The local milling industry has grown from an infancy stage into one that contributes to national food security and the broader economy, despite emerging challenges that threaten its sustainability, the Maize and Wheat Millers Association of Botswana (MWMA) said.
The association said one of its key objectives is to provide market stability, ensure the efficient availability of products, and maintain sufficient stock on retail shelves.
Addressing the media earlier this week, the association’s executive member and CEO at Bokomo Botswana, Werner de Beer, said MWMA also plays a central role in stabilizing prices of maize and wheat products.
De Beer said millers have transformed the industry from basic milling operations into a high-tech sector, contributing significantly to national food security.
While the industry has grown over the years, he said it continues to face operational pressures and systemic constraints.
“The local crop accounts for less than 10 percent of domestic demand, coupled with seasonal demand fluctuations, especially during festive periods,” De Beer said. “To maintain economies of scale and efficiencies, we must operate consistently.”
He said the industry also faces challenges related to fumigation periods, which can result in up to five days of plant shutdowns, placing pressure on other millers to maintain supply.
“To keep up with technology and demand, we must upgrade our plants. This is capital-intensive and often requires shutdowns that can last from a week up to a month,” he said.
During such periods, he said, the industry relies on other millers to maintain supply and absorb demand.
De Beer also pointed to regional logistics constraints, citing delays at border posts, where trucks can take up to five days to clear.
“We need to bring in about 80 trucks per day across all millers to keep production going,” he said.
He said the market environment is also affected by structural imbalances linked to the Botswana Agricultural Marketing Board (BAMB).
“We were allowed to contract directly with farmers, but with BAMB operating large silos, it purchases most of the local crop at higher prices and sells it back to millers at a premium of between 30 percent and 50 percent,” he said.
“We import about 95 percent of our grains at the lowest possible international prices, but BAMB’s pricing adds a significant premium, contributing to price instability.”
De Beer said the industry is also facing emerging challenges, including increasing complexity in regional supply chains and stricter regulatory enforcement by the South African Revenue Service (SARS), which has added costs related to cross-border permits.
He cited timing sensitivity in decision-making, such as abrupt border closures, as another key risk affecting operations.
De Beer said decisions taken by the Interim Agronomic Board are often not implemented.
“The board was structured to include Permanent Secretaries from three key ministries so that decisions benefiting the entire value chain would be implemented,” he said.
He added that storage capacity is becoming a growing concern, as BAMB remains the only entity with large-scale storage facilities, making it the preferred option for farmers.
The industry must also balance local production with contingency mechanisms, he said.
“Millers’ flour import permits were denied during the festive season, which had a major impact on the industry,” he said.
Millers have called for a more predictable and responsive framework for monthly permit approvals.
The association, through its members, is responsible for milling maize and wheat into staple foods, supplying chop and bran to feedlots and cattle farmers, providing a collective industry voice, ensuring consistent national supply, maintaining production standards, setting benchmarks for food quality and safety, and coordinating with regulators, suppliers, and retailers.
