July 6, 2022
Savanna Beef raises US$9.8 million to develop new Namibian beef export facility
Savanna Beef Processors Ltd has raised NAD 146 million (~US$9.8 million; NAD 10 = US$0.67) from 549 Namibian beef producers to develop a new Namibian beef export processing facility, The Namibian reported.
The biggest beef exporter in the country is the state-owned firm Meatco, which exports meat to the US, China, Norway, the UK, Germany, Italy, and the Netherlands, with South Africa its biggest export market.
Savanna Beef Processors was formed after discussions among Namibian beef producers at the Beef Value Chain Forum (BVCF).
The new facility requires a total of NAD 200 million (~US$13.4 million).
An industry-led pre-feasibility study on the BVCF, which was completed in early 2020, reportedly outlined the drawbacks and evaluated the profitability of beef exports, according to a statement from the company.
These were addressed, and a thorough feasibility study and a bankable business plan were produced in their wake. These documents were approved by the BVCF members, and Savanna Beef was subsequently registered.
During the first round of funding for the new export abattoir, which ran from April 24 to June 24, Cirrus Capital (the corporate/transaction advisers) toured the nation with the BVCF task team to inform Namibia's beef producers of the project's investment strategy and business plan.
Mecki Schneider, who chairs the Savanna Beef Processors board, said the raised capital shows there is demand in the industry to boost cattle profitability.
The offer was extended to all beef producers listed with the Namibian Meat Board and did not specify farmers on either side of the red line.
- The Namibian