Okapuka feedlot forces producer price drop
Meatco has warned its producers that a huge drop in meat prices can be expected over the next two weeks should the Okapuka feedlot remain closed.
In its latest industry newsletter, the management has cautioned producers that they should ready themselves for a price drop of between N$5 and N$8 over the next two weeks if the situation at Okapuka feedlot remains unchanged.
The warning came after the Directorate of Veterinary Services (DVS) in the Ministry of Agriculture, Water and Forestry closed the Okapuka feedlot on 2 September.
The ministry has approved a conditional reopening which means that it may slaughter cattle from the feedlot, but not market it. The company however is not satisfied with these conditions as they will not be able to market the meat products and have therefore not slaughtered any of the cattle from the feedlot.
According to the company, this is now the seventh week that the feedlot is closed and the financial impact on Meatco is about N$5 million per week.
Therefore, the management resolved to give a cautionary notice to producers that meat prices are expected to drop in the coming two weeks, says the newsletter.
“It is our duty as management of the corporation, to alert our stakeholders including our Namibian producers and the public of this development as it is expected of us from our establishment statutes to promote and coordinate the interest of all livestock producers in Namibia, to conduct and manage such business in an orderly, economic and efficient manner,” it said.
According to Meatco, it strives to keep the producer price as stable as possible in the interest of the producers, but under the prevailing conditions, the company is under immense material pressure to uphold this objective.
“It is needless to say, that the very statutes also expect us to manage the company economically and financially sustainable.”
The management also added that Meatco is on record that the feedlot closure should not just be viewed as a matter limited to the Meatco business alone. “This is an industry matter of national proportions, as its ramifications will be felt right across the entire livestock and beef industry and the Namibian economy at large.”
ELLANIE SMIT
In its latest industry newsletter, the management has cautioned producers that they should ready themselves for a price drop of between N$5 and N$8 over the next two weeks if the situation at Okapuka feedlot remains unchanged.
The warning came after the Directorate of Veterinary Services (DVS) in the Ministry of Agriculture, Water and Forestry closed the Okapuka feedlot on 2 September.
The ministry has approved a conditional reopening which means that it may slaughter cattle from the feedlot, but not market it. The company however is not satisfied with these conditions as they will not be able to market the meat products and have therefore not slaughtered any of the cattle from the feedlot.
According to the company, this is now the seventh week that the feedlot is closed and the financial impact on Meatco is about N$5 million per week.
Therefore, the management resolved to give a cautionary notice to producers that meat prices are expected to drop in the coming two weeks, says the newsletter.
“It is our duty as management of the corporation, to alert our stakeholders including our Namibian producers and the public of this development as it is expected of us from our establishment statutes to promote and coordinate the interest of all livestock producers in Namibia, to conduct and manage such business in an orderly, economic and efficient manner,” it said.
According to Meatco, it strives to keep the producer price as stable as possible in the interest of the producers, but under the prevailing conditions, the company is under immense material pressure to uphold this objective.
“It is needless to say, that the very statutes also expect us to manage the company economically and financially sustainable.”
The management also added that Meatco is on record that the feedlot closure should not just be viewed as a matter limited to the Meatco business alone. “This is an industry matter of national proportions, as its ramifications will be felt right across the entire livestock and beef industry and the Namibian economy at large.”
ELLANIE SMIT
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