The Meat Corporation of Namibia (Meatco) says it has rejected a proposal by Savanna Beef Processors (Savanna) to use its abattoirs for slaughtering and processing of beef for export to international markets.
“We have a proposal from Savanna sitting here where they want to slaughter with Meatco then they sell their beef into the Netherlands. Something we have said no to” MeatCo Chief Executive Officer Mwilima Mushokabanji recently told the Parliament.
The Meatco CEO said the company does not see Savanna, being a new entrant to the country’s beef sector as a threat alleging the company’s operations were banking on the privatisation of the government-owned company.
“Savanna is waiting for Meatco to close so that they can come in, the proposal is part of the agenda to privatise Meatco. That is where Savanna will come in and take over. There is no Savanna that will set up an abattoir,” Mushokabanji said.
He said the meat processor was against the proposed plan to privatise the company, saying the challenges faced by the firm could be addressed through policy interventions.
“The enterprise’s failings have amongst other things come from the lack of policies that govern the export of live cattle. This makes it difficult for the enterprise to break even as a business. The only move forward is to summarise what should be done. This is no more a strategic or business acumen issue, this is a policy issue.” Mushokabanji said.
“Now from a policy concept, if you want to change this and run a competitive, profitable and sustainable agro-processing meat industry, there are two things that are very strategic and we are not saying close the borders, we are only saying invest in our schemes.”
Mushokabanji said Meatco needed to slaughter at least 66,000 cattle per year to break even and be profitable but it has only managed to slaughter 36,000 every year since the pandemic and only 2,500 from the beginning of the year till now.
Mecki Schneider, the Chairperson of Savanna Beef Processors, however, said the company was still engaged in negotiations with Meatco.
“We are still in the negotiating phase and nothing has been finalised,” he told The Brief.
Savanna Beef Processors is spearheading the establishment of the facility on behalf of the Beef Value Chain Forum (BVCF), which now represents producer shareholders, to create a sustainable cattle slaughter and marketing industry to ensure a prosperous future for the Namibian beef industry through profitable beef exports.
Savanna anticipates its proposed facility to have the capacity to retain an additional 50,000 weaners for slaughter cattle production through a positive weaner-to-slaughter cattle price ratio.
Savanna has concluded a purchase agreement of the 25 hectares site on the farm Teufelsschlucht subject to a number of conditions and approval for the subdivision of land.
Besides the traditional market of the European Union, Sweden and Norway, Namibia now exports beef to the United States and China.
