EFFICIENCY OF BOTSWANA MEAT COMMISSION
Date
2012-09-22
Authors
Nkombeledzi, Geraldine
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
Over the years BMC has been characterised by a series of fluctuations in its throughput and
also the inability to operate at full capacity. An interesting detail is that, demand for beef and
beef products has risen as evidenced by a rise in domestic consumption. BEDIA (2008) reports
that, the number of cattle supplied to BMC over the years has declined, while on the other
hand, domestic consumption has increased and local butcheries have attracted an increasing
number of cattle made available for slaughter: as a result throughput at BMC abattoirs has
declined leading to excess capacity.
Given that, Botswana has higher potential of meat production than it actually produces, there
is therefore a need to determine BMC level of efficiency and identify possible causes of
inefficiency so as to reduce existing excess capacity and improve its performance. This study
employed Stochastic Frontier Analysis to assess technical efficiency of Botswana Meat
Commission. The results indicate that BMC is not technically efficient. The study also used
Ordered Logit to assess factors having an influence on efficiency.
Factors that were found to have influence include material input, producer prices and exchange
rate. In consideration of the potential that the sector possesses such as diversification of the
economy and export earnings among others, strategies that can enhance BMC performance
must be fully explored. Options that can be explored include; opening up of the market so that
producer prices are competitively set and further processing of by products which can be
outsourced so that the commission concentrates on efficient production of beef and beef
products