June 7, 2010

Namibia's Meatco has recorded a net loss of N$17.9 (US$2.29) million for the past year, due to the impact of the global economic crisis during 2009, causing meat consumption to drop worldwide.

The meat company and exporter earned N$95.3 (US$12.18) million less during the 2009-10 financial year, which ended January 31, due to the unfavourable exchange rate of the Namibian dollar, which is pegged to the South African rand gaining 16.4%.

"Due to Meatco's strong balance sheet, the corporation's financial position is not threatened by the current loss. The capacity of abattoirs in Namibia by far exceeds the number of available cattle, yet more facilities are being erected and refurbished," said outgoing Chairman Arne Gressmann.

Meatco's abattoirs had only 69% throughput in the commercial areas and only 17% in the communal areas.

"It is critical for the long-term sustainability of the meat processing industry in Namibia an integrated national strategy is developed by government together with all key role players," Gressmann cautioned.

According to Meatco CEO Kobus du Plessis, the Namibian dollar traded N$14.58 (US$1.86) against the British pound at the end of January 2009. This year at the end of January, the exchange rate was N$12.19 (US$1.56) to the pound.

Despite these odds, Meatco paid out N$121 (US$15.45) million in premiums to farmers who sent livestock for slaughtering to Meatco abattoirs in the 2009-10 financial year.