The Meatco Corporation of Namibia has seemingly woken up from its slumber, generating N$297 million between May and June this year. 

In May, 7 681 animals were slaughtered at Meatco abattoirs countrywide, while June figures stood at 11 379. 

Since January, over 38 000 animals have been slaughtered at Meatco’s slaughterhouses. 

The latest statistics were availed by the meat corporation on Monday. 

The increased cattle numbers coming through the Windhoek abattoir could indicate a significant turnaround in the business of the corporation, the company said. 

“Meatco believes that continuing this trend is likely to lead to a consolidated recovery year for the financial year running from January 2023 to February 2024. The company performed favourably in May and June by generating around N$107 million and N$190 million in revenue respectively,” Undamuje Hambira, the corporation’s spokesperson said in a statement. 

Meatco has also projected another profit for July. 

“Meatco aims to accomplish its commitment of paying producers on time while managing and paying suppliers to ultimately maximise returns from the lucrative niche markets we market our premium meat products,” Hambira said. 

According to the Meat Board of Namibia (MBN), during the second quarter of 2023, livestock and meat marketing rebounded. 

“The growth was mainly driven by the increase in exports at the export abattoirs. Cattle marketed increased from 78 212 heads of cattle representing an increase of 8% of total cattle marketed during the second quarter of last year. 

“Market signals appear to be well-functioning in the livestock and meat industry as producers responded well to relatively attractive prices offered by A-class abattoirs. The Namibian B2 producer prices paid by export-approved abattoirs South of the Veterinary Cordon Fence (SVCF) averaged N$61.06/kg, a 0.5% increase from the average N$60.77/kg paid last year during the same period,” she added. 

This year, Meatco slaughtered a total of 38 401 animals, of which 2 079 were slaughtered from the Northern Communal Area and 36 322 SVCF as of the end July 2023. 

The average slaughter weight for January was 250.3 kg and the average price was N$58. 8. 

In February, the average weight slaughtered was 259.9 kg against an average slaughter price of N$60.3 while in March the average weight was 250.4 kg with a N$60.3 average slaughter price. 

Additionally, for April, an average weight of 251.6 kg was slaughtered with an average price of N$60.2 paid to producers, whereas in May the weight was 253.2 kg with a N$59.8 average price paid for the month. For June, the average slaughter weight was 253.6 kg while the average price was N$60.1. 

Meatco has made an ambitious target to slaughter 50 000 animals in the SVCF and 10 000 in the NVCF during the current, 2023/24, financial period. 

Marketing 

On the marketing front, the total marketed volumes for the period January-June 2023 were 5 515 metric tonnes (MT). 

In the process, N$444 million was derived from local, regional, and international markets. 

Additionally, the trade ministry, in collaboration with MBN has approved a quota allocation of 75% (1 200 MT) to Meatco for the export of beef to the lucrative Norwegian market during the year 2023. 

“Meatco has thus far filled the quota with 893 metric tonnes as of the end of July 2023. The quota has been effective from 1 January 2023 and must be fulfilled before 31 December 2023,” she boasted. 

Earlier this year, Meatco cut ties with British marketing firm, GPS Food Group UK Ltd, citing financial constraints. Meatco also indicated that they have the capacity to market Namibian beef themselves. 

Meatco’s CEO Mwilima Mushokabanji defended the decision, clarifying that the agreement with GPS was not terminated. It ended in April, he said at the time. 

“The contract between Meatco and GPS came to an end in April 2023. We already informed GPS that we will be domesticating and taking over marketing and sales and we are doing it ourselves as Meatco,” the CEO said. 

Losses 

According to a March forensic report by Ombu Capital, which is owned by former Standard Namibia CEO, Vetumbuavi Mungunda, Meatco reportedly loses atleast N$5 million a week. 

It documents a seven-month process of analysis and sector-wide consultation and recommends what the authors view as a viable business model for Meatco’s long-term sustainability. 

“Meatco is currently incurring monthly losses exceeding N$20 million per month, which must be stemmed before these place Meatco’s operational existence and the livestock sector at risk, a sector which sustains over 60% of Namibia’s livelihoods,” Mungunda is quoted in the report. 

At the time of its compilation, Meatco’s liabilities exceeded its assets by N$133.2 million. 

“There is a presumption of reckless trading when conducting business under these circumstances,” he states. 

According to the report, Meatco is on the brink of existential risk. 

It was discovered that the company also operates in a highly secretive world. 

“We have been refused access to the Meatco board’s meeting packs and minutes, as well as the meeting packs and minutes for the executive committee meetings. This highly unusual act from Meatco and the lack of transparency is concerning,” Mungunda emphasised. 

Meatco has experienced shrinking gross profit margins, which, combined with reduced throughput, has resulted in losses since 2018. 

These losses increased significantly to N$119 million in 2021, N$205 million in 2022, and an estimated N$196 million in 2023. 

While acknowledging a challenging financial period over the past two years, Mushokabanji, however, believes that Meatco is out of the doldrums. 

“When considering the performance of our business, it is evident that we are firmly on the right path. We have successfully established a resilient organisation, capable of weathering any potential liquidation threat. There is a bright future for Meatco,” Mushokabanji told this publication last month. - emumbuu@nepc.com.na