Chamwe Kaira
Meat producer, Meatco plans to maximize its returns and improve its revenue by focusing on the key premium markets, that is, Norway, Europe, UK, China and USA.
Norway remains a strategic premium market from which Meatco derives significant revenue from the allocated quota of 1,200 tonnes for 2023, the company said in the 2022/23 annual report.
Meatco said international realisation for the period under review increased by 15% to N$121.60/kg versus prior year (2023: N$106.50/kg).
Meatco obtained a 33.33% interest in GPS Norway AS on 19 May 2014. GPS Norway AS is a Norwegian registered company with the main objective to facilitate the importation of meat and meat products into Norway.
The company is a joint venture with the main objective to facilitate the importation of meat and meat products into Norway.
Meatco received 1,200 metric tonnes or 75 per cent of the Namibian portion of the Norwegian quota.
Accordingly, the EU generated 25 per cent of total revenue, South Africa 11 per cent, Norway 27 per cent and China/Asia 11 per cent.
The company said it will continue to pursue emerging markets in Africa to export beef from the Northern Communal areas.
Beef from the NCA is currently being sold in the south of the veterinary cordon fence of Namibia, Angola and the Democratic Republic of Congo, where higher returns are realised compared to the past.
Meatco generated N$865 million in revenue in 2022/23 compared to N$752 million in 2021/22. The international sales generated N$563.8 million.
In terms of debt, the company’s long term debt consists of three loans from the Development Bank of Namibia (DBN). The first loan has an outstanding balance of N$151 million (2021/22: N$147 million), the second loan has an outstanding balance of N$306 million (2021/22: N$284 million) and the third loan has an outstanding balance of N$213 million.
During the period under review, the government issued a guarantee in favour of the DBN to obtain funding amounting to N$200 million.
The government will repay the N$200 million to DBN on behalf of Meatco. The repayments will be made semi-annually through budgetary provisions, commencing on 31 July 2023 and every sixth month thereafter, while Meatco will be responsible for the interest. The liquidity support from government improved Meatco’s cash flows and working capital.
During the 2022/23 financial year, Meatco paid N$560 million (2021/22: N$492 million) to producers to protect primary livestock production in the national interest of Namibia. The company generated N$865 million in revenue (2021/22: N$752 million). The group incurred a loss before tax of N$118 million (2021/22: N$206 million)
