Tough times for farmers
Livestock producers are experiencing a particularly difficult period, where input costs are outstripping their income due to the current economic climate.
Meatco says as a company it realises that producers are experiencing a difficult period but, there is only so much that it can do.
“Despite the challenges Meatco faces along with the depressed trading environment in our key markets, whether the South African consumer market or the European market; we will continue to do our level best to keep the producer price stable in the interest of our farmers,” Meatco said.
Meatco is regulated by the Meat Corporation of Namibia Act (Act 1 of 2001) to serve, promote and coordinate livestock producers' interests in Namibia, and to strive for the stabilisation of the local meat industry.
According to Meatco, the 2016 Bureau of Food and Agriculture Policy (BFAP) Outlook Conference stated that 2016 was perhaps the most challenging year for Namibian farmers and the agricultural industry as a whole. For Meatco, 2017 was similarly expected to be challenging for Namibian cattle farmers in a post-drought year. With Namibia having slid into a “technical” recession, the agricultural industry has not been spared of hardship either.
“Being a post-drought year, there has been a high per kilogramme cost for live cattle which can be attributed to farmers restocking while competing in the market for available cattle; a situation also directly affecting Meatco,” the company said.
However, according to Meatco, on a positive note, Namibian farmers are likely to benefit from lower feed prices as result of better harvests in the region. Nonetheless, the impact is considered minimal under normal rain circumstances due to a large portion of the national herd being free-range.
According to a financial news website, investopedia.com, recessions come and go, and history shows that recessions invariably end, and when they do, an economic recovery follows, Meatco said.
“Meatco has come a long way with many highs and we remain ready to do what we know best, to assist where we can and to ensure that the journey continues by honouring all responsibilities towards our producers.”
STAFF REPORTER
Meatco says as a company it realises that producers are experiencing a difficult period but, there is only so much that it can do.
“Despite the challenges Meatco faces along with the depressed trading environment in our key markets, whether the South African consumer market or the European market; we will continue to do our level best to keep the producer price stable in the interest of our farmers,” Meatco said.
Meatco is regulated by the Meat Corporation of Namibia Act (Act 1 of 2001) to serve, promote and coordinate livestock producers' interests in Namibia, and to strive for the stabilisation of the local meat industry.
According to Meatco, the 2016 Bureau of Food and Agriculture Policy (BFAP) Outlook Conference stated that 2016 was perhaps the most challenging year for Namibian farmers and the agricultural industry as a whole. For Meatco, 2017 was similarly expected to be challenging for Namibian cattle farmers in a post-drought year. With Namibia having slid into a “technical” recession, the agricultural industry has not been spared of hardship either.
“Being a post-drought year, there has been a high per kilogramme cost for live cattle which can be attributed to farmers restocking while competing in the market for available cattle; a situation also directly affecting Meatco,” the company said.
However, according to Meatco, on a positive note, Namibian farmers are likely to benefit from lower feed prices as result of better harvests in the region. Nonetheless, the impact is considered minimal under normal rain circumstances due to a large portion of the national herd being free-range.
According to a financial news website, investopedia.com, recessions come and go, and history shows that recessions invariably end, and when they do, an economic recovery follows, Meatco said.
“Meatco has come a long way with many highs and we remain ready to do what we know best, to assist where we can and to ensure that the journey continues by honouring all responsibilities towards our producers.”
STAFF REPORTER
Comments
Namibian Sun
No comments have been left on this article