Type | Report |
Title | How trade liberalization can contribute to resolving the crisis in the beef and cattle sector |
Author(s) | |
Publication (Day/Month/Year) | 2005 |
URL | http://www.econsult.co.bw/tempex/Beef-Cattle Policy Briefing Paper.pdf |
Abstract | The cattle and beef industry has traditionally played an important role in the Botswana economy and society, with significant contributions to GDP, exports, and employment, as well playing an important social and cultural role. In recent years, however, there have been signs of decline and stagnation, especially in the beef export sector, with adverse implications for the viability of cattle farming in the country, and more generally for rural livelihoods. Within the industry, a central role has been played by the Botswana Meat Commission (BMC), a state-owned company that has a monopoly on beef exports and which also receives protection from a statutory ban on live cattle exports. Notwithstanding the fact that Botswana receives privileged access to the high-price European Union (EU) market, the main destination for BMC’s exports, there is a growing crisis in the beef and cattle sector: throughput at BMC’s abattoirs is declining, BMC is making losses, and prices paid to farmers are declining in real terms. If present trends continue, prospects for the beef and cattle sector are poor. As a result, it is widely acknowledged that major changes are needed, encompassing the management and operation of BMC, beef/cattle marketing arrangements, and raising the productivity of cattle faming operations, if the industry is to thrive, indeed to survive. |
» | Botswana - Household Income and Expenditure Survey 1993-1994 |