"The poultry sector is the most successful example of import substitution in Botswana with the country having achieved national self sufficiency. This paper describes the value chain in the industry and shows how, given the small size of the market, a high degree of market concentration exists. There is an estimate of the loss consumer surplus from the current trade regime. The paper raises issues regarding the fundamental tension between competition and industrial policy in a small developing country. As the larger firms in the poultry industry move towards export readiness after 32 years of protection, the question of a new trade and industry regime is considered. The paper makes some policy recommendations on consolidating the poultry industry in Botswana."