Current high cattle numbers may result in another profitable year – Meat Corporation
The increasing cattle numbers coming through the Windhoek Abattoir could indicate an abrupt turnaround in the Meat Corporation of Namibia (Meatco) operations, the entity noted this week.
Meatco anticipates that continuing this trend will lead to a consolidated recovery year for the financial year running from January 2023 to February 2024.
In May and June, the company generated roughly N$107 million and N$190 million in revenue, respectively.
Meatco’s goal is to meet its obligation to pay producers on time while also managing and paying suppliers to maximize returns from the lucrative niche markets in which they market their premium meat products. Meatco expects to make another profit in July 2023.
Meanwhile, concerning livestock procurement and production, the Meat Board of Namibia said that livestock and meat marketing “rebounded” in the second quarter of 2023. “The growth was driven by an increase in exports at the export abattoirs,” it said, adding that the number of cattle marketed increased from 78,212 head of cattle, representing an 8% increase over total cattle marketed in the second quarter of last year.
“The ratio between live exports and slaughtering in the country improved with 53% of all cattle marketed being slaughtered at A, B, and Class abattoirs while live exports market share reduced and averaged 47%, a decline of 5.9% of total marketing. Market signals appear to be well-functioning in the livestock and meat industries, as producers responded well to relatively attractive prices offered by A-class abattoirs. The Namibian B2 producer prices paid by export-approved abattoirs South of the Veterinary Cordon Fence (SVCF) averaged N$61.06/kg, a 0.5% increase from the average N$60.77/kg paid last year during the same period.”
Moreover, Meatco slaughtered a total of 38,401+ animals, with 2,079 slaughtered from the Northern Communal Area and 36,322 SVCF as of the end of July this year. The average slaughter weight for January was 250.3kg, and the average price was N$58.84.
“In February, the average weight slaughtered was 259.96 kg against an average slaughter price of N$60.30, while in March, the average weight was 250.36 kg with a N$60.31 average slaughter price. Additionally, for April, an average weight of 251.64 kg was slaughtered with an average price of N$60.24 paid to producers, whereas in May, the weight was 253.22 kg with a N$59.67 average price paid for the month. For June, the average slaughter weight was 253.63 kg while the average price was N$60.13 Meatco has budgeted to slaughter 50,000 SVCF and 10,000 NVCF for the 2023/24 financial period,” according to a report by Meatco’s Corporate Communications Department.
They also stated that the overall marketed volumes from January to June 2023 were 5,515 metric tonnes, generating a total value of N$444 million from local, regional, and international markets.
“The Ministry of Industrialisation and Trade, in collaboration with the Meat Board, approved a quota allocation of 75% (1,200 tonnes) to Meatco for the export of beef to the lucrative Norwegian Market during the year 2023. Meatco has thus far filled the quota with 893 metric tonnes as of the end of July 2023. The quota has been effective from 01 January 2023 and must be fulfilled before 31 December 2023 while subject to standard operating procedures for the fulfilment of the Norway Beef Quota as issued and updated by the Meat Board sporadically,” they concluded.