• BMC wants tender divided     • Norwegian market pays 50% more than EU market

BG reporter

The current wrangle between Namibian state beef producer, Meat Co, Botswana Meat Commission (BMC) and Witvlei over a tender of 2700 tonnes opened by Norway would be taken to the Southern African Customs Union (SACU).
A meeting of government officials of Namibia and Botswana expected on 18th August 2010 will recommend appropriate actions for SACU to take in the current impasse over the beef tender in Norway. Outgoing chief executive of BMC, Dr. Motshudi Raborokgwe told Botswana Guardian that it is necessary for them to report their recommendations to SACU since the agreement on the tender was made between a regional trading bloc (SACU) and Norway.
The issue under contention is the 2700 tonnes beef tender opened by Norway for BMC and Meat Co. in 1996/7. At the time Norway decided the beef tender should be shared on 50/50 basis by the state owned beef monopolies. However things turned nasty when an independent beef producer from Namibia, Witvlei, entered the scene this year and demanded its own share. The tender was then changed and Witvlei was given 15%, while BMC and Meat Co were given 50% and 35% respectively. But Witvlei would have nothing of this and rushed to the Norwegian Competition Authority crying ‘unfair practices.’
Chairman of Witvlei Sidney Martin was quoted by the Namibia’s New Era online edition in March accusing Meat Co. of colluding with international beef exports to push the company out of market.
In a media release Meat Co. said as much as Witvlei is complaining of unfair trade practices, statistics show that they got a share of the Norwegian quota this year. According to Meat Co. the company got a share of 408 metric tonnes, which is higher in relation to its production of 700 metric tonnes.
Dr. Raborokgwe told Botswana Guardian that the matter has now been taken to SACU for arbitration. In previous interviews, Dr. Raborokgwe maintained that the most appropriate thing to do was to split the tender between Namibia and Botswana.  “BMC has approached the Ministry of Agriculture in Botswana and requested them to approach their counterparts in Namibia to request for a meeting to discuss the issue,” he revealed. 
On Wednesday, the permanent secretary in the Ministry of Agriculture confirmed that they have requested a meeting with their Namibian counterparts. Dr. Micus Chimbombi said they have set August 18, 2010 for the meeting but that the Namibians were still to confirm.
Asked to state what would happen if the Norwegians decide against them, Raborokgwe said the way forward would be to fight for their share, by stockpiling beef and sending it to Norway before January 1st of each year. Currently, Botswana is unable to meet the 19 000 tonnes beef quota offered by the European Union. Why then fight for another market?  “The Norwegian market is the highest paying market that BMC has. If it were possible, BMC would want to sell all the beef it produces to Norway as they pay up to 50% more than the EU market,” he responded.
As things stand BMC’s main market is Norway and EU, which account for 65% of its turnover, followed by Botswana at 20% and South Africa at 13%. BMC is currently talking with Angola and the Democratic Republic of Congo (DRC) for a possible deal to sell them beef from the Maun abattoir.
Dr. Raborokgwe this week confirmed that indeed they want to sell their beef exports, however, necessary procedures must be observed. He said the veterinary department in Botswana is currently negotiating terms of sale with its counterparts in the two countries.