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19 April 1999
Economic analysis of nomadic livestock operations in northern Saudi Arabia
S.H. Abdalla, A. Hajooj and A. Simir
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Synopsis
The economic consequences of changes to the pastoral system in Saudi Arabia are the subject of this study. It presents economic analyses, including investment, production rates, off-take, income and expenditures and the returns to nomadic pastoralists.
Key Points
1. Traditional nomadism as a production system no longer exists in Saudi Arabia. Dependency on range forage as a basic feed resource has declined from 100 to less than 20%. Nomadic movements have been mechanized and operations commercialized.
2. A great shift from traditional camel-rearing to sheep-raising took place. Herd sizes increased manifold to suit the new economic conditions. Expansion in the sizes of production operations, in addition to other social changes, resulted in a growing demand for foreign labour.
3. The new system of mechanized nomadism requires high levels of capital investments and cash to run livestock enterprises. Production levels are generally low. The availability of cheap barley feed, machinery and labour expenses will be the most important factors determining production expenses. These factors tend to favour large-size operations for economy of scale. In determining the size of a viable unit that can support a nomadic family, the social traditions must be considered.