By Hilary Mare
MEAT Corporation of Namibia (Meatco) has increased producer prices to a record high in a bid to cushion producers from the looming drought that they are faced with.
Prices now range from N$40.95 for C-grades to N$46.95 for A-grades for a 260kg carcasses.
According to Acting Chief Executive Officer (CEO), Jannie Breytenbach, Meatco understands the looming drought that producers are faced with and this was vital in keeping the industry vibrant.
“Meatco re-assures our valued producers that we are committed to keeping the livestock industry vibrant as an important segment to the Namibian economy,” said Breytenbach.
Previously, the corporation’s prices ranged from N$33.09 for C-grades to N$40.19 for A-grades for 260kg carcass.
“Meatco’s aim is to stabilise local cattle prices as much as possible and soften the decline in prices as best we can. Despite all the challenges, Meatco strives to help Namibian producers get through these trying times, keeping in mind the future of the Namibian beef industry,” the company said on its website.
B-grade prices now top N$42 from N$35.
On the announced 0-grade prices, there is now a N$2.00 penalty on carcasses with a body conformation of below 3. In the same vein, the premium for 0-grades with a body conformation of 3 and above, no longer exists.
stimulate direct marketing with our valued producers and as a result, we have adjusted our prices to make provision for this,” added the company.
Last year, Confidente reported that according to Meatco’s 2016/17 financial report and despite a 6.2 percent drop in revenue amongst a host of other challenges, the corporation managed to pay close to N$900 million of its revenue to producers.
The report acknowledges that a total of N$899.852 million, representing 53.12 percent of Meatco’s revenue of N$1.694 billion, was paid out to producers with the average producer price of N$34.06/kg being 13.64 percent higher than the previous reporting period (2015/16: N$29.98/kg) and 10.76 percent higher than the South African parity price.
“The total premiums paid by Meatco over and above the South African price amounted to N$72.191 million over the reporting period. 25.09 percent was utilised to purchase goods and services from suppliers. Salaries accounted for 16.15 percent of revenue generated. Financing cost and taxes accounted for 4.55 percent combined and 1.09 percent of total revenue was retained as reserves,” stated the report.
Dr Martha Namundjebo-Tilahun, the Board chairperson of Meatco noted that, because there are so many factors that influence Meatco prices – such as the exchange rate, changes in political power and fuel prices, Meatco has tried its level best to stabilise producer prices.
“As farmers began to restock the national herd, the impact of lower cattle numbers meant that Meatco was compelled to offer record prices in order to motivate farmers to deliver stock to the Corporation. We expect in the first two quarters of the new financial year that slaughter volumes will be low and Meatco will have to rely on the backwards integration initiative to maintain slaughter operations,” she said in the report.
According to the report the group recorded revenue of N$1.694 billion, 6.2percent down from the previous financial year, while the Corporation recorded revenue of N$1.687 billion, 6.3 percent down from the previous reporting period.
The group also generated a net profit of N$19.3 million after tax as compared with a profit t of N$13.1 million in the 2015/16 year and retained a working capital of N$420 million. After settling long-term debts, the Group retained N$87 million in cash at the end of the 2016/17 financial year. Capital spent came to N$47.8 million, adding to an investment up to N$189.5 million over the past three years in upgrading and expanding infrastructure.
Confidente. Lifting the Lid. Copyright © 2015