Acting Minister of Entrepreneurship, Molebatsi Molebatsi, recently informed Parliament of a significant shortage of strategic grains facing the Botswana Agricultural Marketing Board (BAMB) in the 2023/24 financial year. This shortage has raised concerns about food security within the country.
The minister attributed the shortage to what he perceived as an “apparent unwillingness” among some commercial farmers to enter into supply contracts with BAMB. He revealed that despite efforts to raise purchase prices by slightly over 26 percent from P3,250 per metric tonne (mt) to P4,100 per metric tonne between the 2022 and 2023 harvest seasons, sorghum farmers, in particular, are reluctant to engage in contracts with BAMB.
During the 2022/2023 harvest season, BAMB only received approximately half of the projected sorghum from commercial farmers, significantly below the expected 15,000 metric tonnes. Molebatsi noted that efforts to import sorghum from international markets have been hindered by excessively high prices and quality concerns. The minister mentioned that BAMB is collaborating with international suppliers to resolve these issues.
He also disclosed that BAMB is looking at importing around 2000 mt from neighbouring Zimbabwe through its engaging with the Grain Marketing Board.
“However, due to quality issues, only 544 metric tonnes have been received, and the remaining sorghum will be delivered by the end of April 2024, provided it meets the quality and standard requirements,” Molebatsi said.
He further pointed out that the supply of beans has also been low, with only 800mt received during the harvest season compared to a target of 6000mt. To close the gap 1000mt were expected from Malawi, but only 64mt has been delivered by the contracted supplier. The underlying supply contract has since been terminated due to the failure to deliver.
“We, however, expect 750 metric tonnes of beans to be delivered from a different supplier by the end of March 2024, also sourced from Malawi,” Molebatsi said.
Furthermore, maize prices have posed a challenge to BAMB, prompting concerns regarding competitiveness and value for money. The disparity between local and South African supply prices has led to further engagements to reassess the underlying commercial arrangements, taking into account domestic market production costs among other factors.
“A local supply price was set at P3, 600.00 per mt in November 2022 (pre-ploughing season) whilst, the South African prevailing and comparative price was P2, 600.00 per mt,” he explained.
For sustainability and mutual benefit, Molebatsi added that the terms of the agreement will be revisited soon. However, he noted that government intervention, such as closing borders and issuing permits for imports, has helped in selling some of the maize procured from farmers.
Molebatsi highlighted that the challenging food security and grain-pricing situation have been worsened by BAMB’s inability to replenish the strategic grain reserves (SGR) because of supply shortages encountered during the 2023 harvest year.
“It is clear that we, as a country, are, presently, challenged when dealing with grain and food security issues. A correction has to be put in place, at the earliest,” he stated.
Molebatsi said that Parliament should anticipate the prompt implementation of regulations concerning the prohibition of importing and exporting strategic grains. These regulations would empower BAMB to fulfill its strategic mandate effectively as the exclusive procurer and distributor of strategic grains.
Additionally, this intervention will assist BAMB in effectively managing and replenishing the SGR stocks, as outlined in the existing Agency Agreement. The agreement stipulates provisions for offering food relief in case of unforeseen events such as natural disasters or other causes that could disrupt or lead to a shortage in normal grain supply.
Molebatsi highlighted the necessity for financial assistance to support BAMB in maintaining strategic silos. These silos, although vital for safely storing grains and ensuring national food security, impose a significant burden on the organisation’s already limited resources.
