Meatco opts against CEO’s contract extension
Incumbent’s contract expires in January
The company says Mwilima Mushokabanji is free to throw his hat in the ring when the position is advertised soon.
The Meatco board of directors has resolved to not renew company CEO Mwilima Mushokabanji’s employment contract when it comes to an end on 31 January next year.
This was confirmed by board chairperson Sakaria Nghikembua, who said the board has, accordingly, given notice to Mushokabanji on 19 July that his contract will not be renewed. “The job will be advertised in good time. Any qualified candidate is free to apply for the role advertised,” Nghikembua said, adding that Mushokabanji was welcome to apply.
Mushokabanji elected not to comment on the matter, referring all queries to the board chairperson.
He has been at the helm of Meatco since 2020 - on a contract running until 2025 - but it has been a baptism of fire for the highly-rated youthful executive, who has previously cited the Covid-19 pandemic, drought and legacy debts as challenges befalling his tenure.
He was previously employed as an executive director at the Namibia National Farmers Union.
At the end of last year, there was a frantic push to suspend Mushokabanji due to a myriad of challenges at the company, and amid talks that his opposition to privatising Meatco and perceived anti-red-line stance have earned him enemies across the conservative beef industry.
While under his tutelage, Meatco has drastically reduced its debt, including clearing N$437.3 million owed to the Development Bank of Namibia - but the company remains under severe financial stress.
Pricing woes
Meanwhile, a meeting took place between the Livestock Producers Organisation (LPO), Meatco and the feedlot industry on 24 July with regards to Meatco’s recent price reductions and drastic penalisation on the basis of weight, fatness and build of cattle.
According to a statement by LPO chairperson Jako van Wyk, the purpose of the meeting was to make constructive suggestions to Meatco’s management, enabling them to make informed decisions to achieve sufficient throughput for the remainder of the financial year. Van Wyk said the key principle that must apply is that any changed price should be based on actual market requirements and changes.
He added that it was made clear from the outset that transparency was crucial to build trust. “Meatco’s unexpected price cuts caught the industry off guard and the wrong signal was sent out.”
According to Van Wyk, producers should be kept informed when there is a downturn in prices and when this will take place.
He said Meatco must maintain a competitive price for stability in the market and must also be flexible in a rapidly changing environment. “The principle was stressed that good prices will attract enough slaughter animals to get sustained throughput.”
Van Wyk added that during the meeting, the feedlot situation was also closely looked at, in order for them to receive pricing in advance so that they can do the necessary planning and can, at least, break even for the financial year.
He explained that feedlots are crucial for Meatco to receive sufficient throughput when the supply of beef starts to decrease.
The importance of one price structure for all producers was also emphasised.
Van Wyk said several proposals were made, which included that prices should be increased from November to January by N$3.15 and that prices must be announced three to four months in advance.
It was also proposed that a sliding scale for weight classes, body shape and fatness levels should be created.
Meatco undertook to consider the proposals and said it would provide feedback.
This was confirmed by board chairperson Sakaria Nghikembua, who said the board has, accordingly, given notice to Mushokabanji on 19 July that his contract will not be renewed. “The job will be advertised in good time. Any qualified candidate is free to apply for the role advertised,” Nghikembua said, adding that Mushokabanji was welcome to apply.
Mushokabanji elected not to comment on the matter, referring all queries to the board chairperson.
He has been at the helm of Meatco since 2020 - on a contract running until 2025 - but it has been a baptism of fire for the highly-rated youthful executive, who has previously cited the Covid-19 pandemic, drought and legacy debts as challenges befalling his tenure.
He was previously employed as an executive director at the Namibia National Farmers Union.
At the end of last year, there was a frantic push to suspend Mushokabanji due to a myriad of challenges at the company, and amid talks that his opposition to privatising Meatco and perceived anti-red-line stance have earned him enemies across the conservative beef industry.
While under his tutelage, Meatco has drastically reduced its debt, including clearing N$437.3 million owed to the Development Bank of Namibia - but the company remains under severe financial stress.
Pricing woes
Meanwhile, a meeting took place between the Livestock Producers Organisation (LPO), Meatco and the feedlot industry on 24 July with regards to Meatco’s recent price reductions and drastic penalisation on the basis of weight, fatness and build of cattle.
According to a statement by LPO chairperson Jako van Wyk, the purpose of the meeting was to make constructive suggestions to Meatco’s management, enabling them to make informed decisions to achieve sufficient throughput for the remainder of the financial year. Van Wyk said the key principle that must apply is that any changed price should be based on actual market requirements and changes.
He added that it was made clear from the outset that transparency was crucial to build trust. “Meatco’s unexpected price cuts caught the industry off guard and the wrong signal was sent out.”
According to Van Wyk, producers should be kept informed when there is a downturn in prices and when this will take place.
He said Meatco must maintain a competitive price for stability in the market and must also be flexible in a rapidly changing environment. “The principle was stressed that good prices will attract enough slaughter animals to get sustained throughput.”
Van Wyk added that during the meeting, the feedlot situation was also closely looked at, in order for them to receive pricing in advance so that they can do the necessary planning and can, at least, break even for the financial year.
He explained that feedlots are crucial for Meatco to receive sufficient throughput when the supply of beef starts to decrease.
The importance of one price structure for all producers was also emphasised.
Van Wyk said several proposals were made, which included that prices should be increased from November to January by N$3.15 and that prices must be announced three to four months in advance.
It was also proposed that a sliding scale for weight classes, body shape and fatness levels should be created.
Meatco undertook to consider the proposals and said it would provide feedback.
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