Live cattle sales had temporarily been opened up from October 2020 as a way of giving farmers alternative income streams outside of the Botswana Meat Commission (BMC), which has been the sole institution statutorily allowed to export beef products in the country.
Under the dispensation, farmers were allowed to export live cattle and export meat products.
Initially, the live cattle sales dispensation was expected to run for four years and end in 2024. However earlier this year, the Ministry of Agriculture announced that the initiative would end in December as authorities believed that the BMC had resurrected its operations and was ready to pay competitive prices to farmers.
When presenting the State of the Nation Address on Monday, President Mokgweetsi Masisi said government had decided to further extend the live cattle sales, while at the same time accelerating plans to liberalise the beef industry to boost its growth and vibrancy.
Statistics Botswana figures indicate that the value of live cattle exports rose from P877 million in the first full year of the temporary measure in 2021, to P1.2 billion last year. In the first five months of this year, the cattle exports were measured at about P356 million down from P406 million over the same period last year.
Famers have over the years been frustrated by the monopoly BMC enjoys in being the sole exporter of beef in the country. They have also repeatedly expressed frustration with the prices and settlement terms that the BMC offers.
Masisi also said government was making strides towards improving both beef and local milk production through alternative breeding systems such as artificial insemination.
“Government will continue to rehabilitate the existing artificial insemination centres across the country. “It will also increase them by six new ones and this will be done by September 2024,” he said.
The six artificial insemination centres are Mahalapye Rural Training Centre, Impala, Setata in Boteti District, Nxaraga, Chobe, and Kgalagadi South.
Meanwhile, the Meat Industry Regulatory Authority (MIRA) is due to be established in the next financial year, which begins in April. According to Masisi, the new parastatal will promote the resilience of the livestock and meat sector by creating a conducive business environment which at the same time ensures protection of Batswana and consumers of meat.
MIRA’s establishment is expected to allow full participation of all key value chain players in the running of the beef industry and the development of the necessary linkages that will have the net effect of giving farmers a voice.
However, the new parastatal’s critics say by liberalising the meat industry, MIRA will kill the BMC, which is the offtaker of choice for smaller-scale farmers.
