Somalia is the 13th largest date fruit producer in the world, producing 13,583 tons annually, most of which is consumed internally. Somalia accounts for 0.2% of the world’s date fruit output in a sub-sector dominated by Iran, Egypt, and Algeria. 93% of dates produced globally are consumed internally – only 7% are exported. The market grows on average by 1.8% annually and was valued at $13.8 billion by 2018.
Like most desert plants, the date palm has a high input to nutrient conversion ratio – date fruit is sweet, nutritious, and packed with numerous health benefits. Once a seasonal delicacy (especially during the holy month of Ramadhan), the fruit bears numerous value-added products like date syrup, date spreads, and date powder. Date fruit and date products are increasingly gaining traction in health-conscious affluent markets like Europe.
Date fruit farming experiences relatively high (up to 25%) post-harvest losses due to inexperienced labor, damage to fruit and improper storage facilities. The date fruit is usually sold as fresh produce with little value addition. The going rate for date fruit in Somalia is $2 – $2.50 per kg, while online retailers like Amazon command premium prices like $18.99 per kg (less shipping).
While conducting research for date farmers in Durduri District, Sanaag Province in Northern Somalia in 2018, HornAgro came across some interesting insights regarding the date fruit industry.
- A solar-powered date fruit processing plant with bare-bones equipment (Pitting machine, solar dryer, paste machine, packing lines, industrial electronic scale, vacuum packer, etc) would cost roughly $64,000.
- The plant would drastically reduce post-harvest losses to almost zero while realizing two new revenue streams – value-added date products (date paste, date spreads, date powder) and animal feed concentrate.
- If date farmers organized themselves into well-structured collectives or cooperatives, they would be eligible for grant funding to finance their setting up of cooperative factories to process their dates.
- If the farmers opted to finance the factory using shariah-compliant funding, they’d be able to repay the injected capital within one year.
- By adding value to their date fruit, farmers in Sanaag would boost their revenue by up to 60%, targeting markets with the Africa Continental Free Trade Area.
Statistics on Somalia’s date industry are scanty – based on world trade statistics, it should be valued at approximately $276 million annually.
The Sesbania plant is a little-known tree, native to the shores of Lake Turkana in Kenya and Ethiopia. The plant thrives in semi-arid areas, is not invasive; local varieties can reach maturity as early as 7 months bearing sweet, nutritious leaves good for rangeland livestock. Sesbania can be used (sustainably) for firewood or charcoal production. The tree’s most valuable product, however, is gum or resin which is an alternative to gum arabic. A previous study by HornAgro revealed that equipment to extract resin from Sesbania would require an investment of only $55,000.
Date fruit and Sesbania trees are but two of several examples of the opportunities ACFTA opens for an agro-based economy like Somalia. Though Somalia’s focus is on self-sufficiency, we need to look at unique opportunities that can unlock the productivity of the country’s arid and semi-arid lands, and fetch premium market prices on the African continent courtesy of a little value addition.
Is Somalia ready for ACFTA? Do we have the necessary policies and funding in place to take advantage of the unique opportunities it presents to our agricultural value chains?
