WINDHOEKELVIS MURARANGANDA
Meatco has incurred more than N$300 million in losses over the past 21 years in the Northern Communal Areas (NCA), in part due to Angolans crossing into Namibia to buy cattle illegally and at higher prices.
Farmers in that area prefer selling to Angolan buyers who are known for paying more than the standard prices set by Namibian authorities in specific weight categories.
According to Meatco northern regional procurement manager, Patrick Liebenberg, Angolans buy the best animals, while Meatco is left with the lean, bony and old cattle that have been rejected by the foreign buyers.
“The Angolans are taking advantage of the system,” Liebenberg said, adding that the meat company can only pay pre-approved prices in the different categories and is bound by that fee structure. Angolans, he said, offer between 20% to 25% more than the approved prices.
Liebenberg said Angolan buyers do not have the interests of Namibian farmers or the country at heart, as they do not follow the legal procedures when buying cattle.
“They are seasonal buyers who come and go. They are not there all the time, but Meatco is there for the farmers.”
He stressed that although Meatco's prices are lower, several factors - including transport costs to travel to the farmers and to carry the animals to a central place before they are taken for slaughter at the abattoirs - influence the buying price.
Meatco's manager for the NCA, Cyprianus //Khaiseb, called on the Ministry of Agriculture, Water and Forestry and the Meat Board of Namibia to come up with strategies to end the “illegal” practises by Angolan cattle buyers.
The NCA stretches from the Kunene to Caprivi regions.
“There are a lot of illegal activities going on there, as these cattle do not go through customs but are herded through the bushes into Angola,” //Khaiseb said.
He further indicated that due to the open border between Namibia and Angola, it is easy for foreigners to drive cattle across the border without paying an export levy, while Meatco pays for this levy for all its exports.
//Khaiseb also called on the Namibian Defence Force (NDF) and border patrols to intensify and ensure that the status quo does not prevail and the Namibian people benefit.
Massive losses
According to //Khaiseb the unwillingness of the farmers to sell their cattle to Meatco has resulted in massive financial losses, mainly due to operational costs.
“We procure much more expensively and we do not receive the same return,” he explained, adding that this led to total losses of over N$300 million in the past 21 years.
Meatco has two abattoirs in the NCA, at Oshakati and Katima Mulilo, as well as a butchery.
Between 2007 and 2008 Meatco's NCA operations made losses of more than N$15 million and managed to buy only 18 799 cattle, while two years later they purchased 9 083 animals and incurred losses of N$22 million.
In 2010/2011, farmers only sold 15 243 cattle to Meatco in the NCA and the company recorded losses of N$27, 7 million.
During the 2012/2013 financial year, Meatco recorded losses of N$24,3 million, although the amount of cattle purchased decreased to just over 10 000.
This occurred even though the company recorded its highest buying prices in its history.
//Khaiseb said the quality of the cattle and their condition also contributed to the company's losses.
At Oshakati abattoir, for example, this year alone more 1300 cattle were rated as having no or very little body fat.
Those aged four years and above amounted to 1 241 cattle.
“Most of the lean cattle bought are from the Kunene Region, where the drought is severe,” //Khaiseb said.
The NCA is on the northern side of the infamous Red Line or veterinary cordon fence, which means cattle on the north of the fence can only be used domestically or exported to South Africa and other African countries.
This is due to the risk of foot and mouth disease.
Meanwhile, cattle from the Caprivi Region, which has been further fenced off from the rest of the NCA, can only be sold locally and exported to other African countries, except South Africa.
//Khaiseb assured farmers in the NCA that although Meatco has been operating at a loss, there have been no talks about closing down factories in the area.
Category: