INTRODUCTION OF THE MEATCO FIXED PRICE SLAUGHTER CONTRACT (FPSC)
04 Aug 2017
The beef production industry is an ever-evolving one, thus Meatco needs to move with the times. Namibia is recovering from a drought and most producers are finding it difficult to restock their herd. To assist producers in delivering slaughter oxen and in an attempt to secure consistent throughput for the Windhoek Abattoir, Meatco now introduces the Meatco Fixed Price Slaughter Contract (FPSC).
What is a futures contract?
A futures contract is a legal agreement generally made on the trading floor of a futures exchange, to buy or sell a particular commodity at a predetermined price at a specific time in the future. In this instance, the commodity is slaughter cattle from producers. The producer signs a legal, binding contract to provide a certain amount of slaughter animals to Meatco at a fixed price and at a set point in time. Certain terms and conditions are attached to the contract that will be unique to Meatco.