18 Feb 2021

 The issue of the United Arab Emirates with regard to potential market for smallstock meat is an initiative that emanated from High Level bilateral talks between the country leadership and some business entities from the gulf region three years ago, parliament has been told.

Answering a question in Parliament, on Wednesday, the Minister of Agricultural Development and Food Security Mr Kabo Gare said the agreement between Botswana and Saudi Arabia with regards to the export of smallstock meat from Botswana had not yet been signed. However, preparations for the initiative have commenced and the necessary paper work has been initiated.

He said the terms of the agreement, once it was entered into force, were the tariff reductions and preferential market access of smallstock meat and meat bi-products from Botswana. The agreement also removes tariff and non-tariff barriers to trade, which will increase the competitiveness of smallstock meat for transmission of value to local farmers.

Minister Gare said the agreement in principle, entailed Botswana producing smallstock for sale and consumption in Saudi Arabia, recognising the trade barriers and everything that had to do with export of smallstock, the price mechanism, logistics, quotas and various types of meat, exit arrangements and price dynamics, amongst others.

“The opportunities are both local and global,” he said.

On local opportunities, Minister Gare said the export of smallstock in the Saudi Arabia market would stimulate rearing of smallstock for commercial purposes in Botswana, unlocking of value chain in the keeping, handling, and general management of smallstock for sustainable job opportunities in the country as well as opening up opportunities for production and sale of livestock feed, local transportation businesses and llivestock medical care for smallstock amongst other things.

As for international opportunities, Mr Gare said the bilateral-agreement would give the local smallstock sub-sector one of the most lucrative international goat meat markets.

He said according to the United Nations Comtrade the UAE was ranked second in the global market share of goat meat imports weighing 96.12 million metric tonnes annually, largely due to good prices they offered.

The minister further said there was an opportunity of penetration of the entire Middle East and North African Countries (MENA) meat markets.

In the global perspective for instance, he said the primary opportunity was lucrative market, noting that other opportunities included access to international trade that promoted Botswana as a country, as well as the chances of discovery of sale of other commodities in the Arab world following entry of smallstock meat.

He said sale of any commodity brought revenue to the trader and so should be the case in the marketing of smallstock to Saudi Arabia, saying there was going to be increase of Smallstock population in the country due to availability of market, and various businesses across the value chains locally and elsewhere.

“Other benefits may be direct and indirect arising from spin-offs associated with the smallstock market in Saudi Arabia such as long haulage air cargo, opportunities for employment of chefs from Botswana, advertising business, and tourism likely to open up with the Arab world,” he said.

Minister Gare said his ministry through capacity building was preparing Batswana smallstock farmers to fully participate in the smallstock value chains and ensure that people were facilitated to benefit from the business opportunities that would arise from the initiative in Saudi Arabia.

He said the assumption was that the question on strategic position was with reference to marketing of smallstock in Saudi Arabia only.

“Otherwise, the thrusts for addressing unemployment and poverty in agriculture lies in a number of initiatives and programmes such as implementation of ERTP, and various farmer support programmes all of which are to be guided by the revised agricultural policy,” he said.

Minister Gare said it was the start of things and as such a robust plan to harvest whatever opportunity from this dispensation was gradually being developed.  

The Minister was answering a question from the Jwaneng/Mabutsane MP, Mr Mephato Reatile who wanted the minister to appraise Parliament on the nature of the agreement between Botswana and the United Arab Emirates or any such similar agreements; and in particular to state when such an agreement was signed, if any; the clear terms of the agreement and opportunities for small stock farmers; the expected benefits from the arrangement; the Ministry strategic position to address unemployment and poverty; and if none, whether it is not opportune to come up with a robust plan. Ends