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Meatco generates N$19.3 million

Fri, 7 July 2017 17:56
by Rosalia David
News

Meat Corporation of Namibia (Meatco) has generated a Net pro?t of N$19.3 million compared to N$13.1 million pro?t made in the prior year despite unfavourable climate conditions that affected its operations.

 According to Meatco’s Annual Report for 2016/2017, “the unfavourable climatic conditions and resultant water crisis in Namibia contributed to a challenging year for the Group and Corporation, and therefore, the group recorded revenue of N$1.694 billion, 6.2% down on the previous ?nancial year, while the Corporation recorded a revenue of N$1.687 billion, 6.3% down on the previous reporting period.”

 The report which further shows that, In terms of volume, the company recorded an overall decrease of 21.7% over prior year of the amount of cattle slaughtered south of the Veterinary Cordon Fence, however, managed to generate a net pro?t of N$19.3 million after tax as compared with an N$13.1 million pro?t in the previous year.

Adding that, Meatco’s ?nancial position can be considered healthy at present, however, stated that the only concerns are the limited number of cattle available due to three consecutive droughts. Although Meatco was able to generate a reasonable Net pro?t despite challenges, the report stipulated that, a total of N$899.852 million, representing 53.12% of Meatco’s revenue of N$1.694 billion, was paid out to producers.

“The average producer price of N$34.06/kg is 13.64% higher than the previous reporting period (2015/16: N$29.98/kg) and 10.76% higher than the South African parity price, while the total premiums paid by Meatco over and above the South African price amounted to N$72.191 million over the reporting period,” shows the report.  25.09% was utilised to purchase goods and services from suppliers.

Salaries accounted for 16.15% of revenue generated, while ?nancing cost and taxes accounted for 4.55% combined and 1.09% of total revenue was retained as reserves,” the report recorded. The Namibian company which was established to serve, promote and coordinate the interests of livestock producers in Namibia, further also stated in their annual report that, water crisis in the country slightly affected the Meatco, however, the company responded quite well to the water crisis.

“The general scarcity of water prompted Meatco to make some strategic changes in response to the uncertainty of the water supply in the future and the risks it would pose for production. Because the Windhoek Municipality could guarantee a water supply to the Windhoek factory while the Okahandja Municipality could not, it was decided, due to the lower numbers of cattle brought for slaughter, to close operations in Okahandja and run the Windhoek factory at full capacity,” the report speci?ed.