Meatco stays on top despite tough year

Meatco remained profitable despite weathering one of the toughest years for Namibia's livestock industry, processing 53% fewer cattle as successive droughts and herd rebuilding sharply reduced supply.

Addressing Meatco's annual general meeting on Friday, deputy board chairperson Stephanie De Klerk said cattle throughput fell to 35 594 head from 75 268 in the previous financial year, while revenue declined by more than N$757 million to N$1.108 billion from N$1.865 billion.

Despite the sharp decline, Meatco strengthened its financial position. "I am pleased to report that Meatco remained profitable, increased its cash reserves from N$86.2 million to N$128.3 million, strengthened shareholders' equity to N$701.3 million and reduced accumulated losses by more than N$40 million," De Klerk said.

She attributed the performance to "prudent financial stewardship, disciplined management and the commitment of our employees and producers during exceptionally challenging circumstances".

The corporation this year celebrates 40 years of serving Namibia's livestock industry. While the financial results reflected resilience, both the board and government stressed that Meatco's future would not be determined by the number of cattle processed but by the value created within Namibia.

Agriculture minister Inge Zaamwani, whose speech was read on her behalf at the AGM, said Namibia must shift its focus from exporting live cattle to creating more value through local processing.

"We must move beyond measuring success by the number of cattle we export and increasingly measure it by the value we create within our own economy. That means expanding local processing. It means strengthening agro-processing industries. And it means increasing investment in value-added products."

De Klerk echoed the same vision. "The next chapter of Meatco will not be defined simply by the number of cattle we process but by the value we create for producers, the confidence we inspire among our stakeholders and the contribution we make to Namibia's economic development."

She said Meatco also welcomed government's commitment to operationalise the Northern Communal Areas Price Equalisation Fund.

"Increasing local processing will stimulate investment, create employment, strengthen manufacturing and ensure that greater value from Namibia's livestock resources is retained within our own economy," De Klerk said.

Unique position

Zaamwani also highlighted the importance of protecting Namibia's animal health status, describing it as one of the country's greatest competitive advantages.

The minister warned that protecting export markets depends on maintaining strict animal health standards.

"Foot-and-mouth disease is not Meatco's fight alone, it is Namibia's fight."

She added that Namibia's animal health status is "the foundation upon which our export industry is built" and "an economic imperative" that requires continued investment in disease surveillance, biosecurity, movement control and rapid response capacity.

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