Meatco needs N$ 80 million to operate Rundu abattoir

The Meat Corporation of Namibia (Meatco) will need about N$80 million in start-up capital to fully operate the long awaited multimillion-dollar Rundu abattoir.

The abattoir is expected to start operating by July, said Meatco chief executive officer Mwilima Mushokabanji during a meeting with the Kavango East and Kavango West regional leadership last week.

The long awaited facility, meant to serve as a market for cattle and small stock farmers in the two Kavango regions, however, will require around N$80 million for the first six months.

The facility was handed to Meatco by the government through the ministry of agriculture.

Mushokabanji said starting the abattoir requires start-up capital, which is challenging.

“We are busy putting our hands together to mobilise that particular amount of money so that we are able to start the abattoir. That is one challenge we have, but we have to make sure that we resolve that. So, we need around N$80 million to really start this abattoir, to be able to operate for the first six months without realising any revenue, and that is the reality of operating an abattoir,” he said.

The money will be used for operational expenses such as electricity, water and the payment of salaries, Mushokabanji said.

The abattoir is 90% ready, and slaughtering trials have been conducted on three occasions.

The facility will be able to slaughter around 100 cattle per day to enhance the cattle and beef value chain in the northern communal area (NCA) and export to markets such as Angola, Ghana, as well as the Middle East.

In order to efficiently operate an abattoir in the NCA, Mushokabanji said key driving forces are competitiveness, profitability and sustainability; thus the need to have quality cattle slaughtered at the facility.

Ultimately, he said it is important for farmers to ensure that Meatco maximises better retention for the farmer because the source of sustainability for an abattoir ensures farmers are in business.

Mushokabanji called for the implementation of the government’s ‘Buy Local’ strategy to compel local businesses winning supply tenders to source meat from farmers in the NCAs.

Kavango West Regional Council chairperson Joseph Sikongo urged Meatco to fast-track the operation of the facility to not later than July.

The N$110 million abattoir was due to be fully operational by 2017. It’s construction started in 2014, but financial constraints and postponements have delayed the completion of the facility.