Investigate efficiency at Meatco, farmer urges

An independent investigation by international experts should be conducted to determine whether the expertise and efficiency levels of Meatco&#039;s management and board are sufficient to operate an internationally competitive export and marketing plant.This is according to a motion by well-known Grootfontein farmer Peter Zensi, which was unanimously accepted during Meatco&#039;s annual general meeting (AGM) in Otjiwarongo last Friday.In the motion, he also asked that a special meeting be held within four months for the management and board to give feedback to producers about Meatco&#039;s critical financial situation and concerns about whether the plant is being sustainably managed.As a group, Meatco declared its biggest ever loss in the 2021-2022 financial year, to the tune of N$206.29 million. This is the fifth year in a row the company has suffered a loss.According to auditors, there are significant doubts about whether Meatco can continue as a going concern, with its liabilities exceeding its assets by N$55.72 million.Pay back the moneyIn his motion, Zensi also insisted that Meatco repay money it borrowed from the Development Bank of Namibia (DBN) to stave off bankruptcy. This amounts to N$530 million, although it was revealed during the AGM that N$200 million DBN recently made available to the company was a government bailout.Meatco only has to service the interest on that loan.Furthermore, the farmer demanded that Meatco give a guarantee of payment to producers for at least a year in advance.Without this, producers&#039; confidence in the company would not be restored, he said.Well-known auditor Rainer Ritter, who in his now-famous Qua Vadis reports on Meatco once again shined the spotlight on the precarious situation at the company, pointed out that its market share has fallen from 80% in 2014 to an average of 40%.InvestigateProducers who spoke to Namibia Media Holdings after the meeting said although the board and management maintain they are turning the business around and running it sustainably, "we do not feel they [board and management] have the expertise to deal with the current high interest-bearing debt levels."We ask government to investigate the board&#039;s effectiveness and do a gap analysis of what the expertise and experience should be, because we seriously doubt their ability," the producers, who opted to remain anonymous, said.Meanwhile, in response to the events at the AGM, Livestock Producers Organisation (LPO) chairperson Thinus Pretorius said Meatco is no longer sustainable.The company must be restructured, he added.In a statement on the eve of the meeting, the LPO said ownership in Meatco by producers is a prerequisite.According to Pretorius, in this regard, the LPO has already presented a proposed plan to all relevant ministers and government agencies."The LPO has left no stone unturned to put Meatco on a viable trajectory. It is regrettable that the policymakers and management of Meatco harbour negative views about the efforts of organised agriculture and are destroying a once proud bastion without any accountability.”

Investigate efficiency at Meatco, farmer urges

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Namibian Sun 2025-07-03

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Investigate efficiency at Meatco, farmer urges

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Namibian Sun 2025-07-03

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