Meatco increased its revenue by 15% (from N$752 million to N$865 million) and a gross profit by 950% (from -N$ 2.8 million to $ 24 million), the country’s meat sector regulator has announced.
This is according to the company’s latest annual report, in which it stated that the positive turn is despite the ongoing drought and Covid-19 negatively influencing the demand of its premium products and market realisation.
Equally so, the decline in Euro/Namibian dollar exchange rate experienced in the year under review contributed to the challenges the entity faced.
Meatco said maintaining access for Namibian beef in the traditional export markets namely South Africa, European Union, United Kingdom, Norway; through which they continued to fill the quota, the parastatal sold 590 tonnes more beef and increased its revenue by N$113 million compared to the prior year. For the period under review, Meatco injected a total value of N$1 billion to various stakeholders.
“Meatco paid N$560 million (2022: N$492 million) to producers in order to protect primary livestock production in the national interest of Namibia. Paying sustainable market-related prices consistently allows producers to plan their production and diversify production methods between Weaner and Slaughter Ox production,” the company stated.
The company further states that its strategy to introduce Northern Communal Area (NCA meat to outside markets, resulted in the beef from NCA through the Katima Mulilo Abattoir finding its space in the Ghanaian market, Angola and DRC as exported through the Commodity Based Trade Protocols.
Beef from NCA is also currently being consumed in the country south of
the Veterinary Cordon Fence, also known as the red line, through Commodity Based Trade Protocols.
“Currently, we are in final discussions to open up the Middle East market to begin exporting NCA beef into this market. Meatco made these milestones possible as part of driving an inclusive agenda to service all producers regardless of where they find themselves in Namibia.
“Through Cabinet Directives, official handover and budgetary support from the Shareholder, Meatco is prepared to operate Rundu and Oshakati abattoirs to facilitate market access for the farmers in the rest of the NCA to viable potential markets in Africa, Middle East and Southeast Asia,” the company said.
The company has further revealed that its historic debt has been paid off to date.