A large Ivorian meat supplier agreed to buy a pilot order of meat from Burkina Faso, followed by potentially larger orders, during Trade Hub-organized B2B visits with Burkinabé livestock firms and associations.
The Trade Hub facilitated the March 27-28 meetings between the International Society of Sausages and Cured Meats of Côte d’Ivoire (SICS), the Burkina Faso Fatteners Network, and other potential partners to discuss contracting for steady orders of large quantities of beef and mutton.
SICS is an Ivorian company founded in 1968 by a Belgian and bought in 1998 by a group of Ivorians. Since 2015, SICS has opened 15 butcher shops in three Ivorian cities: The company employs 150 people and has a turnover of 3 billion CFA francs (around $5 M). SICS’ partners include Prosuma and Carrefour (supermarket wholesalers); the company also sells meat, sausages and dairy products to hotels, cafés and restaurants.
Shaping a transaction with multiple counterparts
During the B2B visit to Burkina Faso, representatives from SICS met with their counterparts in every step of the chain. These include the Fatteners Network, which would provide the livestock; General Meat, the refrigerated abattoir where the livestock would be butchered and the meat would be stored prior to transport; and SOFIVIABF, the private company that would be contracted to transport and export the meat.
SICS agreed in principle to contract with the Fatteners Network to supply fresh meat from 20 cattle, 50 sheep and, if possible, two tons of beef fillet from Burkina Faso per week. SICS will also approach supermarkets in Abidjan to consider group purchases of up to 40-50 tons of meat per week. The first delivery is planned in the first half of May 2017.
Bribes and delays dog regional trade
Road harassment is the main obstacle to this cross-border export. To make its last delivery to Prosuma in Abidjan, Cote d’Ivoire SOFIVIABF spent five days traveling from Ouagadougou, Burkina Faso—a trip that normally would take two days. At the border at Ouangolodougou, the driver had to pay 250,000 CFA (around $400) to customs, without receiving a signed receipt, for his load of 19 cattle. This type of harassment continued all the way to Abidjan.
SICS has committed to approach the Ivorian authorities to facilitate the transport of meat from Burkina Faso to Côte d’Ivoire. If these negotiations are successful and the harassment is stopped, SOFIVIABF has agreed to begin deliveries. If SOFIVIABF can organize the delivery, the Fatteners Network will supervise the farmers who will supply the livestock and interface between them and the meat processors.
If these conditions are met, payoffs for Burkinabé livestock owners could be substantial. SICS agreed to purchase 10 tons of meat/week over a period of one year, with a contract to be signed by May 10, 2017. Following the successful delivery of the first 10 tons of meat, SICS will lead a consortium of companies from Côte d’Ivoire (Prosuma and Carrefour) to negotiate an expanded contract for up to 40 tons/week of meat as part of a longer-term contract.