Govt pays Meatco producers N$30m …Moves to restore confidence

Govt pays Meatco producers N$30m …Moves to restore confidence

The government has cleared close to N$30 million in outstanding invoices owed to farmers who supplied cattle, meat and meat-related products to the State during the rollout of the 2024/25 Drought Relief Programme.

This was done through the Office of the Prime Minister, the agriculture ministry and Meatco as the facilitator.

Meatco interim CEO Albertus !Aochamub welcomed the move and commended the government for its proactive leadership and for hearing the cries of the farmers, whom he said are the backbone of Namibia’s world-acclaimed beef value chains.

The Ministry of Agriculture, Fisheries, Water and Land Reform was expected to have the funds on 27 January 2026.

!Aochamub said this intervention reinforces the government’s commitment to safeguarding livelihoods, food security, and the resilience of the country’s agricultural sector. 

“Meatco recognises the collaborative role played by the Office of the Prime Minister and the Ministry of Agriculture, Fisheries, Water and Land Reform in ensuring that the drought relief effort reached affected producers, particularly in communal areas where vulnerability was most acute. 

The settlement of these outstanding payments is not only an important financial milestone for producers but also a confidence-building measure for the broader red meat value chain. It reinforces trust at a time when restoring credibility, predictability, and partnership is central to Meatco’s recovery journey,” stated !Aochamub. He views this moment as an opportunity to reset relationships, reinforce accountability, and move forward together in rebuilding a resilient and inclusive livestock economy for Namibia.

Strategic plan

As Meatco continues to implement its board-approved turnaround plan through to 2027, rebuilding trust with producers, government, financiers, employees, and trading partners remains a strategic priority, he buttressed.

Going forward, Aochamub said timely settlement of producer obligations will be a cornerstone of this ongoing effort, alongside strengthened governance, financial discipline, and operational focus.

“Meatco reaffirms its commitment to working closely with government and all stakeholders to stabilise and grow the red meat industry, support communal and commercial producers alike, and ensure that Meatco fulfils its developmental and commercial mandate in a sustainable manner,” the diplomat, communicator and seasoned executive said.

Value chains

Meatco continues to play a pivotal role in the strengthening of domestic beef value chains, especially for farmers in both the Northern Communal Areas (NCAs) and those south of the Redline.

Beyond its core mandate of livestock processing and market access, Meatco also works closely with local producers in communal areas as mandated in the country’s Vision 2030, which calls for inclusive economic growth, rural development, and the transformation of the country’s agricultural sector.

These objectives are further reinforced under National Development Plan 6 (NDP6), which prioritises job creation, value-chain development, food security, and resilience to climate change.

Through its Foundation and in line with set national development priorities, the state-owned enterprise invested over N$2.7 million between 2022 and 2025 in the Zambezi region to drive real change across the livestock sector in that region.

Some of the tangible interventions by Meatco in the Zambezi region have been the creation of 62 permanent jobs at the Katima Mulilo abattoir, improved livestock marketing infrastructure and continuous farmer training, as well as the 272 000 droughtrelief meat packs that were delivered during the drought crisis.

Meatco’s work goes far beyond processing livestock, as the entity continues to uplift communities, create opportunities and ensure that communal farmers participate meaningfully in regional and global markets.

In addition, Meatco NCA has supported the financial sustainability of local livestock marketing entities, including the Zambezi Meat Corporation (ZAMCO), through commission-based income linked to slaughter throughput.

At full capacity, the Katima Mulilo abattoir can slaughter 1 320 cattle per month or 15 000 cattle per year and looks set to boost the availability of fresh beef in the region.

This has strengthened institutional capacity and enabled reinvestment into farmer support services, consistent with national objectives to build resilient, community-based economic institutions.

Market access

Meatco recently held in-depth engagements with the South African-based Shoprite Checkers Group at the group’s Western Cape headquarters in South Africa, where discussions focused on opportunities for Meatco to supply red meat products from its abattoirs in Rundu and Katima Mulilo to Shoprite Checkers Group’s clients in the Central African markets.

The Shoprite Checkers Group remains the largest food retailer on the African continent, with more than 2 900 stores across 15 countries and a deeply integrated supply chain system that reaches millions of consumers daily. 

For Meatco, the country’s largest meat processing and marketing entity. Aochamub stated that the move is all about expanding the entity’s footprint and ensuring that products from Namibia’s communal and northern production systems reach premium regional markets.

“Their scale, logistics capabilities, and continental reach make them an essential strategic partner for expanding African-sourced food products into regional markets. Our engagement was positive and forward-looking, and we are optimistic about the potential for deeper collaboration that supports producers, strengthens regional trade, and unlocks new market opportunities for Namibia,” shared Aochamub.

Meatco plays a critical role in assisting the government in stabilising the red meat industry, particularly by supporting farmers north of the redline and abattoir operators in those areas. 

Resilience 

During the 2023/24 period, Meatco successfully slaughtered 60 820 cattle to surpass the budgeted target of 50 000. This achievement is a testament to its operational resilience and strategic planning, with plans in the pipeline to see Meatco slaughter over 105 000 cattle annually to meet market demand and expand its market share.

Meatco’s agro-processing and value-addition department continued to face evolving market dynamics, driven by changing consumer preferences and regulatory requirements. Still, it remained agile in responding to these shifts, leveraging market insights to tailor its product offerings and enhance competitiveness.

The state-owned beef processing and marketing entity plays a vital role in Namibia’s red meat industry, as it is the single biggest player in terms of approved slaughter capacity with international export certification, enabling livestock producers to access lucrative international markets.

Operations 

The Katima Mulilo abattoir continues to demonstrate positive performance, with increased sales and market realisations. However, challenges such as low slaughter numbers and infrastructural requirements demand attention for sustained growth and efficiency. 

ohembapu@nepc.com.na