BMC gets greenlight to export beef to UAE
The Botswana Meat Commission (BMC) has been accredited to export beef to the United Arab Emirates (UAE) as of March 2023, Business Monitor has established.
The Minister of Entrepreneurship, Karabo Gare, said the greenlight follows the negotiations that were conducted at the Dubai Expo 2020 in February 2022 “Plans are underway to complete accreditation of the BMC Maun abattoir to also gain access to the UAE and the GCC countries within 2023,” he told Parliament recently.
It was also revealed that long term plans are to have the Maun plant separated from BMC’s commercial performing entities; Lobatse abattoir, cannery, tannery and Francistown abattoir, while providing Ngamiland farmers with a market for their livestock.
“It does so without weighing down on BMC’s performing assets,” Gare added. The BMC Maun abattoir receives annual subvention of P20 million to stay operational and serve as its regional economy whilst retaining its risk management orientation.
The UAE accreditation follows the last year’s failure by the struggling parastatal to fully deliver its 1,600 tonnes quota to its lucrative Norway market. The Norway quota is considered as Botswana’s single most lucrative supply contract, representing best market value. Although BMC has contracts in the European Union, United Kingdom and elsewhere, it has previously been revealed that the Norway quota can account for at least 10% of its annual revenues.
“BMC’s exports to Norway though Botswana’s allocation of the Southern African Customs Union (SACU) / Norway European Free Trade Association (EFTA) were also frustrated by unwarranted appropriating of Botswana’s share of the quota by beef exporters in Namibia, a matter that we are addressing through diplomatic channels,” the minister said.
The Norway quota provided under the SACU / Norway EFTA quota arrangement, allowed preferential access to 3,700 tonnes of beef to the European country each year from Botswana, Namibia and Eswatini. Botswana and Namibia equally share 3,200 tonnes, while Eswatini receives the balance.
Meanwhile, the minister told Parliament that the Francistown abattoir remains under care and maintenance programnnce as of July 2018. Between the years 2021 and 2022, varied private entities declared their interests to lease out the facility from BMC and to convert it to a small stock processing facility.
“BMC remains committed to ensuring that the Francistown abattoir transition from its current care and maintenance programme into being an operational business unit, which positively contributes to the BMC and the greater Francistown region,” Gare added.
To facilitate access to the market for farmers within the Francistown region’s catchment area, BMC Lobatse provides free logistical support from its collection points to transport cattle to its Lobatse abattoir. Additionally the business is in talks with other government logistics entities to enhance haulage of cattle from the north to the Lobatse abattoir.