Economics of Banana Marketing During Civil War in Lower Shabelle Region in Somalia 1991-2005

Abstract

The study depends on the economics of banana marketing in Somalia, particularly the main banana producing region “Lower Shabelle Region” and Mogadishu markets, the main central distribution of banana fruits in Somalia. The core objective of the study is to evaluate marketing economics of banana product in Somalia during the civil war (1991-2005) in lower shabelle. In particular, the study gave emphasis on the socio-economic characteristics of banana farmers, the situation of the existing banana marketing channels, banana-marketing process, and price trends, setting budgets and identifying the marketing obstacles during the civil stress. The study used two data sources primary and secondary source. On primary data, a questionnaire was prepared from different actors of banana marketing which were subjected to descriptive statistical analysis and frequency distribution using Microsoft Excel. Meanwhile, the secondary data was used where it is applicable like the price trends and exchange rates. The study divided the lower shabelle region into three major banana- growing areas Marka the headquarter of the study region, Afgoye district and Qoriyoley-Kurtun Waarey district and assess the marketing of banana fruits in Mogadishu’s Bakaara market where the produce are mainly sold and distributed to the other regions in the country. A stratified random sampling was used for designing the sampling iii system including the farmers, wholesalers, and retailers of banana marketing. Socioeconomic analysis illustrated that the farmers are experienced for more than 10 years, were employment was good 64%. The study results of the marketing channel analysis indicated that a number of six different marketing channels to serve banana farmers (producers) and final consumers In marketing process analysis showed that the marketing costs are high due to the many constraints that exist, the transportation cost is 70% of the marketing costs, while the illegal fee for roadblock agents above 23%, and on marketing channels there are many players which lowers down the marketing margins. Analysis of the banana price trends from the year 1991 to 2005 demonstrated that the banana had an excessive fluctuations due to two factors in exchange markets, (banknotes reprinted by the businesspersons) and export markets that were totally stopped. The study showed that marketing activities face problems since the collapse of the central government from 1991 such as lack of security for all participants of the market activities, poor infrastructure, and high inflation. The study concluded and recommend to Establish marketing associations that can carryout the responsibilities of all marketing activities who are in need for the Somali banana markets.