Rethinking Beef Cattle Framing

Raising cattle has long been the most profitable farming activity in Botswana. The beef industry has evolved from a focus on basic survival to that of financial gain with sophisticated technological advances dramatically increasing yields.  The sub-sector is well established, and over 95% of the production is exported, much of it to Europe. The past decade has however been a challenging one for the cattle and beef industry owing to persistent droughts, overgrazing, low producer prices and increased operational costs. Botswana’s farming system, which has a large communal component compared to the commercial system predominant in neighbouring Southern African Development Community (SADC) countries, is a major contributory factor to low productivity indicators such as off-take and carcass cold dressed mass.

A number of studies, both by government and by independent researchers have recommended concerted reforms that will commercialise the sector and diversify it through viable, self-sustaining agricultural enterprises and projects. Key elements to bring about these reforms are strengthening production support systems, reduction of the excess regulatory burden, strengthening of efficiency in processing and marketing, improvement of incentives and land tenure arrangements, and liberalisation of markets.

 

The Legacy Project mantra: “Moremogolo go betlwa wa taola, wa motho o a ipetla”

 

On a global perspective, the trade liberalization policy pushed by the World Trade Organisation (WTO) is viewed in some quarters as a threat to the local beef industry. This is because beef processing has been a major beneficiary of preferential trade between the European Union and the African, Caribbean and Pacific (ACP) countries, which allows free access into the EU market.

                          

It is feared the renegotiation of the convention to comply with WTO Free Trade Agreement is likely to see the removal of this preferential treatment for Botswana beef and thus open up the EU market for stiff international competition. This is likely to result in a significant fall of beef prices which will impact adversely on the rural economy. As the privileged access to the EU market remains in place the country needs to reposition the industry in light of both local and global developments. This entails strategic thinking to take the industry forward and upscale it to commercially competitive levels.

Lessons drawn from the declining diamond industry revenue indicate that over reliance on narrow volatile external markets have proved unsustainable. In view of the emerging structural and strategic shifts in the beef cattle farming landscape there is a compelling need for a total transformation of the industry by institutionalising high performance in the beef production value-chain and using cattle by-products to add value and create jobs. Dr Kesitegile Gobotswang (2011) believes that if done right, “Cattle can still reclaim their true position as ‘diamonds’ to an ordinary Motswana – Kgomo ke teemane ya Motswana, as they say.”

Government recognises that while diamond mining has created a platform for growth in the past few decades, it is forecast that mineral revenues will decline substantially over the next two decades. For this reason economic diversification continues to be promoted, and the values of a free enterprise economy encouraged through the drive to create a more investment-friendly environment in which the private sector can flourish.

At present, government’s focus lies on reversing the negative effects and continuing fallout from the recent global economic crisis. The country faces an urgent challenge of implementing strategies to resume rapid economic growth, while broadening sources of growth beyond the mineral sector to make its economy more resilient to external shocks.

Farming, especially beef cattle farming remains one of the areas that plays a critical role in the socio-economic lives of Batswana and can contribute immensely towards the country’s economic diversification drive. Government has facilitated this process by creating a private sector enabling and supportive policy environment, stimulating increased investment flows and enhancing the competitiveness of farmers.

 Farmers are therefore challenged to embrace the fusion between government’s facilitation of farming, emerging best farming practises, new technologies and even indigenous knowledge to foster strategic and highly productive investments in the beef cattle farming sub-sector.

This rapidly changing farming environment, presents Gumaa Gabee with a complex challenge of urgently initiating reforms that entail development of a management framework that spells out techniques and processes that will manage the farming enterprise. The logic of the reforms is to facilitate evidence based planning and clearly demonstrate a solid management structure for the ranch, develop a policy and strategic framework that provides operational direction and financial guidance with illustrations on how resources such as money and effort are used in support of the ranches business needs and stakeholders return on investment. This entails development of the management framework must be aligned to the government’s policies and dovetailed to national goals and strategic objectives.

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