Meatco’s CEO Mwilima Mushokabanji says progress has been made in unbundling the state-owned meat processor and marketer to deliver profitability.
He noted the corporation paid over N$2 billion to livestock producers, primarily south of the red line over the last three years to sustain primary production, while average international realisation increased by 5% from 5.84 million euros to 6.11 million euros.
“Administrative costs were reduced by 2% from N$167 million to N$163 million. Real savings, when taking average inflation of 4% into account, amount to 6%. No salary increases were offered to senior and middle management for the last two years.”
Mushokabanji spoke during a recent Meatco’s 34th annual general meeting (AGM), held at Otjiwarongo in the Otjozondjupa region, which was attended by 100 members, who also deliberated on issues and strategies that shape Meatco’s future and review its 2021-2022 financial performance.
He said the corporation’s monthly salaries were reduced from N$14 million in 2018 to N$11 million in 2022, which amounted to N$40 million per year – less than what was disbursed in 2018.
Also, he said the total staff complement was reduced from 975 in 2018 to 738 in 2022, while permanent staff were reduced from 826 in 2018 to 577 in 2022.
“For the first time in the history of the company, Meatco operated without the support of any commercial bank during the past two years, notwithstanding servicing our overdraft facility debt of N$540 million with First National Bank, and that of N$94 million with Bank Windhoek,” he added.
To date, he said, these loans are fully settled, and the strategic assets of the company that were attached as collateral are now relieved.
Speaking at the same occasion, Meatco board chairperson Adolf Muremi stated the agriculture industry is indeed at crossroads, “with so many opportunities and challenges facing the industry”.
He highlighted that Meatco plays a vital role in Namibia’s red meat industry and the Namibian economy at large – not only to stabilise the industry in the national interest but also to access lucrative international markets on behalf of all livestock producers in Namibia, regardless of whether they are communal, emerging or commercial farmers.
On his part, Meatco’s chief financial officer Angus Claassen highlighted during his financial report presented to the members that the improved ratios were achieved despite a massive drop in throughput in 2021/22 (35 127), compared to 2019/2020 when the abattoir slaughtered 116 304 cattle.
He said this positive development in the business will instil confidence in our key stakeholders regarding the sustainability of the corporation.
– ktjitemisa@nepc.com.na