Minister of agriculture, water and land reform Calle Schlettwein says the state-owned Meat Corporation of Namibia (Meatco) should expand its product offering beyond beef as part of its strategy to survive.
He says the broadened operational strategy will allow the company to be more competitive.
Speaking on Monday during a ministerial strategy workshop at Swakopmund, Schlettwein said Meatco must support market access and price stabilisation for all livestock producers – both small and large – in communal and commercial areas.
“We are working closely with stakeholders for a sustainable future of Meatco and its value creation proposition for the livestock sector,” Schlettwein said.
Once having enjoyed a monopoly, Meatco’s market share has fallen from nearly 100% to between 25% and 30% in recent years.
The minister said private entities such as Savannah Beef Processor have emerged to challenge the company’s dominance, further eroding Meatco’s market position.
Some of the private entities such as Beefcor now slaughter more cattle than Meatco, leading to financial difficulties for the state-owned enterprise.
Schlettwein admitted that Meatco’s challenges stem from its inability to adapt to the new market landscape.
“I believe we must be very clear that it has not so much to do with who owns it – our public interest in Meatco is to make livestock farming profitable in the country,” he said.
The minister proposed tough decisions and restructuring for Meatco, asserting that the organisation’s current structure is too expensive and “not fit for purpose”.
The minister called for a more inclusive definition of livestock in the meat sector, which would encompass cattle, goats, sheep and pigs.
“To make pork farming available and profitable, we need someone to buy,” Schlettwein said, implying that Meatco should diversify its product offerings.
He also recommended that Meatco return to the agriculture ministry as an entity, recognising that the organisation plays a crucial role in the livestock sector, which he described as “the mainstay of agriculture”.
Schlettwein said the company’s goal should be to improve the livelihood of livestock producers.
“The proceeds of meat sold in the best-paying markets must come back to the producer so that they can produce more, produce better and improve their lifestyle,” he said.
With these reforms, Meatco is expected to regain its status as an anchor institution for the livestock sector, ensuring the profitability of farmers and supporting the country’s broader agricultural interests.
The agriculture minister urged stakeholders to contribute their input to the revitalisation of Meatco.
“We should not shy away and say because it is now not with us, it’s not with finance, we shouldn’t keep quiet,” Schlettwein said.
“It’s not so much Meatco for me, it is more the interest of the livestock sector that is close to our heart.”
Schlettwein’s comments come after The Namibian reported that Ombu Capital (Pty) Ltd, a consulting firm owned by former Standard Bank Namibia Holdings chief executive officer Vetumbuavi Mungunda, advised the government to consider setting up a new company in which private investors and farmers would have shareholding.
According to Schlettwein, this would prevent Meatco’s collapse.
The proposed restructuring includes the creation of a new company which will be 75% owned by private investors and the industry, with Meatco holding the remaining 25% stake.