In terms of the agreement, Meatco's Oshakati abattoir will slaughter, process, grade, refrigerate and package beef for Mangetti.

Mangetti will be responsible for buying cattle from its 500 members to be slaughtered at the abattoir, and also for marketing the processed and packaged products.

The agreement is the result of nearly six months of negotiations between the two entities.

The relationship between Meatco and the Mangetti Meat Market had been strained in recent months.

In June, Mangetti's executives accused Meatco of refusing to slaughter their cattle.

Meatco, on the other hand, said it had to stop processing the meat because no payments had been received from Mangetti, leaving its cold storage rooms overflowing with stock.

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