“Constraints to investment in the beef sector arise from the current traditional approach to cattle farming in the country. There is a perception amongst traditional producers that larger and older cattle are better, which is in stark contrast with that of the EU market, as younger animals are preferred.” notes a report by the International Finance Corporation.
By Avite Mbabazi
The International Finance Corporation (IFC) report, titled Creating Markets in Eswatini, says there are very low levels of market participation for local beef producers due to the prevailing traditional approach to cattle farming in the country.
The low levels of market participation are attributed to the cultural importance of cattle in the country as cattle are more of a store of wealth and a source of manure and milk and stock power (pulling of plows, wagons, water carts) than a commercial resource, making it challenging for Eswatini to compete with large cattle ranches seen in other Southern African countries that produce beef.
Additionally, the perception amongst traditional producers that larger and older cattle are better is in stark contrast with that of the EU market in which Eswatini enjoys tariff-free access, where younger animals are preferred.
The country’s sole licensed beef exporter and market price maker, Eswatini Meat Industries Ltd. (EMI) is at only 50% utilization capacity while the export abattoir only represents 20% of beef sales. The remaining 80% of meat is sold either informally or by small-scale slaughters in the domestic market.
To increase the commercial value of the cattle sector in the country, the IFC recommends that Eswatini introduce a grading system for locally sold beef to incentivize the production of high-grade beef. A grading system would also enable change in the breeding system and allow the EMI to procure younger animals (preferred by the EU) for export.
In 2019, the population of beef cattle was 522,012, and 89% was on Swazi Nation Land (SNL), while 11 % was kept under Title Deed Land (TDL) system. Furthermore, poultry and pork farming are currently much more attractive alternatives for small-scale farmers as economies of scale can be obtained on smaller tracts of land closer to urban areas.
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