Commodity-based Trade and Market Access for Developing Country Livestock Products: The Case of Beef Exports from Ethiopia

Abstract

While Ethiopia is Africa’s largest livestock producer, sanitary and phytosanitary (SPS) barriers and animal diseases have traditionally constrained market access. A system dynamics model examined the feasibility of a proposed SPS certification system under a number of scenarios. Model results indicate that the system may not be viable for beef exports to Middle Eastern markets. However, the binding constraint is high domestic input costs rather than the costs of SPS compliance. Sensitivity analyses reveal that while investments in feed efficiency and animal productivity would enhance Ethiopia’s export competitiveness, the competitive nature of international beef markets may still prevent market access.

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