Meatco makes plans for lean year

13 January 2020 | Business

Meatco is working on various strategies to counter the difficult year ahead, when herd rebuilding will be taking place after the severe drought of the past several years.

This is likely to drastically decrease throughput at Meatco's abattoir. Meatco acting board chairperson Ronald Kubas says the company expects this year to be very difficult with regard to slaughtering numbers, as farmers will be rebuilding their herds.

“We must therefore ensure that Meatco remains sustainable.”

According to him, various strategies are being put in place to ensure that Meatco stays afloat.

Kubas explained that a large portion of the national herd was slaughtered during the drought period and therefore farmers will now start with herd rebuilding.

“This will decrease slaughter numbers at Meatco, but a strategy is being developed to buffer this.”

He said projections of the expected slaughter numbers would inform the company's business strategies and cost projections.

According to Kubas, they have visited Botswana to see whether Meatco can acquire animals from that country. Meatco has also been in discussions with the agriculture ministry on the possibility of acquiring animals from the northern communal areas. Another possibility is more cattle rearing by producers and feedlot systems.

“Meatco's biggest challenge is always throughput (raw materials),” said Kubas.

He said Meatco had proven its strategic role in the agriculture industry by slaughtering over 115 000 cattle in 2019, in an attempt to assist farmers during the drought. In 2018, Meatco slaughtered 63 000 cattle.

“Meatco slaughtered almost 85% more than the corresponding time for the previous year, while keeping prices stable.” Kubas further commented on the Chinese market, and said that Meatco last year sent 130 containers of beef, equivalent to 3 000 tonnes, to China.

“China is a very lucrative market for us. The demand is massive. The other positive is that they make upfront payments and want bone-in beef, which also reduces cost at the factory,” said Kubas.

The challenge would be to slaughter enough cattle to meet the Chinese demand, he pointed out.

According to Kubas, Meatco contributes between 40% and 50% to the agricultural Gross Domestic Product.

“The company is a very important foreign exchange earner for the country and critical for the livestock sector.” He said despite the challenges faced by the domestic economy, coupled with the persistent drought, Meatco managed to remain viable and contributed to the agricultural sector.

“In particular, the organisation boosted the local economy by paying over N$1.1 billion in producer prices to cattle producers.”


Similar News


‘Govt is failing manufacturing’

19 hours ago | Business

"Our suspicion that corruption is one of the biggest enemies facing our members is no longer a suspicion," the chairperson of the Namibian Manufacturers Association...

Solar power dims ECB revenue

1 day - 27 February 2020 | Business

The Electricity Control Board (ECB) recorded revenue of N$86.3 million for 2018/19, an increase of 3.6% compared to the previous financial year.The ECB’s main source...

Phase two of MTC's 081Every1 launched

1 day - 27 February 2020 | Business

Phase two of MTC's billion-dollar 081Every1 network project plans to roll-out a total number of 102 sites and is expected to be completed by September...

Company news in brief

1 day - 27 February 2020 | Business

Rio Tinto posts jump in full-year earningsAnglo-Australian miner Rio Tinto yesterday posted an 18% rise in 2019 underlying earnings as a surge in iron ore...

WBSR invests N$93.6 mln in new plant

2 days ago - 26 February 2020 | Business

With an investment of N$93.6 million in a new salt processing plant Walvis Bay Salt Refiners (WBSR) can now target international markets as the company...

Wanted: Business direction

2 days ago - 26 February 2020 | Business

Jo-Maré Duddy – Government policy – or the lack thereof, government regulation, government failure, government’s fiscal position and the recession: Ask the business sector in...

Let's work together and solve important problems

2 days ago - 26 February 2020 | Business

Chantell Husselmann - The PwC Business School has started the year 2020 on a high note with a special occasion that marks the first of...

Deere taps into tech in bid to break ground...

2 days ago - 26 February 2020 | Business

It's ride-hailing, farm style. Deere & Co. is teaming up with the “Uber of tractors” in Africa and betting on a future where farmers summon...

NSX bears brunt of recession

2 days ago - 26 February 2020 | Business

Jo-Maré Duddy – The recession didn’t spare the Namibian Stock Exchange (NSX) last year: Trading volumes dropped and the share prices of most of the...

Managing checks and balances

2 days ago - 26 February 2020 | Business

B7: Explain your job in a nutshell.PA: An integral part of my job is to manage Nedbank Namibia’s liquidity, funding and interest rate risk in...

Latest News

Shimbulu reinstatement declared illegal

6 hours ago | Politics

Oshakati town council legal consultant Jan Greyling has penned a damning opinion on the nomination and swearing-in of Katrina Shimbulu as a councillor, and her...

Has ACC finally awoken from...

6 hours ago | Opinion

The Anti-Corruption Commission (ACC) has for years stomached bashing for its perceived 'small fish' approach to corruption.In fact, there is nothing suggesting that corruption has...

Samherji throws lifeline to Geysir...

6 hours ago | Labour

Workers currently on Samherji's Geysir vessel, which is fishing in Mauritania, will keep their jobs, while the rest of the crew who were left in...

MTC to build 270 houses

6 hours ago | Infrastructure

MTC is planning to construct 270 houses and will partner with the Shack Dwellers Federation of Namibia (SDFN) for the delivery of the homes in...

Neckartal level at 5.2%

6 hours ago | Weather

The multibillion-dollar Neckartal Dam has received inflow of about 45 million cubic metres of water since the beginning of this month. To put this in...

The passion of Cassidy Karon

6 hours ago | Art and Entertainment

We all can pretty much nod at the fact that Cassidy Karon is currently at the frontline of youth, fashion and street culture in Namibia....

The flip-flop drag

6 hours ago | Art and Entertainment

After years of tossing and turning in their grave, the fashion gods and ancestors have finally defeated the powers of death and risen once again....

Online, online, online!

6 hours ago | Art and Entertainment

Since taking over tjil last year, I have been met with praise, yet also criticism. I have been met with pride, yet also concern. It's...

Song Night is back

6 hours ago | Art and Entertainment

Consistently exceeding expectations of nurturing the Namibian sound, Song Night, now sponsored by RMB, pledges to focus even more on mentoring musicmakers and bringing explosive...

Load More