Witvlei Meat loses N$27m

Witvlei Meat says it lost N$ 27 million in 2014, despite government’s assurance that cutting beef export quotas would have no financial implications for producers. According Witvlei Meat Managing Director Hendri Badenhorst closing Witvlei Abattoir will mean that shareholders will lose N$22 million. He said the industry would be set back seven to 10 years, as Meatco would then have no competition. Witvlei Meat sent over 200 workers home last week, after management decided on January 19 it would no longer continue production. Badenhorst refuted claims by Ministry of Trade and Industry’s Calle Schlettwein that he had no idea the abattoir was contemplating closure. “With respect, you cannot be surprised, because you were informed, please refer to our correspondence dated September 18, 2014 to the NaCC (Namibia Competition Commission),” reads an email sent to Schlettwein by Badenhorst on Tuesday. The email was copied to ministry permanent secretary Malan Lindeque, Witvlei Board Chairman Sidney Martin, the company’s general manager Ricky Bezuidenhoudt and the Agriculture Permanent Secretary Joseph Iita. Schlettwein told Namibian Sun last week he was “surprised” to learn of Witvlei’s closure and that his office had received no official communication. According to Badenhorst’s email, Schlettwein was informed last year that Witvlei Meat would be forced to retrench about 200 people by the end of this month, because of their reduced Norway beef quota. “The 350 metric tons allocated in December (last year) for 2015, was filled from about 400 metric tons in stock in Europe, so in effect we have zero quota for 2015, and we are unable to compete, as detailed in the submissions to the NaCC,” the email said. According to Badenhorst, Witvlei will remain closed and it’s close to 200 workers jobless, until the Supreme Court “restores our right” to fair competition. Badenhorst further insisted that government has robbed Witvlei of its rights and that the current quota allocation disadvantages the company. “Witvlei Meat’s right was taken away, without notice, without any eligible new entrant complying, without being able to compete fairly, and without shareholders ever receiving a dividend,” he said. Witvlei Meat has asked the court to stop the implementation of Schlettwein’s decision in December 2013 to slash Witvlei Meat’s share of the Norway beef export quota from 800 to 300 tons a year. WINDHOEK JEMIMA BEUKES