Namibia’s Meatco reports US$4.5M profit, eyes sustainability
Meat Corporation of Namibia (Meatco) has shifted to profitability in late 2024, as a major turnaround plan takes shape.
NAMIBIA – Meatco has reported a profit of US$4.5 million (N$85 million) for the 11 months ending December 2024, a stark recovery from a loss of US$8 million (N$150 million) before tax in the previous financial year.
The company achieved a revenue increase of US$23.3 million (N$437 million), reaching US$74.5 million (N$1.2 billion), compared to US$42.6 million (N$765 million) recorded in 2023.
During the same period, Meatco paid out US$56.7 million (N$964 million) to producers, a significant rise of 58% from the US$35.3 million (N$560 million) allocated in 2023.
In total, the company sold 29,120 tonnes of beef across local, regional, and international markets.
At a special meeting on February 11, 2024, board chairperson Sakaria Nghikembua addressed about 100 attendees, explaining the role of Meatco in supporting economic development, including employment generation and poverty reduction.
Despite facing a challenging period in recent years, Nghikembua highlighted that the audited financial results for the year ending January 2024 would reflect these difficulties, although a recovery plan was now in place.
The board’s newly developed turnaround strategy aims to achieve long-term growth, enhance operational efficiency, and improve cost management, alongside targeted marketing efforts to maximize product pricing in key markets.
Nghikembua further noted that the finance and public enterprises minister, Iipumbu Shiimi, had approved the plan, and implementation was already underway.
Acting CEO Patrick Liebenberg outlined seven primary focus areas in line with the company’s recovery efforts, which include securing high-quality cattle, developing Meatco feedlots, and improving off-season delivery readiness.
The company will also prioritize agro-processing, value addition, and ensuring critical maintenance for its operations, while optimizing the overall value chain.
Animal Welfare Challenges Persist
In its most recent annual report, Meatco also addressed the ongoing concerns regarding animal welfare in the beef production process.
Issues at the animal receiving point have included the delivery of 37 clinically ill cattle, with 294 others returned to their farms due to various health concerns.
Post-mortem analysis identified over 100 cases of measles, prompting the company to call for improved hygiene practices at the farm level and greater education for producers to control the spread of zoonotic diseases.
Despite these challenges, Meatco’s microbiological compliance at its abattoirs remained high, with a 97% to 100% success rate in hygiene standards, although some tests indicated minor contaminants due to the aging infrastructure.
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