No quorum at Meatco AGM

Meatco has been forced to call a special general meeting within three weeks because no quorum could be reached at its annual general meeting (AGM) in Grootfontein last Friday.

The company can now only operate with government support – if not for a million-dollar state lifeline, Meatco would have been liquidated.

This according to stakeholders present at the meeting, where Meatco made its financial report for 2022/2023 available.

Thinus Pretorius, chairperson of Namibia's Livestock Producers’ Association, told Namibian Sun that Meatco is operating at a loss of approximately N$20 million per week.

If the company was operating under the trade legislation, it would have been illegal for it to do business because it is not a going concern, he said.

“A bankrupt business may not do business.”

Mismanagement

According to independent analyst Rainer Ritter, government’s N$86 million grant has saved Meatco - for now.

The company suffered a loss of N$118 million during the past financial year, according to its 2022/2023 annual report.

He said while the company’s turnover increased from N$751.9 million to N$865.2 million, this doesn’t compare favourably with figures from 33 years ago.

“At constant prices, the turnover in 1990 was N$ 85.7 million and in the 2023 financial year N$86.8 million.”

According to Ritter, Meatco is losing market share due to mismanagement.

The company’s net loss after tax improved from N$205.1 million in the previous financial year to the current loss of N$118 million, he added.

“The loss would have been much higher, at N$204 million, if the Namibian government did not provide a grant of N$86 million.”

The company’s balance sheet has weakened further through the consistent losses, he said.

“Total equity in the balance sheet is only N$64.7 million. If the grant was not given, the equity would have been negative.”

Sixth year

According to Pieter Zensi from the Namibia Agricultural Union, this probably the sixth year in a row Meatco is making a loss.

“The crux of the matter is that Meatco was not able to pay producers last year until government stepped in. And there you could immediately see that producers lost trust in Meatco,” he said.

“Now this is happening again that payments to producers are delayed.

“The producers already last year - through a motion - asked that Meatco should go to government and ask for a guarantee that government will pay them if Meatco is unable to. Meatco did not go to government and no such guarantee was made. We are getting guarantees from government, but Meatco is bankrupt. They cannot make such guarantees.”