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Southern Africa
Botswana’s beef sector
The beef and cattle industry has played a key role in Botswana’s economic well being,
export diversification and poverty alleviation. Yet until recently the sector faced a
serious crisis with declining production, decreasing exports and losses experienced by
cattle farmers. Change was initiated through stakeholder discussions on policy changes
resulting in export-parity cattle prices and support to convert from the marketing of older
cattle to long-weaner and feedlot production systems. At the same time Government
negotiated successfully for tariff free entry of livestock products to EU markets. The
Botswana Meat Commission (BMC) restructured its operations: reducing its cost base
and improving throughput and processing efficiencies. This involved directly purchasing
cattle from producers, with a focus on younger stock, which are fattened for 90 days
in contractor-owned feedlots prior to slaughter. These actions resulted in increases
in: producer cattle prices, herd take-off, incomes to farmers and land values. A record
number of cattle were slaughtered in 2010 and abattoir use is now approaching capacity.
The national herd demographic has become younger, as farmers realise they are able to
increase their profits by selling younger animals.
Initial context. In Botswana, the bovine meat industry is one of three main sectors that are
important to the economy, the others being diamond mining and tourism. The cattle industry is
by far the largest contributor to agricultural production contributing in excess of US$70 million
in 2008 (FAOSTAT, 2010). Prior to development of the diamond sector bovine meat was the
mainstay of the economy. The industry has been key to Botswana’s economic wellbeing in rural
areas, export diversification and poverty alleviation, with 90 percent of the national herd being
owned by smallholder communal farmers typically owing between 20 and 50 head. Farmers
rarely sell female animals, only oxen, traditionally those over 3 years of age.
Challenges. Until recently the beef sector faced a serious crisis, with declining production,
decreasing exports and losses experienced by both cattle farmers and the parastatal, BMC.
It had been argued that the industry was heavily protected, limiting the scope for trade,
competition and the price incentives needed to bring about the necessary adjustments.
Innovation triggers. Change was initiated through the preparation of a carefully researched
policy paper (Jefferis, 2005) prepared on behalf of the Botswana Cattle Producers Association
44 Agricultural Innovation in Sub-Saharan Africa