Country Report Botswana March 2011

Economic performance: The BMC is shut down over hygiene concerns

Abattoirs operated by the Botswana Meat Commission (BMC), which holds a monopoly on beef exports from the country (which accounted for 2% of estimated merchandise exports in 2009), were shut down in early February over concerns that they did not meet the rigorous hygiene standards required for sales to the lucrative EU market. The company was given until late February to rectify the deficiencies in time for the next EU inspection. Despite this setback, however, the prospects for BMC, which over the years has often struggled to attract farmers, who prefer the greater convenience (and less exacting standards) of local butcheries, appear to be improving following the introduction of more competitive prices in 2008. Although it still operates well below its annual capacity of 250,000 cattle, 179,000 cattle were processed in 2010-the highest level for a decade. Moreover, the successful eradication of foot-and-mouth disease in the north-east of the country close to the border with Zimbabwe, where the disease is rife, should increase the supply of animals that are eligible for export.

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