package, position, and aggregate the product while capturing most of the profit. In international trade, the central question is not simply what can be sold, but who is buying and what they value enough to pay more for.

Without a clear answer, Somali producers remain price-takers, operating inside a market structure they do not control and do not fully understand.

A Dispersed People, A New Possibility

Over the last 30 years, Somali communities have spread across the world, building roots in the US, UK, Canada, the UAE, Turkey, Malaysia, China, and across Africa.

That diaspora has produced a new generation of Somalis who are educated, professionally established, and deeply embedded in global economies. They bring precisely what the domestic sector often lacks: knowledge of international business, direct exposure to consumer expectations, and familiarity with foreign legal and regulatory systems. In practical terms, they are already inside the market.

Two Sides of One Untapped System

At the same time, a new generation of entrepreneurs inside Somalia is investing in livestock aggregation, modern slaughterhouses, and advanced packaging facilities. They want to move beyond the old model and take part in global trade in a more meaningful way.

But they face a major hurdle: market opacity. Without a clear view of demand—or legal buy-commitments from buyers—investment remains difficult. In the absence of guaranteed volumes or letters of intent, local and foreign investors alike hesitate to put money into the kind of large-scale modernization the sector needs.

The Opportunity: Connecting Somali to Somali

This is where the opportunity becomes transformative. By deliberately linking these two groups, Somalia can build a Somali-led value chain in which knowledge and interests work in tandem.

The Role of the Local Entrepreneur

Local businesses can focus on quality and consistency, supplying reliable volumes of export-grade livestock. They can also move toward value addition by shifting from live exports to standardized cuts and processed products, while meeting the core health and safety standards demanded in international markets.

The Role of the Diaspora

The diaspora can provide market intelligence, showing exactly what sells and why. It can open access to retailers, restaurant chains, and distributors. Just as important, it can help de-risk commercial activity by securing Letters of Intent (LOIs) and volume contracts that give investors the confidence to finance Somali infrastructure.

From Opportunistic Selling to Strategic Participation

When the two sides connect, the business model changes fundamentally. Value is no longer extracted by unknown intermediaries; it is shared among Somali partners.

Products can be designed for demand, with offerings tailored to specific market segments. Pricing can become more predictable, reflecting value added rather than the simple availability of animals. Producers can build direct relationships with buyers and bypass the port-side dictates that have long shaped the trade.

That shift reduces dependence, strengthens negotiating power, and, above all, makes investors more confident.** It turns a fragmented trade into a more sophisticated industry.

A Shared Future

Somalia needs export-led growth, but the terms of that trade must change. And this approach is not only for livestock. It can also serve as a model for the country’s marine resources and its untapped agricultural potential.

For years, the question has been why Somalia does not receive full value for what it produces. The answer has been a lack of connection. Today, that connection can be found in offices in Dubai, London, Nairobi, and Shanghai.

If the producer at home is linked with the professional abroad, Somalia can build a system that captures the nation’s true wealth. The opportunity is no longer far away—it is already within reach.

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About the author: Ahmed Hussein, New Business Development expert in Agro-processing and Agribusiness with extensive international experience. A qualified Food Scientist (master from Cornell University) and a Food Processing Engineer (Master from University of Toronto).

Board member of ASAP – Association of Somali Agricultural Professionals based in Atlanta Georgia USA. This article is part of a series of articles published by ASAP