09 Aug 2020

Government has put in place several measures to improve the competitiveness of the meat industry in the country.

This was revealed by Minister of Agricultural Development and Food Security, Dr Edwin Dikoloti when responding to questions raised by Nata-Gweta MP, Mr Polson Majaga during the minister’s question time on Friday.

Such measures, he said include the Transformative Beef Cluster, which started in December 2018, which would be led by sustainable growth in output per unit, increase in meat per animal, output per unit of labour so that higher returns and farm per capita income were realised.

Dr Dikoloti said recommendations of the strategy were being implemented through varied value chain actors, although with financial constraints, to differentiate and provide other market-access for Botswana cattle/beef farmed in the most pure farming practices referred hereinafter as grass-fed  and or organic beef.

Furthermore, he said of great importance was that the national herd size, which would benefit the industry in both quality and increased off-take.

Parliament also learnt that government had put in place measures in place to improve BMC that included separating abattoirs  of Lobatse, Francistown and Maun so that each abattoirs operated as independent business from each other, an arrangement, which he said would assist in ensuring that each of the abattoirs did not become a financial burden to the other.

Under the above mentioned scenario, he said the BMC abattoir in Maun would remain under government assistance because of its sensitivity due to frequent disease outbreaks.

Furthermore, he said the Francistown abattoir would remain under care and maintenance while a consideration was being made to lease it out or for BMC to enter into joint venture with a private entity to operate it.

Dr Dikoloti also said privatisation of BMC and liberalisation of the beef industry that was in the process created an opportunity for thriving beef industry for the BMC abattoirs.

He also stated that government was in the process of restructuring BMC chain of abattoirs that was geared towards improving its efficiency, economic viability and create market for farmers.

Dr Dikoloti said as part of restructuring to achieve operational efficiencies, BMC sold off its cold storage infrastructure in the United Kingdom in May 2006 for P97million(euro7.1million) and now once in a while rent out private cold storage facilities in to Europe on a need-basis.

“In South Africa, the BMC owns only Cape Town based cold storage facility, which its strategic placing allows BMC to export beef to advanced markets uninterrupted. 

The facility could be also be used to secure critical supplies inbound to Botswana from export markets,” he said.

He also said the business had access to a private bonded cold-storage facility called Chilweni in Johannesburg, only during times of extreme peak production, albeit on a short-term rent out arrangement. Asked as to whether BMC had markets other than European ones, he said BMC had access to many other markets in Africa, Middle East and North Asia.

Furthermore, he said the ministry was on the verge of accessing yet other lucrative destination in the shortest term, being China and medium to long term being Qatar and USA.

Dr Dikoloti also informed Parliament that the privatisation exercise of BMC started in 2019 and was being led by Public Enterprises Evaluation Privatisation Agency and that the exercise was conducted in a phased process.

The process involves establishment of a livestock and meat industry regulator and commercialising/incorporation of the BMC.

Furthermore, he said the ministry was committed to the completion of the exercise.

MP Majaga had asked the minister to state the measures  in place to improve meat industries locally compared to other countries. He also asked as to what government was doing to improve Lobatse, Francistown and Maun BMCs and whether government was still in partnership with cold storage facilities in South Africa and Britain.

Mr Majaga also asked the minister to outline markets apart from the European ones and when privatisation of BMC would start as long promised. BOPA