Producer reactions to price dynamics in the beef industry

08 Feb 2019

As a meat-processing and meat marketing entity, Meatco’s overall principle objective is to maximise producer returns sustainably. This is obtained by continuously paying producers competitive prices and fostering the stabilisation of beef prices in Namibia.

Since slaughter resumed on 28 January 2019, Meatco has increased its producer slaughter price in a bid to mitigate the current difficulties in the industry, such as the looming drought and the foot-and-mouth-disease (FMD) outbreak in South Africa, which has since resulted in border closure and in price drops in that country and at local auctions.

Below is a price comparison over the same period for 2018 and 2019:





As a result, of this increment in prices, a number of Meatco’s producers expressed their views on the high prices currently paid out for the first time in the history of the company.

“The current prices offered by Meatco are competitive. I hope Meatco can keep the prices as high as they are because should the price situation in South Africa and locally persist, we will need Meatco to stabilise the prices for at least three more months. I slaughtered 70 heads of cattle on 1 February 2019 and I am pleased with the prices received,” says commercial producer, Mr F.W.Voigts

Another Meatco producer, Mr Richard Kamukuenjandje, an emerging farmer, also highlighted that the current slaughter prices are good.  He further expressed that because of the targeted niche markets, producers are are able to get these competitive prices, which is an innovative way of doing business and producers appreciated this.

“The current drop in weaner prices is a big problem for us, as prices have been affected severely. Therefore, Meatco is really helping us with the current hike in producer prices. I will be delivering my animals to the Okapuka Feedlot in the next two weeks and look forward to realising the competitive prices offered for live sales as well,” says Kamukuenjandje.

Commercial producer, Mr Streicher Coetzee, said he was very happy with the current producer price. He added that with the present challenges faced in the industry, Meatco’s prices were helping producers’ in a very big way.

“I plan on delivering cattle to the Meatco Abattoir from 24 February 2019 and hope Meatco increases or keeps the prices the same.” Mr Coetzee said. 

Additionally, following the FMD outbreak in South Africa, the Namibian Directorate of Veterinary Services has now given the greenlight for the import of fresh and frozen pork products from approved sources and areas, as well on raw meat produced before 5 December 2018 and kept separately to avoid cross-contamination under that country’s Department of Agriculture, Forestry and Fisheries.  

The move comes as a measure to mitigate the negative impacts currently faced by stakeholders in the Namibian beef industry due to the trade restrictions imposed earlier this year.