NAMIBIA’S largest meat company and exporter of meat has recorded a net loss of N$17,9 million for the past year, which ended on January 31, due to the impact of the global economic crisis during 2009, which caused meat consumption to drop worldwide.
Meatco earned N$95,3 million less during the 2009-10 financial year due to the unfavourable foreign exchange of the Namibian dollar, which is pegged to the South African rand, gaining 16.4 per cent. ‘Due to Meatco’s strong balance sheet, the corporation’s financial position is not threatened by the current loss,’ said outgoing Chairman Arne Gressmann on Friday, after Meatco held its annual general meeting. Gressmann’s six-year term has ended. Possible successors could be Vekuii Rukoro or Clara Bohitile, who where nominated, but it depends on Agriculture Minister John Mutorwa who of them he will appoint. ‘The capacity of abattoirs in Namibia by far exceeds the number of available cattle, yet more facilities are being erected and refurbished,’ Gressmann told reporters on Friday. Meatco’s abattoirs had only 69 per cent throughput in the commercial areas and only 17 per cent in the communal areas.’It is critical for the long-term sustainability of the meat-processing industry in Namibia an integrated national strategy is developed by Government together with all key role players,’ Gressmann cautioned.’This would ensure the future viability and growth of the industry by balancing the slaughter and processing capacity in Namibia with the livestock production capacity whilst ensuring that adequate incentives are developed and maintained to grow total slaughter and processing of livestock for export in our country.’ According to Meatco CEO Kobus du Plessis, the Namibian dollar traded N$14,58 against the British pound at the end of January 2009. This year at the end of January the exchange rate was N$12,19 to the pound and end of March 2010 down to N$11,05. Despite these odds, Meatco paid out N$121 million in premiums to farmers who sent livestock for slaughtering to Meatco abattoirs in the 2009-10 financial year. ‘This was less than the previous year but is still excellent considering the general international trading climate,’ added Du Plessis.During the review period – February 1 2009 to January 31 this year – Meatco slaughtered 117 567 head of cattle, lower than the 118 732 of the previous financial year. ‘Local competition for slaughter cattle had significantly increased during the year, both for local consumption and for export,’ according to the CEO.The Meatco abattoir at Katima Mulilo was only allowed to slaughter again in September 2009, after being closed for 24 months due to an outbreak of foot-and-mouth disease (FMD) in the area. As a result, South Africa, which imports meat from Namibia’s northern communal areas (NCAs), placed an embargo on meat products from the areas affected by FMD. Matters improved towards the end of last year. Especially the sales from the Oshakati abattoir increased as the Ministry’s directorate of veterinary services had renegotiated export requirements from the NCAs to South Africa. ‘Aggressive buying’ of live cattle by Angolans from the NCAs and other areas of Namibia further put pressure on the abattoir throughput, according to the Meatco annual report.
