Meatco continues to pay producers above parity price
Meat Corporation of Namibia Ltd (Meatco) said that it continues to pay producers above parity price despite the economic troubles currently experienced.
Financial difficulties experienced in the 2017/18 financial year hindered the corporation from paying producers above the South Africa (SA) parity price. But since March this year, it has managed to pay producer well across all grades excluding fat equalisation and weight premiums, the company said.
“Meatco is aware that the ratio between slaughter and weaner prices is not favorable towards the slaughter of ox production system. Taking into account the current downward trend of weaner prices together with the improvement in Meatco’s slaughter prices, farmers should once again be motivated to move into slaughter cattle production,” the company said.
Livestock procurement executive at Meatco, Heiner Bohme, said that despite the present strenuous environment where the factory is running at 45% capacity it is still paying competitive prices to its producers on an international level.
“Cattle delivered to Meatco directly from the farmers remain the preferred supply channel. Meatco acknowledges that the 2017 slaughter prices paid below parity resulted, amongst others, in a record number of animals exported live to neighboring SA. We, therefore, expect availability of slaughter cattle to be a challenge in the next coming years due to depleted stock,” Bohme said.
He added that in a bid to ensure maximum capacity utilisation through Meatco’s factory while increasing efficiencies and maximising producer returns, the company will need to continue with its backward integration initiatives.