Namibia’s state-owned meat corporation (Meatco) says it is unfazed by increasing competition in the beef-processing industry since the country has enough cattle to serve both private and public players.
This was after more than 600 farmers established a Beef Value Chain Forum trading as Savannah Beef Processors Ltd.
To date, the independent consortium has raised over N$170 million and is scouting for more funds to reach its N$300-million target to invest in a private sector-led multimillion-dollar beef export processing plant in the country.
“The emergence of new entrants has no effect on our operations, because what we need is at least 60,000 cattle from the 2.5 million herd we have in the country,” said Meatco CEO Mwilima Mushokabanji.
“In fact, we regard this as a health competition. This will even help us address our weakness as a country of not meeting the needs of our market expectation.”
Mushokabanji said Meatco is never short of orders and the company is always inundated with calls from Asia.
“I receive calls every day, the Chinese orders are too much, the whole Asia comprises 4 billion people, and China only 1.3 billion, therefore think about how huge this market is. So, one of our weaknesses is we are failing to meet the expectations of our markets,” he said.
Therefore, he said, if there is any other processing plant that is operational, they are welcome to join the industry as it helps create a healthier competition.
“As Meatco, we believe we have a strong brand, and we have competent human resources… We are satisfied that we are competitive and be able to do business with anyone emerging. What we need to do is control the export of raw materials,” he added.
The business executive, however, bemoaned the fact that Namibia is still exporting live animals to South Africa.
“We need to find mechanisms through investing in fodder production schemes, in feedlots, and also investment in our farms so that we keep these weaners in the country and transition them into oxen. We need to keep these raw materials in the country. On average we export 220,000 to 250,000 live animals, which is not right.”
“Therefore, our position is that there is enough for all of us, it will create equity where we have the private sector into agro-processing with both commercial and a public enterprise. But a public enterprise should first be profitable and have its reserves and then can look after the emerging farmers that want to get into agriculture,” he stressed.
