Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries.
Competitive smallholder livestock in Botswana
Competitive Smallholder Livestock in BotswanaPresentation by Sirak Bahta at an inception workshop for the Competitive Smallholder Livestock in Botswana project held at Gaborone, Botswana on 31 October 2012
Workshop goals Understand competitiveness of smallholder livestock Answer the questions: 1. What can be done to raise competitiveness? 2. Who should do it? 3. What partnerships are available to this project?
Workshop tasks: re-phrased WHO SHOULD DO WHAT? DIRECTIONS FOR THE PROJECT? WHO WE WORK WITH & HOW?
Competitive Smallholder Livestock in BotswanaDr Sirak BahtaInternational Livestock Research Institute (ILRI)
Outline Introduction Research questions Objectives Work plan Partners Collaborating Institutions
MotivationBotswana smallholder sector: • produces most of Botswana’s meat • provides 70-80% of agricultural GDP • uses significant land and water resources50,000 to 80,000 smallholders own (most of the country’s) cattle100,000 smallholders own sheep and goats
MotivationCattle • Average <220 kg (even with 4-5 year oxen) • <50% calving rates • <20% off-take by the commercial export slaughter sector • growing, multiple domestic market • promotion of specific production and marketing models • capacity-building initiativesSheep and goats… thought to… • be of low productivity • feature little value addition • have interactions with cattle (at farm level, at input service level, amongst traders, in the retail meat market)
MotivationA research projectExisting research:• focused on exports• focused on beef• focused on productionThis project aims to enhance the competitiveness ofsmallholder livestock producers in Botswana
Research questions• Who are the smallholder livestock producers and what factors constrain their livelihoods?• How can livestock-related marketing systems be improved for the benefit of smallholders and the rural population?
Objectives To better define smallholder livestock production systems, identify the factors affecting their productivity, and assess their competitiveness. To understand and improve conditions for market participation and value addition in markets for livestock, livestock products and inputs. To strengthen agricultural education and extension capacity.
Work plan Late 2012 Reach consensus on competitiveness and factors affecting it Assess animal healthproblems and raise localanimal health capacity Initial data collection on value chains
Work plan 2013 –2014 Characterize the smallholder livestock producer Assess product and input markets Assess competitiveness andfactors affecting it Prioritize animal diseases and responses Formulate responses to constraints, productivity and livelihood generation
Work plan 2014 – 2015 Provide policy analysis and communications Assess training and education Develop training methods and materials Train trainers
Partners International Livestock Research Institute (ILRI) Botswana Ministry of Agriculture Australian Center for International Agricultural Research (ACIAR)
Collaborating institutions Botswana Institute for Development Policy Analysis (BIDPA) Department of Agricultural Research Department of Veterinary Sciences Botswana College of Agriculture (BCA) Department of Agribusiness Promotion Department of Agricultural Statistics
What is competitiveness?• It is the ability to compete• It is multidimensional (can be measured different ways)• It can be analyzed at 3 inter-related levels – – Country – Industry – Firm 17
What is competitiveness?• Firm level competitiveness Sustained market participation (domestic and foreign) Operates more efficiently/effectively than other firms • Traded sector: international markets • Non-traded sector: comparisons to worlds best (cost, quality). 18
What is competitiveness?• Industry level competitivenessThe nation‘s firms vs…• Country’s competitivenessThe ability of the nations citizens to achieve a high andrising standard of living. 19
Drivers of competitiveness At the firm level Decisions made by managers Use of factors of Take advantage of production existing opportunitiesApplication of technology Develop new opportunities & management skills through value adding Technical efficiencies Marketing success Cost of production Firm revenue 20
Agri-Food firm/industry competitiveness also affected by factors that are: Controlled by Semi- Government: Controllable: Input costs Macro, investment & Trade policy Demand conditions Education/training Information flows R & D Policy International trade environmentRegulation & infrastructure Multilateral and regional Strategic alliances Uncontrollable: agreements Environment 21
Measures of competitivenessFirm level• Traded sector • profitability • export quotient (exports or foreign sales divided by output), and • market share (regional or global) [In the traded sector, performance in the international marketplace provides a direct measure of the firms competitiveness]• Non-traded sector • profitability • cost • quality • indirect measures[In the non-traded sector there is no direct market performance test] 22
Measures of competitiveness• Industry level • Aggregate profitability • Aggregate Value Added • Trade balance • Foreign direct investment • Cost • Quality • Aggregate productivity 23
Measures of competitiveness• Country level • Level, growth of standard of living • Level and growth of aggregate productivity • International market performance 24
Measures of competitiveness for smallholder farmers• Relative competitiveness – Cost/profit efficiency• Benchmarking – productivity, profitability – liquidity and solvency• Value Chain Analysis• Enterprise budget analysis