Meatco urges producers to honour their delivery contracts
Meatco said that disruptions within the supply chain can have a significant impact on the company’s profit, leading to a domino effect in all aspects of its business.
Meatco said it works on a three-month production planning schedule, with the aim of placing 70% of production forward to regular, key customers such as those in the EU markets.
According to Meatco serving these clients requires consistent supply and this can only be done once they have enough raw materials, hence supply becomes challenging if delivery agreements are not honoured.
“The production schedule helps Meatco identify the number of clients that need to be supplied at any given time to maintain our market share and to maximise producer returns. For this reason, it is important for producers to assist Meatco to better plan ahead and further grow the industry as this will have a positive effect on producer prices and the business as a whole,” Meatco said.
Farmers are urged to work closely with their procurement office or Technical Advisor to notify Meatco well in advance if they want to cancel their slaughter slots so that it remain in a position to develop alternatives that will mitigate potential disruptions.
“Meatco is committed to all its stakeholders to increase demand. That’s why it is important to point out issues that are often disregarded by one segment, but have an impact on the entire industry,” Meatco said.