Windhoek
Despite unbearable and unsustainable losses which have escalated to more than N$44 million in the 2014/2015 financial year, Meatco will not withdraw from the northern communal areas (NCAs).
Meatco further stated it would not close down its abattoirs there, nor disaffiliate from government.
This was the assurance of Meatco CEO Advocate Vekuii Rukoro all the way from the United Kingdom last night, when he reacted to questions by New Era in light of reports about the imminent closure of Meatco’s abattoirs in Oshakati and Katima Mulilo.
Rukoro made it clear that immense losses have accumulated since 1992 and been carried by Meatco producers marketing cattle to Meatco abattoirs south of the veterinary cordon fence (VCF).
He pointed out that management started to develop a few options that as a matter of principle are in line with the objectives of the Meatco Act, which are to serve, promote and co-ordinate the interests of the producers of livestock in Namibia; to strive for the stabilization of the meat industry in the national interest; to rationalize abattoirs and related factory activities; and conduct and manage such business in an orderly, economical and efficient manner.
It is in the spirit of the objectives as quoted above that the preferred option should also consider reducing Meatco’s financial losses in the NCAs, stated the CEO.
“With this in mind, management proposed various options to the board. The board deliberated on those options at their last meeting held on August 13, and took a principled decision to support the option that allows Meatco to continue serving the NCA farmers by bringing slaughtering services closer to farmers, while at the same time addressing the operational losses.”
“Meatco at this point in time is not at liberty to divulge the content of our strategy as it is still to be finally approved by the board. What we can say with certainty is that the strategy addresses the needs of our NCA producers and their unique circumstances,” he said.
With this, he allayed fears that 30 permanent staff and 75 seasonal staff will within the near future lose their jobs at Oshakati abattoir, and 21 permanent staff and 65 seasonal staff will be without work at Katima Mulilo abattoir.
These plants are used at 60 percent of their actual capacity and they only operate for about six months per annum.
“Meatco will continue with its presence as per its mandate in the NCAs by providing slaughtering services for our farmers who travel long distances to market their cattle. At the same time the envisaged strategy will aim to reduce our operational losses to sustainable levels as directed by members through the AGM resolution.”
“Fact is all Meatco producers, be they south or north of the VCF, be they commercial or communal, are all carrying these costs. In essence this cost should ideally be borne by the total meat industry. Meatco reasons that the total meat industry is benefitting from the current arrangements around the VCF. This begs the question: why should it only be the handful of Meatco producers carrying what ought to be a national obligation?’’ he inquired.
He assured that Meatco is looking at alternative methods of continuing to contribute meaningfully to the socio-economic development and upliftment of the NCAs and its people.
Asked about the 30 percent stakeholding acquired earlier this year by the government in Meato and whether NCA farmers would benefit from it, Rukoro said ongoing consultations with the Minister of Agriculture, Water and Forestry and Meatco’s chairperson are taking place to map the way forward on how government intends to acquire the 30 percent share.
“Whether NCA farmers will benefit from this stakeholding remains to be seen once we have reached that stage,” he said.