WINDHOEK – Meatco has secured a Development Bank of Namibia loan of N$200 million to finance various projects to more aggressively integrate into the value chain, to pick up cattle in the earlier stages of production and secure them for export abattoirs before they are slaughter ready.
These initiatives include the expansion of the Meatco Owned Cattle (MOC) project, the expansion of the existing Okapuka feedlot and the construction of two new feedlots, one in the
Speaking exclusively to New Era, the CEO of Meatco Vekuii Rukoro says these projects are effectively creating a local market for Namibian weaners to compete with the South African market.
When South Africa became restricted for export on 1 May this year, many Namibian producers found relief in these projects and as a result the local weaner market was kept relatively stable. The result was substantial growth in these projects for which Meatco secured the DBN loan.
The funds are being utilized to establish the two additional feedlots mentioned, each with a capacity to produce 28 000 slaughter oxen from weaners while the rest will be used to finance the expansion of the MOC project.
South Africa last week revised the conditions for the importation of livestock from Namibia, Botswana, Lesotho and Swaziland, now making it possible once again for producers to export livestock to that country, provided they meet and adhere to specific conditions. This followed an earlier decision to impose strict regulations on imports from neighbouring countries, including Namibia, making it nearly impossible for cattle producers to export livestock to South Africa.
This left many producers destitute and without an alternative market to which to export their weaners.
“The opening of the border changes the business environment again, but it does not affect our strategy, which was in place before the strict border regulations imposed by South Africa. We still plan to get to a point where we add value to 126 400 weaners every year within the next five years. This will be an alternative option to exporting weaners without any value addition to neighbouring South Africa. These animals will be raised locally into slaughter animals, slaughtered and processed locally for export,” Rukoro explained.
He says adding value to beef locally reduces the overreliance on the South Africa as market for cattle, and simultaneously increases the marketing opportunities for the product, “as a broad range of markets for our beef exists, but the market for weaners is limited”.
“We do not advocate closed borders, we believe in a free market,” says Rukoro, “but we also believe in being responsible. Exporting nearly 260 000 weaners with no value addition to a single market is irresponsible. Being over reliant on a market for raw materials when you have the capacity to add value to those raw materials locally, while at the same time diversifying your markets, is irresponsible. I think that the closing and opening of the border was a big eye-opener for all of us. We have learned that we should not rely too much on one market. With our projects, we are offering an alternative to the South African weaner market,” he concludes.