Meat Corporation of Namibia’s (Meatco) United Kingdom business has received a “STRONG” financial rating in an assessment of 47 meat import and export companies, despite mounting pressure on Namibia’s beef industry following the outbreak of foot-and-mouth disease (FMD).
The rating, issued by UK-based financial analysis firm Plimsoll, comes as restrictions on access to premium beef export markets threaten Meatco’s ability to maximise returns from processed cattle and maintain payments to livestock producers.
Meatco Interim Chief Executive Officer Albertus Aochamub said the assessment evaluated companies based on financial performance, valuation, business outlook and takeover risk.
He said the rating demonstrated the company’s financial resilience at a time when the FMD outbreak was disrupting Namibia’s livestock industry and placing pressure on meat processors and exporters.
“This STRONG rating is important because it confirms that Meatco entered the present crisis from a position of resilience in an international market where many businesses are already under severe financial pressure,” Aochamub said.
According to Meatco, the Plimsoll assessment found that eight companies in the UK meat import and export sector had recorded losses for a second consecutive year, while five were classified as being in financial danger.
A further four companies had lost approximately one-third of their value, highlighting financial challenges facing businesses operating in the sector.
Despite the positive assessment, Aochamub warned that restrictions on premium beef export markets were putting Meatco’s business model under pressure by limiting its ability to secure higher prices for different cuts of beef.
“Our business model depends on extracting the best possible value from a carcass across a combination of premium export, regional and domestic markets. When access to higher-value markets is disrupted, that value chain is immediately placed under pressure,” he said.
He said the disruption had implications for producer returns, processing operations and employment across the livestock value chain.
Aochamub said Meatco was prioritising the protection of producer value, sustaining operations and safeguarding livelihoods dependent on the livestock industry while navigating the impact of the outbreak.
The company is working with government, veterinary authorities, livestock producers, customers and other stakeholders to manage the effects of FMD and support the restoration of access to affected export markets.
Meatco said it was also taking measures to preserve liquidity, retain critical skills, protect employment and maintain relationships with international customers while preparing for the gradual reopening of restricted markets.
Aochamub called for greater cooperation between producers, processors, employees, regulators, organised agriculture and government to limit further disruption to the livestock sector.
“This is a moment for the entire industry to stand together,” he said.
He added that coordinated action would be necessary to preserve export markets, protect businesses and safeguard jobs as the industry responds to the outbreak.
Meatco said the financial assessment provided confidence in the underlying strength of its UK operations, although the restrictions continued to pose challenges to its commercial activities.
“The strength reflected in the Plimsoll assessment gives us confidence that the fundamentals of the business can withstand this period,” Aochamub said.
The company said it remained focused on maintaining product quality, food safety, traceability and customer relationships to protect Namibia’s standing as a supplier of premium beef to international markets.
