Meatco New Business Model

 

Meatco’s Mobile Slaughter Unit (MSU) is tailored to the unique circumstances of our communal producers in the NCA and aims to bring slaughtering services closer to farmers in the area.

In this way Meatco continues to maintain its statutory obligation and address operational losses which have accrued in running the northern abattoirs which was not economically viable as prescribed by the Act.  Meatco’s lease agreement to manage the NCA abattoirs on behalf of MAWF expired on 4 March 2016.  Meatco gave in October 2015 MAWF notice that we will not extend the agreement due to the huge losses that Meatco and its producers have carried for the last 23 years in the NCA.  Meatco Board made it very clear that Meatco will retain it’s presence within the NCA but in the New Business Model that makes business sense and whereby Meatco can deliver a service to its current members in the NCA area. 

This new Mobile Slaughter Unit (MSU) will target the local market and therefore, the products will only be for local consumption.

The MSU will comply with the procedures of the Health regulations applicable to Directorate Veterinary Services and be registered as a C class abattoir. According to Meatco’s data base we have 1750 producers who have been slaughtering with Meatco to date.We are committed to serve them in the most efficient manner.

Therefore, as Meatco we stand by our core purpose and reason for our existence in the past 30 years; which is maximising producer prices sustainably within the specific environment of our business operations.

 

The advantages of the MSU

  • Reduction of transport cost for producers as the slaughter unit will be the one to go to central points in the region. Meaning that the abattoir goes to farms and farmers will not need to transport cattle over long distances; MSU will go to pre-established areas in the first 12 months.
  • Only core slaughter staff will be employed while the fixed-term seasonal support staff will be recruited in the villages where slaughtering will take place, thus creating local employment;  Create casual jobs around areas
  • Operational flexibility as the mobile slaughter unit will allow 25   cattle to be slaughtered with ease per day;
  • 1st slaughter will be at Mutambo Ribebe Quarantine camp, situated 50km west of Rundu.  Meaning the farmers in Kavango area will no longer have to do the 550km to slaughter their animals in Oshakati but now the facility is way closer to them.
  • Stimulating local entrepreneurship as all offal will be sold directly to villagers, and to Small Medium Enterprises (SMEs) under supervision of Meatco Foundation
  • Reduction of operational costs as the cost of the mobile slaughter unit will be a fraction of the current fixed abattoirs;
  • Opportunity to deploy the mobile unit in the areas South of the Veterinary Cordon Fence (SVCF) in case of future outbreaks. 1st option will be to move MSU within another region in NCA’s.