Abstract:
The poultry sector is the most successful example of import substitution in Botswana
with the country having achieved national self sufficiency. The paper describes
the value chain in the industry and shows how, given the small size of the market,
a high degree of market concentration exists. There is an estimate of the loss of
consumer surplus from the current trade regime. The paper raises issues regarding
the fundamental tension between competition and industrial policy in a small
developing country. As the larger firms in the poultry industry move towards export
readiness after 32 years of protection, the question of a new trade and industry regime
is considered.
