Food Botswana reduces purchase threshold for bran
Competition and Consumer Authority (CCA), announced that it has reached a collaborative agreement with Foods Botswana (Pty) Limited, a 100 percent owned subsidiary of Sefalana Holding Company Limited over the minimum purchase quantity for bran.
The two parties have mutually agreed to reduce the minimum purchase quantity for bran from 30 tonnes to 10 tonnes to enhance access to bran for customers, including small businesses and individuals who may have been previously constrained. Foods Botswana, which is based in Serowe, manufactures and produces sorghum, soya and maize products for retailing as well as Tsabana and Malutu produced exclusively for the Government feeding scheme. CCA Communications and Stakeholder Relations, James Molosankwe said the Authority's intervention was prompted by several complaints from consumers and stakeholders about access to bran from Foods Botswana.
Initially, Foods Botswana had established a minimum purchase quantity of 30 metric tonnes, which seemed to limit market access and competition in the retailing of bran as only a few large businesses could meet the requirement, leading to market concentration. “Based on that, the Authority engaged Foods Botswana to remove the identified market constraint and reduce the minimum purchase quantity of bran to allow access by many businesses.”
He stated that the agreement, which aligns with the Authority's commitment to promoting a competitive and inclusive marketplace for the benefit of the consumers comes at an opportune moment when the Government of Botswana has just declared 2022/23 a severe arable agricultural drought year throughout the country. “The Authority therefore commends Foods Botswana for its cooperation in reducing market concentration and improving consumer choice in the market for the retailing of bran.”