* UAE delegation on due diligence exercise in Lobatse * Process to get Maun abattoir accredited for GCC UAE Market at advanced stage
The Botswana Meat Commission (BMC) is this week hosting a delegation of prospective clients from the United Arab Emirates (UAE) for due diligence.
They aim to ensure payment guarantees, as UAE trade regulations allow traders to pay 30 days after receiving the product, posing a potential risk for BMC. Both parties need to adhere to and invoke international trade requirements to ensure BMC is not exposed. The delegation in the country is ready to take 30 containers per month, valued at P30 million. BMC began exporting its beef to the UAE last December and January 2024, with a combined total of four loads worth P7 million.
However, the delivery of these consignments was delayed and challenged by the Red Sea war, resulting in a backlog of ships arriving in that market.
Chief Operating Officer, Brian Dioka confirmed this but could not disclose the names of the clients in the country due to confidentiality clauses. He mentioned that BMC plans to send more loads starting between April and June 2024. Dioka emphasised that BMC has set itself a target to sell products worth more than P50 million by the end of 2024, establishing a solid baseline for future growth.
Dioka added that BMC has a deliberate strategy to avoid flooding the market to maintain its status as a premium product. "We want to create demand while upholding the value associated with being a premium product," he said.
One of BMC's aggressive moves includes seeking accreditation for the Maun abattoir in the UAE market, which will significantly benefit farmers. Dioka explained that they are working on meeting verification requirements since meat for the UAE must be Halal. This involves installing machinery for non-penetrative killings and having the accredited Muslim Association certify the Halal process and the key components of the machinery.
Dioka noted that entering this new market requires aggressive marketing efforts as BMC is relatively unknown there. While they have dealt with other countries, particularly South Africa, it's important to highlight that South African beef contains hormones, whereas BMC's beef is purely organic.
"We need to be aggressive because there is a misconception that Botswana is part of South Africa, largely due to our inadequate branding efforts. Botswana's beef is organic, and we've been exporting it to Europe for the last 50 years.
“This longstanding relationship has enabled us to penetrate advanced markets like Europe, which offers higher prices due to its stringent standards," he said. Dioka mentioned that BMC is currently accredited for the UAE market, and there are indications that this accreditation might simplify the process for entering other GCC markets such as Kuwait and Qatar.
He emphasised that accrediting the Maun abattoir is crucial to increasing prices for local farmers. The primary concern for these countries is compliance, and proving better management practices in the Maun area should suffice.
Dioka is confident that Gulf countries will readily accept Maun beef, which would be highly beneficial due to the substantial price differential compared to Lobatse beef. While the EU market remains the most lucrative, Maun beef could see a 40-60 percent price increase in the GCC markets, making accreditation a top priority this year.
The advantage in the UAE market is that it is flooded with beef from mass producers like Brazil and Pakistan (water buffalo). Comparatively, Maun beef is expected to attract better prices due to its quality.
Earlier this year, BMC attended the Gulf 24 Expo, a massive food show, and spent a week studying the market. It became clear that the market does not favour the expensive Lobatse meat but is interested in beef designated for non-EU markets. This presents a good opportunity for Maun beef and other communal farmers in the green zone who find EU compliance requirements prohibitive.
The UAE market has shown that even non-EU compliant beef can perform well, contrasting with the low prices offered in South Africa. Dioka mentioned that BMC recently conducted a trial in Africa. In December, they sent beef to Senegal by aircraft and facilitated some orders in Ghana, though not in the desired quantities. However, BMC is committed to sourcing cattle from non-EU holdings and Maun, aiming for successful sales in the UAE market.
Looking ahead, BMC plans to create a clear market strategy, targeting high-value markets like the GCC and UAE while considering lower-value markets such as South Africa. This approach aims to incentivise farmers to sell more cattle to BMC, with the promise of better prices. While the exact price improvement from the current P1 per kg is uncertain, extensive market research will help establish a reliable price.
Dioka highlighted Steve Harvey's involvement in marketing Botswana beef for free, which has provided significant leverage for BMC. Harvey’s popularity in the UAE region, coupled with his business dealings in the Middle East, is expected to benefit BMC greatly. People are already inquiring about samples, following President Dr Mokgweetsi Masisi's mandate to Harvey to market Botswana’s products, supported by actual product samples.
Dioka said that Harvey's endorsement is genuine and informed, as he has personally engaged with the product. Harvey’s decision to associate his name with Botswana beef without any payment underscores his trust in its quality. Harvey's support is expected to ease BMC’s market development challenges in the UAE.
