Soaring demand for relatively affordable Somali goats has all but ended the long-standing dominance of Australian livestock as the preferred source of fresh meat for the traditional Eid al Fitr family meal, thanks to the skyrocketing cost of imports from Down Under. According to local dealers, Australian sheep, which have long held sway over the livestock market in the Sultanate, have now given way to goats from the Horn of Africa, as well as some volumes of imported cattle.
Contributing in large part to the changed market dynamics is the escalating cost of Australian sheep, which currently retails at RO 85 per head, against a price of RO 65 exactly a year ago. The roughly 30 per cent increase — the steepest since imports from Australia began more than two decades ago — is attributed to a sharp rise in the value of the Australian dollar. Surging global demand has also buoyed prices of Australian sheep, it is learnt.
Unlike in past years when seasonal Ramadhan and Eid demand was typically met by a flurry of livestock consignments from Australia, Port Sultan Qaboos recorded only one shipment this time around. The shipment, destined for Al Batna Livestock — the Sultanate’s largest importer and distributor — comprised a mere 6,500 head of sheep, which was far lower than the numbers procured in previous years to meet the demands of the holy month and the festive Eid holiday.
According to a company representative, the steep cost was a key factor in limiting imports. “We settled for a smaller shipment because we didn’t want to be saddled with large numbers of unsold sheep procured at premium prices. Moreover, we’re seeing a shift in demand from pricier Australian sheep to less expensive goats from Somalia and Yemen, as well as cattle imports from the Horn of Africa and elsewhere. All of these supplies put together are helping ensure that the market is well-supplied ahead of the key Eid holiday.”
While livestock shipments to Oman are down to a trickle, supplies to other consuming countries of the GCC bloc continue to be strong as importers capitalise on subsidies offered by their governments on meat sales during the holy month. The subsidy, applicable to fresh meat sold on a retail basis, is an incentive for importers to augment supplies from Australia.
“Australian exporters are quite happy to supply Gulf countries that place large orders on their produce. There are better margins earned by both sides when the consignments are large.Consequently, preference is given to countries that import large quantities. And because of a sharp demand-supply imbalance, smaller importing countries are often given short-shrift in this situation,” a market dealer explained.
Also expected to weigh on margins earned by importers and distributors in the Sultanate is the price cap introduced by the Public Authority for Consumer Protection (PACP). On Saturday, the consumer watchdog announced a ceiling of RO 85 per head of Australian sheep sold in Muscat Governorate, and RO 90 on animals marketed in the regions of the country.
The price freeze does not apply to Somali goats, which according to livestock dealers, account for around 70 per cent of the domestic demand for live animals. Omani families typically purchase live animals whose meat is shared among relatives during Eid — a tradition that fuels the thriving livestock market in the Sultanate.
Of late, however, Somali goats have emerged as the market’s preferred choice — for cost reasons alone. At between RO 35-40 a head, they sell at roughly half the cost of a standard-sized Australian sheep, although in weight-terms, the latter is twice as heavy. Nevertheless, Somali goats are generally seen as affordable by a majority of families long accustomed to the purchase of a live animal for their Eid festive meal.
Unlike Australian livestock imports, which is an organised commercial activity, Somali goats find their way into the Omani market largely via a flourishing dhow trade centring on Salalah in the south. Some quantities of cattle from the Horn of Africa are also making their way into the Sultanate, catering to a segment of the population that finds fresh lamb far pricier than fresh beef.
Source: The Oman Daily Observer
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