April 12, 2011

EU halts Botswana's meat cargoes

Botswana's BWP868.8-million (US$127.9 million) beef exports to the EU have been suspended by the Department of Veterinary services due to unresolved issues on meat product traceability.

Within the EU, Norway accounts for the majority of Botswana's beef exports, secured by a 2,700-tonne quota enjoyed by both the Botswana Meat Commission (BMC) and its Namibian counterpart.

Slaughter at the BMC's abattoirs in Lobatse and Francistown continues uninterrupted, supported by existing trade routes such as South Africa. The key Norway quota will require fulfilment before the end of 2011, suggesting that the BMC and the Department of Veterinary Services will have to move fast to adhere to EU rules.

However, the BMC acknowledges that access to non-EU markets will become a priority in the future, targeting markets such as the Middle East, China and the Eastern bloc (mainly Russia).

However, large price disparities of more than 10% between these countries and current EU prices will result in some BMC losses. Protocols have also been put in place to supply meat to Botswana's close neighbour, Zambia.

In the meantime, it is expected that the EU will start to accredit only local farms that comply with its stringent conditions for imports of slaughtered animals. Similar action was taken in 2008 against Brazil when the EU slapped a ban on its meat exports.