Meatco bags rest of 1600 tonnes Norwegian beef quota
Meatco has been awarded the remainder of the 1600 tonnes of the Norwegian beef quota, which has a significant financial benefit to Meatco’s revenue for the current financial period that ends 31 January 2019, the meat processor and exporter said this week when announcing the increased quota.
Meatco initially received 1 300, and subsequently another 229.5 tons. This allocation comes as a result of Meatco having been able to fulfil its Norway export quotas in previous years. Norway gives Namibia a remarkably lucrative market, thus making way for many local producers to benefit financially by utilising the Norway market.
According to Meatco, in 2018, the company received 1300 tons and Brukkaros 300 tons. So far, Norway managed to use 70.5 tons and the remaining 229.50 tons was re-allocated to Meatco. So in total Meatco received 1529.50 tons of the Norway Quota for 2018.
Acting Chief Financial Officer, Ilana Brown said, the additional tonnage of the Norway quota now allocated to Meatco comes at a crucial time when the company needs to maximise the revenue of every kilogram exported.
“Without a change in the raw material procured by Meatco currently, the Norway quota will be filled by re allocating product to Norway that was destined for other markets. This is necessary to maximise the GP% we get for our product and also to ensure that Namibia remains committed to Norway by fulfilling the allocation,” she added.
Brown said the annual Norway quota generates significant foreign currency for the meat industry in Namibia, thus delivering less than the 1 600 tonnes is not an option.
“It remains critical in the success of Meatco to provide the Producer with access to lucrative markets to maximise the returns,” she added.
