Meatco pays N$600m to producers

Meatco recorded revenue of N$775 million year-to-date until August, of which N$600 million was paid to producers during the year under review, it said. Namibian Sun earlier this month reported that the company owed local cattle producers over N$300 million, and that it was up to 88 days behind on payments.At the time, Livestock Producers Organisation (LPO) chairperson Thinus Pretorius said producers were threatening Meatco with legal action, while the industry was experiencing great discomfort over the meat-processing company&#039;s failure to pay."We are now faced with the problem the LPO has been warning against for 15 years. We warned everyone that there will come a day when Meatco will no longer be able to pay its producers," he said.According to Meatco, it has slaughtered 53 820 cattle - both from south of the veterinary cordon fence and the Northern Communal Areas - translating to 9 672 tonnes of beef sold locally and internationally year-to-date until August. Due to high volumes and changes experienced in critical logistical documentation and procedures, the company experienced delays in clearing consignments, it admitted."Subsequently, the business experienced cash-flow constraints to pay all producers within the established payment terms of 30 days. However, this situation has been addressed, all documentation has been shared with clients and consignments have been cleared safely for those still en route to their final destinations. Meatco is currently catching up with all producer accounts in arrears.”Protracted challengeMeatco said its success depends on optimal throughput, operational efficiency and efforts to maximise markets. According to the company, throughput remained a protracted challenge for it over the past three years, with the institution having recorded, on average, 35 000 cattle slaughtered in two years. “This year, the national herd is finally back at 2.5 million, as announced by the directorate of veterinary services under the agriculture ministry.”As part of its mandate as a commercial public enterprise, Meatco&#039;s primary role is to "serve, promote and coordinate the interests of livestock producers in Namibia, and strive for the stabilisation of the meat industry of Namibia in the national interest". “Due to our public policy objective, we serve our farmers even in times of ravaging draughts to ensure that we support primary production," it said.Lucrative marketsMeanwhile, Meatco highlighted that Namibia remains the only country in Africa that can export to lucrative markets such as Norway, China, the United States of America and the rest of Europe. "Meatco remains agile in maintaining these markets by responding to regular stringent international audit requirements," it said. It added that this is testament to its "capable and functional" managerial team that is providing leadership and strategic foresight across the board.

Meatco pays N$600m to producers

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Namibian Sun 2025-04-04

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Meatco pays N$600m to producers

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Namibian Sun 2025-04-04

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