Unions meet with Cabinet over Meatco
• United front a ‘significant’ milestone
While Meatco believes this year's substantial cattle numbers could contribute to its recovery, an agricultural expert has cautioned it not to make long-term pronouncements on short-term numbers.
Namibian agricultural unions have collectively presented their input to Cabinet on various issues, including late payments to producers, the closure of abattoirs in the northern communal areas (NCAs) and a proposed structure for Meatco.
This input was presented on 2 August, with representatives from Meatco's management in attendance along with several ministers, deputy ministers, executive directors, officials from the Development Bank of Namibia and other high-ranking officials.
The unions present were the Namibia Emerging Commercial Farmers Union, the Previously Disadvantaged Namibian Farmers’ Union, the Namibia National Farmers’ Union and the Namibia Agriculture Union (NAU). The Livestock Producers Organisation, affiliated with the NAU, was also in attendance.
Recovery outlook
The NAU highlighted the significance of presenting a united front during the meeting.
"After much deliberation by this meeting, it was decided that the finance minister would include everyone’s comments and submit a final proposal for decision-making."
A day before the meeting, Meatco released a statement indicating that it had already slaughtered over half of the 60 000 cattle it had budgeted to slaughter for the 2023–2024 financial year. Meatco believes that the substantial cattle numbers could contribute to its recovery.
However, independent agricultural expert Wallie Roux said an entity such as Meatco cannot make a long-term pronouncement on short-term slaughtering numbers.
According to the company, it slaughtered a total of 38 401 animals - 2 079 from the NCAs and 36 322 slaughtered south of the veterinary cordon fence (VCF) - by the end of July this year.
It budgeted to slaughter 50 000 animals south of the VCF and 10 000 animals from the NCAs for the 2023–2024 financial period.
"The increased cattle coming through the Windhoek abattoir could indicate a significant turnaround in the business of the corporation," Meatco said.
Favourable performances
The company added that it believes that continuing these trends is likely to lead to a consolidated recovery year for the financial year running from January 2023 to February 2024.
According to Meatco, it performed favourably in May and June by generating around N$107 million and N$190 million in revenue respectively.
Going forward, it projects profit for July as well, it said.
Roux said the fact that Meatco has slaughtered more cattle during May and June only reflects that producers were forced to market cattle now in terms of the winter and the possibility of an El Niño climate pattern.
He said beside all the statistics Meatco provides, it should be noted that should Namibia experience a good rain year, producers will keep animals to build herds.
“Therefore, Meatco will receive less animals in the last quarter of the year. It seems that such a scenario is not part of their planning. Their financial figures will therefore again fall because there was no planning around this.”
Meatco suffered a loss of N$118 million during the past financial year, according to its annual report for 2022–2023.
This input was presented on 2 August, with representatives from Meatco's management in attendance along with several ministers, deputy ministers, executive directors, officials from the Development Bank of Namibia and other high-ranking officials.
The unions present were the Namibia Emerging Commercial Farmers Union, the Previously Disadvantaged Namibian Farmers’ Union, the Namibia National Farmers’ Union and the Namibia Agriculture Union (NAU). The Livestock Producers Organisation, affiliated with the NAU, was also in attendance.
Recovery outlook
The NAU highlighted the significance of presenting a united front during the meeting.
"After much deliberation by this meeting, it was decided that the finance minister would include everyone’s comments and submit a final proposal for decision-making."
A day before the meeting, Meatco released a statement indicating that it had already slaughtered over half of the 60 000 cattle it had budgeted to slaughter for the 2023–2024 financial year. Meatco believes that the substantial cattle numbers could contribute to its recovery.
However, independent agricultural expert Wallie Roux said an entity such as Meatco cannot make a long-term pronouncement on short-term slaughtering numbers.
According to the company, it slaughtered a total of 38 401 animals - 2 079 from the NCAs and 36 322 slaughtered south of the veterinary cordon fence (VCF) - by the end of July this year.
It budgeted to slaughter 50 000 animals south of the VCF and 10 000 animals from the NCAs for the 2023–2024 financial period.
"The increased cattle coming through the Windhoek abattoir could indicate a significant turnaround in the business of the corporation," Meatco said.
Favourable performances
The company added that it believes that continuing these trends is likely to lead to a consolidated recovery year for the financial year running from January 2023 to February 2024.
According to Meatco, it performed favourably in May and June by generating around N$107 million and N$190 million in revenue respectively.
Going forward, it projects profit for July as well, it said.
Roux said the fact that Meatco has slaughtered more cattle during May and June only reflects that producers were forced to market cattle now in terms of the winter and the possibility of an El Niño climate pattern.
He said beside all the statistics Meatco provides, it should be noted that should Namibia experience a good rain year, producers will keep animals to build herds.
“Therefore, Meatco will receive less animals in the last quarter of the year. It seems that such a scenario is not part of their planning. Their financial figures will therefore again fall because there was no planning around this.”
Meatco suffered a loss of N$118 million during the past financial year, according to its annual report for 2022–2023.
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