… N$26m annual loss expected
Hartlief will permanently close the Farmers Meat Mariental abattoir after years of financial losses, with the operation expected to record an estimated N$26 million loss for the financial year ended June 2026.
The closure will affect 102 workers, comprising 19 permanent and 83 temporary employees, as Hartlief moves to wind down operations at the facility by 30 September 2026.
The company attributed the decision to rising livestock procurement costs, unfavourable exchange rates, limited access to premium export markets and international meat prices that have failed to cover production costs.
OL Executive Chairman and Hartlief Managing Director Sven Thieme said the abattoir had recorded losses every year since operations resumed in 2022, despite significant shareholder investment and efforts to improve its financial performance.
“We deeply regret having to close Farmers Meat. Since we reopened the business in 2022, the goal was to build a viable export business supporting Namibian sheep producers and creating lasting jobs,” Thieme said.
“Unfavourable exchange rates, high procurement costs, limited access to premium markets and international prices that fail to cover production costs made continued operations unsustainable.”
The permanent closure follows a strategic review of the operation as Hartlief seeks to protect the financial sustainability of its broader business.
Thieme said there was no clear path to returning the Mariental operation to profitability under prevailing market conditions.
“The greatest sadness in decisions like these is always the profound personal impact on our people. It is truly heartbreaking that, despite our people’s commitment and hard work since re-opening in 2022, the harsh realities of the numerous external factors make it impossible to continue as there is simply no clear path to profitability,” he said.
Hartlief said it is exploring opportunities to redeploy eligible affected employees elsewhere within the company and the wider OL Group.
Following the final wind-down activities on 30 September, management will assess alternative strategic uses for the Mariental facility and its equipment.
The decision marks another closure within Hartlief’s operations this year.
In June, the OL Group announced the permanent closure of the Hartlief Shop & Bistro in Windhoek’s Northern Industrial Area, citing poor financial performance and a decision to focus on Hartlief’s core meat processing and distribution operations.
The group said its assessment found that the Shop & Bistro operated outside Hartlief’s core business and had failed to achieve the level of financial sustainability required to support its longer-term growth strategy.
The latest closure comes as the OL Group continues to review its portfolio and operations under its Vision 2029 strategy.
