The Meat Corporation of Namibia (Meatco) has announced a 20% reduction in cattle producer prices, effective 1 November 2026, as foot-and-mouth disease (FMD) restrictions continue to disrupt beef exports and force the corporation to rely on lower-paying domestic markets.
The price cuts will see farmers receive nearly N$15 less per kilogram of beef, following the temporary closure of key export markets, particularly in Europe, which has significantly reduced Meatco’s revenue.
According to the corporation’s revised pricing schedule, the average price for cattle weighing between 180kg and 219.99kg cold carcass weight will decline from N$72.58 to N$57.67 per kilogram, representing a reduction of 20.5%.
For cattle weighing 220kg and above, the average price will fall from N$75.08 to N$60.17 per kilogram, a reduction of 19.9%.
The reductions mean that a farmer delivering a 220kg carcass at the average price will receive approximately N$3,280 less than under the previous pricing structure.
Under the revised Cattle Delivery Agreement, Grade AB5-6 cattle weighing at least 220kg will fetch N$61 per kilogram, down from N$76, while Grade C1-4 cattle will decline from N$74 to N$60 per kilogram.
Grade A1-4 cattle in the same weight category will fall from N$78 to N$63 per kilogram.
Meatco said the adjustments had become necessary because the loss of access to premium export markets had made its previous livestock purchasing prices commercially unsustainable.
Earlier this year, the corporation maintained average producer prices of approximately N$72 per kilogram, supported by favourable export returns.
However, the FMD-related restrictions have limited slaughter operations to supplying the domestic market, where beef prices are substantially lower than those achieved internationally.
“With slaughter operations currently restricted to supplying the domestic market, where beef prices are substantially lower than those achieved internationally, Meatco must align producer prices with prevailing market conditions,” the corporation said.
Meatco acknowledged that the reductions would place additional financial pressure on livestock producers but warned that maintaining higher purchasing prices without sufficient revenue could threaten its operations.
“Meatco recognises the financial impact this adjustment will have on producers. However, maintaining prices unsupported by current market returns would compromise the Corporation’s ability to procure livestock, sustain operations and protect employment across the value chain,” the corporation said.
The revised prices will apply from 1 to 30 November 2026, with further adjustments dependent on changes to FMD restrictions, veterinary directives and access to domestic and international markets.
Meatco said it was pursuing alternative export opportunities, particularly in Africa and the Middle East, while awaiting the restoration of access to premium international markets.
The corporation is also working with the government, veterinary authorities and industry stakeholders to support FMD containment and restore market access.
“Our immediate priority remains preserving the livestock value chain, protecting jobs and maintaining Meatco’s capacity to serve producers until normal market access is restored,” Meatco said.
