Producer prices at all-time high
With a steady increase in beef consumption, both locally and internationally, Meatco recently increased producer prices, which now stand at a record high.
Prices in March ranged from N$40.95 for C-grade to N$46.95 for A-grade, for 260kg carcasses.
In comparison to the same period last year, prices ranged from N$33.09 for C- grade and N$40.19 for A-grade for 260kg carcasses.
According to Meatco, despite all the challenges that the industry has faced the company strives to help Namibian producers get through trying times, keeping in mind the future of the Namibian beef industry.
It added that the European economy is still under pressure and prices remain relatively stagnant.
“Europe is one of Meatco's most lucrative markets and instability in the exchange rate, with prices from clients remaining unchanged, results in instability in returns to Meatco.”
It added that the Norwegian market has been something of a lifeline as Norway and the rest of the Scandinavian market is isolated from Europe.
“Meatco's increased Norway quota therefore helped tremendously in the face of all these challenges, as the company is able to put more products into this lucrative market, which in turn supported the Namibian producer price.”
Furthermore, Meatco says the steady increase in the consumption of beef locally and internationally is creating more opportunities for the Namibian meat industry as it enables Meatco to invest into new markets such as Hong Kong and the United States.
Despite the increase in beef consumption around the globe, effects of the recession are still felt in many parts of the world due a lag effect.
According to the company, being in niche markets such as the EU and Norway as opposed to commodity markets in the Middle East, has allowed it to continue maximising revenue as the recession always hits the commodity markets hardest.
“The niche markets always hinge on good relationships and quality products that are highly sought after and allow the company's products not to suffer as much as products on the commodity markets.”
Meatco added that due to different affordability trends and population dynamics, beef consumed in Namibia remains at lower levels than in other countries.
All of the products currently available in Namibia cater for the various needs of Namibian families, providing variety and affordability.
“Our aim is to add as much value to carcasses as possible and to closely align ourselves with the needs of the end consumer. As a result, we are constantly developing our value chain by placing greater emphasis on the quality and unique characteristics of our beef. Almost 100% of the slaughtered animal is processed and sold.
In this way, we can maximise value addition opportunities,” says Meatco.
Meatco's biggest market by volume in Africa is neighbouring South Africa. Due to South Africa's population size, income levels and proximity, it remains a lucrative market for some of Namibia's beef products.
Meatco said it will continue to unlock markets that can mean more value for Namibian producers and broader market diversification for the company.
ELLANIE SMIT
Prices in March ranged from N$40.95 for C-grade to N$46.95 for A-grade, for 260kg carcasses.
In comparison to the same period last year, prices ranged from N$33.09 for C- grade and N$40.19 for A-grade for 260kg carcasses.
According to Meatco, despite all the challenges that the industry has faced the company strives to help Namibian producers get through trying times, keeping in mind the future of the Namibian beef industry.
It added that the European economy is still under pressure and prices remain relatively stagnant.
“Europe is one of Meatco's most lucrative markets and instability in the exchange rate, with prices from clients remaining unchanged, results in instability in returns to Meatco.”
It added that the Norwegian market has been something of a lifeline as Norway and the rest of the Scandinavian market is isolated from Europe.
“Meatco's increased Norway quota therefore helped tremendously in the face of all these challenges, as the company is able to put more products into this lucrative market, which in turn supported the Namibian producer price.”
Furthermore, Meatco says the steady increase in the consumption of beef locally and internationally is creating more opportunities for the Namibian meat industry as it enables Meatco to invest into new markets such as Hong Kong and the United States.
Despite the increase in beef consumption around the globe, effects of the recession are still felt in many parts of the world due a lag effect.
According to the company, being in niche markets such as the EU and Norway as opposed to commodity markets in the Middle East, has allowed it to continue maximising revenue as the recession always hits the commodity markets hardest.
“The niche markets always hinge on good relationships and quality products that are highly sought after and allow the company's products not to suffer as much as products on the commodity markets.”
Meatco added that due to different affordability trends and population dynamics, beef consumed in Namibia remains at lower levels than in other countries.
All of the products currently available in Namibia cater for the various needs of Namibian families, providing variety and affordability.
“Our aim is to add as much value to carcasses as possible and to closely align ourselves with the needs of the end consumer. As a result, we are constantly developing our value chain by placing greater emphasis on the quality and unique characteristics of our beef. Almost 100% of the slaughtered animal is processed and sold.
In this way, we can maximise value addition opportunities,” says Meatco.
Meatco's biggest market by volume in Africa is neighbouring South Africa. Due to South Africa's population size, income levels and proximity, it remains a lucrative market for some of Namibia's beef products.
Meatco said it will continue to unlock markets that can mean more value for Namibian producers and broader market diversification for the company.
ELLANIE SMIT
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