Staff Reporter
WINDHOEK, Nov. 3 — Farmers unions in Namibia are advocating for the restructuring of Meatco, a significant player in the country’s meat processing industry, by creating two independent subsidiaries. The unions believe this division will enhance the profitability of cattle production and address ongoing challenges.
Under the proposed structure, two separate subsidiaries, Meatco NCA and Meatco South (NewCo), would be established. Each subsidiary would allow shareholding by its respective producers and private investors, to achieve focused decision-making, improved efficiency, and independence. Separate boards and management teams would oversee the operations of each subsidiary.
Roelie Venter, the manager of the Namibia Agricultural Union (NAU), pointed out that the current management of Meatco has proven ineffective, necessitating continuous government bailouts to sustain operations. Venter also highlighted the issue of alleged delayed payments to farmers by Meatco, which has eroded trust and disrupted the beef value chain.
The unions also raised concerns about the perceived imbalance in government support, with southern regions receiving more favour than northern communal areas (NCAs). This inequity is particularly worrisome, given the impending drought, which has prompted farmers in both regions to sell their livestock.
In the proposed Meatco model, the unions recommend that the government take full responsibility for Meatco NCA through subsidy provisions, while Meatco South and Meatco NCA would operate on business principles and adhere to international best practices. Meatco South would receive limited government support, contingent on aggressive debt-restructuring measures.
The unions stressed the significance of weaner production in communal areas and among emerging farmers, urging improvements in animal health north of the veterinary cordon fence (redline). They suggested outsourcing the responsibility for maintaining the redline to the Meat Board of Namibia to ensure the sector’s sustainability and growth.
Parliamentarian Natangue Ithete acknowledged the potential for a Namibian beef market in Angola and stressed the need for a cooperative approach involving the government, parliament, and farmers. However, some committee members expressed reservations about splitting Meatco into two companies, as they feared it could further disadvantage farmers in the NCAs. An alternative approach was proposed, focusing on value addition through local cattle slaughter and meat packaging for exports.
The proposals by the farmers’ unions have sparked a debate about the future of Meatco and the Namibian meat industry. The government’s response remains to be seen, but it is evident that the current situation is unsustainable, necessitating changes to ensure the long-term viability and profitability of the industry.
