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Botswana CDE and ITC Partnership Project on Value Chains

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Botswana CDE and ITC Partnership Project on Value Chains Botswana CDE and ITC partnership project on value chains Beef value chain findings, strategy and proposed interventions October 2014 PEER REVIEW DRAFT ITC Team Pablo Lo Moro Subhrendu Chatterji Agapitos Hatzipetros Stephen Ghanie Christopher Tsopito Contents LIST OF FIGURES ............................................................................................................... i LIST OF TABLES ................................................................................................................. i ABBREVIATIONS AND ACRONYMS ....................................................................................... ii EXECUTIVE SUMMARY ...................................................................................................... iv 1. INTRODUCTION AND APPROACH ................................................................................... 1 1.1. INTRODUCTION TO THE REPORT .......................................................................................................... 1 1.2. BEEF SECTOR RECOMMENDATIONS IN CONTEXT ............................................................................. 1 1.3. VCAD APPROACH AND REPORT STRUCTURE ..................................................................................... 2 2. THE BEEF SECTOR AND ITS EXPORTS IN THE GLOBAL CONTEXT .......................................... 3 2.1. BACKGROUND TO THE BEEF SECTOR IN BOTSWANA ...................................................................... 3 2.2. GLOBAL BEEF PRODUCTION AND TRENDS ......................................................................................... 4 2.3. EVOLUTION OF BEEF PRODUCTION IN BOTSWANA ......................................................................... 5 2.4. GLOBAL EXPORT AND IMPORT MARKETS IN FRESH, CHILLED AND FROZEN BEEF ................... 7 2.5. BOTSWANA’S BEEF EXPORTS .............................................................................................................. 10 2.6. IMPLICATIONS FOR THE BEEF VALUE CHAIN ................................................................................... 12 3. THE BEEF VALUE CHAIN ............................................................................................. 13 3.1. INTRODUCTION ...................................................................................................................................... 13 3.2. BEEF VALUE CHAIN MAP ...................................................................................................................... 13 3.3. PRODUCTION .......................................................................................................................................... 15 3.4. PROCESSING ............................................................................................................................................ 22 3.5. MARKETING AND DISTRIBUTION ........................................................................................................ 24 3.6. OTHER INPUTS ........................................................................................................................................ 26 4. SUPPORT INSTITUTIONS IN THE BEEF SECTOR ............................................................... 29 4.1. INTRODUCTION ...................................................................................................................................... 29 4.2. PUBLIC TRADE SUPPORT INSTITUTIONS ........................................................................................... 29 4.2.1. VETERINARY SERVICES ..................................................................................................................... 29 4.2.2. LIVESTOCK IDENTIFICATION AND TRACE‐BACK SYSTEM .......................................................... 33 4.2.3. QUALITY CONTROL AND MANAGEMENT SYSTEMS .................................................................... 34 4.3. TRADE ASSOCIATIONS ........................................................................................................................... 35 4.4. LIVESTOCK ADVISORY CENTERS .......................................................................................................... 36 4.5. TRANSPORT ............................................................................................................................................. 36 4.6. RESEARCH AND DEVELOPMENT .......................................................................................................... 37 4.7. TRAINING ................................................................................................................................................. 37 4.8. FINANCE AND INSURANCE ................................................................................................................... 38 5. GOVERNMENT POLICIES RELATING TO THE BEEF SECTOR ................................................ 39 5.1. INTRODUCTION ...................................................................................................................................... 39 5.2. LAWS AND REGULATIONS AFFECTING THE SECTOR ...................................................................... 39 5.3. POLICY FRAMEWORK ............................................................................................................................ 40 5.4. OTHER CORE SUPPORT POLICIES AND INITIATIVES ....................................................................... 42 5.5. PROFESSOR MICHAEL PORTER’S RECOMMENDATIONS ................................................................ 44 5.6. TRADE POLICY RELATING TO THE BEEF SECTOR ............................................................................. 44 6. COMPETITIVE CONSTRAINTS ...................................................................................... 45 6.1. INTRODUCTION ...................................................................................................................................... 45 6.2. BORDER‐IN GEAR: SUPPLY SIDE CONSTRAINTS .............................................................................. 46 6.3. BORDER GEAR: QUALITY OF BUSINESS ENVIRONMENT ISSUES ................................................. 49 6.4. BORDER‐OUT GEAR: MARKET ENTRY CONSTRAINTS ..................................................................... 53 6.5. SOCIAL DEVELOPMENT GEAR .............................................................................................................. 55 7. BEEF SECTOR EXPORT MARKET DEVELOPMENT AND VALUE OPTIONS ............................... 58 7.1. INTRODUCTION ...................................................................................................................................... 58 7.2. MARKET DEVELOPMENT OPTIONS ..................................................................................................... 58 7.3. VALUE OPTIONS ..................................................................................................................................... 61 8. PROPOSED STRATEGY ................................................................................................ 63 8.1. INTRODUCTION ...................................................................................................................................... 63 8.2. SWOT ANALYSIS ..................................................................................................................................... 63 8.3. STRATEGIC VISION FOR EXPORT MARKETS ...................................................................................... 64 8.4. STRATEGIC OBJECTIVES ........................................................................................................................ 65 9. STRATEGIC ROADMAP FOR THE BEEF SECTOR ............................................................... 68 9.1. INTRODUCTION ...................................................................................................................................... 68 9.2. FURTHER ENHANCING DVS PERFORMANCE .................................................................................... 68 9.3. FINDING COORDINATED SOLUTIONS FOR FMD‐RELATED ISSUES .............................................. 70 9.4. REPOSITIONING BOTSWANA BEEF AND STRENGTEHING BMC EXPORT CAPACITY ................. 72 9.5. STRENGTHENING COMMUNAL FARMING ......................................................................................... 74 9.6. ......................................................................................................................................................................... 76 9.7. FURTHER REFORMING BMC AND LIFTING EXPORT MONOPOLY ................................................. 77 9.8. IMPROVING THE SECTOR’S SUPPORT NETWORK ........................................................................... 79 9.9. IMPROVING REGIONAL COOPERATION ............................................................................................. 82 10. PRIORITY PROJECT IDEAS FOR PSDP ............................................................................ 84 10.1. INTRODUCTION .................................................................................................................................. 84 10.2. STRENGTHENING COMMUNAL FARMING PRACTICES ............................................................... 85 10.3. IMPROVING DVS SERVICE DELIVERY ............................................................................................. 87 10.4. BRANDING OF BOTSWANA BEEF AND DEVELOPING EXPORT CAPACITY
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