1. Francistown Business Forum Baitshepi Babusi-Hill
4/17/2017 1:18 PM
“Models & Strategies of Investing in Agriculture within the greater Francistown: Possibilities of contract farming by private sector with the local community for technical and market support”
Francistown Business Forum
August 2014
Baitshepi Babusi-Hill
THE AGRICULTURAL HUB
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2. Overview of Agric Sector in Botswana
Main stay of livelihoods.
Food, employment and income.
Sector is dualistic, consisting of both
a) traditional farmers and
b) commercial farmers,
(main differences here are land tenure, use of technology, and marketing of agricultural outputs)

3. Botswana’s annual Food Security Situation – Metric Tonnes (2012)
Product
National Demand
Domestic Production %
Imports
Sorghum/millet
96 000
51 647
54 %
44 353
Maize
21 560
10 %
Fruits and Vegetables
75 000
36 138
48 %
95 203
Pork
972
455
47 %
517
Poultry
64 053
63 412
99 %
4 576
Honey 31 14
45 % 17
Mutton and shevron
997
770
77 % 22
Milk
63 million litres 3
6 %
60 million

4. Challenges & Opportunities in Agriculture

5. 1. Processing & Value Addition
Challenges
Opportunities
Formation of Agro Processing Plants for both horticulture and livestock products
Tanneries for both exotic and non exotic leather
Manufacture of leather products
Collection of Hides and skins
Low levels of agro processing/value addition plants to agricultural produce i.e.
horticulture
meat products
Tannery for hides & skins
Hides production at over annually.
Either exported raw or discarded.

6. 2. Zambezi Integrated Agro-commercial Project
Challenges
Cost of Water extraction
Feasibility Study
Environmental Impact Assessment
Agricultural Productivity
Business cluster model
Opportunities
495 million cubic metres/year Water extracted from Zambezi River
110 km Pipeline construction on PPP, BOT etc
35,000ha Agro-Infrastructure development of selected Crops

7. 3. Dairy Challenges Opportunities Increase in No of dairy projects.
National demand is 63 million Litres and only met by 6%
Inadequate dairy breeds
Inadequate knowledge
High cost of feed
Unavailable Land for dairy farming.
Opportunities
Increase in No of dairy projects.
Use of Artificial Insemination and modern technology of breeding i.e. sexed semen.
Technology transfer
Production of feed from arable operations
Setting aside suitable land for dairy production.

8. 4. Beef Production Under utilized abattoirs
Challenges
Under utilized abattoirs
Use of Communal farms (Meraka) vs. Ranches
Processing of By- products
Diseases out breaks, e.g FMD
Opportunities
Cattle ranching.
Existence of EU listed abattoirs.
Well developed Livestock Identification and trace back system (LITS)
Range fed beef.
Blood & carcass meal for feeding poultry.
Utilization of other cattle by- products like hooves, horns etc….

9. 5. Other Opportunities in Agriculture
Supply and manufacture of farm machinery and implements
Farm inputs and fertilizer etc.
Ostrich Farming
Remains unexploited
High wild ostrich population a sign of good potential (77 000)
Existence of an EU listed Multi Species export abattoir.
Existence of ostrich multiplication farm to supply farmers.
Apiculture (bee keeping) Projects
National demand is 40 tons.
The highest ever produced was 14.2 tons in 2010/11.
Utilization of by-products.
Increase in production.
Floriculture –Production of cut flowers

10. Other Opportunities ……cont’d
Investment arrangement
Leasing out unutilized farms from land owners
Leasing out municipal abattoirs
Joint ventures
Sole or Individual investment
Foreign Direct Investment (FDI)
Provision of Agricultural Insurance
No Substantive Agricultural insurance
Creation of Conducive environment
Credit facilities to Citizens at low interest rates.
Other undeveloped livestock with great potential
Donkey meat (200, ,000 donkeys)
Sheep and Goats (200,000 sheep & 800,000 goats)

11. What is Contract farming
Involves agricultural production being carried out on the basis of an agreement between the buyer and farm producers.
Linking small-scale producers and buyers through business model innovation.
Agricultural production carried out according to a prior agreement in which the farmer commits to producing a given product for a pre determined buyer.

12. Benefits of contract farming
Provides a “peace of mind” to the farmers.
It offers the producer 100% guarantee on a minimum price for the product. In instances where buying prices drop during harvest season, the farmer’s income is secured.
It gives the farmer an opportunity to budget and plan their farming operations well ahead.
On delivery the farmer is paid promptly (i.e. the contracted price within 7 days).
The producer capitalizes on any price rises.
Improve on data collection & intelligence.

13. Contract farming Opportunities
1. Sale of Cereals to BAMB
Under this scheme BAMB identifies a market for a particular crop and contracts farmers to produce and supply BAMB with crops such as Sorghum, Maize, Cowpeas or Beans at agreed prices and quantities prior to planting.
This helps to minimize farmers’ exposure to price risks due price fluctuations dictated by market conditions, hence empower local farmers to commercialize their arable farming operations.
This facility is open to any farmer who produces locally provided he can produce 10 Mt or more per crop.
2. Sale of Cereals to Seed Multiplication Unit (SMU)

14. Contract farming …….contd
3. Poultry (Challenges)
Famers shy away due to conditions of contract.
Inconsistency of supply.
Quality not met.
Private business not willing to buy locally.
Letter of intent not binding.
Opportunities
Farmers in contracts with private businesses like Richmark, Star, Bobby’s for market access.
Contract with feed suppliers like Feed Botswana.

15. Contract farming …….contd
4.Horticulture (Challenges)
Saying No contracts (shy away)
Inconsistency in supply
Low quality of produce
Low volumes
Concentration on one value chain
Chain stores import.
Opportunities
Policy support & from government
Niche products (cauliflower, brocolli, lettuce, herbs)
Export opportunities
Specialization
Processing (Mccain)
Partnership trader
Cold storage facilities

16. What then for Francistown…
The presence of MoA in Francistown
Agricultural Hub facilitation on Investment
The presence of Key stakeholders as the city grows
A conducive environment provided by government being availed
Seize the opportunity
Align yourselves to the opportunities to assist government in creating the environment for the investor to come to the city e.g. Richmark will come if there is a call for that.
4. Location of the city –major transport corridor
Access to borders, Airport, foreign markets
Population and market access

17. Day & Night

18. Thank You