Efficiency of Botswana Meat Commission: An Empirical Approach

Abstract

This paper investigates the efficiency status of Botswana Meat Commission (BMC), which is a public company. It employs transcendental logarithmic Stochastic Production Frontier to estimate efficiency, and ordered Logit model to ascertain determinants of the efficiency of BMC. Estimation data for the period of study (1979 – 2009) were accessed from the Bank of Botswana, Central Statistics Office and the BMC. The findings indicate that there were inefficiency in BMC of up to around 22%, and the main reasons for this include material inputs constraints (livestock availability), and insufficient penetration into the global market owing to low exchange rate competiveness. The paper ends with some policies implications to deal with these constraints.