{"id":38524,"date":"2023-02-03T16:17:20","date_gmt":"2023-02-03T16:17:20","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/nnfu-dont-slaughter-meatco-yet-2"},"modified":"2023-02-03T16:17:20","modified_gmt":"2023-02-03T16:17:20","slug":"nnfu-dont-slaughter-meatco-yet-2","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/nnfu-dont-slaughter-meatco-yet-2","title":{"rendered":"NNFU: Don\u2019t slaughter Meatco yet"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>It is an open secret that Meatco finds itself between a rock and a hard place, gasping for breath like a dying cow, but it must not be killed, for now, says the Namibia National Farmers Union.<\/p>\n

This position was offered by the union\u2019s acting president Amon Kapi, in an interview recently with New Era.<\/p>\n

The discussion also touched on NNFU\u2019s position on the controversial veterinary cordon fence (notoriously known as the<\/p>\n

red line), Meatco\u2019s collapse, and the treatment of black farmers in general.<\/p>\n

It is Kapi\u2019s position that the bleeding parastatal must be rescued by any means necessary.<\/p>\n

His comments come at the back of agriculture minister Calle Schlettwein\u2019s remarks that the meat corporation is technically in the intensive care unit (ICU).<\/p>\n

Government, Schlettwein said, proverbially must decide to terminate its life support system, or breathe new life into its ailing operations.<\/p>\n

It is a catch-22 scenario for government.<\/p>\n

Not so long ago, the government found itself in a position where it had to choose between pumping millions into the now- defunct Air Namibia, or liquidating it.<\/p>\n

Despite the general public\u2019s condemnation, the government went ahead and liquidated the national carrier, which had been described as a \u2018bottomless pit\u2019 that was draining taxpayers\u2019 money, with little to nothing to show for it.<\/p>\n

Meatco, however, cannot be lumped together with Air Namibia or any other struggling public entity, Kapi said.<\/p>\n

\u201cWe must look for ways to rescue Meatco as liquidation is not an option… we all know that over the years, things were working at Meatco, and it never asked for government bailouts. So, it\u2019s too soon to have that discussion,\u201d he cautioned. Responding, Meatco CEO Mwilima Mushokabanji agreed with the union, saying it was premature to even talk about liquidation.<\/p>\n

\u201cThe discussion on liquidation should not even be on the table,\u201d he said explicitly.<\/p>\n

The executive said the entity had been trapped in historical debt \u201cwith FNB and Bank Windhoek\u201d, which it has since paid off.<\/p>\n

According to him, it is through Meatco\u2019s recent strategy that northern farmers today have markets as far as West Africa, Ghana to be precise.<\/p>\n

Meatco is also working on a strategy to expand Namibia\u2019s beef export to the Middle East. Meatco, he continued, came to the rescue of farmers during the drastic droughts of<\/p>\n

2019 when it made a profit of N$1.7 billion, of which around N$1.3 billion was paid to producers (farmers).<\/p>\n

\u201cMeatco is crucial,\u201d he stressed..<\/p>\n

The NNFU, Kapi said, wants a seat at the high table and to be counted, as they have been sidelined for far too long.<\/p>\n

\u201cMeatco is the only public livestock market for the farmers, and we cannot allow the organisation to go down the drain. We cannot allow our farmers to suffer because of poor management and lack of integrity,\u201d he said in a missive.<\/p>\n

According to him, Meatco is sidelining communal farmers south and north of the red line.<\/p>\n

\u201cMeatco is using the name of communal farmers south and north of the cordon fence when requesting for government guarantees and support. But the funds are actually used<\/p>\n

to cover inefficiency in its operations and paying unjustifiable higher prices to commercial farmers,\u201d Kapi said in a separate statement, seen by New Era.<\/p>\n

\u201cMeatco has only operated in Katima Mulilo for the last three years, yet received government guarantees and equity for support to the northern communal areas (NCAs). Meatco received more than half a billion in combination of a government guarantee and equity in the last four years,\u201d he added.<\/p>\n

It is disheartening that farmers north of the red line are left to fend for themselves, he continued, saying there are no operational abattoirs in Oshana, Kunene and the two Kavango regions.<\/p>\n

\u201cThe government has constructed and renovated abattoirs in the NCAs, supposed to be operated by a public entity, but almost nothing is happening. Construction and renovation of abattoirs, government guarantees and equity are taxpayers\u2019 money, hence cannot be abused on inefficiencies\u201d,<\/p>\n

the union fumed.<\/p>\n

Kapi further alleged that \u201cMeatco is in the process of dissolving the NCAs\u2019 subsidiary, which is the only means to serve the northern farmers. No consultation with farmers, but currently doing it secretly. Same Meatco pulled out of the NCAs in 2015, leaving northern regions without a market.\u201d<\/p>\n

On the controversial red line, NNFU is yet to decide whether or not the cordon fence must be removed. \u201cWe are still consulting with our members, and will soon have a position on the red line,\u201d he said. The Veterinary Cordon Fence (VCF) or red line is a border between north and south, which is used as an animal disease control mechanism.<\/p>\n

Over the years, farmers in northern Namibia have complained about the existence of the VCF, compounded by poor marketing opportunities, grazing management, stock theft and lack of funding.<\/p>\n

Other challenges include the poor viability of abattoirs, which leads to uncompetitive market prices, climate change, and the high cost of production.<\/p>\n

Late last year, the NNFU pointed to the untapped potential for the NCAs\u2019 market, a relatively large herd size finding itself in a<\/p>\n

huge informal market.<\/p>\n

There are an estimated 1.5 million cattle in the NCAs.<\/p>\n

NNFU\u2019s study also called for the expansion of the Foot and Mouth Disease (FMD) free zone. The zone will enable NCAs which have not recorded FMD cases in decades to have access to the lucrative markets south of the red line and others such as South Africa and the European Union (EU).<\/p>\n

\u201cThe creation of a new FMD-free zone will lead to increased cattle prices, which would eventually lead to increased revenue for farmers. The study also highlighted non-monetary benefits of creating an FMD-free zone, such as employment and new markets creation,\u201d stated the union.<\/p>\n

The NCA covers parts of the Kunene, Omusati, Oshana, Ohangwena, Oshikoto, Kavango West, Kavango East and Zambezi regions. Along with South Africa and Botswana, Namibia is one of the biggest beef exporters to the EU.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. It is an open secret that Meatco finds itself between a rock and a hard place, gasping for breath like a dying cow, but it must not be killed, for now, says the Namibia National Farmers Union. 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It is an open secret that Meatco finds itself between a rock and a hard place, gasping for breath like a dying cow, but it must not be killed, for now, says the Namibia National Farmers Union. 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