Export Competitiveness of Botswana’s Beef Industry

Abstract

We investigate Botswana’s beef export competitiveness using indices of Revealed Comparative Advantage (RCA) and data for the period 1961-2011. Results indicate that Botswana has been the most competitive SADC beef exporter, and that it has compared well with the leading world beef exporters. However, the country has recorded declining competitiveness since the mid 1970s. It is argued that, state trading export operations and non-reciprocal trade preferences with the EU have enhanced competitiveness through facilitating export market access. However, the single channel exportation arrangement, through a loss-making state trader, is a potential threat to beef export competitiveness. Further, recurrent outbreaks of cattle diseases and drought, and the rise in domestic demand for beef (coupled with stagnant domestic supply) have adversely impacted beef export competitiveness.