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The study used a stochastic metafrontier model followed by a Tobit regression model to estimate technical efficiency and meta-technology ratios and assess factors influencing efficiency of a suite of beef farm types in Botswana. Results show that the average technical efficiency level is 0.496 for the whole sample and 0.355, 0.463 and 0.571 for beef farms who engage in cattle only, cattle and crop, and cattle, crop and small stock farming, respectively. Considerable scope is identified for improving beef production in Botswana, and targeting is enabled by the differential results across the farm types. Policy analysis using models that assume different beef farm types operate under similar technology are therefore presenting a misleading picture. Considering the importance of livestock sector in poverty reduction, there is a need for appropriate policies directed towards enhancing efficiency. Especially, such policies should be targeted on provision of technology-related services such as controlled breeding methods.

The livestock sector is vital to Botswana’s rural economy comprising nearly two-thirds to the national agricultural sector. The goal of this research is to measure competitiveness and identify the factors affecting it, so as to advocate change in Botswana’s smallholder livestock systems. The study examines a cross section of farm-level data gathered from 556 randomly selected livestock producers to investigate the profit efficiency and competitiveness of three farm size categories of small holder livestock farmers. Results found a considerable capacity to improve beef profitability. Scale effects on profit efficiency are generally positive, but the results indicate a number of interactions between scale and other variables such as off-farm income and the use of credit. Policy analysis and commercial decisions using models that assume efficiency are therefore presenting a misleading picture, particularly on the elusive subject of Botswana smallholders’ beef supply response., The International Food and Agribusiness Management Review is published quarterly by IFAMA. For more information visit: www.ifama.org.