Meatco’s NCA slaughter numbers lower than expected
Operations faced several hurdles
A total of 2 348 cattle were slaughtered under the operations of Meatco's subsidiary for the Northern Communal Area (NCA) during the financial period 2021-2022, fewer than the 10 000 cattle that were budgeted for.
A total of 2 348 cattle were slaughtered under the operations of Meatco's subsidiary for the Northern Communal Area's (NCA) during the financial period 2021/2022.
According to the company’s financial report for the period from 1 February 2021 to 31 January 2022, this compared to 10 000 cattle that were budgeted to be slaughtered during that time.
"This represents 24% utilisation of available NCA capacity at the Katima Mulilo Abattoir and the mobile slaughtering unit slaughter capacity."
It says that operations at the Katima Mulilo Abattoir commenced in May 2021 and are ongoing.
"The operation was, however, faced with different challenges since the facility had been standing idle for a long time."
According to Meatco, the quarantine facilities were in a dilapidated state, which continues to hamper the smooth operationalisation of the commodity-based trade (CBT) protocol.
Marketing hurdles
Furthermore, foot-and-mouth disease (FMD) remained a challenge in the area, so efforts to contain and eliminate sporadic outbreaks should be enhanced and require the involvement of all stakeholders in the livestock sector, the report says.
"The emergence of the new FMD variant serotype O impacted the business, as all products that were produced at the abattoir through the commodity-based trade approach could not be released by the directorate of veterinary services (DVS) to clients south of the Veterinary Cordon Fence (SVCF), due to the perceived risk by DVS."
The report says that marketing cattle north of the (NVCF) has been a challenge for many years, as the carcasses could not be sold south of the fence.
"NVCF producers therefore continue to miss out on the more lucrative export markets, especially for hind-quarter cuts."
Identify new business model
A mobile slaughter unit was introduced as an alternative to the three abattoirs in Oshakati, Rundu and Katima Mulilo. However, following a cabinet directive, it was decided to re-enter the NVCF market to assist farmers, and to reopen the Rundu and Katima Mulilo abattoirs.
"When Meatco made the decision to go back to the NCA, we developed a strategy for entering and operating in the NCA. It was clear that a new way of doing business in the NCA had to be found."
It says that a separate subsidiary, the Meatco NCA subsidiary, was therefore established with the aim of ensuring the NCA can operate in a sustainable manner and that funds generated in the NCA can remain available for the benefit of the NCA producers.
According to the company’s financial report for the period from 1 February 2021 to 31 January 2022, this compared to 10 000 cattle that were budgeted to be slaughtered during that time.
"This represents 24% utilisation of available NCA capacity at the Katima Mulilo Abattoir and the mobile slaughtering unit slaughter capacity."
It says that operations at the Katima Mulilo Abattoir commenced in May 2021 and are ongoing.
"The operation was, however, faced with different challenges since the facility had been standing idle for a long time."
According to Meatco, the quarantine facilities were in a dilapidated state, which continues to hamper the smooth operationalisation of the commodity-based trade (CBT) protocol.
Marketing hurdles
Furthermore, foot-and-mouth disease (FMD) remained a challenge in the area, so efforts to contain and eliminate sporadic outbreaks should be enhanced and require the involvement of all stakeholders in the livestock sector, the report says.
"The emergence of the new FMD variant serotype O impacted the business, as all products that were produced at the abattoir through the commodity-based trade approach could not be released by the directorate of veterinary services (DVS) to clients south of the Veterinary Cordon Fence (SVCF), due to the perceived risk by DVS."
The report says that marketing cattle north of the (NVCF) has been a challenge for many years, as the carcasses could not be sold south of the fence.
"NVCF producers therefore continue to miss out on the more lucrative export markets, especially for hind-quarter cuts."
Identify new business model
A mobile slaughter unit was introduced as an alternative to the three abattoirs in Oshakati, Rundu and Katima Mulilo. However, following a cabinet directive, it was decided to re-enter the NVCF market to assist farmers, and to reopen the Rundu and Katima Mulilo abattoirs.
"When Meatco made the decision to go back to the NCA, we developed a strategy for entering and operating in the NCA. It was clear that a new way of doing business in the NCA had to be found."
It says that a separate subsidiary, the Meatco NCA subsidiary, was therefore established with the aim of ensuring the NCA can operate in a sustainable manner and that funds generated in the NCA can remain available for the benefit of the NCA producers.
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