Meatco aims for modernisation, focus on big sellers

Meatco faced challenges with old and outdated value-addition equipment during the previous financial year, resulting in low production and substandard products.According to the company’s 2023/2024 annual report, this highlights the need for investment in modernisation and upgrading of equipment to enhance efficiency and maintain product quality.The report said the cannery in particular has not undergone any revamping and will remain closed until further notice, pending necessary upgrades and improvements.According to the report, Meatco's value-addition segment faced several challenges that impacted their performance.“We produced 741.54 tonnes of value-added products, falling short of the budgeted target of 960 tonnes.”It said the shortfall was primarily due to financial constraints, including delays in paying suppliers on time, which affected production capabilities.Additionally, the increased availability of mechanically deboned chicken meat (MDM) in the market posed significant competition, according to the report.Two major retailers further compounded the challenges by implementing their own in-house value-added production hubs, reducing their reliance on Meatco’s value-added products, the report noted. Key goals Meatco noted that despite these hurdles, the company managed to achieve substantial sales in specific product categories.These included soup bones and stewing necks, which accounted for 83% of value-added sales, indicating strong market demand and customer preference, the report noted.Furthermore, sausages, mince and hamburger patties made up the remaining 17% of sales, reflecting a lower market demand.“Looking ahead to 2024/2025, Meatco plans to strategically realign our value-addition production to better meet market demands and improve profitability,” the company said. Meatco said key focus areas will be reducing low-selling products.“We will decrease the production of products that have shown lower sales performance. This will allow us to allocate resources more efficiently and concentrate on items with higher demand.”The company added: “Given the strong performance of soup bones and stewing neck, we will increase production volumes for these high-demand items.”Meatco said this strategic shift aims to maximise sales and leverage strengths in the market.The company said it will also focus on increasing production volumes.“By focusing on high-selling products, we aim to enhance overall production volumes, meeting and potentially exceeding our budget targets for the upcoming year.”

Meatco aims for modernisation, focus on big sellers

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Namibian Sun 2025-03-26

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Meatco aims for modernisation, focus on big sellers

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Namibian Sun 2025-03-26

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