Although BMC missed participating in Harvey's Open Fire Festival, which attracts affluent members of UAE society and wealthy individuals from Saudi Arabia, due to a scheduling conflict with the Gulf show, they plan to fully prepare for and attend the 2025 edition, following Harvey's invitation.
They aim to ensure payment guarantees, as UAE trade regulations allow traders to pay 30 days after receiving the product, posing a potential risk for BMC. Both parties need to adhere to and invoke international trade requirements to ensure BMC is not exposed. The delegation in the country is ready to take 30 containers per month, valued at P30 million. BMC began exporting its beef to the UAE last December and January 2024, with a combined total of four loads worth P7 million.
However, the delivery of these consignments was delayed and challenged by the Red Sea war, resulting in a backlog of ships arriving in that market.
Chief Operating Officer, Brian Dioka confirmed this but could not disclose the names of the clients in the country due to confidentiality clauses. He mentioned that BMC plans to send more loads starting between April and June 2024. Dioka emphasised that BMC has set itself a target to sell products worth more than P50 million by the end of 2024, establishing a solid baseline for future growth.
Dioka added that BMC has a deliberate strategy to avoid flooding the market to maintain its status as a premium product. "We want to create demand while upholding the value associated with being a premium product," he said.
One of BMC's aggressive moves includes seeking accreditation for the Maun abattoir in the UAE market, which will significantly benefit farmers. Dioka explained that they are working on meeting verification requirements since meat for the UAE must be Halal. This involves installing machinery for non-penetrative killings and having the accredited Muslim Association certify the Halal process and the key components of the machinery.
Dioka noted that entering this new market requires aggressive marketing efforts as BMC is relatively unknown there. While they have dealt with other countries, particularly South Africa, it's important to highlight that South African beef contains hormones, whereas BMC's beef is purely organic.
"We need to be aggressive because there is a misconception that Botswana is part of South Africa, largely due to our inadequate branding efforts. Botswana's beef is organic, and we've been exporting it to Europe for the last 50 years.
“This longstanding relationship has enabled us to penetrate advanced markets like Europe, which offers higher prices due to its stringent standards," he said. Dioka mentioned that BMC is currently accredited for the UAE market, and there are indications that this accreditation might simplify the process for entering other GCC markets such as Kuwait and Qatar.
He emphasised that accrediting the Maun abattoir is crucial to increasing prices for local farmers. The primary concern for these countries is compliance, and proving better management practices in the Maun area should suffice.
Dioka is confident that Gulf countries will readily accept Maun beef, which would be highly beneficial due to the substantial price differential compared to Lobatse beef. While the EU market remains the most lucrative, Maun beef could see a 40-60 percent price increase in the GCC markets, making accreditation a top priority this year.
The advantage in the UAE market is that it is flooded with beef from mass producers like Brazil and Pakistan (water buffalo). Comparatively, Maun beef is expected to attract better prices due to its quality.
Earlier this year, BMC attended the Gulf 24 Expo, a massive food show, and spent a week studying the market. It became clear that the market does not favour the expensive Lobatse meat but is interested in beef designated for non-EU markets. This presents a good opportunity for Maun beef and other communal farmers in the green zone who find EU compliance requirements prohibitive.
The UAE market has shown that even non-EU compliant beef can perform well, contrasting with the low prices offered in South Africa. Dioka mentioned that BMC recently conducted a trial in Africa. In December, they sent beef to Senegal by aircraft and facilitated some orders in Ghana, though not in the desired quantities. However, BMC is committed to sourcing cattle from non-EU holdings and Maun, aiming for successful sales in the UAE market.
Looking ahead, BMC plans to create a clear market strategy, targeting high-value markets like the GCC and UAE while considering lower-value markets such as South Africa. This approach aims to incentivise farmers to sell more cattle to BMC, with the promise of better prices. While the exact price improvement from the current P1 per kg is uncertain, extensive market research will help establish a reliable price.
Dioka highlighted Steve Harvey's involvement in marketing Botswana beef for free, which has provided significant leverage for BMC. Harvey’s popularity in the UAE region, coupled with his business dealings in the Middle East, is expected to benefit BMC greatly. People are already inquiring about samples, following President Dr Mokgweetsi Masisi's mandate to Harvey to market Botswana’s products, supported by actual product samples.
Dioka said that Harvey's endorsement is genuine and informed, as he has personally engaged with the product. Harvey’s decision to associate his name with Botswana beef without any payment underscores his trust in its quality. Harvey's support is expected to ease BMC’s market development challenges in the UAE.
Although BMC missed participating in Harvey's Open Fire Festival, which attracts affluent members of UAE society and wealthy individuals from Saudi Arabia, due to a scheduling conflict with the Gulf show, they plan to fully prepare for and attend the 2025 edition, following Harvey's invitation.
