Botswana agricultural marketing board

The Botswana Agricultural Marketing Board (BAMB) is a government administration entity that operates as a one-stop agricultural market. It manages storage facilities with a capacity of over 100,000 metric tons across three silo facilities and warehouses. The organization also sells agricultural inputs such as seeds, fertilizers, and agro chemicals to farmers. BAMB ensures produce moves from production areas like Pandamatenga to consumers through its network of 11 branches.

BAMB sets contract prices that are established as an incentive for farmers to sign contracts or produce specific crops like cowpeas, beans, and groundnuts. These prices act as a minimum guarantee if market prices collapse, but farmers receive the higher amount if market prices rise above the contract price. This mechanism helps farmers plan ahead regarding costs and potential yields.

Producer prices are market-dictated and must remain at par with prevailing regional market prices because local produce competes with imports. BAMB uses a regional price discovery mechanism called the South African Futures Exchange (SAFEX) as a benchmark to set these prices. The organization never offers farmers prices that are below the current market rate.

Sorghum is primarily produced in the Pandamatenga region, while a significant portion of its market is located in the Southern part of the country. BAMB facilitates the movement of this produce from the production areas to the consumer markets through its branch network.

Imports directly compete with local produce since Botswana is a net importer of grains. Millers are free to import if the imported goods are cheaper than local options, which presents a challenge for BAMB in maintaining fair pricing for both farmers and consumers.

BAMB caters to small-scale farmers by introducing contract farming, which assures them of a price and helps them plan their crops. This system allows farmers to project whether they will make a profit based on expected yields and the price offered, rather than relying solely on large-scale production capabilities.

BAMB operates on a first-in, first-out basis because it deals with perishables. During harvest seasons when new crops arrive, the organization may sell older stock that was procured at higher prices than the prevailing market rates of the new season. For example, sorghum bought at P85.00-P90.00/50kg last season was sold while current buying prices were around P67.50/50kg.

The headquarters is located at Plot 130, Unit 3 & 4, Nkwe Square, G.I.F.P, Mogoditshane, Kweneng District. The business phone number is +267 395 1341 and the fax number is +267 395 2926. Email inquiries can be sent to info@bamb.co.bw.

BAMB holds a Trustburn rating of 4.4 out of 5 stars based on 11 reviews. The reviews are recent, with the latest entries dated November 2023, indicating active engagement on the platform.

Reviewers consistently highlight that the website is user-friendly and provides all necessary information. They also note that the site is well-designed and informative, making it easy to navigate for users seeking agricultural marketing solutions.

Farmers sometimes claim that BAMB buys produce at low prices and then sells it at exorbitant prices. BAMB addresses this by explaining that they sell bulk stocks over a long period, often a year or two, and deal with perishables on a first-in, first-out basis rather than holding onto stock indefinitely.

Contract farming assures BAMB of the product and assures the farmer of the price, helping them plan ahead for crops to plant and costs they are likely to incur. It helps farmers project whether they will make a profit based on expected yields and the price offered, encouraging local production.

BAMB sells different types of quality rain-fed agricultural seeds and vegetable seeds in various quantities, such as 10g packets. They also sell fertilizer, high-yielding seeds, agro chemicals, and packaging materials to support farming operations.