The Livestock Procurement department is a very imporant part of Meatco's success, as it ensure that our abattoir and processing facilities are running optimally and at fullest capacity possible. This department is in constant contact with all our producers across the country, procuring cattle on a continual basis.
In an operation the size of Meatco it is essential that production is constant and as efficient as possible, both in order to fulfil the company's commitments to its customers and the quotas it is bound to, as well as for the benefit of the producers who supply the cattle. It is in no one's interest to have an abattoir or the factory stand idle. Therefore, the Livestock Procurement department has a critical role to play in terms of ensuring that Meatco is able to fulfil its ambit.
On average Meatco procures between 80,000 and 120,000 cattle per annum from Namibian farmers who are known as Meatco Producers.
In 2013 Meatco introduced our backward integration programmes, which include the Meatco-owned Cattle (MoC) initiative. Our backwards integration programme is intended to ensure that Meatco has a consistent and reliable source of high-quality cattle supplied to our processing plants, to ensure maximum utilisation of our facility by means of depenable throughput volumes.
Meatco-owned Cattle (MoC) Initiative
MoC is a partnership agreement between Meatco and its producers. It focuses on securing more cattle for slaughter through contracts with producers; this initiative helps to secure animals earlier in the production chain by procuring weaners and raising them to slaughter animals.
Situated about 30 km along the road between Windhoek and Okahandja, the Meatco Okapuka Feedlot is an intensive animal production system which helps animals younger than 18 months, but weighing more than 280 kilograms, to achieve the desired marketability.
The Okapuka Feedlot has a standing capacity of 9,200, mostly A Grade, cattle at any time. These animals are kept and fed at the facility for a period of 90 days before slaughter.
Feedlot cattle are sourced from communal and commercial producers south of the Veterinary Cordon Fence. Ideally, large frame bulls are preferred for the feedlot and the price paid to the producer is determined on the hoof.
The feedlot has been operational at Okapuka since 1996.
Upgrading, streamlining and making sure our systems work is critical to Meatco’s success as a meat processor is having reliable and efficient systems in place, which make interacting with producers and customers alike user-friendly and effective. Over the last year much time and effort has been invested by Meatco’s Information Technology Department to integrate the Corporations’s supply channels and streamline the MoC initiatives, thereby ensuring that Meatco has full control over its biological assets.
A Producer Classification System has also been introduced; this tool enables Meatco to interact with its producers and provide first-rate service delivery to those producers who have the greatest impact on the business.
To ensure that this efficiency permeates all aspects of the procurement process, procurement policies and pricing models have been updated. The Procurement Department itself has been restructured, with new positions being created to ensure that the Department operates optimally.
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Methods/products available to Producers to deliver cattle at Meatco
1. Direct marketing
The producer applies for a booking request to deliver cattle to one of Meatco’s facilities, and is responsible for all the arrangements concerning the delivery of cattle to the facility in accordance with the agreed upon Purchase Conditions. It is advisable to work with the Meatco livestock procurement team to assist with bookings and deliveries.
Current status: available
2. Backwards Integration Initiatives
2.1 Contract Feeding
A Contract Feeding Agreement allows Meatco to buy cattle and place them in a livestock producer's feedlot to finish them for slaughter. The producer remains overall responsible for the performance, growth and health of the cattle. Meatco slaughters the animals and pays the participant for each kg of live growth achieved during the contract feeding period.
Current status: Available
2.2 Profit Share
A Profit Share Agreement allows Meatco to buy cattle and place them on a livestock producer's farm to grow the cattle either for slaughter or live sale to a Meatco facility. In both cases, the producers receive the gross proceeds of the animals on the day of marketing, less the initial purchase price and the accrued interest over the growing period.
Current status: unavailable
3. Permit Days
Permit Days will be held throughout the year on a scheduled basis at strategic locations predominantly within the communal areas in close collaboration with the local marketing committees/agents and/or Farmers Association and DVS.
Current status: available
4. Rental Feedlotting
A producer can avail his/her feedlot infrastructure and skills to Meatco to procure and grow animals for slaughter. Meatco will provide the feed and medicine for their animals and will guide the producer with respect to animal nutrition, health and welfare. The producer, in turn, receives a daily standing fee per head of cattle standing.
Current status: unavailable
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