Meatco aims to slaughter 50 000 cattle next year
About 34 000 cattle slaughtered so far this year
Meatco underlined that its success depends on achieving optimal throughput, which has been challenging for the past two years due to the impacts of climate change such as drought and disease outbreaks.
Meatco’s goal is to slaughter 50 000 cattle in the 2023 financial year, while it has slaughtered about 34 000 cattle year-to-date.
The company slaughtered 35 000 cattle during the 2021/2022 financial year due to a scarcity of raw material as a result of the impact of the 2019/2020 drought.
"Our plan is to maintain and maximise our various procurement streams, with much more focus on direct deliveries and private feedlots with the capacity to supply Meatco throughout the year," said Meatco’s executive of livestock procurement and production, Patrick Liebenberg.
He made the remarks at an engagement session Meatco held with farmers in an effort to restore producers' trust in the company.
Difficult hurdles
With regards to uncertainties on the availability of raw materials, Liebenberg said that according to statistics from the Directorate of Veterinary Services, Namibia has approximately 1.2 million head of cattle available south of the Veterinary Cordon Fence.
According to Meatco, its success is depended on optimal throughput, which has been challenging for the past two years due to the impacts of climate change such as drought and the intensification of disease outbreaks.
"The first quarter of 2022 was not a walk in the park for Meatco. The institution experienced constraints in container movements due to Covid-19 regulations in key markets."
It said that cash conversion therefore took longer, and financial obligations could not be fulfilled in time.
"Producer payments, amongst others, were thus delayed."
Trust
Meatco embarked on an outreach programme aimed at providing producers with updates on Meatco’s current affairs, achievements, and challenges.
"Most importantly, the engagements were aimed at reassuring the producers about Meatco’s sustainability and regaining their trust after a recent difficult time experienced in the first quarter of the year," according to the company.
During the engagements, Meatco CEO Mwilima Mushokabanji unpacked Meatco’s sustainability strategy, in which the meat entity vowed to honour its obligations to producers by paying a competitive price within 30 days.
Competitive
Addressing farmers in Otjiwarongo at the Crocodile Farm, Mushokabanji said Meatco is engaging financers to explore producer recommendations of issuing bank guarantees to the producers.
"Our aim is to ensure that we instil confidence in producers to deliver to us and pay you timely in 30 days".
Meatco’s executive for marketing and sales, Dr Adrianatus Maseke, said the company was able to pay a much more competitive price during the first quarter of 2022, which was aligned with the market needs of Norway, resulting in Meatco maximising its market returns and thereby paying a competitive price to the producer during that period.
The company slaughtered 35 000 cattle during the 2021/2022 financial year due to a scarcity of raw material as a result of the impact of the 2019/2020 drought.
"Our plan is to maintain and maximise our various procurement streams, with much more focus on direct deliveries and private feedlots with the capacity to supply Meatco throughout the year," said Meatco’s executive of livestock procurement and production, Patrick Liebenberg.
He made the remarks at an engagement session Meatco held with farmers in an effort to restore producers' trust in the company.
Difficult hurdles
With regards to uncertainties on the availability of raw materials, Liebenberg said that according to statistics from the Directorate of Veterinary Services, Namibia has approximately 1.2 million head of cattle available south of the Veterinary Cordon Fence.
According to Meatco, its success is depended on optimal throughput, which has been challenging for the past two years due to the impacts of climate change such as drought and the intensification of disease outbreaks.
"The first quarter of 2022 was not a walk in the park for Meatco. The institution experienced constraints in container movements due to Covid-19 regulations in key markets."
It said that cash conversion therefore took longer, and financial obligations could not be fulfilled in time.
"Producer payments, amongst others, were thus delayed."
Trust
Meatco embarked on an outreach programme aimed at providing producers with updates on Meatco’s current affairs, achievements, and challenges.
"Most importantly, the engagements were aimed at reassuring the producers about Meatco’s sustainability and regaining their trust after a recent difficult time experienced in the first quarter of the year," according to the company.
During the engagements, Meatco CEO Mwilima Mushokabanji unpacked Meatco’s sustainability strategy, in which the meat entity vowed to honour its obligations to producers by paying a competitive price within 30 days.
Competitive
Addressing farmers in Otjiwarongo at the Crocodile Farm, Mushokabanji said Meatco is engaging financers to explore producer recommendations of issuing bank guarantees to the producers.
"Our aim is to ensure that we instil confidence in producers to deliver to us and pay you timely in 30 days".
Meatco’s executive for marketing and sales, Dr Adrianatus Maseke, said the company was able to pay a much more competitive price during the first quarter of 2022, which was aligned with the market needs of Norway, resulting in Meatco maximising its market returns and thereby paying a competitive price to the producer during that period.
Comments
Namibian Sun
No comments have been left on this article