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Meatco records a drop in profits during the 2018/19 financial year

Meatco records a drop in profits during the 2018/19 financial year

The Meat Corporation of Namibia (Meatco) recorded a gross profit of N$135 million for the 2018/19 financial year, which is a decrease from the N$143 million recorded in 2017/18.

Meatco Board Chairperson, Dr. Martha Namundjebo-Tilahun said the drop is mainly attributed to a decrease in slaughtered animals supplied by producers in the areas south of the Veterinary Cordon Fence. The areas supply decreased from 81,984 (2017/18) to 62,086 for the year under review, while cattle supply in areas north of the Veterinary Cordon Fence was merely 1,521 for the year under review.

“Throughput was really a challenge coupled with drought and many other external factors such as meeting the global standards for marketing meat products,” Namundjebo-Tilahun said, while speaking at Meatco’s Annual General Meeting held on 21 June in Windhoek.

Namundjebo-Tilahun noted that the desired impact to increase efficiencies around the business was not an easy feat, especially when the company underwent a major realignment process to balance the workforce with the actual throughput.

“Voluntary early retirement for employees aged 55 and older was offered as well as a voluntary retrenchment was introduced. These strategic initiatives reduced the number of employees by 196, saving the wage bill with N$40 million per annum,” she said.

In a speech read on his behalf at the event, Alpheus Naruseb, Minister of Agriculture, Water and Forestry said since Namibian herd is becoming smaller and younger every year with the re-occurring drought, the meat industry should find and explore ways in which to sustain the industry.

“The weaner/ox productions ratio whether producers will be able to adapt is now imminent. Finding markets and making sure that all Namibians benefit regardless where they find themselves in Namibia are just some of the key focus areas,” Naruseb said.

Naruseb noted that the Comprehensively Coordinated and Integrated Agricultural Development Programme, which his ministry has embarked on intents to serve market access to small and medium scale agricultural producers and ago-processors, as a means of stimulating sustainable agricultural production and activity, that in turn enhances national and household food security.

“The ministry, through the programme is proposing that maximum support be provided, for the supply of locally produced high quality crop and livestock products, mainly from small and medium scale agricultural producers and processors to government offices, ministries and agencies, using mainly, the Public Procurement System,” Naruseb said.


About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys