BMC sends farmers to benchmark in Norway
Isaac Pinielo | Tuesday September 19, 2017 18:00
The purpose of the visit is to give the farmers a full understanding of the Norwegian market requirements, which the BMC regards as its preeminent market.
In a press briefing before the departure of the farmers on Sunday, BMC chief executive officer, Akolang Tombale said the farmers will compare notes and be ‘work-shopped’ by one of the largest Norway farmers’ cooperative called Nortura.
“The farmers will also tour chain stores in Norway that sell BMC products, to get first hand feedback from the market, as well as appreciate varied and efficiently run abattoirs and feedlot holdings in Norway,” Tombale said.
He expressed optimism that the farmers will come back with the full understanding of the market requirements, which he said they would also attest to many other farmers in the country.
He was also hopeful that the farmers would have full appreciation of the mandate of the BMC, as far as what it means for it to promote interests of the livestock industry of Botswana.
“Even more important, they should be able to ascertain the fact that the quality of slaughter cattle in Botswana needs urgent improvement and investment, if we are to compete globally,” he said.
He explained that Norway is BMC’s best market although restricted to a quota access of 1,600 tonnes, adding that Norway prices on average are 50% more than any markets BMC exports its products to.
According to Tombale, the BMC has approached the Ministry of Investment, Trade and Industry to declare BMC’s competency to the Norwegian government, with the hope to increase the 1,600 tonnes quota or even scrap it off to allow unlimited access just as in the European Union (EU) market.
Last year, the BMC exported 7,439 tonnes of beef worth P348.1 million to the EU. Norway received 1,600 tonnes of beef from Botswana worth P208.1 million, with other markets and South Africa receiving 1,443 tonnes and 15,244 tonnes worth P35.5 million and P372.2 million respectively.
Permanent secretary (PS) in the Ministry of Agricultural Development and Food Security, Boipolelo Khumomatlhare said cattle supply shortages remain a contributor to BMC’s negative performance.
With the trip to Norway, he said the farmers would be presented with an opportunity to learn from their Norwegian counterparts on how to improve supply and equally get better payments for their stock.
“Markets or customers in the first-world are naturally sensitive. Failure to supply quality beef at the time it is needed has serious implications to a point where re-entry to such markets are at times the hardest,” he said.
According to the PS, understanding the market will empower the farmers and many others, with the right attitude towards commercialising beef cattle supply instantly.
He said the ministry is aware of the challenges faced by both the BMC and the farmers and that it is currently consulting on what would be the immediate measures or interventions required.
The PS noted that Cabinet is also yet to conclude on proposals of privatising the BMC, but also there is a study on liberalisation of the beef sector, which is expected to be concluded in October.