{"id":39270,"date":"2023-02-14T17:27:40","date_gmt":"2023-02-14T17:27:40","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors"},"modified":"2023-02-14T17:42:11","modified_gmt":"2023-02-14T17:42:11","slug":"calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors","title":{"rendered":"Calle: No beef with limping Meatco… flirts with Savana Beef behind closed doors"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>Despite painting a bleak picture of the struggling Meat Corporation of Namibia (Meatco), agriculture minister Calle Schlettwein now says the entity is not his baby, instead referring queries pertaining to it to the finance ministry, under which the corporation resides.<\/p>\n

This follows Schlettwein\u2019s recent meeting with representatives of Savanna Beef Processors, which some industry stakeholders see as direct competition for Meatco.<\/p>\n

Senior officials in the agriculture ministry also attended the closed-door meeting.<\/p>\n

A shocked Schlettwein initially refused to provide details of the meeting when approached by this journalist at State House last week, instead requesting that questions be sent to his communications team.<\/p>\n

New Era\u2019s questions to the minister centred around the purpose of the engagement, his views on Savanna Beef Processors, and what he has done to propel Meatco out of the red, apart from bashing the cash-strapped parastatal.<\/p>\n

\u201c[The] Meat Corporation of Namibia is a public entity that is resorting under the Ministry of Finance and Public Enterprises. Please do reach out to them for anything related to Meatco.<\/p>\n

The same goes for Savanna Beef Processors, which is a private entity on its own. Any matters related to them, please do reach out to them,\u201d Schlettwein said, seemingly dodging questions relating to his ministry\u2019s role as a key stakeholder.<\/p>\n

Until the establishment of the now-defunct public enterprises ministry, Meatco resorted under the agriculture ministry.<\/p>\n

That relationship is said to remain symbiotic.<\/p>\n

Critics also say since Meatco became a parastatal, it has jumped from spring chicken to the Intensive Care Unit.<\/p>\n

Schlettwein seemingly echoed these sentiments when he proverbially stated that the Government must decide to terminate Meatco\u2019s life support system, or breathe new life into its ailing operations.<\/p>\n

\u201cI am in no position to entertain any further questions regarding this subject matter,\u201d he said over the weekend.<\/p>\n

Last week, Schlettwein \u2013 who hardly minces his words \u2013 said despite paying off commercial bank loans, Meatco\u2019s financial situation remains precarious as the entity simply borrowed N$437.3 million from the Development Bank of Namibia to pay off its mounting loans.<\/p>\n

\u201cI am very disappointed with the racial slant the discussion about Meatco\u2019s fortunes has taken. It should remain a discussion about how the public interest in a public entity can be best resolved,\u201d he recently vented.<\/p>\n

He went on to say: \u201cThe Development Bank of Namibia recently published its 2021\/22 annual report, ending at 31 March. Meatco loans [with DBN] stood at N$437.3 million. [The] debts to commercial banks were paid off with a loan from DBN. Zero improvement. That is the point\u201d. He added: \u201cNo improvement in the precarious financial situation of a commercial entity, which is pivotal in the Namibian livestock sector, is for sure worrying.\u201d<\/p>\n

No beef<\/p>\n

The arrival of Savanna Beef Processors two years ago \u2013 a conglomerate of private beef producers \u2013 is seen by certain quarters as a direct threat to Meatco\u2019s existence.<\/p>\n

Its proponents, however, opine that healthy competition is necessary to avoid a monopoly, which Meatco currently enjoys.<\/p>\n

Commenting yesterday, Savanna Beef Processors\u2019 chairperson Mecki Schneider said they had nothing to do with Meatco\u2019s fall from grace.<\/p>\n

He also dismissed claims that Savanna Beef\u2019s core objective is to push Meatco out of business.<\/p>\n

According to him, Savanna Beef was conceptualised decades ago. This chiefly emanated from amendments to the Meatco Act in 2001. In addition, it is alleged that various proposals on how Meatco should be run by producers and farmers unions, which were swept under the rug, as well as various ministerial directives, detonated Savanna Beef\u2019s establishment.<\/p>\n

\u201cWe are not a splinter group whatsoever. This is a process that has taken over a decade [to start]… We haven\u2019t slaughtered a single head of cattle yet [not at least until October 2024]. So, how are we competition? I personally slaughter my own cattle at Meatco at the moment,\u201d Schneider said.<\/p>\n

He added that it is crucial to keep Meatco alive.<\/p>\n

\u201cBut if it\u2019s not financially viable, then producers have to ask the question \u2018what is the alternative?\u2019… Producers are concerned, \u2018will they ever get their money?\u2019 This is why Savanna Beef is an option for producers. The support we have received emphasises that there is a need out there to have other abattoirs slaughtering for the export market, and not a monopoly. We are not responsible for anything that has happened to Meatco\u2019s finances,\u201d the farmer reiterated.<\/p>\n

In the eyes of Savanna Beef, the real competition lies in the exportation of live weaners to South Africa.<\/p>\n

