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Botswana Agrifood Value Chain Project: Beef Value Chain Study

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Botswana Agrifood Value Chain Project: Beef Value Chain Study Botswana Agrifood Value Chain Project Beef Value Chain Study By Anton van Engelen FAO Consultant Patrick Malope FAO Consultant John Keyser FAO Consultant and David Neven Marketing Officer, FAO Published by the Food and Agriculture Organization of the United Nations and the Ministry of Agriculture, Botswana The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations, or of the Ministry of Agriculture, Botswana, concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO or the Ministry of Agriculture, Botswana, in preference to others of a similar nature that are not mentioned. The views expressed herein are those of the authors and do not necessarily represent those of FAO or the Ministry of Agriculture, Botswana. ISBN 978-92-5-107446-6 All rights reserved. FAO encourages the reproduction and dissemination of material in this information product. Non-commercial uses will be authorized free of charge, upon request. Reproduction for resale or other commercial purposes, including educational purposes, may incur fees. Applications for permission to reproduce or disseminate FAO copyright materials and all other queries on rights and licences, should be addressed by e-mail to [email protected] or to Chief, Publishing Group, Office of Communication, Partnerships and Advocacy, FAO, Viale delle Terme di Caracalla, 00153 Rome, Italy. © FAO and Ministry of Agriculture, Botswana 2013 All photos are copyrighted by the Ministry of Agriculture - Botswana, except for the hardveld picture on the cover and pictures 5, 7, 11, 12, 15, 17, 22, and 25 which are copyrighted by Neven, pictures 8 and 13 which are copyrighted by Van Engelen, and picture 10 which is copyrighted by the Meat Board of Namibia. Cover pictures: cattle hoof prints in the hardveld – bull and calves of Botswana’s Musi cattle breed. Contact Information: FAO/AGS Ministry of Agriculture, Botswana Viale delle Terme di Caracalla Agricultural Hub, Private Bag 003 00153, Rome, Italy Gaborone, Botswana Table of Contents Preface ............................................................................................................................................. vii Acknowledgements ........................................................................................................................ viii Executive summary ......................................................................................................................... ix Background to the study ............................................................................................................... ix Value-chain approach ................................................................................................................... ix End markets for Botswana beef ...................................................................................................... x The beef value chain in Botswana ................................................................................................ xi Conclusion ................................................................................................................................. xvii Acronyms ....................................................................................................................................... xix PART I Introduction ............................................................................................................... 1 1 Study background and objectives ............................................................................................ 1 2 Value-chain methodology ......................................................................................................... 2 3 Brief history and review of Botswana’s beef subsector .......................................................... 3 3.1 Pre-independence era ........................................................................................................... 3 3.2 Emergence of the Botswana Meat Commission, 1965–1983 .............................................. 5 3.3 The beef subsector in crisis and structural change in the economy ..................................... 6 3.4 Government response strategies .......................................................................................... 8 3.5 BMC response strategies ................................................................................................... 10 3.6 Disease management in Botswana’s beef subsector .......................................................... 12 3.7 Botswana’s beef subsector today ....................................................................................... 13 PART II Value-chain analysis .......................................................................................... 14 4 End markets for Botswana beef ............................................................................................. 14 4.1 Introduction ........................................................................................................................ 14 4.2 Dynamics of the global beef market .................................................................................. 14 4.2.1 Current status ............................................................................................................... 14 4.2.2 Key trends .................................................................................................................... 16 4.3 Botswana’s beef trade patterns .......................................................................................... 20 4.3.1 Fresh and frozen beef .................................................................................................. 20 4.3.2 Other beef value-chain products .................................................................................. 22 4.3.3 Comparing Botswana to Namibia ............................................................................... 23 4.4 Markets outside sub-Saharan Africa .................................................................................. 25 4.4.1 European Union market ............................................................................................... 25 4.4.2 Other markets outside of Africa .................................................................................. 31 4.5 Sub-Saharan African markets ............................................................................................ 35 4.5.1 South Africa ................................................................................................................ 35 4.5.2 Other sub-Saharan African markets ............................................................................ 36 4.6 The domestic market .......................................................................................................... 39 4.7 Summary and conclusion ................................................................................................... 42 5 Value-chain map and channels ............................................................................................... 43 5.1 Value-chain map ................................................................................................................ 43 5.2 Various channels ................................................................................................................ 43 5.2.1 Introduction ................................................................................................................. 43 5.2.2 Export channels ........................................................................................................... 43 5.2.3 Domestic channels ....................................................................................................... 45 5.3 Points of leverage .............................................................................................................. 46 6 Production ................................................................................................................................ 48 6.1 Introduction ........................................................................................................................ 48 6.2 Communal system ............................................................................................................. 53 i 6.3 Ranch system .................................................................................................................... 55 6.4 Feedlot system .................................................................................................................. 56 6.5 Profitability of the different production systems .............................................................. 60 6.5.1 Farm-level analysis ..................................................................................................... 61 6.5.2 Feedlot-level analysis ................................................................................................. 69 6.5.3 Summary of main findings ......................................................................................... 73 7 Processing ...............................................................................................................................
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