The Meat Corporation of Namibia (MeatCo) is on its knees and calling for intervention to save its market share.
Chief Executive Officer Mwilima Mushokobanji says the state-owned entity has been grappling with a massive fall in its market share owing to the underutilization of its abattoirs.
Mushokobanji revealed this to the Parliamentary Standing Committee on Economics and Public Administration during a consultative meeting with the management of the parastatal.
The meeting between MeatCo and the Committee, where the parastatal's management informed the lawmakers about its operations, follows a petition to the National Assembly last year by a civic organisation, Lisha Empowerment and Development.
The organisation called for an urgent revival of the livestock market in the Northern Communal Areas.
Mushokobanji noted that despite Namibia having enough cattle, MeatCo was currently operating at a loss because its abattoirs were not fully utilised, primarily due to the increasing number of live animal exports, particularly to South Africa.
"Factors such as high producer prices mainly due to drought, high operational costs, and animal disease outbreaks, among many others. Once enjoying a monopoly, MeatCo currently only has a mere 15% of the market share, with 58% enjoyed by the live export market and the remaining 27% occupied by private entities such as Beefcor and others."
He rejected calls for the privatisation of MeatCo and instead appealed for working capital to sustain its operations.
Kingsley Kwenani, the Executive Officer of the Meatco Foundation, revealed that NCA farmers have found a lucrative market for animals restricted from international export due to health regulations.
However, operators buying meat from private entities instead of MeatCo limits access to this market.
Kwenani suggested protective measures for local producers and proposed the implementation of recommendations from the Namibia National Farmers Union to establish an FMD-free zone.
Members of the Parliamentary Committee, Tobie Aupindi and Phillipus Katamelo, agreed on the need for policy intervention to rescue Meatco.
They cautioned the company to reciprocate the good gesture shown by farmers who have opted to continue supplying to MeatCo instead of emerging private meat processing companies that offer them better prices.