Meatco awarded whole Norwegian quota
Meatco has been granted the remainder of the 1 600 tons of the Norwegian beef quota, the company announced last week.
Meatco initially received 1 300, and subsequently, another 229.5 tons and the current allocation can be seen to be a result of Meatco having been able to fulfil its Norway export quotas in previous years.
“This is essentially a clear acknowledgement by the corporation that the Norwegian market is a significant business relationship that Meatco will continue to nurture. Norway gives Namibia a remarkably lucrative market and the hope is expressed that as many producers as possible will benefit by the utilisation of the market."
"By fulfilling the quota we have proven to the Norwegian authorities that we have the capacity and capability to utilise the allocated and additional quota in future fully,” the statement reads.
Last year Meatco received 1 300 tons and Brukkaros 300 tons. Thus far they managed to use 70.5 tons and the remaining 229.50 tons were re-allocated to Meatco which received 529.50 tons of the Norway Quota for 2018.
According to the acting chief financial officer, Ilana Brown 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.
“The financial benefit of this allocation is significant to Meatco’s revenue for the current financial period that ends 31 January 2019. Without a change in the raw material procured by Meatco currently, the Norway quota will be filled by reallocating 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,” he said.
He added that the annual Norway quota generates significant foreign currency for the meat industry in Namibia, thus delivering less than the 1 600 tons 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, Brown said.