WINDHOEK – Despite challenging operating and marketing conditions due to the drought in the last financial year, Meatco was able to pay commercial producers an average producer price of N$25.30/kg, which was N$2.66/kg higher than the equivalent South African prices.
In total, Meatco paid N$70.3 million above South African prices in 2013/2014.It has been announced that the company’s revenue increased by two percent, from N$1.38 billion to N$1.41 billion in the year under review, of which 63.1 percent went to producers; 18.8 percent went to suppliers, 15.2 percent went to salaries; 2.4 percent went to financiers; 0.3 percent went to reserves and 0.2 percent to the government.
Although the company faced a difficult year, it managed to generate enough profit to make provision for a N$29.6 million back pay to be paid to producers who supported Meatco and will bring the total premiums above South African prices to almost N$100 million for the year under review. Meatco’s operating costs increased by only 11.1 percent, which is a notable achievement given the significant increases in the cost of water and electricity over the last year.
In his speech and commentary in the company’s annual report, Meatco’s Chief Executive Officer Advocate Vekuii Rukoro says without a doubt, the drought had the biggest influence on business in 2013, with Meatco with very poor quality cattle delivered to the abattoirs.