smallholder market competitiveness for beef production in botswana: a quantitative value chain...

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Smallholder market compe//veness for beef produc/on in Botswana: A quan/ta/ve value chain analysis Kanar Hamza and Sirak Bahta: Norwegian Ins/tute of Interna/onal Affairs; Interna/onal Livestock research ins/tute. Smallholder CaHle Producers In Botswana Ca$le provide draught power, meat, milk, as well as new ca$le through reproduc8on. Ca$le can be easily converted to cash when needed. About 3% of Botswana’s GDP is based on ca$le exports, and ca$le accounts for most of the agricultural share of GDP. Ca$le also provide significant contribu8ons in terms of providing employment opportuni8es for rural households in Botswana, especially in communal lands were ca$le produc8on is the main source of income (Mahabile et al. 2005). Livestock and Fish agrifood chain toolkit conference Kampala 9‐11 September, 2013 Key points We constructed a system dynamics (SD) model of the Botswana beef sector. We used the constructed value chain model to run different scenarios: (1) baseline (business‐ as‐usual), (2) a scenario with FMD disease outbreaks (limi8ng trading capability), (3) changing management prac8ce (i.e. moving from oxen to weaners), and (4) market diversifica8on scenarios. Market opportuni/es and challenges Botswana is already one of Africa’s largest beef exporters. However, Botswana’s share in large beef impor8ng country markets is rela8vely small compared to major players like Brazil and Australia and growing beef exporters like India. Even if Botswana doubled or tripled its beef produc8on, it will s8ll remain a small player rela8ve to large producers such as Brazil. Therefore, the focus of Botswana should be towards improving quali8es and targe8ng high quality end markets in impor8ng countries rather than compe8ng on cost and volume with the world’s largest and more efficient beef exporters. At the same 8me, Botswana needs to focus on the diversifica8on of its export market channel to include Halal markets in the Middle East, growing local demand for beef, high quality interna8onal markets, and nearby sub Saharan countries to become more resilient and less vulnerable to changing in trade structure in different markets. Simplified Structure of the Model Scenario 4 Scenario 2 (S 3 has minor differences) Scenario 1

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Smallholder market compe//veness for beef produc/on in Botswana: A quan/ta/ve value chain analysis 

Kanar Hamza and Sirak Bahta: Norwegian Ins/tute of Interna/onal Affairs; Interna/onal Livestock research ins/tute. 

Smallholder CaHle Producers In Botswana 

•  Ca$le provide draught power, meat, milk, as well as new ca$le through reproduc8on. 

•  Ca$le can be easily converted to cash when needed.  About 3% of Botswana’s GDP is based on ca$le exports, and ca$le accounts for most of the agricultural share of GDP.  

•  Ca$le also provide significant contribu8ons in terms of providing employment opportuni8es for rural households in Botswana, especially in communal lands were ca$le produc8on is the main source of income (Mahabile et al. 2005).  

 Livestock and Fish agrifood chain toolkit conference Kampala 9‐11 September, 2013 

Key points 

•  We constructed a system dynamics (SD) model of the Botswana beef sector.  

•  We used the constructed value chain model to run different scenarios: (1) baseline (business‐as‐usual), (2) a scenario with FMD disease outbreaks (limi8ng trading capability), (3) changing management prac8ce (i.e. moving from oxen to weaners), and (4) market diversifica8on scenarios.  

Market opportuni/es and challenges 

•  Botswana is already one of Africa’s largest beef exporters.  

•  However, Botswana’s share in large beef impor8ng country markets is rela8vely small compared to major players like Brazil and Australia and growing beef exporters like India.  

•  Even if Botswana doubled or tripled its beef produc8on, it will s8ll remain a small player rela8ve to large producers such as Brazil. 

•  Therefore, the focus of Botswana should be towards improving quali8es and targe8ng high quality end markets in impor8ng countries rather than compe8ng on cost and volume with the world’s largest and more efficient beef exporters.  

•  At the same 8me, Botswana needs to focus on the diversifica8on of its export market channel to include Halal markets in the Middle East, growing local demand for beef, high quality interna8onal markets, and nearby sub Saharan countries to become more resilient and less vulnerable to changing in trade structure in different markets.  

Simplified Structure of the Model 

Scenario 4 Scenario 2  (S 3 has minor differences)  Scenario 1