August 31, 2010

Meatco opposes new beef export quota

Leaked information about the latest Cabinet decision to split a Namibian beef export quota of about 1,600 tonnes equally between two local meat exporters - Meatco and Witvlei Meat, has left the former unhappy.

Meatco, which has been exporting to beef to Norway for the past ten years, was granted 955 tonnes for export to Norway and Witvlei Meat was granted 400 tonnes.

Earlier this year, Witvlei Meat publicly accused Meatco of trying to snatch a bigger quota during the bidding stage, which Meatco denied. The complaint was investigated and dismissed by the Norwegian Competitions Authority.

"We do not agree with the 50-50 quota split as this does not have the national interest at heart," said Uschi Ramakutla of Meatco.

He added that the company works in the interest of the Namibian farmer, and with this split, the return to the farmer is not maximised.

Meatco had proposed a split which would have ensured that the quota allocated would consider the size and cost of the business structures and the business return to the Namibian economy, he said.

The Ministries of Trade and of Agriculture held one meeting with Meatco and Witvlei to discuss the export quota. A second meeting was to follow but this never happened.

Meatco slaughters about 117,000 cattle a year and Witvlei Meat about 13,000 cattle, according to 2009 figures.

Namibia shares an export quota to Norway with Botswana, which totals 2,700 tonnes annually, and Namibia roughly exports about 1,600 of the 2,700 tonnes.