industry research
Somalia’s Frankincense Industry
An interactive analysis of an ancient trade at a modern crossroads, facing critical sustainability and humanitarian challenges.
The Big Picture: An Economic Lifeline
Frankincense is not just a commodity; it is a cornerstone of the Somali economy, particularly in its northern regions. This section provides a high-level view of its economic and social significance, highlighting the deep reliance of local communities on this single, volatile resource.
Global Market Value
$504.5M
Value of the frankincense oil market, fueled by global demand in cosmetics and aromatherapy.
Livelihoods Supported
~200,000
Estimated number of people in Somalia directly or indirectly involved in the industry.
Community Income Reliance
In regions like Bari, frankincense can account for up to 80% of a family’s income, showing a critical dependency.
The Value Chain: From Tree to Trade
The journey of frankincense resin is complex, involving multiple stages and stakeholders. This section breaks down the process and reveals the stark economic disparities inherent in the system. Hover over each stage to learn more about the roles and realities.
Harvesters
Local Traders
Processors
Exporters
Global Brands
The Price Disparity
The economic inequality is stark. Harvesters receive a fraction of the price that high-quality resin can command even before it leaves the country. This chart illustrates the vast gap between the earnings of primary producers and the potential value captured by traders and exporters.
Crises at the Source: Human & Environmental
The industry is at a breaking point, squeezed by a dual crisis. Environmentally, the ancient *Boswellia* trees are dying. Socially, the people who depend on them face extreme exploitation. This section explores these interconnected challenges.
Threats to Boswellia Trees
The radar chart visualizes the converging pressures on the frankincense forests. Overharvesting is the most acute danger, amplified by climate change, regional conflict, and land degradation.
Labor Exploitation: The Wage Gap
Women sorters, the backbone of processing, earn far below a living wage. This chart starkly compares their daily earnings to an estimated fair wage required to support a family.
Pathways to a Sustainable Future
Despite the grave challenges, clear opportunities exist to transform the industry into a model of sustainability and equity. This requires strategic investment and reform across technology, community empowerment, and governance. Use the filters to explore key opportunities.
Blockchain for Transparency
Implement immutable ledgers to track resin from tree to consumer, ensuring fair payments to harvesters and building trust with ethical buyers.
Local Value Addition
Invest in in-country distillation and processing to create higher-value products (oils, creams) and capture more profit locally.
Empower Cooperatives
Support local cooperatives, especially for women sorters, to improve collective bargaining power, wages, and working conditions.
Forest Restoration & Policy
Fund large-scale reforestation and enforce sustainable management plans that allow trees to rest and regenerate naturally.
Tree Health Monitoring
Use GPS and mobile apps to monitor the health of individual trees, enabling data-driven decisions for sustainable harvesting quotas.
Community Development
Invest in fundamental needs like clean water, education, and healthcare to improve livelihoods and build community resilience.
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