Abstract
This paper examines the development of the Botswana’s poultry sector, which has become the dominant meat industry in Botswana. 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. This 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 36 years of protection, the question of a new trade and industry regime is considered. Key words: Poultry industry, competition policy, trade policy.
Highlights
Botswana has been a beef producing and consuming country but with rapid urbanization, poultry has supplanted cattle as the dominant livestock sector
In July 2007, Southern African Development Community (SADC) Ministers of Trade agreed to a mechanism for reporting, monitoring and eliminating non-tariff barriers (NTBs).‟ Government of Botswana officials have argued that16: Article 20 of the SADC Protocol on Trade allows Member States to apply safeguard measures to a product only if it has been determined that such product is being imported into its territory in such increased quantities which may cause serious injury to the domestic industry
While other Southern African Customs Union (SACU), SADC and World Trade Organisation (WTO) members may turn a blind eye to the sort of quantitative restrictions imposed by Botswana in the poultry industry, it is questionable that the European Union (EU) will permit exports duty free access to its market for a product which are restricted by Botswana
Summary
Botswana has been a beef producing and consuming country but with rapid urbanization, poultry has supplanted cattle as the dominant livestock sector. The issue of whether small states are capable of conducting a competition policy based essentially on developed country competition laws, while attempting to develop import substituting sectors, is at the heart of the case of the poultry industry in Botswana.
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