Producers oppose new Meatco structure

The change in ownership structure of Meatco has, instead of bringing Government and the producers closer together, moved them to the point that they are now seen as adversaries.

Meatco’s livestock farmers held a general meeting this past Friday for the Board to provide feedback to them on Cabinet’s decisions on the future operational structure and legal framework of the meat company. According to a press release issued by Meatco yesterday the biggest stumbling blocks in the way of the producers are the 30 per cent Government shareholding in a new Meatco, profit-sharing by Government and regional representation on the Board of Directors.The farmers are equally disturbed by the impact of Cabinet’s decision on the country’s free market economic principles.The example of Botswana Meat Commission (BMC) – owned by the Government of Botswana, was raised at the meeting. ‘BMC incurred losses amounting to 400million Pula during the last 2 years, which losses were absorbed by Government. BMC also lost its EU export status which literally brought that country’s livestock industry to virtual collapse,’ argued the farmers. Another example cited was the Namibian sheep marketing scheme that has seriously diminished a once lucrative industry. The meeting was informed that the Meatco Board requested an audience with the Minister to obtain clarity on the Cabinet decisions, to give feedback to its members during the General Meeting. A meeting was held but no extra light was shed on the resolutions. The Minister did however, provide additional feedback by sending a message to the farmers via the Meatco Board for the general meeting, that: ‘if the farmers do not co-operate, there will be serious consequences.’The producers voiced very strong opinions on the Minister’s statement and expressed their disappointment with the non-transparent process through which the Ministry developed the final proposal that was submitted to Cabinet.However they felt so strong about the Working Group’s proposal as a solution to the meat industry that they have instructed Meatco to broaden its scope of consultations and to also approach President Hifikepunye Pohamba to appeal to Cabinet to accept the industry stakeholder group’s proposal.This stakeholders’ proposal does not provide for government shareholding and was compiled by the Namibia National Farmers’ Union, Namibia Emerging Commercial Farmers’ Union, Namibia Agricultural Union, Meatco members, the Meatco Board and Management.The meeting introduced and unanimously approved a vote of confidence in the Board and management and conveyed their appreciation to them. The farmers also decided that the Meatco Board should enter into further consultations with the Minister of Agriculture, Water & Forestry with the aim to obtain clarity with regards to the details and implementation of the Cabinet resolutions of June 5 2012.In the meantime Mutorwa reacted strongly to the press release issued by Meatco, saying that it is regretted that the Meatco board did not deem it fit to first brief the Government about the decisions of its AGM.He said Meatco’s proposals were largely accepted by the Cabinet, except the one that the Government should not have any shareholding in the meat trading company which has yet to be created.Mutorwa called upon the Meatco board and livestock producers to rather concentrate on and provide expected inputs towards the finalisation of the two Bills that will establish the Livestock Producers’ Cooperative and the Meat Trading Company.’The Government’s 30 per cent will go towards the, to be established ,Livestock Development Fund which will be for the benefit of livestock producers in this country, who will be members of the cooperative and trading company,’ Mutorwa said.