BMC redoubles non-EU exports
Keikantse Lesemela | Friday December 12, 2014 20:29
The European Union has traditionally been the Commission’s mainstay, accounting for up to a tenth of revenues in previous years. However, outbreaks of Foot and Mouth Disease as well as livestock traceability issues triggered the delisting of local exports in 2011, exposing the BMC’s books and local farmers.
The Commission countered the delisting by sourcing new markets outside the EU, making regional inroads and even tapping Zimbabwe for FMD beef exports.
This week, De Graaf told journalists that the diversification drive would be redoubled in 2015, particularly as it was critical for beef from non-EU designated areas in Botswana.
“In addition to selling to lucrative markets such as Norway, United Kingdom and continental Europe, the BMC continues to explore other niche markets outside Europe,” De Graaf said.
“This is particularly important for EU non-eligible beef for which it is important to diversify away from its traditional market of South Africa.
“Therefore in 2015, the BMC will increase its exports to the large Hong Kong market and will also increase volumes of beef to the Middle East.”
In 2013, the BMC exported 18,545 tonnes of beef of which 5,991 went to the EU, compared to 20,573 tonnes in 2012 of which 750 were EU-bound.
According to figures provided, the Ministry slaughtered 136,376 cattle at the BMC’s abattoirs between January and November this year, compared to 139,626 in 2013.
De Graaf said volumes would be increased at the Maun abattoir in order to route exports to Mozambique and East Africa. By November, 16,314 cattle had been slaughtered in Maun, compared to 92,573 in Lobatse and 27,489 in Francistown.
“We also remain confident that the Angolan market will open up for Maun products and that transit permission from Namibia will be given,” he said.
The minister said live cattle exports to Zimbabwe would be pursued as well. Zimbabwe’s Cold Storage Commission – a peer entity to the BMC – imported 4,071 cattle from Botswana between January and November 2014, which De Graaf said were constrained due to financial challenges in that organization.
He revealed that the BMC has now hammered out purchasing terms with the Zimbabweans.
“We have had challenges with Zimbabwe regarding the payments but now we don’t have any as we have entered into agreements,” he said.
“They pay us and we deliver the cattle after we get the payment.”
The minister also revealed that efforts to ear-tag cattle had been stepped up during the year, with more than 1.5 million of the targeted 2.2 million beasts being tagged as part of the first stage of the traceability initiative.
The second stage will see farmers themselves tagging young animals born after the first stage and giving the tagging returns to the Department of Veterinary Services.
Meanwhile, De Graaf says an end to the BMC’s monopoly would benefit small farmers. Farmers have agitated for the removal of the BMC’s monopoly for years, arguing that the parastatal depressed producer prices and discouraged growth in the industry.
Amendments to the BMC Act, which would end the parastatal’s monopoly, have been in circulation since the beginning of the decade, but have met resistance in parliament where legislators fear the move could collapse the BMC.
Legislators have said removing the BMC’s monopoly would only benefit large producers who are able to independently export, while smaller producers previously reliant on the BMC for export parity prices, would be left in the lurch.
De Graaf, however, said a regulator would be appointed to protect small-scale farmers’ interests.
“I want the BMC Act to be amended but I cannot do it alone because this should be approved by parliament,” he said.
“This is quite a process because after amending the Act there must also be a regulator to protect the small scale farmers.”
Proposed amendments to the BMC Act were partly motivated by a 2005 World Bank/Botswana Institute of Development Policy Analysis study into the beef industry’s perennial challenges.
Government, which says it has undertaken “extensive consultations” with stakeholders, argues that the proposed amendments would enhance the productivity and competitiveness of the beef industry.