\u201cMeatco\u2019s real competition is BeefCo, the other exporting company in private hands; a private family. They have slaughtered more cattle than Meatco. So, how can you argue that we are competition when we have not slaughtered anything yet? And we will not slaughter anything until October next year. So, that argument is discarded. It\u2019s propagandism,\u201d Schneider charged.<\/p>\n

Fragmented<\/p>\n

More so, Savanna Beef\u2019s head honcho noted that if there was cooperation in the beef industry, it would have served their collective interests.<\/p>\n

But this is not the case.<\/p>\n

\u201cIf we could get cooperation in the industry and not be fragmented as we are at the moment, [we could do better as an industry]. It doesn\u2019t make sense to put up a new facility for half-a-billion Namibian dollars if there is an empty [government-owned] abattoir standing in Okahandja,\u201d he reasoned.<\/p>\n

He said Savanna Beef\u2019s attempts to rent the dormant facility from the government were met with staunch resistance.<\/p>\n

The beginning<\/p>\n

On 17 November 2017, concerned farmers converged in Otjiwarongo to discuss Namibia\u2019s beef value chain.<\/p>\n

They agreed there was a problem, as they felt livestock producers for the slaughterer market were under siege from those who were exporting live weaners to the South African market.<\/p>\n

\u201cThat is our real competition. If we can add value to our product here, retain it and export it to the outside world, especially to the high-pricing European market, [especially to] Norway, which is the best market in the world at the moment… we were concerned that we could lose that market, which is of detriment to Namibia,\u201d he said.<\/p>\n

He added: \u201cWe embarked on this project to retain 50 000 more weaners, which we think we can do if we can pay a better price. You will only change this phenomenon of leaning towards weaner production if we engage with market forces with a better price. We are convinced we can do it.\u201d<\/p>\n

This, he said, will add value, create jobs and is in line with the growth-at-home concept.<\/p>\n

\u201cThat money will flow into the pockets of producers in the rural areas and villages of Namibia,\u201d he explained.<\/p>\n

Progress<\/p>\n

Savanna Beef Processors was formed to develop and invest in a new beef export-processing facility in Namibia.<\/p>\n

This process is expected to cost the private entity around N$500 million. The amount is expected to cover both working and assets capital.<\/p>\n

The financing aspect of the project should be completed by March this year.<\/p>\n

Savanna Beef wants to build a state-of-the-art abattoir designed by three international companies, but to be constructed by local contractors, some 35 kilometres south of Okahandja.<\/p>\n

\u201cWe want to make sure that it is state-of-the-art, with the latest designs, to have an efficient flow of our product,\u201d he said, without revealing the names of companies involved.<\/p>\n

Savanna Beef expects to kick off with full- scale operations in the final quarter of 2024, New Era understands.<\/p>\n

Schneider also described their caucus with the minister as fruitful.<\/p>\n

\u201cWe had a meeting; a very positive meeting. We are grateful that despite the short notice, we were able to meet the minister with his senior management team, together with the deputy minister and some directors,\u201d Schneider confirmed, albeit with skepticism.<\/p>\n

The meeting<\/p>\n

The assembly with Schlettwein, he said, was necessitated by a myriad of issues concerning the beef industry, including the state of affairs at Meatco.<\/p>\n

\u201cWe just wanted to get clarity and seek cooperation with the ministry. This is one of our fundamental approaches since the beginning, that we seek cooperation with all stakeholders in the meat industry,\u201d Schneider revealed.<\/p>\n

During the meeting, Savanna Beef also presented their business case to the ministerial delegation \u201con where we come from and what we have achieved.\u201d<\/p>\n

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

Africa-Press – Namibia. Despite painting a bleak picture of the struggling Meat Corporation of Namibia (Meatco), agriculture minister Calle Schlettwein now says the entity is not his baby, instead referring queries pertaining to it to the finance ministry, under which the corporation resides. This follows Schlettwein\u2019s recent meeting with representatives of Savanna Beef Processors, which […]<\/p>\n","protected":false},"author":84,"featured_media":39269,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,12],"tags":[234,236,233],"class_list":["post-39270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-policy","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nCalle: No beef with limping Meatco... flirts with Savana Beef behind closed doors - Namibia<\/title>\n<meta name=\"description\" content=\"Despite painting a bleak picture of the struggling Meat Corporation of Namibia (Meatco), agriculture minister Calle Schl ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Calle: No beef with limping Meatco... flirts with Savana Beef behind closed doors\" \/>\n<meta property=\"og:description\" content=\"Despite painting a bleak picture of the struggling Meat Corporation of Namibia (Meatco), agriculture minister Calle Schl ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-14T17:27:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-14T17:42:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2023\/02\/postQueueImg_1676383089.02.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1728\" \/>\n\t<meta property=\"og:image:height\" content=\"1152\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Calle: No beef with limping Meatco… flirts with Savana Beef behind closed doors\",\"datePublished\":\"2023-02-14T17:27:40+00:00\",\"dateModified\":\"2023-02-14T17:42:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors\"},\"wordCount\":1391,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2023\/02\/postQueueImg_1676383089.02.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"policy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/calle-no-beef-with-limping-meatco-flirts-with-savana-beef-behind-closed-doors\",\"name\":\"Calle: No beef with limping Meatco... flirts with Savana Beef behind closed doors - 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