More Groundwork For BMC Before Exporting To UAE

BMC to start with a container or two a month to UAE UAE market positions BMC to export to entire Gulf region BMC courts Chinese market for niche segments Following the announcement that it has been successfully accredited to export beef to the United Arab Emirates (UAE), Botswana Meat Commission (BMC) still has considerable steps to take before actual exportation may begin, The Business Weekly & Review has established. The accreditation to export Botswana beef to the Gulf country was recently approved by the UAE’s Ministry of Climate Change & the Environment following a series of rigorous inspections and quality compliance evaluations of the BMC by South Africa-based National Independent Halal Trust (NIHT). [ihc-hide-content ihc_mb_type="show" ihc_mb_who="1,2,3,4" ihc_mb_template="3" ] However, BMC’s Chief Operations Officer (COO), Brian Dioka, has told The Business Weekly & Review that market access - which we successfully achieved on 19 March 2023 - should not be confused to mean automatic selling into that market because there are other considerable steps to follow. “Chief among them are market development as well as securing customers/distributors/orders in that market,” Dioka said in an interview. “What the BMC has so far achieved is gaining access/accreditation for the Lobatse abattoir into that market, which we also believe as being highly strategic for Botswana beef to also access the entire Gulf Cooperation Council (GCC) countries like Saudi Arabia, Kuwait and Qatar.” Dioka disclosed that plans are underway to achieve similar accreditation for BMC’s Maun abattoir to ensure that its production is also exportable to the UAE. “This we intend achieving before the end of 2023,” he said. “As part of a soft launch and controlled exportation strategy of Botswana beef to the UAE, at least up until it achieves a considerable footprint, the BMC intends to export a container (24 metric tons) or two per month from the Lobatse abattoir. “We anticipate an increase in monthly exports as the Maun abattoir achieves accreditations, as well as when the BMC in its entirety begins to attract more cattle to its abattoirs.” However, Dioka said it was “premature at this point” hesitant to state how much revenue the BMC envisages receiving from the UAE market, saying the BMC’s immediate focus is to work on market development initiatives to ensure better knowledge of Botswana beef in the UAE. “This we hope will assure the right product and price entry into the UAE, having assessed the needs and peculiarities of customers in that market,” he said. BMC courts Chinese market He disclosed that as a part of its drive to diversify lucrative and premium markets, Botswana is still courting trade with the People’s Republic of China (PRC), especially for beef exports. “The trade negotiations are currently ongoing,” said Dioka. “Upon finalisation of these bilateral trade terms between the two countries, BMC intends to fully utilise the export opportunity to the PRC mainly for offals and by-products, give its price premium.” He emphasised that the BMC is not a mass producer of beef but a facility of highly differentiated beef and related products that are produced in limited quantities. “This, therefore, means upon access to the PRC, BMC would only focus on a particular niche segment within that market,” he said. He pointed out that China has a cattle population of approximately 61 million and nearly 1.4 billion people (almost the same as the African continent), saying it would thus be wrong for the BMC aim at feeding such a massive population, hence the strategy to focus on premium or niche segments of that market. In response to a pointed question, Dioka told The Business Weekly & Review that the African Continental Free Trade Area presents a considerable potential for market growth. “With the advent of the African Continental Free Trade Area, BMC is currently engaged with potential leads/customers in the West African state of Ghana to assess the potential of beef exports,” he said. “BMC will make considerations for other markets or territories as beef production continues to improve to avert spreading ourselves too thin with fewer products to offer.” [/ihc-hide-content]

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More Groundwork For BMC Before Exporting To UAE

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